Merck & Company, Inc.
MRKMerck & Company, Inc. (MRK) is a Healthcare company that currently yields 2.20% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $83.47 and the overvaluation threshold at $123.00. Merck & Company, Inc. holds a quality score of 45/100 (Average), reflecting 14 consecutive years of dividend growth. The 5-year dividend CAGR stands at 6.7%.
MRK Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 45.3% downside to reach the Weiss buy zone
Undervaluation starts near $83.47, where the annual dividend would imply roughly 4.03% yield. That is 1.82% above today's yield.
Buy-zone price
$83.47
Target yield
4.03%
Research checklist
What to clear before buying the yield
Updated Aug 23, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
269%Coverage deserves a closer look in filings.
Cash payout
55%Free cash flow coverage supports the payment.
Dividend growth
6.7%Recent growth adds income compounding potential.
What changed
What changed since the last update
2026-08-22 → 2026-08-23
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Merck & Company, Inc. is trading near its historical overvaluation band.
Current yield 2.2% vs historical max 5.8% (38% of maximum).
14 consecutive years without a dividend cut.
Elevated payout ratio of 269%.
What matters now
Read the signal before the headline yield
Valuation is the brake here: the yield is compressed versus its own history.
The 45/100 quality score says the headline yield needs extra skepticism.
The earnings payout ratio is above 100%, so coverage is the first risk to unpack.
MRK Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$235
Year 10 Income
$554
Yield on Cost
5.77%
Total Income
$3,702
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
Track actual vs. projected
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Dividend income log · Yield on cost · DRIP cost basis · Tax reports
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗Track dividends received & tax reports
Sharesight ↗MRK Dividend Quality Score
Quality Score
Average
Key Metrics
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In-depth analysis
→ MRK Dividend Analysis Article