Editor’s Note: Robert’s article today covers three strategies for navigating volatile markets — including two stocks from his own portfolios. If you want to see the full list of essential-service stocks Robert is recommending right now, his Best Buys list is available to Utility Forecaster subscribers.

When markets start lurching the way they have over the past few weeks, the natural instinct is to pull back, raise cash, and wait for the storm to pass. The Dow has slipped into correction territory, the S&P 500 has logged multiple consecutive weekly losses, and volatility has come roaring back. Layer in geopolitical tension in the Middle East and concerns over disruptions in the Strait of Hormuz, and it’s no surprise that investors are feeling uneasy.

But this is the part many people forget: periods like this are when long-term wealth is built. Not by swinging for the fences or trying to call the exact bottom, but by staying invested in companies that can withstand stress and continue rewarding shareholders through the cycle.

The key is not to avoid risk entirely—it’s to manage it intelligently. Here are three ways to stay invested without taking reckless risks, even as headlines grow louder and markets get choppier.

Lean Into Companies With Durable Cash Flows

When uncertainty rises, the market tends to rediscover the value of consistency. Companies with steady cash flows, essential services, and business models that don’t rely on perfect economic conditions tend to hold up best. That includes utilities, midstream energy firms, and select industrial companies.

A good example is The Williams Companies (NYSE: WMB). Williams operates one of the largest natural gas pipeline networks in the country, handling roughly one-third of the gas consumed in the United States each day. Think of it as a “tollway” for energy. Its revenue is largely fee-based and tied to long-term contracts, meaning cash flow is relatively insulated from daily swings in commodity prices. Whether natural gas is cheap or expensive, it still has to move—and Williams gets paid either way.

Actionable idea: Look for “tollway” business models—companies that provide essential services, operate with high barriers to entry, and have a long track record of stable or growing dividends.

Favor Balance Sheet Strength Over Story Stocks

In calm markets, investors are often drawn to compelling narratives. In volatile markets, those narratives tend to take a back seat to financial strength.

Companies with low debt, ample liquidity, and consistent free cash flow have the flexibility to keep investing, continue paying dividends, and even repurchase shares when prices fall. These are the businesses that don’t just endure downturns—they often emerge stronger as weaker competitors pull back.

A prime example is Ameren Corporation (NYSE: AEE). Ameren provides electric and natural gas service to millions of customers across Missouri and Illinois. Because its rates are regulated and its services are essential, its revenue stream is highly predictable. It’s not a high-growth story, but that’s precisely the point—this is a company designed to deliver stability and income regardless of economic conditions.

Actionable idea: Focus on companies with investment-grade credit ratings and business models that customers simply cannot do without, especially those with a history of maintaining dividends through downturns.

Use Volatility to Your Advantage

This is where many investors miss an opportunity. Volatility isn’t just something to endure—it’s something you can use.

As markets become more volatile, option premiums increase. That makes income strategies like covered calls and cash-secured puts more attractive. These approaches allow you to generate income while either lowering your cost basis or setting disciplined entry points into stocks you already want to own.

Consider Bristol-Myers Squibb (NYSE: BMY). This is a cash-flow-rich healthcare company with a diversified portfolio of established drugs and a deep research pipeline. In volatile markets, stocks like BMY sometimes sell off along with everything else, creating opportunities to step in at attractive valuations. Meanwhile, its strong free cash flow supports dividends and share repurchases even when sentiment turns negative.

Actionable idea: Look for high-quality companies trading at valuation discounts driven by market fear rather than deteriorating fundamentals—and consider using options to get paid while establishing or managing your position.

The Bottom Line

Markets may be unsettled, but that doesn’t mean you need to be. By focusing on durable cash flows, strong balance sheets, and disciplined income strategies, you can stay invested and continue building wealth—even in turbulent conditions.

Volatility feels uncomfortable in the moment, but historically, it has rewarded those who remain patient, selective, and committed to high-quality businesses.

The three strategies I’ve outlined — durable cash flows, balance sheet strength, and using volatility to your advantage — are exactly how I manage my Utility Forecaster Growth and Income portfolios. Williams Companies, Ameren, and Bristol-Myers Squibb are just a starting point. I track over 200 essential-service stocks with my proprietary Safety Rating System, and every month I publish a Best Buys list ranking the most attractive names for new money. If you’re looking to stay invested through this turbulence — and get paid while you do — see my full portfolio and current Best Buys list →