This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Cramer: Get Your Portfolio Into the Bunker

The first thing I would do is buy the stocks of utilities for which I am not concerned that the earnings risk is very high. That means you should buy Dominion ( D). Why Dominion? Because, just this week, we heard on "Mad Money" that this 3.6% yielder is doing incredibly well.

First, it is going to spin off a master limited partnership, which is terrific and will bring in a lot of cash. Second, business itself allows for the continued increase in dividends. Finally, it is building a remarkable liquefied natural gas export plant that is well ahead of every other LNG facility on the books -- with the possible exception of the Cheniere export plant, because both plants were at one-time LNG import facilities. So they are simply reverse-engineering plants that had already been permitted, had the docks ready and have been hooked into pipe.

Dominion CEO Tom Farrell has already pre-sold the LNG, so the risk here is very small. A growth utility may be a terrific place to be as the deadline comes close, or even if it gets passed.

I would also consider the common stock of another serial raiser: ConEd ( ED). Why this one? Simple: It is not a generator of energy. It is a purveyor of energy. That's a nice augmenting of Dominion, which has some coal exposure -- something that ConEd has none of. ConEd is a play on the conversion of oil to natural gas, and it has a ready supply of natural gas to a city that has tremendous growth, and won't be all that affected by a crisis, because the economy is more international than many realize.

Finally, I think we will get a chance to buy Southern ( SO), which is already at about 5% yield and has an amazingly long-term history of paying that dividend through the toughest times imaginable. I have interviewed Southern several times, and I truly think this company gets the sanctity of the dividend better than just any utility. I like the fact that Dave Peltier, who is the portfolio manager for The Street's Dividend Stock Advisor, has selected Southern. That portfolio has beaten the Dow Jones Dividend Index by sporting stocks that have consistently raised their dividends -- which is exactly the opposite, obviously, of what bond-issuers can do.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Real Money
Try it NOW

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums


Chart of I:DJI
DOW 17,050.75 +138.46 0.82%
S&P 500 1,995.83 +15.91 0.80%
NASDAQ 4,810.7880 +19.6360 0.41%

Our Tweets

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs