Mad Money

Jim Cramer says these 5 high-yielding stocks have his stamp of approval

Key Points
  • CNBC's Jim Cramer on Tuesday offered investors a list of five high-yielding stocks they should have on their shopping lists.
  • "They might have more downside here, but I recommend you start buying them here and gradually build a position," he said.
Jim Cramer says these 5 high-yielding stocks have his stamp of approval
VIDEO1:2901:29
Jim Cramer says these 5 high-yielding stocks have his stamp of approval

CNBC's Jim Cramer on Tuesday offered investors a list of five high-yielding stocks they should have on their shopping lists.

Here is his list:

  1. Ford
  2. KeyCorp
  3. Federal Realty
  4. Devon Energy
  5. ONEOK

The two-year Treasury has surged as of late to around 4.3%, which is a sign that the Federal Reserve will continue to raise interest rates aggressively and increase the likelihood of a recession, according to Cramer. 

This has made some stocks "accidental high-yielders," and now is the time to buy them, he added. "You want to take shelter in the accidental high-yielders because their dividends will give you a cushion."

To come up with his top picks, Cramer first ran a screen on the S&P 500 to find stocks that are down 30% or more from their respective 52-week highs and yield 4% or more. From the over 50 stocks that fit the requirements, the stocks in the list were his favorite.

"They might have more downside here, but I recommend you start buying them here and gradually build a position," he said.

Disclosure: Cramer's Charitable Trust owns shares of Ford and Devon Energy.

Jim Cramer's Guide to Investing

Click here to download Jim Cramer's Guide to Investing at no cost to help you build long-term wealth and invest smarter.

Sign up now for the CNBC Investing Club to follow Jim Cramer's every move in the market.

Disclaimer

Questions for Cramer?
Call Cramer: 1-800-743-CNBC

Want to take a deep dive into Cramer's world? Hit him up!
Mad Money Twitter - Jim Cramer Twitter - Facebook - Instagram

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