15 Stocks to Invest in with Steady Dividends

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

Upside Potential as of January 20: 26.6%

Merck & Co., Inc. (NYSE:MRK) is an American pharmaceutical company that offers innovative health solutions to its consumers. The company is making notable progress in diversifying its pipeline. Initially, it anticipated $35 billion in additional revenue from its new drug portfolio at the beginning of 2024, but that estimate has now risen to $50 billion. This increase is largely fueled by a substantial expansion in its clinical trials, with 26 phase III trials currently underway, up from nine in 2021. Some of these trials could yield blockbuster drugs, particularly in the area of HIV treatments. Merck has also collaborated with Gilead Sciences on a combination therapy that holds the potential to transform HIV treatment.

In addition, Merck & Co., Inc. (NYSE:MRK) has solidified its reputation as a frontrunner in specialty pharmaceuticals and oncology, with its flagship cancer drug, Keytruda, transforming treatment approaches and significantly boosting revenue. The company’s strong market position ensures substantial cash flow, which is used to deliver returns to shareholders. In the latest quarter, Keytruda’s sales grew by 17% year-over-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) is one of the best stocks with steady dividends as the company has been rewarding shareholders with growing dividends for the past 14 years. Its quarterly dividend currently sits at $0.81 per share and has a dividend yield of 3.36%, as of January 20.

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.

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