Top 5 High Dividend Stocks to Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 79
Dividend Yield as of October 6: 3.12%

Merck & Co., Inc. (NYSE:MRK) is a New Jersey-based multinational pharmaceutical company that provides innovative health solutions to its patients. Recently, the company announced the expansion of its footprint in Singapore, as it opened a new packaging facility to support the production of vaccines and biologics in the country. The company started its operations in Singapore in 1997.

In Q2 2022, Merck & Co., Inc. (NYSE:MRK) reported an operating cash flow of $4.3 billion, compared with $4.7 billion in the previous quarter. Its free cash flow for the quarter came in at $3.1 billion and has a healthy dividend payout ratio of 41.3%. The company has been raising its dividends consistently for the past 11 years, coming through as one of the best dividend stocks. Merck & Co., Inc. (NYSE:MRK) currently pays a quarterly dividend of $0.69 per share, with a dividend yield of 3.12%, as of October 6.

In September, Berenbergy upgraded Merck & Co., Inc. (NYSE:MRK) to Buy and also lifted its price target on the stock to $100. The firm appreciated the company’s medium-term growth which is above the sector average.

At the end of Q2 2022, 79 hedge funds in Insider Monkey’s database owned stakes in Merck & Co., Inc. (NYSE:MRK), valued at over $6.1 billion. Fisher Asset Management was the company’s leading stakeholder in Q2.

Chartwell Investment Partners mentioned Merck & Co., Inc. (NYSE:MRK) in its Q2 2022 investor letter. Here is what the firm has to say:

“In the Dividend Equity accounts, the three best performers in Q2 includes Merck (NYSE:MRK, 3.6%), up 12.0%. Merck, like other pharma companies, is in a defensive business, but the stock also did well as peak-sales estimates for their flagship drug, Keytruda, have gone up (JPMorgan estimates $32 billion in sales by 2026).”