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Jim Cramer Picks 7 Dow Stocks That Investors Should Consider Owning

Brendan Mcdermid | Reuters
  • CNBC's Jim Cramer on Tuesday offered investors his stock picks from the best- and worst-performing stocks in the Dow Jones Industrial Average during the first half of the year.
  • Companies in the Dow "tend to be boring, mature companies that typically pay nice dividends, which is what protects you when the Fed is tightening," the "Mad Money" host said.

CNBC's Jim Cramer on Tuesday offered investors his stock picks from the best- and worst-performing stocks in the Dow Jones Industrial Average during the first half of the year.

Companies in the Dow "tend to be boring, mature companies that typically pay nice dividends, which is what protects you when the Fed is tightening," the "Mad Money" host said.

"I know this is a tough market, but I'm betting the second half turns out better than the first for the worst performers and be OK for the best performers," he added.

Here is his list of the five worst-performing names in the Dow — all of which Cramer believes investors should be eyeing.

  1. Disney: Cramer said he is optimistic about the stock's future.
  2. Nike: He said that he believes investors should start building a position in the stock now.
  3. Salesforce: Investors should snap up shares of Salesforce before its Dreamforce conference this fall, where the company conducts "a ton of business," he said.
  4. Home Depot: Cramer said that he believes the stock has a compelling long-term story, but investors might be able to get a better price for the stock later down the line.
  5. Cisco Systems: The stock looks tempting at its current price, which means the Charitable Trust is going to hold on to its shares of the company, according to Cramer.

Next, here is his list of the top five best-performing names in the Dow, with explanations for the stocks he gave investors his blessing to buy:

  1. Chevron
  2. Merck: Cramer said the company is recession-proof, reports consistent earnings and has "juicy" dividends, which makes its stock worthy of investors' cash — unless rates continue to go down.
  3. Amgen
  4. Travelers
  5. Coca-Cola: The company has a bright future ahead of it now that its supply chain costs are coming down, Cramer said.

Disclosure: Cramer's Charitable Trust owns shares of Chevron, Cisco, Disney and Salesforce.

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