"Investors, myself included, weren't pleased. On the other hand, Pfizer did have some positive news -- it announced a deal to acquire rival drugmaker Wyeth. For a long time, I've been telling you to expect Pfizer to make a big purchase.

"While I thought a major biotechnology company would be the best way to get promising drugs and niche R&D operations at a reasonable price, the purchase of WYE gives Pfizer both biotech operations and more traditional drugs, too.

"All told, the new combined company will boast 17 different products each worth a billion or more in annual sales. That's an awful lot of money coming into the corporate coffers. Plus, Pfizer's CFO says total cost savings could hit $4 billion by the end of 2012.

"Does the deal completely solve Pfizer's pipeline problems? No. Wyeth is facing a couple key patent expirations of its own.

"But from a quick initial analysis, it looks like this deal is a good one, and the combined company will begin seeing an earnings boost very quickly. That could lead to a restored dividend, and big gains for the shares.

"And even at the new dividend rate, the stock is sporting a very nice yield. So I recommend you continue holding the stock. If you have yet to purchase either the initial position or the add-on shares, do so now."

Steven Halpern's TheStockAdvisors.com offers a daily look at the latest market commentary and favorite stock picks and investment ideas from the nation's leading financial newsletter advisors.