Mad Money with Jim Cramer

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5 Obama-Proof Dividend Plays

Health-care reform is now law, but it comes at some cost to investors. Because part of the bill that President Obama signed on March 23 includes increased taxes on capital gains and dividends.

Now, Cramer always has recommended dividend stocks as great protection again economic and market volatility. But if investors are pocketing less money as a result of higher taxes, then this strategy has to change.

The solution then, as he sees it, is to find even bigger dividend yields. That way investors still can generate a significant amount of cash even after Uncle Sam gets his share.

To aid you in your search for these high-yielders, Cramer pulled together a basket of some of his top dividend-paying companies. It’s a starter kit of sorts, a diversified mini-portfolio that should protect investors against the tax man.

Read on for Cramer’s 5 Obama-Proof Dividend Plays.

Updated 24 March 2010