Sep 28, 2026 · 44 min
Cramer questions whether dividends still protect investors
Mad Money w/ Jim Cramer 9/28/26
The episode weighs AI-fueled growth against valuation risk while challenging the assumption that high-yield stocks remain dependable shelters.
- 1AMD’s AI-driven rally highlights how demand and leadership can reshape valuation expectations.
- 2Cramer argues that high dividend yields may reflect business weakness rather than reliable downside protection.
- 3The calls defend thoughtful individual stock selection while testing that approach against company-specific risks.
Don't miss
Cramer’s strongest argument arrives when he rejects high-yield stocks as automatically defensive and connects PepsiCo’s dividend appeal to pressure at Frito-Lay.
The brief
Jim Cramer opens by framing investing as an exercise in navigating uncertainty, then turns to viewer questions about growth, valuation, and stock selection.
Thomson Reuters raises the question of whether an information moat can withstand AI-driven multiple compression, while Dutch Bros tests whether a sharp sell-off has gone too far.
AMD’s brief entry into the trillion-dollar market-cap club becomes the episode’s clearest growth moment, with Meta’s AI developments, demand for high-end CPUs, and Lisa Su’s leadership driving the discussion.
Cramer challenges the traditional defensive-stock playbook, arguing that high yields can signal business weakness or complacency rather than dependable protection, as PepsiCo’s Frito-Lay pressure illustrates.
The Lightning Round extends the test across individual names, and Cramer closes by defending retail investors’ right to choose stocks thoughtfully rather than treating participation as gambling.
What was said on this episode
24 statements · 14 positive · 10 negative
Meta's Muse will gain more market share than OpenAI's offering
“I think Meta crushed it with this, and I bet it'll have much more market share than OpenAI”
Listen at 3:10
Lip-Bu Tan's plan will return Intel to greatness
“I have total faith that his plan to return Intel to greatness will succeed.”
Listen at 4:22
Demand, pricing power, and scale reduce companies' sensitivity to higher rates
“If they have all three, they won't be as impacted by higher interest rates courtesy of the war with Iran.”
Listen at 4:56
Thomson Reuters is not a bargain at 28 times earnings
“this stock still sells at 28 times earnings. Until that multiple comes down and that yield goes up, of course, is what happens when a stock declines, it's not a bargain.”
Listen at 8:07
Dutch Bros has strong growth and does not deserve its sell-off
“But this company has terrific growth, and it's been just crushed. And I don't think it merits the crushing.”
Listen at 9:06
Chipotle is attractive after declining to its current level
“I like the stock down here, even as the restaurant group has gone completely out of favor.”
Listen at 11:16
High-yield stocks no longer provide safety and may be dangerous
“But lately, high-yielders no longer represent safety. If anything, they represent complacency, even danger.”
Listen at 20:26
Investors should avoid California utilities despite high dividend yields
“I think you'd have to be crazy and bet on a California utility, no matter how big the dividend yield might be.”
Listen at 23:32
Kraft Heinz has an optimistic investment outlook
“At the end of the day, I'm optimistic about Kraft Heinz”
Listen at 24:14
Double-digit dividend yields generally signal serious risk
“In July, with very few exceptions, a double-digit dividend yield is a major red flag.”
Listen at 26:06
PepsiCo's dividend may not protect its stock from further declines
“the dividend may not preserve or act as a trampoline I once thought it would.”
Listen at 27:42
Costco's $65 annual membership fee is an excellent value
“I think the annual membership fee at $65 is a steal.”
Listen at 29:44
Costco's 40-times earnings valuation is a major weakness
“But at 40 times earnings, it's an Achilles heel.”
Listen at 34:31
Cramer would not buy Costco near $923 but might near the $800s
“At just under $923 a year, frankly, I'm not interested in buying anymore, maybe in the 800s”
Listen at 34:41
In-person incentives could improve retention and drive Costco stock higher
“If Costco can give them more of a reason to show up in person, I bet they'll keep coming back. And the stock will shake off the 900s and power much higher.”
Listen at 35:06
Supermicro has major internal structural problems; Dell is preferable
“I'd rather tell you I think there's major structural problems internally in that. That's why I like Dell”
Listen at 36:06
Fortune Power Systems is an attractive investment
“I happen to like Fortune Power Systems very much.”
Listen at 37:03
Symbotic's 100-times earnings valuation is unacceptable
“it sells at 100 times earnings. I can't get behind anything like that.”
Listen at 37:29
Investors should avoid Polaris despite its high yield
“I'm not going to go with Polaris. As a matter of fact, I'm going to go against Polaris. I don't want to touch it.”
Listen at 38:31
SpaceX could have an exceptionally strong future
“There are perfectly legitimate reasons to believe that SpaceX could have an incredibly bright future.”
Listen at 40:11
SpaceX's NVIDIA GPU purchase is already generating returns
“The more substantive business decision to buy a huge number of GPUs from NVIDIA is already paying off”
Listen at 41:47
A Tesla-SpaceX combination could eventually make substantial profits
“the combined company could end up making a lot of money someday.”
Listen at 42:48
Elon Musk will reduce humanoid robot prices
“Elon Musk will drive that price down.”
Listen at 43:02
SpaceX's business is strong and will improve over time
“the business? It's good. And it will only get better over time.”
Listen at 43:33
Statements are attributed to the speaker as said on the episode and reflect their view at the time, not PodLume's. They are not advice.
Books & mentions
Some links are affiliate links — PodLume may earn a commission if you buy.
