martin short is an actor, comedian, writer, and, yes, he is a singer. he is also in for a wild ride in the new 3-d animated film "madagascar 3: europe's most wanted." >> it's the threequel. to the franchise. he plays the sea lion who discovers a new death defying act. >> i always dreamed of doing this, from the time i was a little pup, to be a human cannon ball. except, you know, a sea lion cannon ball. >> is it dangerous? >> is it dangerous? yes, of course, it's dangerous! >> now, are you sure about this? >> i'm sure. >> because if blowing up is your thing, then you're in the right place. >> si. that means yes.

>> and he goes. >> and he goes. he's got to do for me what he always does when i see martin short. >> you have to say, ladies and gentlemen, martin short. >> ladies and gentlemen, the incomparable martin short! i love that! it kills me. >> usually there's a little more applause. no, no, no. that was like -- [ chirping ] >> we saw the movie yesterday. it's hard to keep a franchise going. i think introducing your character brought -- we loved the first two. >> yes. but this one especially. you know, you add something special. >> also, it's 3-d. it's just spectacular. frances mcdormand, jessica chastain and bryan cranston are new to this. >> a lot of new people. it's just unbelievable. >> it's amazing what they do. >> how many different accents did you play with until you decided on the one that you

chose, which is -- i've never quite heard before? >> it really is italian! i actually had an italian coach. she quit. i would go through my dialogue. and then she would say -- because it's very random. you say -- it's nice to see you! sometimes you say, but i'm going to the store. i'd go store. no, no, no. you can't do that. they'd say improvise. i would just make it up. >> how much of that is improvised and how much was from the script? >> you don't really remember. you do the script. you improvise around the script. you're always by yourself. >> a couple years earlier, two years ago you did the dialogue. then the movie comes out. that has to be a rush, though. >> i think it's exciting when you see -- normally when you see yourself for the first time, you've done something, you're kind of sitting there and you know you're going to hate it. but seeing that, you're just doing half the job. what they've done is a celebration of this art form.

>> speaking of celebrating, can we celebrate your son who, by the way, is a graduate? >> graduated from notre dame a week ago. it felt fantastic. as i sat there, i kept thinking -- i was listening to emotional speeches. i drifted, too. four times three kids. boy, that's a lot of stage work. >> do any of them know -- the other two already have jobs and things? >> yes. >> duly employed, thank god? >> one works at warner brothers. katherine works at ucla psychiatric center. >> you did get one smart one. >> they're all geniuses, my children. >> you and nancy have got one of the greatest marriages of anybody in show business. how many years now for you guys? >> we're married 36 years. >> but you're still, like, in love? >> madly in love. >> why? >> cute.

i'm cute. >> that is true. >> and you make each other laugh. >> yes. >> speaking of making each other laugh, you have a little something in that bag. >> this is something that jeffrey katzenberg suggested -- wanted to gift you guys. >> jeffrey knows us well. >> these wigs are monumental in the movie. >> when you see the movie, you'll understand. >> look at this. wow! ♪ i feel pretty ♪ i like to move it, move it, i like to move it, move it ♪ >> these wigs will be the biggest product as of june 8th when the show comes out. >> we'd like to make a request of you. >> what, baby? >> when was of us is gone, you have to come and co-host the show sometime. >> let me just ask you something. i'd love to. what is the pay? what is the pay? is that just for the honor of doing it? because i've been there. >> we can discuss the pay.

but it's june 20th we'd love to have you. >> june 20th. let me just say, back to the pay, i know you're not getting scale. i know that. >> just a little over. >> a little over. >> give it a thought. we'd love to have you. >> thanks for coming to see us. >> love that. martin short and "madagascar 3." >> opens in theaters friday, june 8th. tomorrow, martin's co-star, cred rick the entertainer will be here. up next, the latest fashions that will make your kid a happy and well-dressed camper this summer. right after this. good morning. i'm meteorologist chris warren tracking storms once again later today in the plains. the mississippi valley, parts of the south and the next system moving into the pacific northwest for some more wet weather. the big cooldown is on the way. close to 100 degrees in chicago on sunday. today, completely different story. more than 40 degrees cooler.

it was 97 last sunday if you remember. still warm and nice in new york down to d.c. hot in the south. 90s and upper 80s. 60s and 70s for the northern plains. chance for showers for parts of the dakotas, into the far western portion of minnesota. and then that next system pushing into the east. say goodbye to a couple of pleasant day there is. the ohio valley staying in the 60s for the most part and cooling down in the south. upper 70s, that's it for you in atlanta. the heat, this is where we're going to see the heat cranking up in the southwest. this is going to be bad news for firefighters having to battle the blazes in the southwest. a few showers in the intermountain west. parts of the great lakes, especially around michigan, will with dealing with some showers and parts of the south.

