In chaotic and difficult market environments, Jim Cramer recommends investors seek the protection of stocks with serious dividends. After all, dividend-paying stocks pay investors to wait until the market calms and the economy improves.
The "Mad Money" host especially likes “accidental high-yielders” — the stocks with small payouts that wouldn’t ordinarily offer high yields. Because of downward pressure in the markets, which has hurt their share prices, those yields have shot up. So now investors get more bang for their bucks.
The added benefit of owning these kinds of stocks is that the newly high yields attract new buyers, and that puts a floor in the share price. Not only do investors get to collect the payout on the way down, but they can also ride the stock higher on the way back up.
We pulled together a list of Cramer's favorite dividend plays. Read on and pick one or two for your portfolio. They could offer just the kind of defense that you need.
When this slideshow was published, Cramer's charitable trust owned DuPont and Eaton.
Posted 13 Oct 2011