Safe Stocks

In today's troubled stock market, it is hard to know exactly where to put your money. If you don't have the time and daring for trading, you could allocate your money in five relatively safe stocks with 20% portions in each one.

The first stock to buy would be DIA, the Dow 30 ETF. DIA is comprised of the strongest industrial stocks in the market. The Dow will eventually come back if anything does. Since we appear to be near a stock market bottom, there is not much downside in holding this position, and it will be a nice capital gain when the stock market recovers.

The next two positions involve REITs that pay a 19% annual dividend. American Capital Agency (AGNC) is one of them, and Armour Residential (ARR) is the other one. ARR also pays a portion of the dividend each month while AGNC pays quarterly. As long as interest rates remain near zero, these REITs will be able to continue paying large dividends.

The final two positions are bond funds that are currently paying around 8% annually. They both pay a portion of the dividend each month. JNK, SPDR High Yield Bonds is one of them, and RCS, Pimco Strategic Global Bonds is the other one.

So, 80% of this portfolio involves nearly immediate monetary gain through dividends, and the 20% Dow portion will probably soon be a 20% gain from the September 9 stock market bottom.