NEW YORK ( TheStreet) -- "Investors have paid a high price for being too negative," Jim Cramer told the viewers of his "Mad Money" TV show Tuesday. He said that while the markets have had a remarkable run in 2009, those who were too negative were left in the dust. Cramer recounted the three times this year when being too negative proved to be a costly mistake. He said the first inflection point was when the markets hit their lows in March. Back then, Cramer said even he was afraid to turn positive on the markets. But after a bottoms-up analysis of the Dow, he determined the lowest the markets could go was Dow 6,500, and the downside was just too limited not to be a bull.
Three Dividend StocksInvestors looking for protection, security and income should forget about bank CDs and bond funds, Cramer told viewers. He said that stocks that pay high dividends offer all three, plus capital appreciation and a favorable tax rate. Cramer recommended three dividend stocks including, Altria ( MO), a stock which he owns for his charitable trust, Action Alerts PLUS, Waste Management ( WM) and 3M ( MMM). Cramer said Altria is a steady, domestic tobacco company with over 50% market share in the U.S. cigarette market. The company also owns a 50% stake in SAB Miller Brewing and recently acquired US Tobacco ( UST), giving it a 50% share in smokeless tobacco products. Cramer said over the last two decades, shares of Altria are up 504% if you include reinvested dividends. Waste Management is another great dividend stock, said Cramer. In the trash game, it's all about pricing power, he said, and this company controls 30% of the domestic trash market. Waste Management is a consistent dividend raiser, yielding 3.8%. Finally, Cramer recommended 3M, a company where 29% of its revenues comes from its culture of innovation, which is constantly pumping out new products. The company derives 70% of its revenue from outside the U.S., said Cramer, making it a global recovery play. 3M yields 2.5%, which is small by comparison, but the company has raised its dividend every year for 51 years.
Off the ChartsIn the "Off the Charts" segment, Cramer went head to head with colleague L.A. Little over the chart of Amazon.com ( AMZN), a stock where it might be better to buy high and sell higher, rather than not buy at all. According to Little, Amazon is in bull market mode, with its monthly chart taking out its all-time high set back in 2000, and doing so on strong volume. Little said the daily chart is also bullish, showing the stock breaking out in October and successfully retesting its support levels. Little feels Amazon is a buy right now, and would back up the truck under $126 a share. Cramer agreed with Little's analysis, reiterating his $216 price target on the stock, $82 higher than where it trades today. He said the thesis is simple, ecommerce is getting stronger and Amazon is selling a lot more than just books and music these days. The company is growing at 25%, but Cramer said the estimates for what Amazon could earn are still far too low. Amazon is a buy, he said.
Mad MailIn the "Mad Mail" viewer feedback segment, Cramer told a viewer that he's still bullish on Bucyrus ( BUCY) and Joy Global ( JOYG). Cramer told a second viewer that he's not backing away from Huntington Bancshares ( HBAN), but he hasn't been pleased with the stock's performance as of late.
Lightning RoundIn the Lightning Round, Cramer was bullish on Nordic American Tanker ( NAT), Hartford Financial Services ( HIG), American Tower ( AMT), United States Steel ( X) and Nucor ( NUE). -- Written by Scott Rutt in Washington D.C. To watch replays of Cramer's video segments, visit the Mad Money page on CNBC.