mid 80s, though, back into some spots, including kansas city. temtds in the lower 70s for the northeast. still cool along the west coast, the pacific ocean keeping things on the cool side. for monday, a few showers throughout the tennessee valley and in the northeast. and then on tuesday, things are pretty quiet. remember, you can "wake up with al" weekdays on the weather channel. [ female announcer ] research suggests the health of our cells plays a key role throughout our entire lives. ♪ one a day women's 50+ is a complete multi-vitamin designed for women's health concerns as we age. ♪ it has more of seven antioxidants to support cell health. that's one a day women's 50+ healthy advantage.

okay, you guys. before we go on, martin just told me as he was leaving, he said, kathie, you probably didn't know, but his beautiful, precious wife nancy did pass away a year and a half ago of ovarian cancer. i feel so badly. but he said, kathie, he said, at her funeral mike nichols said just keep the conversation going. the way he was speaking of her sounded like -- >> he said he had one of the great marriages. at the end he told you, i still do. >> my apologies to him and his family for not realizing that. still, he's one of the greatest guys ever, ever, ever. so sorry about that. time for today's style and dressing your kids for summer camp. >> just because they'll spend their days rubbing around in the sun doesn't mean they need to sacrifice style. which is why we brought in friend and fashion stylist ms. jenn falik.

our first is colored denim. a big thing for kids? >> big thing for adults and for kids. i love the look for summer with some shorts. >> here we have isabella and austin. what's happening with isabella and austin. >> isabella has joe's jean denim shorts. purple. matches the top. sequinned vest. land's end lunchbox has a cooling pack so you can keep half your food cold and half of it warm. >> you know who austin's mother is? allison broad. who happens to be right there behind the news desk. >> so cute! >> they're wearing their shoes. they're from crocs. their chameleons. they change color in the sun. cool patterns. he's wearing boden jean shorts. >> next trend is hot neon. >> neon, yes. >> rachel and nala. >> rachel and nala. they're showing the neon trend.

you can go all out or a little more understated. rachel is wearing the tie-dye short from century 21. you got to go off the shoulder. '80s inspired. check out the laundry bags. these are so fun. looks like a big bag of skittles. if kids got dirty laundry, this is the way to scarry it. nala is wearing an h&m t-shirt. i love the sunglasses. when you buy these, register them online. if your kid breaks or loses them, they send you a new pair. she has a digital underwater camera. >> next up, polka dots and stripes, nicole and matthew. >> where are they, hoda? >> here they are. i love this. these are two bold patterns. with polka dots, you can mix and match as many polka dots at the same time as you want. just make sure they're different sized polka dots. love the boden shorts. land's end cardigan.

her head band is from sweaty bands. no matter how sweaty and hot it gets, it stays where it is. love our j. crew striped t-shirt over there. >> last one, i hope. >> jessica and soloman, come on out. we're running out of time. >> how fun is this? i love this. feels timeless. love the floral pattern skirt, chambray top. comfy, easy to run around in. they look timeless. for camp picture day, this is a perfect look. it looks like it can be taken anywhere. >> thank you, jen. >> nice job, guys. up next, after a day in the sun, what's better than giada de laurentiis' chilled soup? first, this is "today" on nbc.

it is time for cooking with giada, our friend and chef, ms. giada de laurentiis. just created some chilled soup just for us. >> these aren't just your ordinary cold soups. >> what have you done for us? >> i guess you guys have never done spiked, chilled soups. i thought why not put your soup and your cocktail all in one. i'm going to put you to work. >> convenient. saves so much time. >> why not, right? it's kind of fun.

obviously you can do them unspiked if you like. these are chilled. let's make it more fun, right? you're going to cut some watermelon. you've done that before? >> oh, yeah. last weekend. >> i'm going to dice? >> you are actually going to cut this lengthwise. >> like this? >> yes. you know how to hold a knife, right? don't chop yourself. okay. we're going to cut -- we're going to take the seeds out. >> oh, come on. >> all right. i'll do it. with a spoon? >> you can just do this. come on, come on. >> i can do that. >> look, look, look, look. she's ahead of you. >> you know what? she's a perfectionist. >> what we're going to do is put them in the blender. we're making a chilled, spiked watermelon and cucumber soup. does that not sound yummy? >> oh, yum! >> dump all of the -- >> we're already done. >> we're waiting for your cucumber, lady. >> would you hold on a second? >> look how pretty it ends up look ing. whenever hoda's done. >> you got to break it up. >> she would stuff it in.

