Uncovering Dividend Opportunities with NYSE:MRK.

Last update: Aug 9, 2024

Take a closer look at MERCK & CO. INC. (NYSE:MRK), a stock of interest to dividend investors uncovered by our stock screener. NYSE:MRK excels in fundamentals and provides a decent dividend, all while maintaining a reasonable valuation. Let's break it down further.

Unpacking NYSE:MRK's Dividend Rating

ChartMill provides a Dividend Rating for every stock, ranging from 0 to 10. This rating assesses various dividend aspects, including yield, growth, and sustainability. NYSE:MRK earns a 7 out of 10:

MRK's Dividend Yield is rather good when compared to the industry average which is at 4.02. MRK pays more dividend than 92.75% of the companies in the same industry.
MRK's Dividend Yield is a higher than the S&P500 average which is at 2.30.
The dividend of MRK is nicely growing with an annual growth rate of 8.47%!
MRK has paid a dividend for at least 10 years, which is a reliable track record.
MRK has not decreased its dividend for at least 10 years, so it has a reliable track record of non decreasing dividend.
The dividend of MRK is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Assessment of NYSE:MRK

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NYSE:MRK has earned a 5 out of 10:

An Altman-Z score of 4.20 indicates that MRK is not in any danger for bankruptcy at the moment.
MRK has a Altman-Z score of 4.20. This is in the better half of the industry: MRK outperforms 77.20% of its industry peers.
The Debt to FCF ratio of MRK is 3.10, which is a good value as it means it would take MRK, 3.10 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of MRK (3.10) is better than 89.64% of its industry peers.

Profitability Assessment of NYSE:MRK

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NYSE:MRK has achieved a 8:

MRK has a Return On Assets of 2.18%. This is amongst the best in the industry. MRK outperforms 84.46% of its industry peers.
MRK has a Return On Equity of 5.71%. This is amongst the best in the industry. MRK outperforms 84.46% of its industry peers.
The Return On Invested Capital of MRK (5.98%) is better than 85.49% of its industry peers.
The last Return On Invested Capital (5.98%) for MRK is well below the 3 year average (12.63%), which needs to be investigated, but indicates that MRK had better years and this may not be a problem.
MRK has a Profit Margin of 3.76%. This is amongst the best in the industry. MRK outperforms 84.97% of its industry peers.
Looking at the Operating Margin, with a value of 9.96%, MRK belongs to the top of the industry, outperforming 83.42% of the companies in the same industry.
MRK has a Gross Margin of 74.85%. This is amongst the best in the industry. MRK outperforms 80.31% of its industry peers.

More Best Dividend stocks can be found in our Best Dividend screener.

For an up to date full fundamental analysis you can check the fundamental report of MRK

Keep in mind

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.