Jim Cramer’s Stock Picks After Wall Street’s Turbulent Week

Following a turbulent week on Wall Street, CNBC’s Jim Cramer has highlighted three high-dividend stocks that he believes are relatively safe: Enbridge, Pfizer, and Realty Income.

Cramer pointed out that while many high-yield stocks carry significant risks—largely due to concerns that companies might struggle to uphold their dividend payouts—these three companies stand apart in terms of safety. “There are a lot of risky high-yield stocks out there. Yields are skyrocketing because investors believe the company can’t continue to cover its dividend costs,” he remarked. “But these three are not, and I consider them very safe.”

Enbridge, an oil pipeline operator rather than a producer, is positioned to benefit from increasing oil production, Cramer explained. He noted that their business model leans on the volume of goods transported rather than the fluctuating costs of oil. Cramer expressed confidence in the company’s prospects, mentioning that its customer base is robust and predictable. Regulatory challenges do exist for oil pipeline firms, but he suggested these concerns are minimized under the current administration. With a yield of just over 5.6%, Enbridge is seen as a solid choice for downside protection and growth potential.

Moving to Pfizer, Cramer described it as almost like a “corporate bond equivalent,” highlighting a nearly 6.9% yield. He hinted that the recent acquisitions could help strengthen the company’s pipeline, which is crucial given the impending expiration of several patents. Cramer also emphasized Pfizer’s strong cash flow, indicating that it should comfortably cover the dividend, and he believes the stock could see a resurgence as the company navigates through challenging times.

Regarding Realty Income, a real estate investment trust, Cramer pointed out that the firm primarily leases commercial properties to retail and industrial tenants. While the stock hasn’t performed particularly excitingly of late, its yield stands at about 5.7%. He acknowledged some concerns regarding their tenant base, especially with Walgreens planning to close numerous stores in the coming years. Nevertheless, Cramer remained optimistic, noting that Realty Income had an impressive occupancy rate of 98.7% at the end of the previous year. Many of its tenants, including grocery and convenience stores, are well-positioned to endure a period of weakened consumer spending.

Cramer concluded by stating, “These days…growth is the best defense in any environment, but I certainly don’t blame anyone for seeking dividend protection,” especially amid the current market volatility and potential declines in short-term interest rates.