How Merck & Co. (MRK) Turns Robust Free Cash Flow Into Shareholder Value

Merck & Co., Inc. (NYSE:MRK) is included among the 10 Cash-Rich Dividend Stocks to Buy Right Now.

Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company. Concerns are growing, however, as its top-selling cancer drug, Keytruda, starts losing patent protections in 2028. Since Keytruda is approximately half of Merck’s revenue, this is a potential risk.

To mitigate said risks, Merck & Co., Inc. (NYSE:MRK) is developing an injectable version of Keytruda, which is expected to expand its drug pipeline through internal development and acquisitions. Most recently, the company won approval for Winrevair, a therapy for pulmonary arterial hypertension, and it has potential blockbuster status. The company is also buying Verona Pharma for $10 billion, acquiring Ohtuvayre, a promising drug for chronic obstructive pulmonary disease (COPD) as well.

Merck & Co., Inc. (NYSE:MRK)’s dividend policy is also a positive feature that grabs investors’ attention. The company has raised its dividends for 16 consecutive years, and it currently offers a quarterly dividend of $0.81 per share. As of September 27, the stock supports a dividend yield of 4.12%.

While we acknowledge the potential of MRK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.