12 Most Reliable Dividend Stocks To Buy According to Hedge Funds

3. Merck & Co., Inc. (NYSE:MRK)

Number of Hedge Fund Holders: 86

Merck & Co., Inc. (NYSE:MRK) is an American pharmaceutical company that mainly provides innovative health solutions to its consumers. The company has become a leader in specialty pharmaceuticals and oncology, with its flagship cancer drug, Keytruda, transforming treatment protocols and contributing significantly to revenue growth. Its strong market position results in substantial cash flows, which are used to fund returns to shareholders.

Keytruda has been approved for a variety of uses. Recently, Merck & Co., Inc. (NYSE:MRK) announced that a Phase 3 trial for Keytruda in a specific type of ovarian cancer achieved its primary goal of improving progression-free survival, although it did not meet the secondary goal of extending overall survival. Currently, Keytruda is approved for 40 oncology indications in the US, and Merck is working to secure similar approvals in major international markets like the European Union and Japan, where these indications have yet to be authorized.

In the third quarter of 2024, Keytruda’s sales increased by 17% compared to the previous year, reaching $7.4 billion.

This performance was also highlighted in GreensKeeper Asset Management’s Q3 2024 investor letter. Here is what the firm shared:

“Merck & Co., Inc. (NYSE:MRK) was our second-largest detractor this quarter, declining -8.3%. MRK’s leading HPV vaccine, GARDASIL 9, faced challenges internationally due to inventory buildup within its Chinese distributor, which is expected to reduce shipments for the remainder of 2024. Despite this short-term impact, the long-term outlook for GARDASIL 9 remains promising. Meanwhile, the company’s $27 billion Keytruda cancer juggernaut continues to grow at a healthy clip, powering earnings growth.”

In November 2024, Merck & Co., Inc. (NYSE:MRK) declared a 5.2% hike in its quarterly dividend to $0.81 per share. Through this increase, the company stretched its dividend growth streak to 14 years, which makes MRK one of the best dividend stocks on our list. As of January 12, the stock has a dividend yield of 3.26%.

As per Insider Monkey’s database of Q3 2024, 86 hedge funds held stakes in Merck & Co., Inc. (NYSE:MRK), compared with 96 in the preceding quarter. The consolidated value of these stakes is over $7.1 billion. Ken Griffin’s Citadel Investment Group was one of the company’s leading stakeholders in Q3.