It doesn't hurt when big Dow stocks take matters into their own hands. Isn't that what Verizon (VZ - commentary - Cramer's Take) and AIG (AIG - commentary - Cramer's Take) did tonight with their buybacks and AIG's big -- about time -- boost to the dividend?
The companies in the Dow, hey, most companies, hated what happened Tuesday. They are behind the scenes screaming at the exchanges to get their acts together. And they recognize it is more important than ever that they have orderly markets, which is what a huge buyback can help do.
I also have to tell you that I am very impressed with the cash generation of a Verizon, which is spending so much money putting fiber into the ground. It is rather amazing that the company can, at the same time, buy all of that stock back and pay a good dividend.
For many of these companies, these are excellent times, they just aren't that economically sensitive, which remains the key to this leg of the plan.
At the time of publication, Cramer was long AIG.
P.S. Will you be there when Cramer makes his next move?
Strong brands and companies with vast market exposure can help bolster your portfolio. Jim was able to lock in a 64% gain by buying Ingersoll-Rand at $13 and selling at $22.50. Action Alerts PLUS members were the first to see these moves. Were you among them? Get Free Access Today!
Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for Action Alerts PLUS. Watch Cramer on "Mad Money" weeknights on CNBC.
Click here to order Cramer's latest book, "Mad Money: Watch TV, Get Rich," click here to order his book, "Real Money: Sane Investing in an Insane World," click here to get his second book, "You Got Screwed!" and click here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by clicking here. TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.
RSS FEEDS
PODCASTS