>> it's disgusting. >> all right. what else? >> a little more basil. basil, cucumber. salt and pepper. >> what are you pouring in there? quarter cup of? >> vodka! >> you know it's going to be good. >> we don't usually. but for you we'll make an exception. >> of course. ready? >> grind it up. >> go, vitamix. >> while we're waiting -- you don't mess around. we're going to point out one quick thing. in july when you turn on the tv and you see a clairol commercial, guess who's going to be on. >> hoda! you know what i forgot to tell you. >> you can't live in this for just a minute. >> we're making a dish. you want to make your little garnishes like that. you've got one over there, too. watermelon, feta, and basil. >> perfect. >> pour it in here. taste that and move to the back one. serve it in a martini glass. you're going to have to at least taste one. just sip it.

for one second. i'm going to get back here and i'm going to make my orange chilled, scented, spiked tomato soup. >> mmm. that's delicious. >> that's delicious. >> that would be fun at a party. >> that's a great one. >> tomato soup. >> orange scented tomato soup. carrots, shallots, tomatoes. maple syrup. tomato paste. basil. cook it and forget it. if you're adding vodka to it you need to let the soup cool completely before you blend it. >> got it. >> all righty. love you, clairol lady. come back tomorrow. we'll have something good, we promise. >> birthday cakes to impress in 30 minutes or less. have a great winesday. i'm jim cramer, and welcome to my world. >> you need to get in the game! >> firms are going to go out of business, and he's nuts. they're nuts!

they know nothing! >> i always like to say there's a bull market somewhere. >> "mad money." you can't afford to miss it. hey, i'm cramer! welcome to "mad money." welcome to cramerica. other people want to make friends. i just want fewer days like today. my job is not just to entertain but i'm trying to do some teaching and coaching. so call me at 1-800-743-cnbc. if you want drama, go to the theater! that's the lesson of a day like today, where the averages got completely pummeled. dow sinking 161 points. s&p giving up 1.43%. nasdaq losing 1.17%. people are drawn to drama like moths to a flame in this market. just seeking it out. that's a huge mistake. hence why i want to trace out some dramas tonight, tell you why they're flops, so you know how to avoid them because alas, this ain't broadway. and you don't want to attend,

even if you're getting some two-fers. the old nickname of two-for-one tickets, meant to lure you into a show that might close at any moment. especially against a backdrop of immense european pain like we had today. don't give my regards to broadway. the first drama, how about the tragedy? the tragedy of research in motion. i understand why people would want to attend this one. they know the product. they love the easy to use keyboard. there are over 70 million blackberry users out there. not as many as the 900 million strong facebook users. but those folks are a heck of a lot easier to monetize because they pay a subscription fee and are therefore actually worth something to someone. but who is that someone? and that's the question that makes rimm a drama and perhaps one with a sour johnny drama ending. users had a love affair with blackberry, but the other guys, notably apple with its amazing ecosystem and equally amazing

iphone with siri have now left rimm in the dust. plus research in motion chronically underinvested in new technologies, kept a closed system that made its devices incompatible with other systems. to make matters worse, rimm was once known for its incredible reliability, but a couple outages wrecked that reputation overnight. we've had failed iteration after failed iteration of rimm to the point where the company's losing subscriptions to the competition in droves, despite management's for the better changes and for the repeated restructurings. more importantly, as long as research in motion wasn't losing money, there was a chance it could catch a big takeover bid. but now after that red ink-drenched quarter last night we know the company's moved into the death rattle phase. rimm has entered a tailspin that most companies can't pull out of. think about nokia, alcatel, lucent, palm. they're all going down this path. it's very dramatic, but not at all investable. my friend david faber even mentioned it in the same breath

as nortel today. sure, rimm should be taken over. absolutely. but the company's adamantly opposed to such a sale. i don't even think the canadian government would let anything hostile happen here. remember, canada stopped that hostile bid for potash. i think they'd do the same here. anyway, we never speculate on takeovers when the fundamentals are in decline. that's one of our "mad money" rules. so i think the notices are negative. the drama in research in motion will probably end badly for all involved. there's no need to make yourself a participant. then there's the drama that is facebook. which i see as kind of -- i'd say a very dark comedy. 52-week low again today. you know, facebook at one point did try to gain some footing. it looked like it was going to go up. it was up when everything else was down. it seemed as if perhaps the line had been drawn. and the buyers who came in voraciously on the ipo at $38 had chosen this level to average down. others said look -- i heard this all day today. this is a long-term situation for heaven's sake, you can buy it and forget about it! i don't really know any

situation that you can buy and forget about. i've never seen one where we can just forget about it because don't worry about the short term because the long term is so amazing. what matters is that this drama has no real end in sight. remember, we still don't know what the bankers told the buyers and sellers of this stock on the eve of the horrendous ipo with something that freaked them out, both causing the sellers to dump and dump hard and the buyers to walk away or slash their buy orders. like any other company with a stock that keeps going down, we've got to adopt some rules here. so can we at least wait, wait a single quarter to see if maybe something's really wrong here? can we wait for the end of the lockup period to see if insiders take even more money off the table? why do we need to mess with the facebook drama when social media's proven to be such a graveyard that no one's been able to whistle past it, at least so far? here's one. the drama that is morgan stanley. the banker for facebook.

