GO
Loading...

Is a 10.6% Dividend Yield Reason To Own This Stock?

On Tuesday, Cramer addressed questions from viewers.

The "Mad Money" host first addressed a stock, which Michael in South Carolina asked about during Monday's Lightning Round. The caller wanted Cramer's take on PDL BioPharma , a biotechnology name that sports a 10.6 percent dividend yield. After doing some research, Cramer found its main patent expires in 2014 and lacks other intellectual property. For that reason, he thinks PDLI is too risky.

The next question came from Kathy in Orlando, who asked if Koninklijke Philips Electronics is a good play on the switch from incandescent to compact light florescent light bulbs. Cramer thinks it's a good company, but would avoid buying shares on the CLF angle alone. The "Mad Money" host said he made that mistake with Cree , which also makes CLFs.

Michael asked for Cramer's take on PetSmart . Cramer thinks it's a well-run company, but would wait to buy shares on a pullback.

Cramer then took a letter from Mike, who noted utilities tend to do poorly when interest rates rise. Being as the home gamer owns a few utilties, asked Cramer if he should be concerned about rising rates. Cramer said he doesn't see rates rising to a level to where, after tax, people will want to sell utilities.

The last question came from Dan, who wanted Cramer's thoughts on real estate investment trusts. Cramer said he likes Tanger Factory Outlet Centers , Federal Realty Investment Trust and Brandywine .

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

Questions, comments, suggestions for the Mad Money Web site? madcap@cnbc.com

Contact Mad Money

  • Showtimes

    U.S.
    Monday - Friday 6p ET
    Australia
    Saturday 8a, 1p, 7p SYD
    Sunday 12a, 1a, 8a, 7p SYD
    New Zealand
    Saturday 10a, 3p, 9p NZ
    Sunday 2a, 3a, 10a, 9p NZ
  • 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."

Mad Money Features

  • Grab the latest CNBC gear from the NBCUniversal Store!

  • Get a behind-the-scenes look at how Cramer formulates his investment advice. "Inside the Madness" is a column, which features e-mails and more with Cramer and his researcher Nicole Urken.

  • You’ve always wanted to hit the “Hallelujah!” button. Here’s your chance.

Mad Money Moments

Cramer's New Book