i'm guessing what cramer is saying is to avoid dividend stocks that are near the 10 yr. treasury note in yield.
so dividend stocks in the 3% yield zone are to be avoided..... but stocks yielding 5%+ are still attractive after sell offs.
Cramer is an entertainer and as such is very successful as such. All too often people forget that you should listen to him to be entertained and not for investment advice. In the case of PSEC, however, I fully agree with him.
Yeah I don't know if Cramer is all that trustworthy. I did hear him explain why he recommended being leery of high yields. He said it often times shows a stock price that is collapsing and in parallel to that is a dividend that likely cannot be sustained because things are not well with the company. I remember a couple of months ago he said to stay away from PSEC. He had no reason other than saying I just prefer Annaly Capital in that market... Glad I did not follow that advise! Another Cramer story is he had CLCT as a hold when prices were low(11-12) and yields were high earlier in the year. After a great earnings report, the stock jumped to $14+. He then said CLCT was a buy. I knew right then to sell.