Cramer: Once the Reddit traders tire out, 'boring' stocks like PepsiCo will still work

Published Thu, Feb 11 202111:30 AM ESTUpdated Thu, Feb 11 202112:31 PM EST

Kevin Stankiewicz @in/kevin-stankiewicz-b5593466 @kevin_stank

(This story is for CNBC Pro subscribers only.) CNBC's Jim Cramer cautioned investors on Thursday against overlooking stocks like PepsiCo , even though shares of the consumer goods giant may not be as exciting as the names favored by Reddit traders. "PepsiCo is boring, ... and boring is really good," Cramer said on "Squawk on the Street." "I'm in praise of boring. It's not dogecoin and it's not Tilray . It's just boring but that's good because when the smoke clears, boring is still going to be there." Dogecoin is a cryptocurrency originally created as a joke in 2013 but has gained popularity in recent weeks during a surge in retail trading activity sparked by sites like Reddit. Dogecoin's price is up more than 1,200% this year, according to Coindesk , and Tesla CEO Elon Musk and other well-known people have posted positive tweets about it. Like GameStop before them, Tilray and other cannabis companies have lately attracted the attention of Redditors and other novice traders. Pot companies' stock came under pressure Thursday , but a day earlier saw sizable gains. Tilray, for example, rose 50% on Wednesday and Aurora Cannabis rose 20%. Despite frenzied activity in parts of the stock market, Cramer said companies like PepsiCo — which reported better-than-expected quarterly earnings and revenue Thursday morning — are producing solid results. The "Mad Money" host said those stocks are likely to move higher because of fundamental reasons, not short-term enthusiasm or technical factors like a short squeeze. Another such company is Hormel Foods , Cramer said. The maker of Spam is acquiring Planters and other nut brands from Kraft Heinz in a $3.35 billion deal announced Thursday . Shares of Hormel were down 4% Thursday, but Cramer said he found Hormel's dividend track record to be compelling. "People have made money in Hormel for years and years and years." Hormel has paid a dividend regularly since going public in 1928, according to a November release from the company. That month, Hormel announced it was raising its dividend for the 55th straight year . The annual dividend on Hormel's common stock was raised 5% to $0.98 per share. "Things are happening in the real world, and they're very positive and no one cares," Cramer said.

Cans of PepsiCo Inc. Pepsi brand Zero Sugar soda are displayed for an arranged photograph taken in Tiskilwa, Illinois, on Wednesday, April 17, 2019.

Daniel Acker | Bloomberg | Getty Images

(This story is for CNBC Pro subscribers only.)

CNBC's Jim Cramer cautioned investors on Thursday against overlooking stocks like PepsiCo, even though shares of the consumer goods giant may not be as exciting as the names favored by Reddit traders.