The stock market is truly a mysterious beast, or as we like to say here at the Fool, a wee bit foolish (notice the lowercase F). The week began with more bad news on the oil spill front as the amount of oil gushing from BP's
However, as the stream of bad news this week paints an ugly picture for the economy, the equity markets don't seem to care, as the Dow Jones Industrial average is likely to post consecutive weekly gains.
While most investors never want to miss a rally, it's important to be protected in case the realities of an economic downturn begin to coincide with the stock market.
Picking stocks with high dividend yields is an essential part of any portfolio, and a great way to offer some downside protection in an unpredictable market. Three high-yielding stock with good balance sheets are Altria
Please also be reminded that dividend stocks are not risk free. It was only a few months ago that investment gurus were recommending BP's for its safety as a high yielder.