Cramer's 'Mad Money' Recap: Bargain Stocks With Great Dividends

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"Now's the time to sift through the rubble and look for opportunities," Jim Cramer told viewers of his "Mad Money" TV show Monday. The 10-year Treasury, he noted, yields just 3.87%, which equates to just 2.79% after taxes. This makes stocks with growth and dividends a lot more attractive.

Cramer said he used a similar strategy on March 6, 2007, when after a miserable February, he recommended General Cable (BGC Quote), First Solar (FSLR Quote), CheMed (CHE Quote) and Akamai (AKAM Quote).

According to Cramer, those stocks are up an average of 100% since, while the S&P has risen only 1.5%.

Cramer now sees opportunity for investors in Dow Chemical (DOW Quote), Bristol-Myers (BMY Quote), Verizon (VZ Quote) and Altria(MO Quote). Altria is a stock he owns for his Action Alerts PLUS

All of these companies now have better yields than Treasuries, especially when you factor in a 15% dividend tax rate as compared with a 28% tax rate on Treasuries, Cramer says.

Altria, whose dividend currently yields 3.8%, is set to spin off its international tobacco division in March, which Cramer feels will unlock value.

Cramer likes Verizon, which yields 3.97%, for its fiber-optic network that it is rolling out to 18 million homes and for its defensive nature. Another defensive stock he likes is Bristol-Myers, which yields 4.7%, because of its recent restructuring, high dividend and attractive earnings estimates.

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