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Cramer: Treasury Two-Year Yield 'Outrageous Rip-Off'

After the yield on the two-year Treasury note traded to an all time low Tuesday for a 0.51% return, Cramer called fixed income securities "an outrageous rip-off."

"I am not willing to get that little for my money," he said. "I don't care if it is risk-free. I don't care if it is liquid."

Investors are going with these securities or certificate of deposits because they fear the uncertainty in the stock market, Cramer said. As a result, he thinks the fixed income market has become overvalued.

Those investing in Treasury notes should consider a stock like Verizon , which thanks to its "notoriously big dividend," provides 13 times the return of what the Treasury bill offers. It hands out 20 times the return after taxes, he added. There is, of course, risk associated with this or any other stock. But because it's a stock, it could go up in value. The two-year, however, just hit its all-time low and so the upside is capped. Verizon will also likely pay more by increasing its dividend while the two-year remains the same.

Cramer also recommends shares of DuPont over Treasury notes. It is $41 a share with a 4% yield and a secure dividend. If the stock drops below 41 bucks a share, the dividend yield swells and investors are able to buy more. The Mad Money host also favors Weyerhaeuser , which is a timber company in the process of becoming a real estate investment trust. To be in par with its competitors, Cramer said WY would have to pay a 4 to 5% dividend yield.

"We call the two-year risk free, but when it only gives you a half of a percent, to me that says you are risking something," Cramer said. "The opportunity risk to pick up a company that gives you a better yield the chance to of some upside."

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