Merck Poised to Deliver Strong Results and Steady Dividend Growth

Merck & Co., Inc. (NYSE:MRK) is one of the Best Dividend Leaders to Buy Now.

Merck & Co., Inc. (NYSE:MRK) has struggled over the past year, with its stock falling nearly 40%, partly due to concerns about rising competition from therapies still in development, such as Summit Therapeutics’ ivonescimab.

A close-up of a person’s hand holding a bottle of pharmaceuticals.

However, the company is working on a subcutaneous version of Keytruda, its flagship drug, which could help extend the drug’s patent protection. While ivonescimab may eventually pose a threat, it has yet to receive US approval and will likely take time to gain clearance for the full range of Keytruda’s uses.

At the same time, Merck & Co., Inc. (NYSE:MRK) is actively growing its robust pipeline, which includes dozens of programs and several new drug candidates. Over the long term, the company is expected to continue delivering strong performance and rewarding shareholders.

The company has raised its payouts for 14 consecutive years, and its nearly 89% growth over the last 10 years provides a solid dividend outlook. With a dividend yield of 4.04%, as of June 23, Merck & Co., Inc. (NYSE:MRK) remains a compelling option for long-term, income-focused investors.

While we acknowledge the potential of MRK as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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