NEW YORK (TheStreet) -- "Mad Money" Research Director Nicole Urken and Jim Cramer sat down to discuss potential dividend champions in the stock market.
The first company on the list was Macy's (M), which just reported first-quarter earnings. "They had a great quarter," Urken said, "but more importantly they boosted their dividend and buyback."
Cramer added that Macy's increased the dividend by a whopping 25% and that shows the company has confidence in its business. While currently yielding just north of 2%, Cramer thinks this a company to watch in a market decline.
With a healthy economic recovery appearing to be in place, both Cramer and Urken agree that investors should look to Cedar Fair Entertainment (FUN), which is undervalued compared to many of its peers. With excellent growth and fabulous management, Cramer thinks this stock "should be yielding 4%, not 5% or 6%. Cedar Fair is a name to buy," he concluded.Clorox (CLX) also boosted its dividend this week by nearly 12%, rather than the typical 6%. Cramer doesn't think it justifies chasing the stock higher and thinks investors should buy a little bit on a pullback. He noted, "people always have to have a rainy day list." --Written by Bret Kenwell in New York.
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