If you are looking for safety in this market, you should look no further than Consolidated Edison, Cramer said Tuesday.
Con Ed provides electricity, natural gas and steam to New York City and its suburbs. And while the weather has been piping hot, the utility company’s CEO Kevin Burke told Cramer that things have been running smoothly.
Burke also told the “Mad Money” host that although customers pay more in the hot weather because they are using a lot of electricity, the company tries to balance the rates out with the customer in the long run.
“When we sell more electricity and more revenue comes to us on those really hot dates, we wind up returning that to the customer,” he said. “We wind up lowering the rates.”
Con Ed pays a dividend that yields 4.5%, and it has raised its dividend every year for the last 37 years. Cramer thinks this is exactly the kind of investment that people who are looking for a yield should buy, especially at a time when people are afraid to own US Treasuries.
While Burke didn’t commit to boosting the dividend, he did tell Cramer history should be a guide.
“Anybody who looks at our history would understand that the management and the board understands the importance of the dividend to the investor.”
To see the full interview, watch the video.
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