Power Play: Volatility Protection

Traders work on the floor of the New York Stock Exchange.
Brendan McDermid | Reuters
Traders work on the floor of the New York Stock Exchange.

Stocks are rallying in February, recovering nearly all of the losses from the month before. This move reinforces what many strategists have been saying recently, the return of market volatility. However, you can still make money in this environment.

Jack Ablin, chief investment strategist at BMO Private Bank, suggests preferred stocks. "It's a yield play that's valued more like equity rather than expensive bonds and provides steady income in a low-yield environment, "Ablin told CNBC's "Power Lunch" on Thursday. A good example of this is the PowerShares Preferred ETF, Ablin said.

Read MoreStocks will be 'ripped to smithereens': SocGen bear

Meanwhile, Burns McKinney, portfolio manager at NFJ Investment Group, combats market volatility with dividend stocks.

"Dividend payers have been less volatile than the overall market in every rolling time period for the past four decades; it only makes sense, as dividend yield is simply a component of return, but whereas capital gains can be positive and negative, the dividend component is always positive," McKinney said.

PowerShares Preferred ETF is up about seven percent over the past year.