Cramer Picks Safeway Over Whole Foods
We are going to talk about grocers. Jim normally grows all of his vegetables, but sometimes you've got to go to the grocery store, right? And when we look at grocery stocks, that is a whole lot different than the grocery store we like to visit. One of the names you like here is SafeWay
SafeWay is one of the best performing stocks in the first quarter. A couple of reasons, one is that they announce that they are going to do the spinoff of Blackhawk. Now we always knew that this pre-paid card division was worth a great deal. I've been waiting, waiting, and waiting for this deal. The second is that SafeWay is on to WholeFoods. They understand that organic's the way to go, and these places have reinvented themselves. And finally the third, and I think is the most significant, this company seems to be very shareholder friendly -- far more than I realized. They bought back 20 percent of the float last year. That's incredible. And they've got a nice dividend at 6.7%. Gee, WholeFoods lacks a lot of those positives.
And here's another thing they're doing if people weren't aware already: SafeWay is hooked up with Chevron
Yeah. I just think the novelty of Whole Foods is troubling and it seems to be everyone is nipping at its heels. Costco