5 Stocks Hedge Fund Legend Donald Sussman is Buying

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

Paloma Partners launched a position in Merck & Co., Inc. (NYSE:MRK) during Q3 that was valued at just over $7 million at the end of September, as the fund bought 93,256 shares of the pharmaceutical giant. Hedge fund ownership of Merck has remained remarkably steady over the years, with between 71 and 85 hedge funds owning the stock every quarter since 2016.

One of the 10 Healthcare Dividend Stocks with Over 3% Yield, Merck & Co., Inc. (NYSE:MRK)’s dividend currently yields 3.59%.

In its Q3 investor letter, Miller Howard Investments said that Merck’s high dividend is reasonably safe thanks to its strong cash flow and balance sheet and noted that Merck and several other pharma giants have low valuations because of undue market pessimism about their ability to replace their current blockbuster drugs with new offerings.