13 Best Cheap Dividend Stocks To Buy Right Now

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

Number of Hedge Fund Holders: 91

Forward P/E Ratio: 10.34

Merck & Co., Inc. (NYSE:MRK) is an American multinational pharmaceutical company, based in New Jersey. The company is widely known for its broad range of treatments spanning oncology, diabetes, cardiovascular diseases, vaccines, and infectious diseases. In addition to its pharmaceutical business, the company has a significant animal health division and is actively involved in biotechnology beyond traditional drug development. This diversified portfolio, along with its strong track record of innovation, makes Merck an appealing investment option.

Since the beginning of 2025, Merck & Co., Inc. (NYSE:MRK) has declined by over 5%, primarily due to the company’s revenue forecast for the year falling short of market expectations. The company projected revenue between $64.1 billion and $65.6 billion, below analysts’ estimates of $67.31 billion. In addition, its outlook has been impacted by the temporary suspension of Gardasil shipments to China, though deliveries are expected to resume by mid-2025.

Though the company’s guidance did not meet investors’ expectations, Merck & Co., Inc. (NYSE:MRK) delivered solid results in the fourth quarter of 2024. The company posted $15.6 billion in revenue, reflecting a 7% rise compared to the same period last year. Merck has strengthened its foothold in specialty pharmaceuticals and oncology, with Keytruda, its flagship cancer treatment, making a substantial impact on cancer care while contributing to significant revenue gains. Its strong market position has helped the company generate healthy cash flow, reinforcing its commitment to shareholder returns. In fiscal 2024, Keytruda sales climbed 18% year-over-year, totaling $29.5 billion.

Merck & Co., Inc. (NYSE:MRK) currently offers a quarterly dividend of $0.81 per share and has a dividend yield of 3.45%, as of March 6. It is one of the best dividend stocks on our list as the company has raised its payouts for 14 years in a row.

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