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.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
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.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
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.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV