The central bank is not normally in the business of easing into an economy that is showing few signs of a recession, generally holding fire until more pronounced signs of a...The Fedread more
His case for gold comes as central banks get more aggressive with policies that devalue currencies and are about to cause a "paradigm shift" in investing.Marketsread more
CSX said it expects revenue to fall as much as 2% in 2019, well below a previous forecast of an increase of 1% to 2%.Marketsread more
Challenging conditions in the U.S. housing market, along with tighter currency controls by the Chinese government, cause a stunning drop in foreign demand for American homes.Real Estateread more
The growth in net interest income, a main engine of banking profit, looks to slow to a halt in the back half of this year, Bank of America CFO Paul Donofrio says.Banksread more
These are the stocks posting the largest moves midday.Market Insiderread more
Here's how Amazon sells ads, and why it has a natural edge over Google and Facebook in some areas.Technologyread more
Netflix reports earnings Wednesday as it loses licensed shows to rivals launching their own streaming services.Technologyread more
Federal Judge William Pauley wrote in a court filing made public Wednesday that materials related to Cohen's campaign-finance probe should be unsealed — and denied a request...Politicsread more
The "'Cadillac tax," set to go into effect in 2022, is unpopular with both Republicans and Democrats, who say it punishes the middle class.Health and Scienceread more
Facebook's head of Calibra David Marcus is grilled during a House Financial Services Committee hearing over the company's digital currency plans.Technologyread more
There are always buys. Even when lawmakers play games with the full faith and credit of the United States government, there's still opportunity. You just have to know where to look.
Ironically, when the market environment becomes dire, we often see a flight to safety, reminded the Mad Money host. However, this time around, the catalyst could trigger significant selling in the bond market; that is, if the US government stops servicing its debt Treasurys become less desirable, not more.
Therefore, Cramer thinks it's prudent to rethink what will be considered a flight to safety in the event of a default. And the most likely substitute, he says, should be dividend paying stocks.
Now make no mistake, "I fully expect that all stocks will get clocked as we get closer to the default deadline, or worse, " Cramer said. "I'm only talking about bounce back candidates here."
That is, Cramer believes dividend paying stocks will attract new buyers after the smoke clears as relative safety plays. Of course not all dividend yielding stocks are created equal. In the event of a default, following are stocks Cramer likes best.
1. Dominion Resources: "First thing I would do is buy the stocks of utilities where I don't think there's much earnings risk. That means Dominion Resources," Cramer said. Cramer sees several catalysts. "First, it's going to spin off a master limited partnership, which is terrific and will bring in a lot of cash. Second, Dominion's strong core utility business allows for the continued increase in dividends."
2. ConEdison: Not only is ConEdison a utility but Cramer sees it as a stock that's somewhat insulated from the DC debacle simply because it services the New York metro area. "The NYC economy is more international than many realize," Cramer said.
3. Southern Company. Cramer likes the Southern Company due to what he calls, "an amazingly long-term history of paying the dividend through the toughest times imaginable. I've interviewed Southern several times and I truly think they get the sanctity of the dividend better than just about any other utility."
Read More from Mad Money with Jim Cramer
Top stock on Jim Cramer's shopping list
Cramer: Should Obama invoke the 14th amendment?
Really 'Frank' talk from Jim Cramer
4. Pfizer. "Pfizer keeps churning out earnings and remains committed to raising its dividend. The company is also so pro-active that it actually spun off its Zoetis animal health division to unlock value. I like that," Cramer said.
5. Campbell Soup. "It is a serial dividend raiser," Cramer said. "Nothing more consistent than soups and snacks."
6. Altria. "I know there's tremendous resistance to buying tobacco stocks," Cramer admitted, "but this is a business that keeps taking share and keeps boosting its dividend every August. Talk about a constant!"
7. Verizon. In the event the telco stocks take it on the chin, Cramer is a buyer of Verizon. "They just bought the remainder of Verizon Wireless from Vodafone," Cramer reminded. "I expect growth to l be much higher now that it owns all of that wireless business. And I don't doubt for a minute that Verizon will maintain its policy of boosting the dividend. If you can get this one at a 5% yield, not far from here, I think it's a steal."
8. Ventas: As an owner of senior housing and health care facilities, Cramer likes this company as a play on aging baby boomers. And with a 4.3% yield, if not for a government induced sell-off, Cramer would be a buyer right here.
Call Cramer: 1-800-743-CNBC
Questions for Cramer? firstname.lastname@example.org
Questions, comments, suggestions for the "Mad Money" website? email@example.com