10 Best Income Stocks to Invest in Now

4. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 91

Merck & Co., Inc. (NYSE:MRK) ranks fourth on our list of the best dividend stocks for income portfolios. The New Jersey-based multinational pharmaceutical company offers a wide range of related products and services to its consumers.

Merck & Co., Inc. (NYSE:MRK)’s $3.9 billion acquisition of SpringWorks Therapeutics represents its biggest transaction since 2019 and highlights the company’s effort to strengthen its healthcare portfolio in anticipation of upcoming patent losses. The deal, priced at $47 per share in cash—a 26% premium—gives Merck access to two FDA-approved therapies along with a promising development pipeline. The acquisition is projected to start boosting earnings by 2027 and has the potential to deliver up to $1.6 billion in annual revenue by 2030, offering a meaningful and expandable source of growth.

In the first quarter of 2025, Merck & Co., Inc. (NYSE:MRK) reported revenue of $15.5 billion, which fell by 2% from the same period last year. However, the revenue surpassed analysts’ estimates by $198.2 million. The company posted a net income of $5.6 billion, which grew by 6% on a YoY basis. It reported a 4% increase in sales of its blockbuster cancer drug Keytruda, which generated $7.2 billion during the period. Its Animal Health division also delivered solid results, with sales rising 5% to reach $1.6 billion.

Merck & Co., Inc. (NYSE:MRK) currently pays a quarterly dividend of $0.81 per share and has a dividend yield of 4.26%, as of May 9. The company has raised its dividends for 14 years in a row, becoming a reliable choice for income investors.