5 Reliable Dividend Stocks to Buy for Long-Term Investors

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

Number of Hedge Fund Holders: 98

Dividend Yield as of June 24: 2.82%

On June 24, CICC initiated coverage of Merck & Co., Inc. (NYSE:MRK) with an Outperform rating. It also set a $138 price target on the stock.

Merck also provided an updated outlook during its first-quarter 2026 earnings call. Executive Vice President and CFO Caroline Litchfield said the company had narrowed its full-year guidance ranges. It also increased the midpoint of both its revenue and earnings-per-share (EPS) forecasts.

According to Litchfield, Merck now expects 2026 revenue to come in between $65.8 billion and $67 billion. The company also projects EPS of $5.04 to $5.16 for the year. She noted that the guidance does not include the impact of Merck’s proposed acquisition of Terns. Litchfield said the transaction is expected to result in a one-time charge that would increase research and development expenses by about $5.8 billion, or roughly $2.35 per share.

In addition, Merck expects an EPS headwind of approximately $0.12 per share this year from financing costs and ongoing investments related to the deal. Litchfield also compared the updated outlook with the guidance issued in the prior quarter. She noted that Merck raised the lower end of its revenue forecast from $65.5 billion to $65.8 billion. The company also narrowed its EPS guidance range, increasing it from $5.00-$5.15 to $5.04-$5.16.

Merck & Co., Inc. (NYSE:MRK) is a global healthcare company that provides prescription medicines, biologic therapies, vaccines, and animal health products.