Exploring NYSE:MRK's dividend characteristics.

Unearth the potential of MERCK & CO. INC. (NYSE:MRK) as a dividend stock recommended by our stock screening tool. NYSE:MRK maintains a robust financial footing and delivers a sustainable dividend. We'll delve into the details below.

Dividend Analysis for NYSE:MRK

ChartMill employs its own Dividend Rating system for all stocks. This score, on a scale of 0 to 10, is determined by evaluating different dividend factors, such as yield, historical performance, dividend growth, and sustainability. NYSE:MRK has been assigned a 7 for dividend:

• Compared to an average industry Dividend Yield of 3.95, MRK pays a better dividend. On top of this MRK pays more dividend than 92.82% of the companies listed in the same industry.
• 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 their dividend for at least 10 years, which is a reliable track record.
• MRK's earnings are growing more than its dividend. This makes the dividend growth sustainable.

Assessing Health Metrics for 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 6 out of 10:

• MRK has an Altman-Z score of 4.54. This indicates that MRK is financially healthy and has little risk of bankruptcy at the moment.
• With a decent Altman-Z score value of 4.54, MRK is doing good in the industry, outperforming 78.97% of the companies in the same industry.
• The Debt to FCF ratio of MRK is 2.87, which is a good value as it means it would take MRK, 2.87 years of fcf income to pay off all of its debts.
• MRK's Debt to FCF ratio of 2.87 is amongst the best of the industry. MRK outperforms 91.79% of its industry peers.

Looking at the Profitability

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NYSE:MRK was assigned a score of 8 for profitability:

• MRK's Return On Assets of 12.20% is amongst the best of the industry. MRK outperforms 94.87% of its industry peers.
• MRK's Return On Equity of 31.52% is amongst the best of the industry. MRK outperforms 94.87% of its industry peers.
• MRK's Return On Invested Capital of 16.35% is amongst the best of the industry. MRK outperforms 93.33% of its industry peers.
• The 3 year average ROIC (12.63%) for MRK is below the current ROIC(16.35%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 21.98%, MRK belongs to the top of the industry, outperforming 93.33% of the companies in the same industry.
• MRK has a better Operating Margin (28.68%) than 93.85% of its industry peers.
• With an excellent Gross Margin value of 75.79%, MRK belongs to the best of the industry, outperforming 82.56% of the companies in the same industry.

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

Check the latest full fundamental report of MRK for a complete fundamental analysis.

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.