you might not know it, but morgan stanley's become a hellacious battleground between the bulls and the bears. it's a verdun-style slog with no letup. as much as facebook is, well, let's say top of mind and therefore morgan stanley's the top of mind banker, the real issue here is the company's balance sheet and how vicious will the upcoming ratings agency review be toward morgan stanley. three cuts? we don't know. morgan stanley's a place i've always loved, though. when i first came to wall street i applied there and goldman sachs and debated what should be better. 27 years later for many the verdict's not in yet. despite the company's endless protestations, morgan stanley's perceived as the weakest of u.s. banking institutions when it comes to ties with europe. it's considered the one that ratings agencies are most concerned about. even as this firm has done more to shore up its balance sheet than any other major institution in the space. they've taken up a huge amount of capital. what a great band it has, one

that's loved by venture capitalists and young companies and will continue to be adored even after the facebook fiasco. but the drama here is thick. there are huge accounts betting against this firm. they think the stock has much further to fall. >> sell sell sell! >> there are others who think morgan stanley could be the most undervalued stock in the whole group, though. >> all aboard! >> because of the tremendous disparity between its book value, currently pegged at $30, and its $13 share price. i ventured onto this battleground earlier this year, and it was at a higher price. i got the bullet holes to prove it. you just can't see them. morgan stanley was just too hard for this guy to call. i sure as heck don't like the drama even as i do like the subject. now, here's the amazing thing about all these dramas. as any good english teacher will tell you, the essence of drama is conflict, and rimm, facebook, and morgan stanley all have conflict to spare. but i've got three solid plays that have no drama whatsoever. they're comedies, brilliant, well-orchestrated comedies with a real all's well that ends well feel, although in each case they

are much ado about something, not nothing. remember, we're investors. we're not theater critics. which is why instead of research in motion you should consider verizon, which owns half of verizon wireless and sports a 4.8% yield. this company isn't bleeding subscribers. it's growing them. instead of being tethered to one variety of handset it offers all of them. verizon's got value and it's got growth. research in motion might have the first, and then again it might not if it keeps losing money. definitely doesn't have the second. instead of facebook may i suggest apple? did you see that company today? whoa. smoking. here's a company with tons of growth, a fantastic balance sheet, and incredibly low-priced earnings multiple. not a dollar amount but a low price to earnings multiple that's well off its high. not to mention new products that could dazzle, including perhaps a siri-operated tv. can you imagine asking that knockout smoke show siri to please put on "mad money" only to hear her coo, "your wish is my command"? ooh, doctor!

finally, do we need to get down and dirty with morgan stanley if you're going to own a bank that makes its money from actual banking, not complex financial derivatives and trading? i'm talking about wells fargo. which used the financial crisis as cover to grab almost 30% of the mortgage market at a time when making mortgages has become a terrific way to print money. here's the bottom line. hey. no doubt about it, drama could be great for broadway. but it's terrible in your portfolio. so don't think research in motion or facebook or morgan stanley, all epic stock dramas that could make you weep -- oh, yeah. waiting for godot. you know what i mean? instead, go with verizon, apple, and wells fargo. these are all plays that will leave you smiling with a good feeling that makes you want to come back for more. now, that's my kind of entertainment. chris in new york. chris! >> caller: jim, i'd like to give a big boo-yah from muhlenberg college in allentown, pennsylvania. >> great group of trustees and many of my friends went there. how can i help?

>> caller: linkedin was just upgraded to a buy today. how can you justify this for a stock trading at 600 plus times earnings? >> first of all you've got horse sense to ask that question. here's the dilemma people find when they're analyzing linked in. how many companies have 100% revenue growth for quarter after quarter after quarter for eight quarters? it's too attractive for the growth hounds to say away from. you and i care about earnings because we know what happens when growth slows down but you have to understand there's another cohort of people who go so lady gaga for growth that they can resist. i want to go to victor in washington. victor! >> caller: hey, jim. it's vic. how are you doing? >> vic, i'm good. how are you? >> caller: good. i was wondering about shippers and shipping in this economy. i own shares of two companies. diana container ships, dcix. and capital product partners. pclp. >> this baltic dry freight has seemingly gone down day after day after day. i want you to be very, very careful with that group.

