Should You Count on MRK for Steady Passive Income?

Merck & Co., Inc. (NYSE:MRK) is one of the Best Stocks to Buy for Dividends.

Should You Count on MRK for Steady Passive Income?

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

Merck & Co., Inc. (NYSE:MRK) is a leading pharmaceutical company, best known for its strong presence in oncology, particularly through Keytruda, the top-selling drug globally. Beyond cancer treatment, the company also produces medications for diabetes, as well as vaccines for HPV and chickenpox.

In 2024, Merck & Co., Inc. (NYSE:MRK) expanded its pipeline through several acquisitions, including Harpoon Therapeutics, Abceutics, EyeBio, and Modifi Biosciences. These moves support a promising future for its drug portfolio.

Merck & Co., Inc. (NYSE:MRK)’s pipeline includes dozens of active programs, featuring new drug candidates and recently approved treatments like Winrevair for pulmonary arterial hypertension. The company also holds a strong position in the animal health sector, which benefits from the growing trend in pet ownership.

With 14 consecutive years of dividend increases and an average dividend growth rate of nearly 8% over the past five years, Merck & Co., Inc. (NYSE:MRK) offers a reliable and steadily growing income stream for investors. The company’s quarterly dividend sits at $0.81 per share for a dividend yield of 4.07%, as of June 25.

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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Disclosure. None.