Pfizer (PFE) has been a bellwether stock in our portfolio since practically the beginning. I acknowledge that share price appreciation has been pretty muted for a while, but the dividend is one of the principal reasons why we remain long this name. We remain watchful of the company's present 3.7% yield, despite how it has been talked up recently. Due to the muted performance of shares recently, Pfizer's present yield is trading well above normal and is consequently attracting attention.

However, long-term investors will remember that the company cut its dividendin 2009. Although there was really nothing wrong with the company's cash flows and payout ratio at the time, the purchase of Wyeth back then added a lot of debt onto the balance sheet. Of course, a sizable acquisition is always in the cards to fuel growth, which is why close scrutiny of the earnings numbers and guidance is warranted.

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