13 Best Pharma Dividend Stocks To Buy In 2024

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

Dividend Yield as of December 28: 3.30%

Number of Hedge Fund Holders: 86

Merck & Co., Inc. (NYSE:MRK) is a global healthcare company operating through two segments – Pharmaceutical and Animal Health. The Pharmaceutical segment offers a range of human health products, including treatments for oncology, immunology, neuroscience, virology, cardiovascular conditions, and diabetes, under well-known brands like Keytruda, Januvia, and Bridion. It also provides vaccines for various age groups under brands such as Gardasil and Pneumovax.

Merck & Co., Inc. (NYSE:MRK) has recently partnered with the Chinese biopharma company Hansoh to develop an oral GLP-1 receptor agonist for treating metabolic conditions and obesity, entering a market dominated by Eli Lilly and Novo Nordisk. Despite strong performances in oncology and vaccines, Merck’s stock has fallen 20% over the past six months. The licensing deal with Hansoh includes a $112 million upfront payment and up to $1.9 billion in royalties and milestones.

Merck & Co., Inc. (NYSE:MRK) reported $16.7 billion in total revenues, a 4% increase, or 7% excluding foreign exchange effects. The human health business grew 8%, driven by oncology, while the Animal Health business saw an 11% sales increase. Key oncology product KEYTRUDA grew 21% to $7.4 billion, fueled by expanded use in both early and metastatic cancers. Lynparza revenue grew 13%, while sales of WELIREG more than doubled. GARDASIL sales decreased 10%, primarily due to a decline in China, though global sales increased in other regions. Merck & Co., Inc. (NYSE:MRK)’s full-year earnings guidance has been adjusted to $7.72 to $7.77 per share, factoring in foreign exchange and business developments. The company remains focused on innovation, dividend growth, and pursuing strategic acquisitions.

On November 19, Merck & Co., Inc. (NYSE:MRK) announced a quarterly dividend of $0.81 per share, a 5.2% increase from its prior dividend of $0.77. The dividend is distributable on January 8, 2025, to shareholders on record as of December 16.

Insider Monkey’s Q3 database shows that Merck & Co., Inc. (NYSE:MRK) was held by 86 hedge funds, compared to 96 funds in the last quarter. Ken Griffin’s Citadel Investment Group is a prominent stakeholder of the company, with a position worth nearly $800 million.