Is Merck A Great Dividend Stock?

[NewsFeeder]

Is Merck A Great Dividend Stock?

Investors shouldn't settle for just an average dividend stock, certainly not during the COVID-19 pandemic when many dividend stocks are proving to be unstable. Instead, investors should look for great dividend stocks -- ones that offer sustainable payouts that are also safe, pay a good yield, and are likely to increase in the future. Today, I'll look at whether drug manufacturer Merck (NYSE: MRK) falls into the category of a great dividend stock and whether income investors should consider adding it to their portfolios.

https://finance.yahoo.com/m/c0e4403...552b/is-merck-a-great-dividend.html?.tsrc=rss

 

[Bullitt]

At a price of around $78, that means investors today are earning about 3.1% annually in dividend income. That's higher than the S&P 500 average of 2%, and it means that Merck's dividend passes the first test -- it's above average. There are many other dividend stocks that investors can choose from that provide comparable yields and growth. There's just too much uncertainty surrounding Merck to make it a good buy for its dividend. If the company starts investing a significant amount of capital into vaccine development or other growth initiatives, it may be inclined to scale back its dividend, or at least its dividend growth rate.

One of my long term dividend reinvestment stocks. Been in MRK for over 10 years.