Smith & Nephew has a diversified portfolio of health care businesses. It gets 37% of its revenues from orthopedic reconstruction and it has a orthopedic trauma, endoscopy, and advanced wound care business as well. Cramer said all of its businesses are good and stable.

It's not drugs, it's not hospitals, it's the indispensible business of health care supplies.

projected growth of orthopedics markets; specific hip and shoulder innovations; dividend history and company history

Last month, Smith and Nephew agreed to buy Swiss-based Plus Orthopaedics and leapt over Biomet to become the world's fourth largest hip and knee implant company, grabbing about 12% of the market.

Smith & Nephew (SNN), which just acquired Plus Orthopedics. That deal moves the London company into the No. 4 slot in the worldwide orthopedics market. As in most markets, the biggest share of the profits go to the top players, so the company's move up the orthopedics food chain will be a significant driver of increased profit margins in an orthopedics market that will see big growth as the world's population ages.