Time to Sell Eaton?
During the market’s volatile past year, Cramer liked to recommend what he called “accidental high yielders.” These were cyclical stocks whose share prices had dropped so low that they suddenly offered sizable dividend yields. Investors who owned these names could make money in two ways: by collecting the payout, and riding the stock back up when the market recovered. Eaton was a perfect example.
Eaton is up 31% since Cramer rated it a buy back on July 20, when the yield was at 4.1%. But that spectacular run has brought the yield back down to 3.1%, and Cramer now wonders if he needs to change his call. To find out, he invited Eaton CEO Sandy Cutler onto Mad Money.
Watch the video for the full interview.
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