To protect one’s wealth in this difficult environment, “Mad Money” host Jim Cramer recommends high-yielding stocks with “domestic security,” meaning the underlying company has zero exposure to Europe and its ongoing debt crisis.
Take American Realty Capital Trust, for example. American Realty Capital is a real estate investment trust that sports a 6.5 percent dividend yield. American Realty owns 485 properties across 43 states and Puerto Rico. It happens to boast a 100 precent occupancy ratio, too, because it has a sale leaseback business model — tenants sell their real estate to American Realty and then the firm leases the property back to them. While the sale-leaseback concept is not a new idea, Cramer said it has been incredibly popular as of late. And in addition to paying a dividend and having “domestic security,” a consistent business model is just what investors should be looking for, he added.
American Realty Capital only listed on the Nasdaq on March 1, but Cramer it didn’t have a “traditional initial public offering.” So, the company is trying to educate investors about their business. Cramer wanted to learn more, so welcomed CEO Nick Schorsch. Watch the video to see the full interview.
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