NEW YORK (TheStreet) -- "Get out of low yielding CDs and bonds, and into high yielding stocks," Jim Cramer told the viewers of his "Mad Money" TV show Wednesday evening.
He said the economy is too fragile for interest rate hikes anytime soon, which makes stocks with dividends the smart choice.Despite the congressional testimony from Federal Reserve chairman Ben Bernanke, and the executives from Toyota (TM), Cramer said the most important news of the day came from Dollar Tree (DLTR), whose strong earnings signaled that the American consumer is still too stretched for interest rates hikes any time soon. With Dollar Tree firing on all cylinders, Cramer said Treehouse Foods (THS)remains his favorite trade-down play. Treehouse is up 12% since last featured on Dec. 21, and Cramer said the stock is still heading higher. Cramer said low interest rates also make high-yielding dividend stocks attractive, especially when compared to bank CDs and treasuries which are yielding less than 2%. Cramer said he still likes Home Depot (HD), a stock which he owns for his charitable trust, Action Alerts PLUS, and one that boosted its dividend just yesterday. Cramer also gave the nod to other dividend boosters, including Kimberly-Clark (KMB), which recently raised their dividend 10%, along with Verizon (VZ) and Altria (MO), another Action Alerts Plus name, which have 6.5% and 7% yields respectively. "Stocks speak loudly sometimes," Cramer told viewers, and high-dividend stocks are speaking the loudest right now.
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