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"This recession has only just begun," Jim Cramer warned viewers of his "Mad Money" TV show Wednesday.

He told them this is the worst market he's ever seen and advised them to sell into strength and stick only with the right stocks for this environment.

He told investors they should look for stocks with a sky-high dividend yield and management who can handle a recession.

One company that fits that bill is


(ETN) - Get Report

, he said.

After sliding from a high of $99 a share, Eaton has slid to $39 a share and sports a 5.1% dividend yield. That slide is just too far, too fast, said Cramer. The company now trades at where it did in 2003, but it is a completely different animal.

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Since 2003 Eaton has nearly doubled its revenues, improved its margins and raised its dividend 117%. The company has also prepared itself for a recession by diversifying out of autos, which accounted for 41% of the company's sales five years ago to 27% today. The company now focuses on electrical and fluid power systems, making components for a wide array of industries and applications.

Cramer reminded viewers of the power of reinvesting dividends by noting that reinvesting Eaton's dividends would double investors' money every 14 years, even without any stock appreciation.

He advised buying Eaton on a scale as it trends lower and selling portions if it trends higher.

Cramer: Apple's Juicier Than RIM

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Clear Skies

Cramer spoke with Ronald Shaich, chairman and CEO of

Panera Bread


, a stock which he called one of the bright spots of a horrendous day.

The company reported its earnings Tuesday, beating estimates bytwo cents a share and reporting better-than-expected comparable store sales and gross margins.

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Cramer last recommended Panera on July 23 on the premise that the company's input costs have been falling. Since then the stock has fallen 13.6%, but Cramer said the company is still enjoying those cost savings.

Shaich called the impending recession a good thing for Panera, and one that the company has been preparing for over a year. He said the company has high customer satisfaction, a strong cash position and no debt on its balance sheet.

Shaich said he does not see the recession affecting Panera in a large way. He said while their customers may trade down on a car purchase, they will still eat at Panera on average three times a month.

Shaich admitted that the commercial real estate market is in a period of transition, with some developers delaying or pulling back on projects, but he called the market a great opportunity for strong companies.

He said the company sees no need for a stock buyback program and instead has chosen to use the money to expand its operations.

Outrage of the Day

Cramer added



CEO Eli Harari to his "Wall of Shame" list of the worst executives, for his rejection of


's takeover bid.

Cramer said any CEO who rejects an offer as generous as Samsung's, which valued the company at a 93% premium to its share price, is only looking out for himself and not for shareholders.

Am I Diversified?

Cramer spoke with with callers to see if their portfolios make the grade. The first caller's portfolio included


( KFT),


( KFT),

Wells Fargo

(WFC) - Get Report





Proctor & Gamble

(PG) - Get Report


Cramer said this caller is doing everything right, and was not concerned with the partial overlap of Kraft and P&G.

The second caller's top holdings included

Clean Energy

(CLNE) - Get Report


Huntington Bancorp

(HBAN) - Get Report


(CRM) - Get Report



(CBS) - Get Report


National City

( NCC).

Cramer flagged National City and Huntington as two banks that are just too risky for this market.

The third caller had

ABB Limited

(ABB) - Get Report



( KFT),


(KBR) - Get Report



(PFE) - Get Report


Quanta Services

(PWR) - Get Report

as their top five stocks.

Cramer identified three of a kind with ABB, KBR and Quanta in the engineering field. He said this portfolio needs a defense contractor or a financial stock.

Mad Mail

In this segment, Cramer told a viewer that he's worried about

Genuine Parts

(GPC) - Get Report

, and thinks that

Monro Muffler

(MNRO) - Get Report

is the better auto parts play.

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Lightning Round

Cramer was bullish on

Duke Energy

(DUK) - Get Report


Cramer was bearish on


(DDS) - Get Report


Roper Industries

(ROP) - Get Report


Polaris Industries

(PII) - Get Report


Genworth Financial

(GNW) - Get Report


South Jersey Industries

(SJI) - Get Report



(AME) - Get Report


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At the time of publication, Cramer was long Kraft, Proctor & Gamble, Quanta Services.

Jim Cramer, host of the CNBC television program "Mad Money," is a Markets Commentator for, Inc., and CNBC, and a director and co-founder of All opinions expressed by Mr. Cramer on "Mad Money" are his own and do not reflect the opinions of or its affiliates, or CNBC, NBC UNIVERSAL or their parent company or affiliates. Mr. Cramer's opinions are based upon information he considers to be reliable, but neither, nor CNBC, nor either of their affiliates and/or subsidiaries warrant its completeness or accuracy, and it should not be relied upon as such. Mr. Cramer's statements are based on his opinions at the time statements are made, and are subject to change without notice. No part of Mr. Cramer's compensation from CNBC or is related to the specific opinions expressed by him on "Mad Money."

None of the information contained in "Mad Money" constitutes a recommendation by Mr. Cramer, or CNBC that any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. You must make your own independent decisions regarding any security, portfolio of securities, transaction, or investment strategy mentioned on the program. Mr. Cramer's past results are not necessarily indicative of future performance. Neither Mr. Cramer, nor, nor CNBC guarantees any specific outcome or profit, and you should be aware of the real risk of loss in following any strategy or investments discussed on the program. The strategy or investments discussed may fluctuate in price or value and you may get back less than you invested. Before acting on any information contained in the program, you should consider whether it is suitable for your particular circumstances and strongly consider seeking advice from your own financial or investment adviser.

Some of the stocks mentioned by Mr. Cramer on "Mad Money" are held in Mr. Cramer's Action Alerts PLUS Portfolio. When that is the case, appropriate disclosure is made on the program and in the "Mad Money" recap available on The Action Alerts PLUS Portfolio contains all of Mr. Cramer's personal investments in publicly-traded equity securities only, and does not include any mutual fund holdings or other institutionally managed assets, private equity investments, or his holdings in, Inc. Since March 2005, the Action Alerts PLUS Portfolio has been held by a Trust, the realized profits from which have been pledged to charity. Mr. Cramer retains full investment discretion with respect to all securities contained in the Trust. Mr. Cramer is subject to certain trading restrictions, and must hold all securities in the Action Alerts PLUS Portfolio for at least one month, and is not permitted to buy or sell any security he has spoken about on television or on his radio program for five days following the broadcast.