15 Best Dividend Stocks To Buy and Hold

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

Number of Hedge Fund Holders: 86

Merck & Co., Inc. (NYSE:MRK) is an American pharmaceutical company, headquartered in New Jersey. The company mainly offers innovative health solutions to its consumers. It has made considerable progress in diversifying its drug pipeline. Initially, the company projected an additional $35 billion in revenue from its new drug portfolio at the start of 2024, but that forecast has now risen to $50 billion. This growth is primarily driven by a significant increase in its clinical trials, with 26 phase III trials currently underway, compared to just nine in 2021. Several of these trials have the potential to lead to blockbuster drugs, particularly in the area of HIV treatments. Furthermore, the company has teamed up with Gilead Sciences on a combination therapy that could transform HIV care.

In the fourth quarter of 2024, Merck & Co., Inc. (NYSE:MRK) reported revenue of $15.6 billion, which saw a 7% growth from the same period last year. The company has positioned itself as a leader in specialty pharmaceuticals and oncology, with its top cancer drug, Keytruda, transforming treatment approaches and contributing to significant revenue growth. Its strong market position generates robust cash flow, which is used to deliver returns to shareholders. In FY24, Keytruda’s sales grew by 18% from the previous year, totaling $29.5 billion.

Merck & Co., Inc. (NYSE:MRK) is popular among income investors as the company maintains a 14-year streak of consistent dividend growth. Currently, the company offers a quarterly dividend of $0.81 per share and has a dividend yield of 3.57%, as of February 4.

Merck & Co., Inc. (NYSE:MRK) was included in 86 hedge fund portfolios at the end of Q3 2024, according to Insider Monkey’s database. The stakes owned by these funds are worth over $7.1 billion in total. With over 14.6 million shares, Fisher Asset Management was the company’s leading stakeholder in Q3.

Overall Merck & Co., Inc. (NYSE:MRK) ranks first on our list of the best dividend stocks to buy and hold. While we acknowledge the potential for MRK as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MRK but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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