"When the Federal Reserve starts cutting, I like to look for stocks with high dividends, simply because people will be flushed out of cash," Jim Cramer said on TheStreet.com TV's Wall Street Confidential Web video Friday.

"Cash makes no sense, there is no upside," Cramer said. "Rates are obviously now headed down, and any stock that has a good dividend is now headed up."

Cramer asked David Peltier, research manager at TheStreet.com, for three dividend-raising names he likes in the current environment.

"I still do like US Bancorp ( USB)," a stock that is putting 80% of its earnings into buybacks and dividends, Peltier replied. Warren Buffett just doubled his stake in USB, and as Buffett "was the best bank buyer in the last bank crisis," according to Cramer, Peltier said he would definitely want to follow Buffett on this stock.

Another name Peltier said he likes is Reynolds American ( RAI), a tobacco manufacturer that Cramer recommended on his "Mad Money" TV show Thursday. "It's a good tobacco play still yielding over 5%," Peltier said.

Although RealMoney.com contributor Charles Norton is saying that cigarette makers Carolina Group ( CG) and Altria ( MO), which Cramer owns for his charitable trust, Action Alerts PLUS , would be much better, Cramer asked Peltier if Norton was "missing the point that you want to buy someone who's raising dividend right now."

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