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Buy Boardwalk Pipeline

Add Boardwalk Pipeline Partners to Cramer’s list of dividend-paying stocks to own.

BWP is a master limited partnership that owns and operates two natural gas pipelines. And, as Cramer’s said before, MLPs must pay out their excess free cash flow in the form of tax-deferred dividends. BWP is yielding 8.25% this year, or $1.90 a share, and is expected to increase to 9% next year, or $2.07 a share.

That’s a great dividend, and if this wacky market pulls the stock down further, you’ll only earn more. In fact, Cramer recommended buying BWP using the same descending scale he’s mentioned before. Grab some at present levels and then wait for the stock to drop to $20.70, where the yield will jump to 10% for next year’s expected payout.

One note about the tax deferment: Cramer said MLP distributions can be a bit complicated, so he suggested talking to a tax professional to make sure you’re getting all the benefits that come with owning these kinds of stocks.

Of course, you always want to make sure a company can meet its dividend, and it looks like Boardwalk Pipeline can. About $2.81 a share is expected in cash flow for 2009, so that will cover the $2.07 a share dividend.

Plus, the Tisch family-owned Lowes holds 70% of BWP and expects to invest another $1 billion by next year to help BWP meet its growth goals.

BWP also has three projects that are expected to double its revenues by 2012, as well as double the life of its pipeline contracts.

Every time the company expands the chances get better that the dividend will be increased. That’s how it worked at Kinder Morgan Energy Partners . And a 9% yield makes waiting all the more easy. That’s why Cramer’s bullish on BWP.







Questions for Cramer? madmoney@cnbc.com

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