i don't trust it with this baltic freight going down as quickly as it has. as a matter of fact, it's really one of the most discouraging statistics out there that i get every single morning. so look, save the drama for your mama! these are some tragedies that should be saved for broadway. i like you in apple. i like you in verizon. i like you in wells fargo. you'll feel good for the rest of the year. hey, man, the iceman, he don't cometh. "mad money" will be right back. >> coming up, dash for cash? the markets plunged on european woes for the past month. but b & g foods' domestic exposure has them heating up. could their portfolio of brands help feed your appetite for profits? cramer's exclusive with the ceo is next. and later, yearning for yield. feeling crushed from the market's wild moves? tonight it's time to fight back. cramer's playing defense as he zeros in on the top dividend

performers over the past century to provide you the protection you need. all coming up on "mad money." we all know there's nothing more important than family. >> on june 15th we're celebrating our fifth annual edition of "mad money -- it's a family affair." >> once a year only. check it out. >> want to join cramer in studio for the special event? >> my brother and i are in a little brotherly dispute. >> the doctor's in the house. >> head to madmoney.cnbc.com for free tickets. >> the family that invests together stays together. hey, i'm joey aragon.

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5-hour energy. hours and hours of energy. on a nasty day like this one i always like to look for stocks that were able to resist the savage european undertow which put most of our market through the usual meat grinders. i've been telling you to stick with high yielders that give you domestic security meaning they don't do much business overseas. sure enough all the averages were crushed today. b&g foods, bgs for all you home

gamers, basically unchanged. b&g if you don't remember is one of the domestic security stocks i just recommended. you might recognize them as the company behind ortega or las palmas brand mexican food. cream of wheat. vermont plain syrup. b & m beans. b&g pickles among others. i like b&g for a number of reasons. first that delicious 4.6% yield especially versus 10-year treasuries. up 83%. since 2012 is looking more and more like 2011 that bodes well for the future. the company has a fabulous track record of buying neglected brands from its largest competitors and nursing them back to health. plus b&g has given you about a 95% gain since i first got behind it in october of 2010. i think this is the ideal domestic defensive dividend name for this environment. but don't take it from me. let's talk to david wenner. he's the president and ceo of b&g foods. find out more about his company and its prospects. mr. wenner, welcome back to "mad money." have a seat. >> good to see you. >> thank you so much, david. now, since we talked last,

you've made this acquisition. and it's in a different direction. i've got all of your terrific food products and every single person who is watching knows them. these are products that are also household names, but they're not food. and i want to know how they're doing and whether they're going to be the same kind of success -- actually, we have some that are food. same kind of success. and whether they're taking your company in a new and maybe larger direction. >> well, most of the acquisitions are food products. but you're right. this is a household product. and it's a direction we've been looking at for a while now. mainly because when we look at food products we're looking at niche products that have very good margins, you know, things that we can defend against whatever competition there is. this is that kind of product on the household side of the ledger. very unique product. almost no competition whatsoever. very good margins. we think it has a lot of other applications. so we see room for it to grow. but it's what we do. and it's the same customers, the same trucks, the same warehouse.

you know, there's a lot of synergies there that we can take advantage of. >> now, when i go into the aisle -- i mean, i go into these aisles, it's obviously spice aisle, you've got mccormick in there, very good names, but there's room. i go into this aisle. there's a lot of little companies and they seem to be all like mom and pop companies or maybe divisions that big companies don't think of. there are a lot of guys in that aisle that you can take over, aren't there? >> and that's where the opportunity is. as long as it's in a niche that's defensible. you know, i do not want to buy something that my competition is tied. i have great respect for tide's power, and that's not what we do. >> but this is against mccormick. >> it is. but it's in a very defensible niche. mrs. dash controls 80% of the salt-free seasoning and has for a long, long time. mccormick has competing products that haven't made headway. so we looked at that and said that's got a very loyal following, very defensible, even though mccormick is the 800-pound gorilla in the seasonings. >> and no-stick baking. pam is in there. >> there's a lot of competition there. >> that's a household name. i had a party the other day and

the caterer said where's your pam? didn't say where's your baker's joy? >> there's not a lot of sales here. glass half empty, glass half full. we're looking at this and saying we can do a lot better because this is one of the original products in the category. it's done very well since we bought it. we got it into expanded distribution in walmart. we think we can do a lot with that brand. >> now, my friend matt horwin who does my forensic accounting for me and first brought your excellent company to my attention when you had the hybrid said to me you've got to ask, you've got to ask david, did you buy too much and is the balance sheet more stressed than you would like? >> did we buy too much? no. one of the management challenges we have as we build the portfolio is managing all these brands. and we think we're up to it. and that's part of my job is to understand how to do that. the balance sheet's actually in very good shape. we're leveraged about four times. but you really have to understand the cash flow underlying that. the interest to cover that leverage is about 25% of our ebitda, and very, very

