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Cramer on BloggingStocks: Dividends are the key to slowing down the bear

 Dec 05, 2008 01:55 PM UTC
Return Risk
+2.19% MID
Tracked Blogger
Symbol Sentiment Start Return Closed
PG n/a
VZ n/a
FCX n/a
MRK n/a
JNJ n/a
GE n/a
BA n/a
T n/a
WEC n/a

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Filed under: General Electric (GE), Market matters, AT and T (T), Johnson and Johnson (JNJ), Boeing Co (BA), Procter and Gamble (PG), Verizon Communications (VZ), Merck and Co (MRK), Freep't McMoRan Copper (FCX), Cramer on BloggingStocks


TheStreet.com's Jim Cramer says stocks will fall hard if companies can't raise dividends and instead have to cut them.

The most exciting page in the papers these days is the dividend declaration page. We cheer when a real estate investment trust affirms its dividend. We are shocked when a Freeport McMoRan (NYSE: FCX) (Cramer's Take) scraps the whole darned thing. We are awestruck when a company actually announces one for the first time. I marveled at the 6.75-cent increase in Wisconsin Energy's (NYSE: WEC) (Cramer's Take) dividend last night. Wow! Now there's one worth grabbing.

No kidding: Dividends hold the key to the deceleration of the bear. When I did my analysis of Dow companies and where they could go to this year, I was acutely conscious of how important the dividends are to the sustaining of intra-day November's Dow low of 7350. You will not keep either AT&T (NYSE: T) (Cramer's Take) or Verizon (NYSE: VZ) (Cramer's Take) from their lows if those dividends are in jeopardy. If Procter & Gamble (NYSE: PG) (Cramer's Take) and Johnson & Johnson (NYSE: JNJ) (Cramer's Take) can't raise their dividends and instead have to cut them, or if Merck (NYSE: MRK) (Cramer's Take) thinks it is prudent to cut the dividend after that forecast, then those stocks fall and fall hard. Boeing (NYSE: BA) (Cramer's Take), if it were prudent, would scrap its dividend, and we have heard from General Electric (NYSE: GE) (Cramer's Take) how 2009 will be tough but the dividend will be maintained. However, the cutback from financial services will be so great that the dividend won't "feel" safe if the rest of the operations slow down.

Continue reading Cramer on BloggingStocks: Dividends are the key to slowing down the bear

Cramer on BloggingStocks: Dividends are the key to slowing down the bear originally appeared on BloggingStocks on Fri, 05 Dec 2008 08:55:00 EST. Please see our terms for use of feeds.

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