Analysts’ negative sentiment toward MCD has brought the share price down. They’ve been less enthusiastic about the move into Russia and more concerned about those costs. But Cramer thinks the only real concern is a strong dollar, which could reduce overseas earnings once they’re converted. While he wouldn’t recommend the stock at $62, “a lot of those risks are taken out” once it reaches $50. MCD is presently trading at about $53.
Cramer stood behind Chubb’s dividend increase, saying the company’s management has been conservative throughout this downturn, which allows for such a shareholder-friendly move. Plus, Chubb, a property and casualty insurer, doesn’t deal in life insurance or annuities. “Travelers is even better,” Cramer said.
Lastly, Cramer said President Obama’s changes to Medicare are turning health-care providers like Humana into nonprofits.
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