manageable. and we are ready today to do the next acquisition. >> you really are? >> yes. >> you're not concerned the dividends -- >> we still have very strong cash flow. and what we buy because of this very strict criteria we have is accretive immediately. i mean, the culver brands that we bought brought $28 million of additional cash to the balance sheet every year. we raised a dividend off of that $10 million. so we're able to raise the dividend very comfortably, still put a lot of cash flow as a proportion of what we bought onto the balance sheet to fund that next acquisition. >> i do not see any commodities in this basket that are going higher anymore. >> no. and that's part of the magic of b&g in the last year, is we don't have tremendous commodity exposure. and what little we have we've done a very good job of buying ahead against. had to take very modest price increases to cover it and we've done that.

>> i know you guys have a great relationship with walmart. if you get one thing in walmart, are they willing to listen in bentonville to having you take the others, or does it happen kind of natural? >> walmart's a case by case thing. we're not big enough that walmart is going to really listen to us. we have to tell the story for each and every one of these brands. and fortunately for us, they're very good brands. baker's joy ended up on the baking aisle in easter. even though we had a very short fuse from when we bought it to when we got it in. so we're able to do that. but you've got to go persuade them. they're not going to just accept it. >> you've done a fantastic job. the thing i'm most thrilled about is it says here you're ready for the next one because the growth and the yield -- i mean, your dividend goes up and the yield goes higher, not because your stock goes down but because you're growing the dividend. you've done a fabulous job. it's one of the most mentioned stocks when i see people on the street. and i'm thrilled for that. thank you so much for coming on this show. >> thank you. >> that's david wenner, president and ceo of b&g foods. you're worried about facebook?

you're worried about morgan stanley? you're kind of up in the air about research in motion? hey, you know what? just remember b&g. stay with cramer. >> coming up, yearning for yield. feeling crushed from the market's wild moves? tonight it's time to fight back. cramer's playing defense as he zeros in on the top dividend performers over the past century to provide you the protection you need. [ jim koch ] there is a rhythm of the seasons, so we've developed styles of beer to accompany that. we brew octoberfest, winter lager, alpine spring and right now, there's summer ale. [ bob cannon ] samuel adams summer ale is a flavorful wheat beer. it has a very nice spice note. [ jim koch ] it has a little lemon zest and a historic brewing spice called grains of paradise. it's citrusy. -lemony. -flavorful. -refreshing. -wow. [ man ] sam adams summer ale, there's just something about it. it's like, totally reminds you of summer, you know?

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yesterday everybody was sure that something good just has to happen in europe. and our stocks, well, they rallied beautifully. but today we saw the other side of the equation, where rising spanish and italian bond yields along with a discouraging poll out of greece sent our stocks tumbling. our market is like a seesaw that hinges day after day on the news out of europe. however, there's one good thing about the situation, and it's, well, we've been there before. this is exactly what the market was like last fall. so we know the playbook for dealing with this kind of roller coaster environment. >> sell sell sell! >> buy buy buy buy! >> unfortunately, we can't be isolationists or american firsters. because that would make us ignore the traumas of europe. he with know that's never right. but we can at least wall off some of the damage. how?

with dividends! ♪ hallelujah yep, good dividend fences make good dividend neighbors. and they also make you some money. so as part of my endless attempt to inspire you and keep you from being run out on a rail by the jpmorgans and the facebooks of the market, to use those analogies, here's one more piece of evidence why it makes sense to stay in this game. as long as you stick to my largely domestic dividend diversification program. i've said some of this before. but after a horrific day like today i think it bears repeating. we know dividends will help your portfolio survive, possibly even thrive in this lousy environment. remember, looking back over the last century, an astounding 40% of the total gains in u.s. stocks came from reinvested dividends. 40%. in other words, even in a decent market dividends are responsible for nearly half the average of a stock's performance. it's pretty amazing, isn't it? this is not a decent market. can you imagine how much it's going to account for? right now we're in a period

where global economic growth is slowing. uncertainty about the future clearly on the rise. it's not a pretty moment. but we know empirically, thanks to a terrific study from morgan stanley, that during periods of slower growth, dividend-paying stocks have outperformed those without dividends. plus in times of uncertainty, stocks -- well, high-yield stocks become increasingly attractive as relative safe havens for your money. and they have a trampoline effect underneath. speaking of safe havens, the safest asset class around, u.s. treasuries, right? they're giving you hardly any return at all. do you know the yield on the ten-year treasury hit its lowest level on record today. a puny 1.63%. even 30-year treasury bonds are only rewarding you with a pathetic 2.72% yield. at these levels, buying bonds, i'm calling them foolish. i am urging treasury secretary tim geithner right here, right now, to sell $500 billion in 30-year treasuries in order to sate demand from europe and put an end to any liquidity worries

