Jim Kramer of CNBC on Monday gave investors a list of five “accidentally high returns” that he said would give investors shelter in an unpredictable market.
“At depth  financial crisis, you got an amazing opportunity to buy accidentally high profits … real companies with stable dividends that saw their stocks fall so far that their dividends were getting ridiculously high returns compared to the old days. This moment is becoming similar, ”the host of“ Crazy Money ”said.
“You should follow the stock market as long as you follow the right groups and avoid the wrong ones – the wrong ones that are unprofitable technology companies or any other high-value stocks that have long lost momentum,” he added.
The Dow Jones Industrial Average rose 0.08% on Monday, while the S&P 500 fell 0.39%. The technological Nasdaq Composite fell 1.2%.
Earlier, Kramer compiled a list of high-yield stocks in March, highlighting ten names that he thought could be invested.
“Of these, [Simon Property Group is] the only one in which I still feel confident. … We arrived too early and we were too confident in retail. “I don’t make that mistake anymore,” he said. “At the same time, even high dividends are not enough to support stocks in the bad sector.”
“That’s why we need to raise the level of our casual high-yield portfolio,” he added.
To compile a list of accidentally high incomes, Kramer began by searching for names in the S&P 500 to follow the “biggest investments”. He identified stocks that meet the following criteria:
- Has no return below 3.5%
- They fell by 25% or more from their highs
Remaining with 21 eligible names – including Simon Property Group and Morgan Stanley, two names that were on his latest high-yield list – Kramer further narrowed the list to five shares.
Here is the list he made:
- Huntington Bancshares
- The best buy
- Digital real estate
Disclosure: Cramer’s Charitable Trust owns shares in Morgan Stanley.
Register now to have CNBC Investment Club monitor Jim Cramer’s every move in the market.