Cramer on value (two picks)


On tonight's MAD MONEY on CNBC, Jim Cramer reviewed some stock basics on risk profiling. He reviewed non-speculative companies for growth and value. He suggested you go to the most household names in the business. Value stocks are like Verizon Communications (NYSE:VZ) and AT&T, Inc. (NYSE:T), according to Cramer. But he noted you can't just own stock in two telecommunications companies and think you are diversified.

The value stocks pay high dividends and have no longer seen raw rapid growth outside of wireless and VoIP and tertiary services. They are trying to grow but they have to keep raising dividends. They have enough yield support to keep them from falling out of bed. Out of the two stocks, Cramer likes AT&T better because there will be a lot less competition in the phone space. The lower yield may mean AT&T will more easily raise its dividends into the future.

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