Yields of Dreams

After a big sell off like last week’s 461-point decline, Cramer likes to pick among the rubble to find the stocks that could still go higher in an otherwise bombed-out market. That’s exactly what he did on Monday’s Mad Money, highlighting four stocks that he thinks can perform without help from the Know-Nothing Fed.

It’s no longer just about growth when going bargain hunting, Cramer said. Since treasurys have now rallied so the yield on the 10-year is a paltry 3.87% (which drops to 2.79% after the ordinary income tax), these stocks must have high-yielding dividends that make them more attractive than treasurys.

- Altria , Cramer’s first bargain pick, is the poster child for defensive stocks and also his longtime best-of-breed in the tobacco space. Altria’s yield is 3.92, (3.33% after tax) -- much higher than the 10-year. Cramer is convinced that when the company spins off its international division and breaks up into two companies both will go much higher.

- Verizon , Cramer’s second pick, has the next-smallest dividend yield of 3.97% (3.37% after tax). VZ is a big, powerful and growing oligopoly thanks to its fiber-optic network that is rolling out to 18 million homes by 2010. The dividend, coupled with the growth, makes VZ a buy in Cramer’s book.

- For a Mad Money first, Cramer recommended Bristol-Myers , with a 4.75% yield (4.04% after tax). Another defensive play, BMY is moving away from traditional pharma and refocusing on biopharma treatments for cancer, arthritis, diabetes and heart disease. Along with a new cost-cutting plan, BMY’s healthy pipeline could spell good news for the stock even in the face of the Fed.

Questions, comments, suggestions for the Mad Money website? madcap@cnbc.com