Volatile markets are a good time to consider safe strategies for protecting your portfolio. While timing the market is nearly impossible, positioning your portfolio to weather uncertainty is entirely within your control.
That's why periods of volatility often serve as a reminder to rebalance toward assets that can provide stability and predictable returns.
One of the most reliable safe strategies is to incorporate income-focused strategies, especially high-quality dividend stocks. These companies typically generate consistent cash flow, maintain strong balance sheets, and operate in industries with durable demand. As a result, their dividends can help smooth out returns when growth stocks sell off.
The steady income stream also provides a natural hedge, allowing investors to stay invested rather than panic-sell during downturns.
For many retail investors, dividend payers offer the right mix of defense and opportunity, delivering both resilience in turbulent markets and long-term compounding potential.
However, you’re not going to get the kind of income you need from one or two dividend stocks. But the more stocks you add, the more risk you undertake. Fortunately, you can choose to invest in exchange-traded funds (ETFs). Here are four solid choices for investors heading into 2026.
Safe Strategies for Investors: The Amplify CWP Enhanced Dividend Income ETF (DIVO)
The first pick is the Amplify CWP Enhanced Dividend Income ETF (NYSEARCA: DIVO). The fund has delivered investors a total return of 39.9% over the last five years. .
With a yield of 1.66% and an expense ratio of 0.56%, the Amplify CWP Enhanced Dividend Income ETF invests in large-cap companies with a strong history of dividend growth. It also uses a covered call strategy on individual stocks to offer high total returns. As of December 2025, the top four sectors by weight were financials (24%), technology (14%), consumer discretionary (12%), and industrials (10%).
"DIVO seeks investment results that correspond generally to an existing strategy called the Enhanced Dividend Income Portfolio (EDIP)," as noted by AmplifyETFs.com. That strategy attempts to generate income through dividends and short-term covered calls in an effort to increase cash flow and consistent annual income. In addition, with that strategy, the EDIP holds blue-chip stocks from the S&P 500, the Dow 30 and the S&P 100.
Safe Strategies for Investors: JPMorgan Nasdaq Equity Premium Equity Income ETF (JEPQ)
The next ETF to consider is the JPMorgan Nasdaq Equity Premium Equity Income ETF (NASDAQ: JEPQ). This is a relatively young fund that has only been in existence since 2022. It’s delivered a total return of 18.84% in that time.
With a yield of 9.74%, the JPMorgan Nasdaq Equity Premium Equity Income ETF generates income by selling options and by investing in U.S. large-cap growth stocks. This allows the fund to deliver a monthly income stream through options premiums and stock dividends. JEPQ has an expense ratio of 0.35%.
As of December 2025, the top three sectors by weight were technology (41%), consumer discretionary (12%), and communications (12%).
Safe Strategies for Investors: JPMorgan Equity Premium Income ETF (JEPI)
The JPMorgan Equity Premium Income ETF (NYSEARCA: JEPI) generates income by combining some of the top blue-chip stocks, such as Amazon (NASDAQ: AMZN), Mastercard (NYSE: MA), and NVIDIA (NASDAQ: NVDA), with options strategies.
All of which help produce hefty monthly income for investors. In fact, last checked, the JEPI ETF yields about 7.24%, which isn't too shabby at all.
With an expense ratio of 0.35%, the ETF holds 122 stocks. As of December 2025, the top three sectors by weight were technology (15%), healthcare (12%), and financials (11%).
Safe Strategies for Investors: iShares Core High Dividend ETF (HDV)
Last on this list is the iShares Core High Dividend ETF (NYSEARCA: HDV).
With a yield of 3.41% and an expense ratio of 0.08%, the iShares Core High Dividend ETF tracks the investment results of an index composed of relatively high dividend-paying U.S. equities. Some of its top holdings include Exxon Mobil (NYSE: XOM), Chevron (NYSE: CVX), and Johnson & Johnson (NYSE: JNJ).
Conclusion
Heading into 2026, dividend-focused ETFs offer retail investors a practical way to balance income, stability, and long-term performance. Whether through covered calls or high-dividend blue-chip stocks, these funds provide a defensive foundation during times of uncertainty. For investors seeking lower risk without sacrificing returns, these ETFs deliver a compelling solution.
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