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Getting Defensive with Jim Cramer

In this tough environment, Cramer on Monday recommended investors get defensive. The "Mad Money" host said to look for stocks that have a high dividend yield, as well as an attractive risk-reward.

Take Microchip Technology , for example. It is a semiconductor manufacturer, which primarily makes microcontrollers or chips that go into simple electronic devices. Its 4.5 percent dividend yield is the highest in all the semiconductor space.

(RELATED: Cramer's Top Dividend Stocks 2011)

Cramer recommends investors do their homework on this stock and start buying share when the stock drops to a 5 percent yield. And he thinks the stock does have further to fall. It's barely a point off its 52-week low. Expectations are so low, Cramer thinks Microchip should be able to beat them.

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