Pattern Holds for the Dividend Plays

The visceral tug of war between being so oversold that you can keep rallying and the fundamentals, which are not so hot, will play out for some time. That's because a lot of people simply believe that when you buy something like a Caterpillar (CAT - commentary - Cramer's Take) you are buying a great company that is so cheap that you can ride it out.

I get that, why not? It is like Eaton (ETN - commentary - Cramer's Take) -- you can buy it up 1 to make 2 and then sell it up 2 to make 1. That's been the pattern. But it is not a bearish pattern because the selloff was so unbelievably powerful that it is hard to believe that a Freeport (FCX - commentary - Cramer's Take) at almost a 6% yield doesn't discount copper under $2. I always go with the oversold move once it starts going. Too much money to be made.

And you are, in both CAT and FCX, being paid to wait.

There are so many "paid to wait" situations -- whether they be Pfizer (PFE - commentary - Cramer's Take) or Eaton or Nucor (NUE - commentary - Cramer's Take), the big industrials that now have big yields -- that it is impossible to take the market down 10%, not with this oversold status.

Take Chevron (CVX - commentary - Cramer's Take). This has been a "down 10, up 6" story for a long time until it hit a 4.25% yield. That changed the dynamic to where it became an "up 6, down 4" scenario.

There are tons of stocks like these.

Without the forced redemptions, most of the people who own them can't be shaken out as easily, even by downgrades.

I say that this strategy will hold for all of these, unless oil goes to $60, then the whole notion of a rebound in the economy will be so questioned that the 4% yielders will be 5% yielders, where I actually think that you can ride out all but the Great Depression, which I believe has been taken off the table by the aggressive worldwide action.

Now, there are some companies that are so beaten up that you can buy them without dividend protection. I mean Coach (COH - commentary - Cramer's Take), what the heck? They just aren't doing that bad.

But here's the issue. Where does it go? Back to $27? $30?

How about $23.

You want it for that 3 bucks?

For lots of traders the answer is yes. For lots of investors, the answer is, let's hold off, let's wait, there is no hurry.

I am in the "no hurry" camp for certain. Nonetheless, how good a businessman is Lew Frankfort?

Got to love the guy.

Random musings: There are a lot of people asking me what to do with Apple (AAPL - commentary - Cramer's Take). I am going with the Rev on this stuff. If you like it long term, don't worry about it. But the quarter is anybody's guess, and I have no edge whatsoever. Better just to admit it. ... Can't believe this: Western Union (WU - commentary - Cramer's Take) had a Lehman factor. How powerful and seductive was Lehman!

At the time of publication, Cramer was long Chevron and Freeport-McMoRan.

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