Jim Kramer says these 5 high-yield stocks bear the seal of approval

CNBC’s Jim Cramer on Tuesday presented investors with a list of five high-yielding stocks that should be on their shopping lists.

Here is his list:

1. stronghold
2. KeyCorp
3. Federal estate
4. Devon Energy
5. ONEOK

The two-year Treasury has recently risen to about 4.3%, which indicates that the Federal Reserve will continue to raise interest rates aggressively and increase the likelihood of a recession, according to Kramer.

This, he added, made some of the stocks “incidental high yields” and it was now time to buy them. “You want to hunker down in high-return bidders because their profits 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 were down 30% or more from 52-week highs and returning 4% or more. Of the more than 50 stocks that fit the requirements, the listed stocks were his favorite.

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

Disclosure: The Kramer Charitable Fund owns shares in Ford and Devon Energy.