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The Greatness of Dividends

Friday, 24 Sep 2010 | 6:28 PM ET

Cramer often touts the benefits of dividends, but nothing can substitute for seeing those benefits for yourself. That's why he called attention to a couple of key charts during Friday’s show.

Chart Week - XLF/SDY
Cramer and Ralph Acompora battle it out over dividend-paying ETFs.

The “Mad Money” host wanted to highlight the relationship between two of these pictographs in particular: the weakness in the SPDR Financial Sector exchange-traded fund and the strength in the dividend stocks, as represented by the SPDR S&P Dividend ETF . The latter gives you a better yield than the "paltry sum" offered by 10-year Treasurys or the bank stocks, most of which have already cut their dividends, he said.

"We talk about the greatness of dividends all of the time here, but the SDY gives you a chart depiction of how well these dividend stocks have done," Cramer explained.

To get a better sense of the relationship, Cramer sought the help of Ralph Acampora, partner and portfolio manager at Geneva-based wealth manager Altaira. The money manager has taught technicals for 40 years and is a 45-year veteran of the business. Watch the video for his full analysis.

Call Cramer: 1-800-743-CNBC

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