20 Best Dividend Growth Stocks with High Yields

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

Dividend Yield as of May 13: 4.26%

Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company that offers a wide range of related products and services to its consumers. The company recently announced a $3.9 billion acquisition of SpringWorks Therapeutics, marking its largest deal since 2019. This move is part of the company’s strategy to bolster its healthcare portfolio ahead of expected patent expirations. The all-cash transaction, priced at $47 per share—a 26% premium—grants Merck access to two FDA-approved treatments and a strong development pipeline. The acquisition is expected to begin contributing to earnings by 2027 and could generate as much as $1.6 billion in annual revenue by 2030, providing a valuable new growth avenue.

In the first quarter of 2025, Merck & Co., Inc. (NYSE:MRK) reported $15.5 billion in revenue, a 2% decline from the prior year but still ahead of analyst expectations by $198.2 million. Net income rose 6% year over year to $5.6 billion. Keytruda, the company’s leading cancer therapy, saw sales grow by 4% to $7.2 billion. Merck’s Animal Health segment also performed well, with a 5% increase in sales to $1.6 billion.

Merck & Co., Inc. (NYSE:MRK) is a solid dividend payer with 14 consecutive years of dividend growth under its belt. The company offers a quarterly dividend of $0.81 per share for a dividend yield of 4.26%, as of May 13. MRK is one of the best dividend stocks on our list.