Why NYSE:MRK is a Top Pick for Dividend Investors.

Our stock screening tool has identified MERCK & CO. INC. (NYSE:MRK) as a strong dividend contender with robust fundamentals. NYSE:MRK exhibits commendable financial health and profitability, all while offering a sustainable dividend. Let's delve into each aspect below.

Deciphering NYSE:MRK's Dividend Rating

To gauge a stock's dividend quality, ChartMill utilizes a Dividend Rating ranging from 0 to 10. This comprehensive assessment considers various dividend aspects, including yield, history, growth, and sustainability. NYSE:MRK has achieved a 7 out of 10:

• Compared to an average industry Dividend Yield of 4.35, MRK pays a better dividend. On top of this MRK pays more dividend than 94.59% of the companies listed in the same industry.
• MRK's Dividend Yield is rather good when compared to 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 been paying a dividend for at least 10 years, so it has 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.

Health Assessment of NYSE:MRK

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NYSE:MRK has earned a 5 out of 10:

• An Altman-Z score of 3.71 indicates that MRK is not in any danger for bankruptcy at the moment.
• MRK has a Altman-Z score of 3.71. This is in the better half of the industry: MRK outperforms 75.68% 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.
• MRK has a better Debt to FCF ratio (2.57) than 92.97% of its industry peers.

How do we evaluate the Profitability for 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 better Return On Assets (10.34%) than 94.05% of its industry peers.
• MRK's Return On Equity of 27.30% is amongst the best of the industry. MRK outperforms 95.68% of its industry peers.
• MRK has a better Return On Invested Capital (19.49%) than 95.68% of its industry peers.
• MRK has a Profit Margin of 19.23%. This is amongst the best in the industry. MRK outperforms 92.43% of its industry peers.
• MRK's Operating Margin of 34.34% is amongst the best of the industry. MRK outperforms 95.68% of its industry peers.
• MRK's Operating Margin has improved in the last couple of years.
• Looking at the Gross Margin, with a value of 76.59%, MRK belongs to the top of the industry, outperforming 82.70% of the companies in the same industry.
• MRK's Gross Margin has improved in the last couple of years.

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

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

Disclaimer

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.