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NEW YORK (TheStreet) -- A quarter that is not as miserable as people expected is not enough to lift a stock in today's market, Jim Cramer told "Mad Money" viewers Tuesday. Cramer said the markets want growth, margins and dividends, something investors will find in the least likely of stocks.
Cramer said that many investors expected Apple (AAPL), a stock he owns for his charitable trust, Action Alerts PLUS, to rally on its better-than-expected quarter, as many analysts who loved the stock at its top now loathe it here at the bottom.
But Cramer said that while Apple was able to give investors a dividend boost and accelerated stock buyback program, the company failed to deliver on the next big product that will drive its growth and margins for the next few years. That's disappointing news, said Cramer, news that will likely keep Apple from beginning a significant move to the upside from current levels.That doesn't mean there aren't stocks that have both earnings and dividends, Cramer added. Investors just need to look in unlikely places such as McDonald's (MCD), Caterpillar (CAT) or Pepsico (PEP). Cramer noted that all of these companies are just as innovative as Apple in their own ways, and those new products are boosting earnings and dividends -- which is why investors have been clamoring for them. So while Apple may have been better than expected, investors looking for the whole package should turn to the safety of stocks including Kimberly-Clark (KMB), not Apple, Cramer concluded.
Executive Decision: David WennerIn the "Executive Decision" segment, Cramer once again sat down with David Wenner, president and CEO of B&G Foods (BGS), a company that announced in-line earnings on an 8.8% rise in revenue. Shares of B&G are up 186%, including reinvested dividends, since Cramer first got behind the company in October 2010. Wenner said B&G is putting a lot of effort into reformulating many of its products to bring back the "all-natural" label, as that is what today's consumers are expecting from their foods. He said that for foods that have been reformulated, sales have been increasing -- a sign that the strategy is working.
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