that might come into play if the world examines our deficit after dealing with the catastrophe that is europe. the truth is you can get a much, much higher yield from dividend-paying stocks and it will be taxed at a lower rate than income from bonds and of course there's the possibility that the company paying it might raise its dividend, something i guarantee you uncle sam will never do. in fact, i bet we'll see a slew of dividend boosts in the not too distant future. historically u.s. companies have paid out an average of about 45% of their earnings in the form of dividends. yet right now the payout ratio is sitting at an incredibly low 30% because earnings have rebounded so strongly. our non-financial companies are sitting on record levels of cash and their balance sheets are pristine. that's a surefire recipe for higher dividends down the road. so given the incredible power of dividends, how do we go about devising a portfolio that works in this environmental? we want consistent companies, and that's why we started by looking at the list from the new york stock exchange century club, which recognizes successful american companies that have been around for the

last 100 years. we heard about this club from one of our guests, kevin burke, the ceo of con ed, one of the most consistent companies around, when he came on the show just last week because con ed's a member. then we narrowed things down by looking at only the companies that had raised their dividend every year since 1980. only 19 companies. so that's a good list. then we narrowed still further by looking for the companies that grew their dividends at the fastest compound annual growth rate. they call that cagr for sure. c-a-g-r. while also making sure to include a range of sectors because we like diversification. it gave us five stocks, five names that aren't just dividend aristocrats. they're -- ♪ -- dividend royalty! first of course is con ed. the new york city-based utility with a 4% yield. now, con ed is a transmission and distribution play, not a power generation utility, which means they don't need to worry about the e.p.a. unlike so many of the other

higher-yielding coal burning like american electric power. one part of the country where residential construction is still thriving. which means more customers for con ed too. needless to say con ed like every other company on this list has a phenomenal record of raising its dividend. just like conversion from oil to nat gas. i think it's going to make it pretty easy to raise the dividend this year for ed. second there's sherwin-williams. don't talk about it enough. the paint company. small 1.2% yield. but wow, terrific track record of dividend boosts having increased their payout at a 20% compound annual growth rate since 1980. we know from last quarter the paint business isn't strong -- it's strong. it isn't just the great weather. a lot of people are critical because they say it's strong because it's so nice out. uh-uh. we know this because inside paint is selling just as well as outside paint. plus their raw costs are coming down. a lot of things going sherwin williams' way. third, we've got abbott labs. the defensive drug company with 3.3% yield that's grown its payout at a 14% clip.

and a stock i like for my charitable trust which you can follow along with at actionalertsplus.com. we'll tell you which pieces to keep after the split. the drug business and the diversified medical products business that are splitting, i think there's going to be a lot of value brought out. we do like both pieces. but you know what? we're not sure whether to keep both longer term. as we get close to the split again, i'm going to tell you exactly what to do, and it will be not until the end of the year. so you have some time. fourth, pepsi! which yields 3.15% and has been growing that dividend by 12% annually for the last 32 years. pepsi's a classic turnaround story but the turn is only just beginning to become obvious. i think it's working but you're being paid handsomely to wait until everyone knows it. where was i going here, pepsi's declining raw costs, think gasoline for trucking their products to the stores. gain prices for frito-lay. come on, think about the stuff that goes into frito-lay.

packaging costs coming down for their cans and bottles as well as energy used to make them. they use a lot of energy to make this stuff. it's all going pepsi's way now, and indra nooyi, the ceo. love you, jim. i think she meant to write go phillies. forget about them. she's going to put them in their place, show you how wrong they are the next couple of quarters. plus pep has much less international exposure than coca-cola, which means it's also a domestic security play. finally there's target which yields 2.1%. not a super high dividend. but it's grown the payout by 11% annually since 1980. very fast dividend growth. remember, that was one of our criteria. this stock like walmart has moved up too much of late but because it's totally domestic as well as being a great play on falling gas prices and lower food inflation, it remains one of the best go-to names in the space. here's the bottom line. in this turbulent market you need dividend protection, and that's where con ed, sherwin-williams, abbott labs, pepsi, and target come in.

