Dobermans of the Dow: 10 Stocks to Consider

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

Free Cash Flow Yield: 0.08

With a cash flow yield of 0.08, Merck & Co., Inc. (NYSE:MRK) tops our list of the Dobermans of the Dow. The American multinational pharmaceutical company is well recognized for its extensive portfolio of treatments covering oncology, diabetes, cardiovascular diseases, vaccines, and infectious diseases. Beyond pharmaceuticals, it also has a sizable animal health division and is actively engaged in biotechnology, extending beyond traditional drug development. This diverse business model, combined with a strong history of innovation, makes Merck an attractive investment choice.

Since the start of 2025, shares of Merck & Co., Inc. (NYSE:MRK) have dropped by nearly 4%, largely due to its full-year revenue forecast falling short of market expectations. The company projected revenue between $64.1 billion and $65.6 billion, below analysts’ estimates of $67.31 billion. In addition, its outlook has been affected by the temporary halt of Gardasil shipments to China, though deliveries are expected to resume by mid-2025.

Although the company’s outlook fell short of investor expectations, Merck & Co., Inc. (NYSE:MRK) delivered strong fourth-quarter results for 2024. Revenue reached $15.6 billion, marking a 7% increase from the same period a year earlier. Merck has solidified its presence in specialty pharmaceuticals and oncology, with its leading cancer treatment, Keytruda, playing a crucial role in cancer care while driving significant revenue growth. Its strong market position has allowed the company to generate robust cash flow, supporting its commitment to returning value to shareholders. In fiscal 2024, Keytruda sales rose 18% year-over-year, reaching $29.5 billion.

Merck & Co., Inc. (NYSE:MRK) offers a quarterly dividend of $0.81 per share and has a dividend yield of 3.40%, as of March 10. The company has been growing its dividends for 14 consecutive years.

Overall, Merck & Co., Inc. (NYSE:MRK) ranks first on our list of the Dobermans of the Dow. While we acknowledge the potential for MRK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.

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