Jim Cramer likes only one of these two new dividend aristocrats

By:
on Feb 1, 2023
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  • Nordson and Smuckers were added to S&P 500 Dividend Aristocrats today.
  • Jim Cramer say J M Smucker out of the two is a much better investment.
  • He explained his dovish view on Nordson Corp last night on Mad Money.

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Nordson Corp (NASDAQ: NDSN) and J M Smucker Co (NYSE: SJM) both were added to the S&P 500 Dividend Aristocrats Index on Wednesday. But Jim Cramer says only the latter is worth owning.

Cramer is bullish on Smuckers stock

According to the Mad Money host, Smuckers is a great pick for investors wanting to somewhat insulate from the rate hikes and fears of a recession.

This is just a good, solid business that deserves to be considered in the top tier of packaged-foods companies, with the likes of General Mills and Campbell Soup. I don’t think it gets the respect that it deserves.

He’s convinced that J M Smucker is trading at a reasonable price even though it’s currently trading near its all-time high. The food stock pays a dividend yield of 2.67%.

Why doesn’t Cramer like Nordson Corp?

On the flip side, Cramer recommends avoiding Nordson Corp for two reasons.

One, the stock is not inexpensive to own. And two, it expects currency headwinds to continue to be a meaningful headwind this year. Last night on Mad Money, he said:

In mid-December, their earnings guidance for the quarter was tepid and the full year earnings forecast came in weaker-than-expected.

The multinational is calling for 1.0% to 7.0% growth in sales this year on $8.75 to $10.10 of earnings per share. Nordson stock that pays a dividend yield of a little over 1.0% is roughly flat for the year at writing.