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Is Windstream’s Dividend Safe?

A stock that offers a big dividend yield is “a beautiful thing,” Cramer said Tuesday, but investors should question a payout that’s too big. Sometimes it means the share price has seen a significant decline, which usually happens when the company’s in trouble. If that’s the case, then the dividend could be cut, or eliminated entirely.

That’s why, as much as he liked Windstream , Cramer had his doubts about its 10% offering. The company certainly has its issues, namely liquidity. Just today Windstream announced that it hoped to raise $400 million in debt to pay for the cash portion of two acquisitions, and it was trying to renegotiate terms with some of its creditors.

“When you see that sort of thing from a company with a 10% yield,” Cramer said, “you have to get a little worried about the dividend.”

He wanted to know for sure, though. So Cramer invited Windstream CEO Jeff Gardner onto Mad Money “to help alleviate our concerns.” Watch the video for the full interview.

Call Cramer: 1-800-743-CNBC

Questions for Cramer? madmoney@cnbc.com

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