NEW YORK ( TheStreet) -- "Mad Money" Research Director Nicole Urken and Jim Cramer sat down to discuss potential dividend champions in the stock market.

The first company on the list was Macy's ( M), which just reported first-quarter earnings. "They had a great quarter," Urken said, "but more importantly they boosted their dividend and buyback."

Cramer added that Macy's increased the dividend by a whopping 25% and that shows the company has confidence in its business. While currently yielding just north of 2%, Cramer thinks this a company to watch in a market decline.

With a healthy economic recovery appearing to be in place, both Cramer and Urken agree that investors should look to Cedar Fair Entertainment ( FUN), which is undervalued compared to many of its peers. With excellent growth and fabulous management, Cramer thinks this stock "should be yielding 4%, not 5% or 6%. Cedar Fair is a name to buy," he concluded.

Clorox ( CLX) also boosted its dividend this week by nearly 12%, rather than the typical 6%. Cramer doesn't think it justifies chasing the stock higher and thinks investors should buy a little bit on a pullback. He noted, "people always have to have a rainy day list."

--Written by Bret Kenwell in New York.
At the time of publication, Cramer's Action Alerts PLUS had no position in the stocks mentioned.

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."

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