all companies with terrific records of dividend boosts going back more than three decades. however, these stocks should only be bought on a european-inspired dip like we had today because they have little to nothing to do with europe, which means the only reason they went down to begin with is because they're part of the s&p 500 brought down by the futures. that's the definition of a bargain. and you know this market will give you plenty of those as long as you remain patient and ready for the inevitable greek tragedies that seem to cause havoc around the world each week. let's go to dan in louisiana. dan! >> hey, jim. let me first of all give you a big raging cajun boo-yah from down here south louisiana. >> lafayette, pal. >> caller: yeah, down here in lafayette. come down, we just recently voted the best place for a good meal in the south. >> i believe that. i'm letting the bon temps roulez thing happen. what's up? >> caller: i have a two-part question, sir.

the first one is do you have to own a minimum number of shares to qualify to receive a dividend? and then the second part of my question is if you could please distinguish between like the ex dividend date, the record date, and when can you sell your shares and still receive the dividend? >> you don't have to have a certain number of shares and there's a -- what i'm going to do is i'm going to send you to my book, to my last book, which gives you all the pay dates. it's a very complicated series of things. and i want everyone to know what the pay date is, what the ex date is because it's very complicated and i don't want to just be glib about it because you've got to write it down and read it. but it's a great question and i want you to know exactly when to buy and i'm not going to just cuff it here. let's go to avi in florida, please. avi. >> caller: hey, jim. big sunshine state boo-yah to you. how are you doing, buddy? >> real good. how about you there, partner? >> caller: not bad. thanks very much. i had a question about nct. newcastle. >> right. >> caller: it's paying a huge dividend and it's up a little

over 40% so far this year. what have you got for me? >> well, i've got to tell you, this is another one of these situations, i know people get tired of hearing me say it, but the one thing i will never do is recommend a stock that's like this with a 12% yield unless the ceo comes on this show and describes to me what he or she has within that company because i can't make a determination and i can't cuff the decision. what do you get when you combine history, track record, european resistance, and yield protection? you get cramer's dividend royalty! and that's con ed. it's sherwin-williams. it's abbott labs. it's pepsi. and it's target. please, wait for the dip and stay with cramer. >> coming up, the clock is ticking. call cramer at 1-800-743-cnbc to find out how to fire away at cramer on the "lightning round." can he withstand your thunderous onslaught of stocks?

and later -- how do your stocks stack up in a mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" all coming up on "mad money." how much coffee are you fellows going to need today? three...four cups? [dumbfounded] well, we... doesn't last long does it? listen. 5-hour energy lasts a whole lot of hours. so you can get a lot done without refills. it's packed with b-vitamins and nutrients to make it last. so don't just stand there holding your lattes, boys. make your move.

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[ female announcer ] pop in a whole new kind of clean with new tide pods... a powerful three-in-one detergent that cleans, brightens, and fights stains. pop in. stand out. it is time. it is time for the "lightning round" on cramer's "mad money." rapid-fire calls one after the other. say the name of the stock -- buy buy buy or sell sell sell. my staff prepares the graphics on the fly.

play until you hear this sound [ buzzer ] and then the "lightning round" is over. want to start with diana in california. diana. >> caller: hi. what do you think about qualcomm, ticker symbol qcom? >> all right. qualcomm is a great play off of apple. i think it's inexpensive. but people want dividend and they don't want europe. and qualcomm is not there for the play. let's go to marco in new york. marco! >> caller: boo-yah. what's up, buddy? this is marco from brooklyn heights. how are you doing, jim? >> man, i'm loving brooklyn heights. i lived at 312 hicks. what's going on? >> caller: i mentioned a couple times here some wedding events. how are you doing? >> i'm fine. what's going on? >> caller: i wanted to know what you thought about ctrip. >> come on. i thought if you live in brooklyn heights you have horse sense. >> sell sell sell sell sell. >> we're not recommending anything in china. too dangerous. how about ron in virginia? ron. >> caller: hi, jim. boo-yah to ya. >> boo-yah. >> caller: how about hartford financial, h.i.d.? it's selling at almost 50% of book value.

>> it's very cheap but if i want to buy something at 50% of book value i'm going to go to aig and robert benmoshe. william in michigan. >> caller: sips financial international. sfl. buy, sell, or hold. >> chartering ships is too dangerous a business. i have a hard enough time recommending n.a.t. this one did just spike. michael in arizona. michael. >> caller: new york giants fan living in arizona. and my ticker symbol is bud, b.u.d. >> i think it's a terrific situation. precisely the kind of stock i'm looking at in this unstable environment, although it does have international exposure obviously. let's go to greg in virginia. greg. >> caller: jim, big boo-yah from the mountains of virginia. thanks for turning my portfolio from mean to green. >> that's what i want to hear. >> caller: mid states petroleum. >> too dangerous. i think it's stopping here but if the dollar keeps going higher