Mad Money

Jim Cramer says these 10 high-yielding dividend stocks should be on your shopping list

Key Points
  • CNBC's Jim Cramer on Wednesday offered investors a list of stocks with sizable dividend yields that he believes should be on their shopping list.
  • "Even after today's big bounce, it's not too late to start putting in some money in some of these things. Find one you like," the "Mad Money" host said.
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Cramer says buyers should watch for certain high yield, cheap dividend stocks

CNBC's Jim Cramer on Wednesday offered investors a list of stocks with sizable dividend yields that he believes should be on their shopping list.

Investors may turn to dividend-paying stocks during periods of market turbulence, viewing their tangible payouts as a place of safety, the "Mad Money" host said. And Wall Street has been volatile to start the year, as investors balance inflation fears with, more recently, Russia's invasion of Ukraine.

"All of this indiscriminate selling has created many stocks with what I think are absurdly high yields that also happen to be dirt-cheap on the earnings," Cramer said, calling the stocks "accidentally high-yielders."

A stock's dividend yield increases as its share price falls. As a result, sometimes companies with high-yielding stocks may have an underlying business problem that's contributed to their share price declining.

In attempt to screen out struggling companies with unsustainable dividends, Cramer's list of stocks all meet the following criteria:

  • Has yields above 3%
  • Price is cut down more than 20% from its high
  • Price doesn't exceed 25 times its earnings
  • Price exceeds 8 times earnings
  • Market capitalization is larger than $2 billion

Using the above criteria, Cramer shrunk the list of hundreds of stocks listed in the S&P 500, the S&P MidCap 400, and the small-cap S&P 600 to 39, and then narrowed the list further to 10 stocks he believes could be buying opportunities.

Here's the list:

  1. Simon Property Group Inc
  2. Dow Inc
  3. International Paper Co
  4. Walgreens Boots Alliance Inc
  5. Kontoor Brands Inc
  6. Newell Brands Inc
  7. American Eagle Outfitters Inc
  8. Pfizer Inc
  9. Innovative Industrial Properties Inc
  10. Morgan Stanley

"Even after today's big bounce, it's not too late to start putting in some money in some of these things. Find one you like," Cramer said. "Given the current backdrop, I wouldn't be surprised if you can buy even more at lower levels, because the market is so choppy."

Disclosure: Cramer's charitable trust owns shares of American Eagle Outfitters and Morgan Stanley.

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