Time to buy. Cramer is just trying to help his short selling buddies. They are now following investors/clients/money flow into high yield dividend stocks. The population is getting older and investors are looking for income generating investments. Some see this as an opportunity to rip them off.
Also, this dividend paying for valuations concept came from: The Evaluation Of Common Stocks by Arnold Bernhard. He believed that a company's dividend paying ability was the most important metric in the valuation of its stock.
I would not place any weight on Cramer's statement. A short seller who has been putting pressure on this stock lately. My guess is Cramer is trying to help his by discouraging retail investors from buying the stock.
T is also in better shape than VZ to maintain its dividend. VZ has more debt and a large minority interest associated with its earnings.
Also, this neo-communist notion that all stocks should trade at little or no multiples came from a group ( likely short sellers) a few years ago. They tried to persuade investors not to buy stocks with multiples over 10 percent. This was total nonsense. They were only trying to make money on their bets against companies.
T trades at about 13.8X forward earnings right now. This is really very conservative for this company. It will likely trade higher 2013 (17 X trailing earnings of about $2.45 per share). This is still pretty conservative for a stable dividend paying stock. Investors may not see many stocks with over 5 percent yields in 2013 and they surely will not see any at 9 percent in this sector ( maybe in their Cramer dreams).