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

Click here for an archive of Cramer's "Mad Money" recaps.

---

"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 - Cramer's Take - Stockpickr), First Solar (FSLR - Cramer's Take - Stockpickr), CheMed (CHE - Cramer's Take - Stockpickr) and Akamai (AKAM - Cramer's Take - Stockpickr).

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 - Cramer's Take - Stockpickr), Bristol-Myers (BMY - Cramer's Take - Stockpickr), Verizon (VZ - Cramer's Take - Stockpickr) and Altria(MO - Cramer's Take - Stockpickr). 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.