13 Highest Yielding Dividend Stocks in the Dow

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

Dividend Yield as of January 16: 3.22%

Merck & Co., Inc. (NYSE:MRK) is an American pharmaceutical company that offers innovative health solutions to its consumers. In the third quarter of 2024, the company posted revenue of $16.7 billion, which showed a 4% growth from the same period last year. Its pipeline is progressing and expanding, reflecting the company’s success in developing a sustainable innovation engine. This advancement is positioning Merck with a more diverse portfolio, poised to drive future growth. Since the start of 2025, the stock has surged by over 4%.

Over the years, Merck & Co., Inc. (NYSE:MRK) has established itself as a leader in specialty pharmaceuticals and oncology, with its standout cancer treatment, Keytruda, revolutionizing treatment methods and driving notable revenue increases. Its dominant market position generates significant cash flows, which are then utilized to provide returns to shareholders. In the most recent quarter, 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.”

Merck & Co., Inc. (NYSE:MRK) currently pays a quarterly dividend of $0.81 per share, having raised it by 5.2% in November 2024. This marked the company’s 14th consecutive year of dividend growth, which makes MRK one of the best dividend stocks on our list. The stock has a dividend yield of 3.22%, as of January 16.

According to 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.