Cramer: If Recovery Stalls, This Stock Still Thrives

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On a day when the Dow Jones Industrial Average makes sharp gains, it's easy to think defensive stocks may no longer belong in your portfolio.

But Jim Cramer thinks that would be a mistake.

"Just because the market had a fabulous day today, doesn't mean you can afford to stop playing defense," he said.

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The Mad Money host advocates holding at least one high yielding stock that can thrive even if the global economy takes a sharp turn for the worse.

And B&G Foods is among his favorite stocks that meet that criteria.

Cramer concedes that the valuation may seem stretched with the stock trading at 19 times earnings; however, he adds that, "every time these food stocks seem too expensive to own, they just seem to keep going higher."

And the Mad Money host sees every reason for money to continue going into this stock.

First and foremost their portfolio of products includes brands that people love; they include Cream of Wheat, Ortega tacos, Polaner fruit spreads, B&M beans and much more.

Also Cramer likes the latest earnings report.

"B&G just reported last Thursday, and the company delivered an excellent number. Meanwhile, the company also raised its full-year guidance," he said.

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Looking at results a little more closely, net sales for the first quarter of 2013 increased $13.9 million, or 8.8%, to $171.2 million from $157.3 million for the first quarter of 2012.

Gross profit for the first quarter of 2013 increased 3.5% to $58.8 million from $56.8 million in the first quarter of 2012.

Also, Cramer said the stock has a phenomenal long-term return.

"B&G has generated a 186% return with reinvested dividends since I initially recommended it in October of 2010," Cramer added. "It's been a long-time favorite of mine. They just have a terrific track record.".

Call Cramer: 1-800-743-CNBC

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