China Coughs, US Catches Cold?

On Thursday Cramer questioned what the US should do with its industrial companies now that China has put on the stimulus brakes and the currencies of many European countries are in doubt.

Take Eaton , a diversified industrial manufacturer of electrical components, hydraulic systems, fuel efficient transmissions and hybrid engines for trucks as well as aerospace components. Back on July 20, the Mad Money host recommended the stock when it had a 4 percent dividend yield, and it has rallied 46 percent since. Now the yield is just 2.8 percent, or 2.9 percent based on its expected payout in 2011, and the stock is only a point off its 52-week high.

According to Eaton, this move is just the beginning, and there is more than enough reason to keep buying the stock. Last Tuesday the company had an analyst day where it said the recovery should peak in another four to five years, with China, India and Brazil leading the rebound. Cramer said this could mean that ETN will have enough earnings to cover its dividend more than two and a half times over. Plus, he thinks the hydraulics segment of Eaton is “on fire” and its electrical business continues to expand.

Management paints a bullish picture, Cramer said, but what is the driving force behind ETN’s strength and what are the downside risks? To answer these questions and more, he invited back the CEO Sandy Cutler onto the show. Watch the video for the fill interview.

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    Jim Cramer is host of CNBC's "Mad Money" and co-anchor of the 9 a.m. ET hour of CNBC's "Squawk on the Street."

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