Jim Cramer picks 7 Dow stocks investors should consider owning

CNBC’s Jim Cramer on Tuesday offered investors his stock picks for the best and worst stocks in the Dow Jones Industrial Average for the first half of the year.

The companies in the Dow “are generally boring, mature companies that usually pay good dividends, which protects you when the Fed tightens,” the “Mad Money” host said.

“I know it’s a tough market, but I bet the second half will do better than the first for the worst performers and be OK for the best,” he added.

Here’s his list of the five worst names in the Dow — all of which Cramer thinks investors should pay attention to.

1. Disney: Cramer said he’s optimistic about the stock’s future.
2. Nike: He said he believes investors should start building positions in the stock now.
3. Salesforce: Investors should buy Salesforce stock before this fall’s Dreamforce conference, where the company is doing “a ton of business,” he said.
4. Home Depot: Cramer said he believes the stock has a compelling long-term history, but investors may get a better price on the stock later.
5. Cisco Systems: Shares look attractive at their current price, which means the philanthropic fund is going to hold onto its shares in the company, according to Cramer.

Next, here’s his list of the five best-performing names in the Dow, with explanations of the stocks he’s given the go-ahead for investors to buy:

1. Chevron
2. Merck: Cramer said the company is recession-proof, reports solid earnings and has a “juicy” dividend, making its stock worth investors’ money — as long as rates don’t keep falling.
3. Amgen
4. Travelers
5. Coca-Cola: The company has a bright future now that its supply chain costs are down, Cramer said.

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

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