Mad Money Mailbag: Non-Toxic Chemical

A viewer learns why Dow is Cramer's pick in this sector.
Author:
Publish date:

Editor's note: The following are questions received from viewers of "Mad Money," seen every day at 6 p.m. EST on CNBC.

You've suggested owning a chemical company as part of a diversified portfolio. What names do you prefer?-- Wally from California

Jim Cramer

:

Dow Chemical

(DOW) - Get Report

has traditionally been the best-of-breed in this group. I believe the chemicals are quite cheap, as they've received no credit for the recent drop in natural gas prices. At around $40 a share, Dow is currently changing hands at just 8.3 times expected 2006 earnings. The stock also offers a secure 3.8% dividend yield.

Want more Cramer? Check out Jim's rules and commandments for investing from his latest book by

clicking here

.

At the time of publication, Cramer had no positions in stocks mentioned.

Jim Cramer is a director and co-founder of TheStreet.com. He contributes daily market commentary for TheStreet.com's sites and serves as an adviser to the company's CEO. Outside contributing columnists for TheStreet.com and RealMoney.com, including Cramer, may, from time to time, write about stocks in which they have a position. In such cases, appropriate disclosure is made. To see his personal portfolio and find out what trades Cramer will make before he makes them, sign up for

Action Alerts PLUS. Listen to Cramer's RealMoney Radio show on your computer; just click

here. Watch Cramer on "Mad Money" at 6 p.m. ET weeknights on CNBC. Click

here to order Cramer's latest book, "Real Money: Sane Investing in an Insane World," click

here to get his second book, "You Got Screwed!" and click

here to order Cramer's autobiography, "Confessions of a Street Addict." While he cannot provide personalized investment advice or recommendations, he invites you to send comments on his column by

clicking here.

TheStreet.com has a revenue-sharing relationship with Traders' Library under which it receives a portion of the revenue from Traders' Library purchases by customers directed there from TheStreet.com.