Merck & Co., Inc. (MRK): How This Can Eventually Lead To Healthy Returns

Despite Pfizer Inc. (NYSE:PFE)’s legal challenges, though, the company has still continued to pay out a dividend of $0.88 per share to its stockholders, which equates to an annual dividend yield of 3.7%. Its shares are also expected to rise due to Pfizer Inc. (NYSE:PFE)’s otherwise strong fundamentals.

Similarly, Bristol Myers Squibb Co. (NYSE:BMY) Squibb is continuing to fill its product pipeline as well, currently focusing on three experimental meds that are used in treating Hepatitis C. Recently, in a 24-week trial, all three test medications successfully cleared the virus in 15 out of 16 patients.

The company is, however, competing among several other big pharma firms (including Merck) in developing new pills that will help eliminate the current therapy for Hep-C, which can cause flu-like side effects for patients.

Overall, Bristol Myers Squibb Co. (NYSE:BMY) has continued to post strong share numbers, and is currently trading near the stock’s 52-week high. The company also pays a very healthy dividend of $1.40 per share, which equates to a dividend yield of 3.4%.

Just like Merck & Co., Inc. (NYSE:MRK), both Pfizer and Bristol Myers Squibb Co. (NYSE:BMY) face tough competition in their respective market. Getting new drugs pushed through the process can be tedious and costly, especially if the product is unsuccessful. The good news for Merck’s investors is that the company possesses more of a cash cushion to help in offsetting negative product outcomes.

In addition, despite the intense competition that Merck has faced from generic drugs, the firm continues to post strong earnings per share. Investors can also take comfort in the potential for a future rising dividend payout.

The bottom line

Although many of the big pharmaceuticals offer nice dividend yields, along with potential for future share growth, Merck could quite possibly offer investors just a bit more. With the possibility of rising generic sales, Merck has continued to reward its investors via a consistently rising dividend payment. Although the company’s recent share price increase could, in part, be due to overall market bullishness, the firm possesses many other positive fundamentals like a strong brand name and solid earnings growth estimates that could reward investors quite nicely over both the short and long run.

The article Merck’s Product Pipeline Could Lead To Healthy Shareholder Returns originally appeared on Fool.com.

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