Why Merck & Co (MRK) Continues to Rank Among the Most Profitable Dividend Stocks

Merck & Co., Inc. (NYSE:MRK) is included among the 13 Most Profitable Dividend Stocks to Buy Right Now.

An American multinational pharmaceutical company, Merck & Co., Inc. (NYSE:MRK) is one of the most profitable stocks that pay dividends, with a trailing twelve-month net profit margin of 25.8%. Finding new medicines is a complex process, and progress rarely follows a straight path. At the moment, some investors are worried that Merck’s existing patents could expire before the company introduces another major hit to take their place. The concern makes sense, given that a large part of the company’s revenue currently depends on one key product, the cancer drug Keytruda.

Still, this kind of situation isn’t out of the ordinary in the pharmaceutical world. Most drugmakers face similar cycles as older treatments lose exclusivity and new ones are developed. What sets Merck & Co., Inc. (NYSE:MRK) apart is its strong research foundation and considerable scale, which give it the flexibility to acquire smaller biotech firms when it needs to strengthen its drug pipeline. This steady approach has helped the company perform well over the long run and maintain a history of consistent dividend growth, even if the increases haven’t occurred every single year.

Merck & Co., Inc. (NYSE:MRK)’s dividend growth streak of 16 years is hard to neglect for income investors. The company’s quarterly dividend comes in at $0.81 per share, offering an attractive dividend yield of 3.65%, as of October 6.

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.