Blue chip value and yield at Pfizer (PFE)

"We now see an opportunity to play a short-term bounce in the market," says Mark Skousen, who suggests sticking with dividend-paying blue chips. His Hedge Fund Trader Alert looks at Pfizer (NYSE: PFE).

"The cut in rates by the Fed is good for stocks because it makes it cheaper for companies and consumers to borrow. It also motivates investors to get out of low-yielding cash and into something that pays higher income.

"Given the skittishness of investors right now, a good place to be is in blue chip stocks with big dividends. That's where the institutional investors are likely to flock for growth, and where individual investors will turn for income.

"One fine examples is Pfizer Inc. Pfizer, of course, is one of the world's leading pharmaceutical companies. It develops and sells such well known prescription medicines such as Lipitor for elevated cholesterol, Zoloft for depression, Norvasc for hypertension, Celebrex for arthritis, and Zithromax for bacterial infections.

"Large-cap drug companies are largely immune to the business cycle. In fact, during the July 1990 to March 1991 recession, they went up an average of 30.3% while the market was pushing lower.

"And while earnings have slipped recently, Pfizer remains financially strong with 31% operating margins and annual revenue of more than $48.6 billion. The current yield of 5.7% makes this stock particularly attractive."

Each day, Steven Halpern's TheStockAdvisors.com offers the latest market commentary and favorite investment ideas from the nation's leading financial newsletter advisors.