Cramer: Hot Stock with 2.75% Yield

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If you'd gotten behind this stock in 2008, when Cramer first recommended it, you'd be up 202% with reinvested dividends.

The company is Eaton, which "manufactures everything from electrical control products and power management systems, to hydraulics, truck transmissions, aerospace components and more," said Cramer.

On Monday, the company reported a better-than-expected 28 percent rise in operating profit, in part due to its acquisition of Cooper Industries which gave a jolt to its electrical business.

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Looking at those numbers a little more closely, Eaton reported operating earnings of 84 cents per share for the first quarter ended March. Analysts on average expected earnings of 79 cents per share.

That's not to say the company isn't facing any headwinds. Eaton has been struggling with weaker demand for its auto and truck parts in Europe.

In a statement, Eaton CEO Alexander Cutler said "We entered 2013 expecting it would be a year of subpar global economic growth. Our markets will grow 2 to 3 percent in 2013, most likely toward the lower end of the range."

Cutler added that future results will therefore depend more on execution than on global growth. "However, we are off to a great start this year," he said, "with our execution driving stronger than expected results in the first quarter."

If there's anything that makes Jim Cramer's ears perk up, it's when a CEO say a company is executing well.

"When you're picking individual companies, that's what really matters – execution," Cramer said.

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In fact, with strong execution, Cramer thinks Eaton could potentially outperform in the months ahead.

"Don't forget Eaton reiterated its guidance for the next quarter and the rest of the year," Cramer added. "And that's in a pretty challenging environment. I can't help but wonder how well Eaton might do when the global economy gets better. And while you wait, they're paying you a nice 2.75% yield. I think that's pretty darned good," Cramer said.

Disclosure: On April 29th Jim Cramer owned shares of Eaton on behalf of his charitable trust.

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