Jim Cramer says these 5 high-yielding stocks have his stamp of approval

CNBC’s Jim Cramer on Tuesday offered investors a list of five high-yielding stocks they should have on their shopping lists.

Here is his list:

1. Ford
2. KeyCorp
3. Federal Realty
4. Devon Energy
5. ONEOK

The two-year Treasury has surged as of late to around 4.3%, which is a sign that the Federal Reserve will continue to raise interest rates aggressively and increase the likelihood of a recession, according to Cramer. 

This has made some stocks “accidental high-yielders,” and now is the time to buy them, he added. “You want to take shelter in the accidental high-yielders because their dividends will give you a cushion.”

To come up with his top picks, Cramer first ran a screen on the S&P 500 to find stocks that are down 30% or more from their respective 52-week highs and yield 4% or more. From the over 50 stocks that fit the requirements, the stocks in the list were his favorite.

“They might have more downside here, but I recommend you start buying them here and gradually build a position,” he said.

Disclosure: Cramer’s Charitable Trust owns shares of Ford and Devon Energy.