Since its low point last October, the Dow Jones Industrial Average has put on a surprising display of strength, rallying 16% higher in the months that followed. Although many analysts and economists feel a recession could occur sometime early this year, investors would do well to buy stocks that could still rally higher while also protecting their downside.

In particular, dividend-paying stocks have proved their mettle over the past 100 years, with those on the S&P 500 never having a decade where they produced negative returns. Even during the so-called "lost decade" of the 2000s, where the dot-com implosion, 9/11, and the housing market collapse conspired to generate negative returns for the index, dividend stocks still managed gains.

The following stocks provide investors with the best of both worlds: a steady stream of income and the likelihood of capital appreciation.

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Source Fool.com