Skip navigation

MAD MONEY FEATURES

Podcasts PODCASTS
Watch the Lightning Round whenever and wherever you want.




Widget OFFICIAL MAD MONEY WIDGET
Grab this all-in-one application and get recaps of the show sent right to your desktop or blog.




Soundboard CRAMERS SOUNDBOARD
Admit it: You've always wanted to hit the "They
know nothing!" button. Here’s your chance.




Mad Money PhotosCHECK OUT OUR PHOTOS
Check out Cramer on set, back to school, behind the scenes and more.




ShopSHOP FOR MAD MERCHANDISE
Buy Cramer books, bobbleheads and other Mad Money merchandise.




Ringtones RING TONES
Pick up the phone! It's Cramer! New Mad Money sounds for your cell phone.




Mobile AlertTEXT MESSAGE ALERT
Mad Money's mobile. Get show highlights sent to your phone.







Text Size

Low interest rates and low economic growth have Cramer thinking you should play it as safe as possible. During times like these he turns to high-yielding stocks because they offer a better return on your cash and some much-needed stability.

But not just any stocks will do. Every portfolio must be diversified. And those dividends should be safe and there has to be a chance the companies will raise them in the near future. Cramer said he found five stocks that fit these criteria perfectly. Here’s the breakdown:

Dow Chemical [DOW  Loading...      ()   ], an industrial company, pays out 4.2%. The financials aren’t that great, but Cramer said he likes that Dow operates in a real economy, meaning it’s not tied to the credit crisis. There’s enough cash flow to keep the dividend safe, and 65% of the business is outside the U.S., so our economic woes aren’t too much of a concern.

Permian Basin [PBT  Loading...      ()   ], a U.S. energy trust dealing in oil and natural gas, offers 9.8%, though it’s not taxed at the normal 15% rate. Investors pay regular taxes on PBT, so Cramer recommended this stock for an IRA or 401(k) as a way to defer those taxes for as long as possible.

Entertainment giant WWE [WWE  Loading...      ()   ] carries with it a 7.8% yield, and the company earns a quarter of its sales from overseas.

CPFL Energia [CPL  Loading...      ()   ] is the largest electric utility in Brazil, and it’s still growing. That should fuel some increases to the already-sufficient 5.9% yield.

Lastly, Cramer likes healthcare REIT HCP [HCP  Loading...      ()   ]. This is another dividend that’s taxed regularly and not at the lower 15%. So to take full advantage of the 5.2% yield, put it in your IRA or 401(k).

Taken together these five stocks pay out an average 6.6%, much better than the S&P 500’s 2.2%. Even after taxes, you’re earning 4.7%. As Cramer said, there might not be anything better than a stock with a high yield. Here’s your chance to take advantage of five of the best.

Questions for Cramer?

Questions, comments, suggestions for the Mad Money website?

© 2008 CNBC, Inc. All Rights Reserved

Permalink: /id/23962113

HOME  |  NEWS  |  MARKETS  |  EARNINGS  |  INVESTING  |  VIDEO  |  CNBC TV  |  CNBC PLUS  |  CNBC MOBILE  |  CNBC HD+
About CNBC   |   Site Map   |   Privacy Policy   |   Terms of Service   |   Advertise   |   Help   |   Feedback   |   Video Reprints
  Data is a real-time snapshot   *Data is delayed at least 15 minutes

Global Business and Financial News, Stock Quotes, and Market Data and Analysis