NEW YORK (TheStreet) - The S&P 500 ETF (SPY - Get Report) is continuing its rally higher, up 0.7% on Wednesday. 

However, on CNBC's "Fast Money Halftime" show, Pete Najarian, co-founder of optionmonster.com and trademonster.com, explained why he's got his eye on the CBOE Volatility Index (VIX.X) . Now that it has fallen below $20 and stayed below that level for a few trading sessions, he suggests investors buy some protection.

As for energy, the sector has been quite strong lately, Najarian said. With the Energy Select Sector SPDR ETF (XLE - Get Report) having rallied almost 10% in the past five trading sessions, he has booked most of his profits in the sector. However, one stock he just bought is Chevron (CVX - Get Report) . 

Jon Najarian, co-founder of optionmonster.com and trademonster.com, also sold most of his energy holdings as oil prices approached $50 per barrel earlier in the day. With the commodity price up, oil companies will likely increase production in order to generate more cash flows. 

Josh Brown, CEO and co-founder of Ritholtz Wealth Management, called it a "classic junk rally" over the past few days, where the worst performing stocks tend to lead the market higher. It makes sense, as short-sellers cover and those waiting to buy add fuel to the fire. Investors shouldn't make too much fuss about those rallies. 

Kevin O'Leary, co-founder of O'Leary Funds and a co-host on Shark Tank, acknowledged that low oil prices are bad for energy companies, but for all the other companies and consumers as a whole, it's a good thing as gas prices and input costs fall. He's not bullish on oil prices going forward, and prefers for the commodity to stay under pressure. 

Brown agreed that $50 oil is better than $100 oil for the economy as a whole. However, he also pointed out that low oil prices weighs on the S&P 500 earnings, which is bad for investors that look at the market as a whole, rather than specifically at each sector. 

The conversation turned to dividend stocks, as O'Leary explained that over the past 40 years, 70% of returns have come from dividends. High quality companies with attractive dividends not only boost returns, but they are less volatile during tough times in the market - such as in August. 

A few of Jon Najarian's top dividend picks include American Capital Agency (AGNC - Get Report) and NuStar Energy (NS - Get Report) . His brother Pete Najarian likes Target (TGT - Get Report) , which pays a dividend yield close to 3% and has increased its annual payout for 44 consecutive years. 

Another stock that has a nice dividend yield - 1.8% - is EMC Corp. (EMC) . The company also has upside to $30, Pete Najarian said. 

Interestingly enough, Institutional Investor's top-rated technology analyst Toni Sacconaghi has an outperform rating and $30 price target on EMC. Sacconaghi, a senior equity analyst at Sanford Bernstein, says the company has activists pushing for change, and it will likely bode well for investors. 

He also likes HP  (HPQ - Get Report) and Apple (AAPL - Get Report) . The former has a low valuation, while the stock has been beaten down this year and has an upcoming catalyst later this year with its split-up. Apple is a more emotionally driven stock, he said, but all hope hinges on the iPhone. A 5% drop in iPhone sales will likely push the stock below $100. But since slowdown fears are already so a high, a 5% increase in iPhone sales could heat the stock up and push it towards $150. 

O'Leary said Apple has been a frustrating stock to own, and that he's becoming increasingly worried about its dependency on the iPhone.

Jon Najarian said he's looking to buy SanDisk (SNDK) on a pullback.

 

This article is commentary by an independent contributor. At the time of publication, the author held TK positions in the stocks mentioned.