Merck & Co., Inc. (MRK): Will Dividends Keep Going Strong?

How healthy is the other Big Pharma competition?

Investors who may be seeking nice dividend yields from other Big Pharma alternatives should look no further than Eli Lilly & Co. (NYSE:LLY). This company also manufactures, develops, and sells both human and animal health care products in the United States and around 130 countries worldwide.

Eli Lilly & Co. (NYSE:LLY)’s strong dividend of $1.96 per share – which produces a dividend yield in the neighborhood of 3.5% – has been helped along by the myriad of both existing product sales as well as new potential offerings such as Edivoxetine for the treatment of depression, and Dulaglutide, an investigational drug for those with diabetes.

Not to be left out in the Big Pharma dividend income discussion is GlaxoSmithKline plc (ADR) (NYSE:GSK). Glaxo, a UK-based pharmaceutical giant, operates in the areas of consumer healthcare, vaccines, and medication production.

A large part of GlaxoSmithKline plc (ADR) (NYSE:GSK)’s growth over the years has been accounted for via the company’s expansion into emerging markets – which has essentially provided the company with the opportunity to capitalize on drug sales in developing international countries worldwide.

With its nice healthy inflow of cash, GlaxoSmithKline plc (ADR) (NYSE:GSK) is able to “share the wealth” with its shareholders by paying out a dividend of $2.76 per share – which equates to a very robust dividend yield of 5.5% per year.

The bottom line

Even though some investors may shy away from investment in Big Pharma companies, those who see the value in potentially approved products could ride the wave of an increased share price, while also being paid a handsome dividend along the way. And, with the plethora of pending products in Merck & Co., Inc. (NYSE:MRK)’s pipeline, both dividend income and growth of share price could be a positive reality for this pharmaceutical company’s shareholders in the near term and the future.

The article Will Merck’s Dividends Continue to Produce Healthy Income for Investors? originally appeared on Fool.com and is written by Nauman Aly.

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