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The markets got too negative with the industrial stocks, Jim Cramer told his Mad Money viewers Tuesday. That's why the group saw a classic rotation today as investors gave up on high-growth stocks and clamored for those juicy dividend yields.

The stock of Eaton (ETN) - Get Report was a perfect example, Cramer said, because the company announced both a revenue and earnings shortfal, but saw its shares jump 2.1% after hitting a 4.25% dividend yield.

Dover (DOV) - Get Report followed a similar pattern, with a hideous earnings miss and lowered guidance, only to be met with a 6.6% pop. Same with United Technologies (UTX) - Get Report , up 4%.

Some stocks deserve to be lower, Cramer noted, including Harley Davidson (HOG) - Get Report , down 14%, and IBM (IBM) - Get Report , down 5.7%. But others, like Lockheed Martin (LMT) - Get Report , are just off their highs and should still be bought. Lockheed is a holding in Cramer's Action Alerts PLUS portfolio.

All of this buying, of course, came at the expense of high-growth stocks including Tesla Motors (TSLA) - Get Report , Alphabet (GOOGL) - Get Report and Chipotle Mexican Grill (CMG) - Get Report , all of which were lower on the day.

Off the Charts

In the "Off the Charts" segment, Cramer went head to head with colleague Bruce Kamich over the chart of IBM, a stock that hit fresh five-year lows after another quarterly earnings miss.

Looking at a long term weekly chart of IBM going back to 2006, Kamich noted that after a four-year rally from 2009, IBM topped out in 2012 and has been heading lower ever since, locked into a multi-year downtrend.

IBM's daily chart confirmed his outlook, with the stock trading well below its 200-day moving average, with the on-balance volume line having peaked in May, plunging to lower levels ever since.

Looking at a different type of chart, a point and figure plot, Kamich illustrated that IBM's next move could be all the way down to $116 a share, or 18% lower than it trades today.

Cramer agreed with Kamich's grim outlook, saying the right move has been to bet against IBM, and that's likely going to continue to be the case.

4 Companies, 4 Strategies

When your company's growth is slowing, you need to take action, Cramer told viewers, and in the case of IBM, SanDisk (SNDK) , Walmart (WMT) - Get Report and Yum! Brands (YUM) - Get Report , the actions you take can yield very different results.

IBM is betting that its fast growing segments will offset the decline in its older legacy business, but as we just saw, that strategy isn't happening fast enough and shareholders are heading for the exits.

SanDisk is tackling the growth problem by reportedly putting itself up for sale, news that popped its shares 4.4%.

Meanwhile, Walmart is taking a longer-term approach, investing to fix its problems of a starved infrastructure and workforce over the next three years. This move is necessary to preserve its viability long term, but in the short term shareholders hate it.

Finally, there's Yum!, which has decided to bring out value by spinning off its business in China. This move could reward shareholders eventually, but Yum!'s China business isn't in great shape at the moment and the spinoff will be a long time coming.

So of the four ways to tackle slowing growth, Cramer concluded that only one, SanDisk, affords shareholders a quick payoff while the others will require lots and lots of patience.

Executive Decision: Chip Johnson

For his "Executive Decision" segment, Cramer spoke with Chip Johnson, president and CEO of Carrizo Oil & Gas (CRZO) - Get Report , a stock that's down 16% for the year after a big secondary offering of 6.3 million additional shares.

Johnson said he sees the current price of oil as a fair price in the global market. He said about 80% of Carrizo's wells break even between $40 and $41 a barrel, so he's comfortable with the outlook.

Johnson added that some oil companies have stretched themselves too thin and are in need of additional financing, but Carrizo has also played it conservative with their growth.

When asked where he sees oil prices heading next, Johnson said that he doesn't see a lot of downside risk left in the market, but added that prices could rise sharply if supply gets disrupted as there isn't a lot of spare capacity left to come online.

Cramer once again recommended Carrizo as one of the most prudent and conservative oil producers out there.

Lightning Round

In the Lightning Round, Cramer was bullish on Accuray Incorporated (ARAY) - Get Report , Intuitive Surgical (ISRG) - Get Report , HollyFrontier (HFC) - Get Report , Nordic American Tanker (NAT) - Get Report , ACE Limited (ACE) , Travelers Companies (TRV) - Get Report and Kohlberg Kravis Roberts (KKR) - Get Report .

Cramer was bearish on Quanta Services (PWR) - Get Report , CVR Refining (CVRR) , GasLog (GLOG) - Get Report and American International Group (AIG) - Get Report .

Executive Decision: Pete Petit

In his second "Executive Decision" segment, Cramer sat down with Pete Petit, chairman and CEO of MiMedx Group (MDXG) , a biotech that has created regenerative biomaterials to aid in advanced wound healing.

Petit explained that MiMedx processes donated placenta tissues into a wax paper material that is loaded with proteins and stem cells that can be sewn into wounds to help them close faster. The process is already in use by the military and is the preferred method of treatment by VA hospitals.

MiMedx' products can be used in a host of different applications, Petit continued, from plastic surgery where scar tissue needs to be reduced, to abdominal surgery where slow healing wounds cause immense pain. MiMedx is currently profitable, trading at 39 times earnings.

To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.

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At the time of publication, Cramer's Action Alerts PLUS had a position in LMT.