During periods of uncertainty, Cramer on Thursday recommended investors fall back on dividend-paying stocks. After all, high-yielding stocks pay investors to wait for things to get better.
Cramer likes Clorox because it makes everything from cleaning products, such as Pine-Sol to cat litter under the Fresh Step brand, as well as Hidden Valley Ranch salad dressing and Kingsford’s charcoal, among many other products. People don't stop buying these items because of the economic slowdown, Cramer said. The company does have to deal with rising commodity costs and it's also facing competition from generic brands, but he thinks these issues are already baked into the stock.
Clorox is selling for 16 times earnings, with a 10 percent growth rate. It also pays a 3.6 percent dividend yield.
(RELATED: Cramer's Top Dividend Stocks 2011)
"Clorox is one of the most consistent dividend raisers out there, having increased its payout for the last 34 consecutive years," Cramer noted, adding investors start building a position now and buy more on the way down.
The "Mad Money" host wanted to learn more about Clorox's future prospects, though. So he welcomed CEO Don Knauss back to the show. Check out the video to see the full interview.
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