From Yahoo Finance: 2025-05-10 04:10:00

Amid trade concerns and economic downturn, investors turn to dividend-paying stocks for stability. Dividends offer steady income and potential capital growth, attracting those seeking to offset market declines. Analysts suggest dividend stocks for income portfolios, emphasizing their significance in overall market returns, with dividends making up 32% of total monthly returns between 1926 and July 2023. Companies globally are increasing dividend payouts, with global dividends reaching a record $1.75 trillion in 2024, showing a 6.6% increase on an underlying basis.

Merck & Co., Inc. (NYSE:MRK) ranks fourth on the list of best dividend stocks due to its consistent dividend growth and reliability as an income-generating investment. The pharmaceutical company recently acquired SpringWorks Therapeutics for $3.9 billion, strengthening its healthcare portfolio and anticipating future growth. Merck reported revenue of $15.5 billion in Q1 2025, surpassing analysts’ estimates and showing growth in sales of its blockbuster cancer drug Keytruda.

Merck & Co., Inc. (NYSE:MRK) pays a quarterly dividend of $0.81 per share with a yield of 4.26%. The company has raised dividends for 14 consecutive years, making it a reliable choice for income investors. While MRK ranks 4th on the best income stocks list, other deeply undervalued dividend stocks may offer greater potential for higher returns in a shorter time frame.

Read more: Is Merck & Co., Inc. (MRK) the Best Income Stock to Invest in Now?