This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

TheStreet.com TV Recap: Dividend Plays Shine When Fed Cuts

"When the Federal Reserve starts cutting, I like to look for stocks with high dividends, simply because people will be flushed out of cash," Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video Friday.

"Cash makes no sense, there is no upside," Cramer said. "Rates are obviously now headed down, and any stock that has a good dividend is now headed up."

Cramer asked David Peltier, research manager at TheStreet.com, for three dividend-raising names he likes in the current environment.

"I still do like US Bancorp (USB)," a stock that is putting 80% of its earnings into buybacks and dividends, Peltier replied. Warren Buffett just doubled his stake in USB, and as Buffett "was the best bank buyer in the last bank crisis," according to Cramer, Peltier said he would definitely want to follow Buffett on this stock.

Another name Peltier said he likes is Reynolds American (RAI), a tobacco manufacturer that Cramer recommended on his "Mad Money" TV show Thursday. "It's a good tobacco play still yielding over 5%," Peltier said.

Although RealMoney.com contributor Charles Norton is saying that cigarette makers Carolina Group (CG) and Altria (MO), which Cramer owns for his charitable trust, Action Alerts PLUS , would be much better, Cramer asked Peltier if Norton was "missing the point that you want to buy someone who's raising dividend right now."

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,766.40 +88.50 0.53%
S&P 500 1,959.40 +8.58 0.44%
NASDAQ 4,468.81 +16.0180 0.36%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs