Merck & Co., Inc. (NYSE:
MRK) is one of
Best Dividend Stocks to Buy for Dependable Growth.
Merck & Co., Inc. (NYSE:MRK) is one of the best dividend stocks for dependable dividend growth. The company is not only recognized for its strong pipeline but also for its consistent dividend growth. It expects approvals for up to seven cardiometabolic drugs by 2030, which could collectively bring in $15 billion in annual revenue within a few years.
A close-up of a person's hand holding a bottle of pharmaceuticals.
Overall, Merck & Co., Inc. (NYSE:MRK) believes it has 20 potential blockbuster drugs in development that could generate $50 billion annually over the next decade.
This promising outlook supports its dividend, which has increased for 14 straight years. In addition, in the past five years, it has raised its payouts at an annual average rate of over 7%. With a trailing twelve-month operating cash flow of $20.8 billion and levered free cash flow of $17.1 billion, Merck & Co., Inc. (NYSE:MRK) appears well-positioned to continue raising its dividend.
A payout ratio of around 45% also provides a cushion, suggesting the dividend remains safe even if earnings dip. The stock supports an attractive dividend yield of 4.14%, as of June 17.
Merck & Co., Inc. (NYSE:MRK) is a global healthcare company focused on providing innovative health solutions through its range of medicines, vaccines, biologic treatments, and animal health products.
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
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Disclosure. None.
