Cramer's 'Mad Money' Recap: P&G's Dividend Payoff

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"We know Bernanke listens," said Jim Cramer on his "Mad Money" TV show Tuesday. However, Cramer admitted that Federal Reserve Chairman Ben Bernanke was not necessarily listening to him but rather "to everyone who's losing money right now."

He added that we're "in for a series of interest rate cuts over and over and over" from the Fed.

With the interest rates going lower, the dividends "are going to be of increasing value, he said. This being the case, Cramer told investors to put their money into a "dividend-paying stock" rather than a CD.

Though a great dividend will yield "money in your pocket," Cramer believes there's much to gain when reinvesting dividends into a stock.

Procter & Gamble (PG Quote - Cramer on PG - Stock Picks) is a "a great stock" and an investment for the long term, Cramer said.

Though "99% of investors" may deem a 2.2% yield on a $64 stock as "unimpressive," Cramer reminded viewers that the stock sold for $30 a share in 2000.

As "the dividend keeps going up," reinvesting the dividend on P&G is like "compound interest." And the company has a "mega-buyback." Cramer considers that "great combination" to be "money in the bank."

Those who follow that principle should "make a pretty penny" as they "invest year after year."

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