Uncovering Dividend Opportunities with NYSE:MRK.

Our stock screener has singled out MERCK & CO. INC. (NYSE:MRK) as a promising choice for dividend investors. NYSE:MRK not only scores well in profitability, solvency, and liquidity but also offers a decent dividend. We'll explore this further.

How do we evaluate the Dividend for NYSE:MRK?

ChartMill assigns a proprietary Dividend Rating to each stock. The score is computed by evaluating various valuation aspects, like the yield, the history, the dividend growth and sustainability. NYSE:MRK was assigned a score of 7 for dividend:

• Compared to an average industry Dividend Yield of 4.32, MRK pays a better dividend. On top of this MRK pays more dividend than 92.67% of the companies listed in the same industry.
• MRK's Dividend Yield is a higher than the S&P500 average which is at 2.24.
• 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.
• The dividend of MRK is growing, but earnings are growing more, so the dividend growth is sustainable.

Health Examination for NYSE:MRK

ChartMill assigns a Health Rating to every stock. This score ranges from 0 to 10 and evaluates the different health aspects like liquidity and solvency, both absolutely, but also relative to the industry peers. NYSE:MRK scores a 6 out of 10:

• An Altman-Z score of 4.11 indicates that MRK is not in any danger for bankruptcy at the moment.
• MRK's Altman-Z score of 4.11 is fine compared to the rest of the industry. MRK outperforms 79.06% of its industry peers.
• The Debt to FCF ratio of MRK is 2.57, which is a good value as it means it would take MRK, 2.57 years of fcf income to pay off all of its debts.
• The Debt to FCF ratio of MRK (2.57) is better than 93.72% of its industry peers.

What does the Profitability looks like for NYSE:MRK

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:

• With an excellent Return On Assets value of 10.34%, MRK belongs to the best of the industry, outperforming 93.72% of the companies in the same industry.
• MRK's Return On Equity of 27.30% is amongst the best of the industry. MRK outperforms 94.76% of its industry peers.
• The Return On Invested Capital of MRK (19.49%) is better than 95.81% of its industry peers.
• The 3 year average ROIC (12.63%) for MRK is below the current ROIC(19.49%), indicating increased profibility in the last year.
• MRK's Profit Margin of 19.23% is amongst the best of the industry. MRK outperforms 92.67% of its industry peers.
• Looking at the Operating Margin, with a value of 34.34%, MRK belongs to the top of the industry, outperforming 95.81% of the companies in the same industry.
• With an excellent Gross Margin value of 76.59%, MRK belongs to the best of the industry, outperforming 83.25% of the companies in the same industry.

Every day, new Best Dividend stocks can be found on ChartMill in our Best Dividend screener.

Our latest full fundamental report of MRK contains the most current fundamental analsysis.

Keep in mind

This article should in no way be interpreted as advice. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.