CNBC host Jim Cramer has become more cautious toward AI and data center stocks after seeing increasing insider selling and borrowing activity.
Cramer said in a recent program that the era of “magical investing,” when investors made easy money by buying any company tied to data centers, is over. Cramer said he had proclaimed 2025 as the year to gain from investing in data center companies, but has since made a “big change” in his outlook.
“I pronounced it over, dead,” he said.
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As AI stocks lose momentum, investors are on the lookout for non-tech stocks to diversify their portfolio. Let’s take a look at some of the dividend stocks Cramer has been recommending recently.
A caller recently asked Cramer during his CNBC program whether he should worry about off-price retailer TJX Companies Inc. (NYSE:TJX). Cramer urged the investor to hold the stock amid the ongoing downturn in the stock market.
“TJX is really really strong,” Cramer said. “It’s what works in a bad market and right now we got a bad one. I say own TJX, not sell it.”
TJX has a dividend yield of about 1.2%. The stock is up 21% so far this year.
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Midstream energy company Energy Transfer LP Unit (NYSE:ET) is one of the high-yield dividend stocks Jim Cramer is recommending. The stock is down 13% so far this year. Earlier this month, Energy Transfer posted Q3 results that missed Wall Street estimates. The stock has a dividend yield of about 7.8%.
“Don’t wonder, buy,” Cramer said about the stock in a recent program. “I mean, that thing is, that’s just the sweet spot that we want to be in.”
Jim Cramer recently said that consumer packaged goods companies like Procter & Gamble (NYSE:PG) present an attractive opportunity for investors in a down market.
“I use Procter & Gamble on how to make money in any market, because the company is so rigorous and inventive,” he said. “Procter yields 2.85% and you know it has the scale and the science to make things cheaper.”
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Jim Cramer expressed a bullish view on Johnson & Johnson (NYSE:JNJ) in a program earlier this month, highlighting the Food and Drug Administration’s approval of its Caplyta drug for the treatment of major depressive disorder in adults.