Merck & Co., Inc.
MRKMerck & Co., Inc. (MRK) is a Healthcare company that currently yields 2.71% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $81.28 and the overvaluation threshold at $119.79. Merck & Co., Inc. holds a quality score of 45/100 (Average), reflecting 14 consecutive years of dividend growth with a 94% payout ratio. The 5-year dividend CAGR stands at 6.7%.
MRK Dividend Yield History — Weiss Valuation
Distance to undervalued
Entry price is stretched
Needs 33.6% downside to reach the Weiss buy zone
Undervaluation starts near $81.28, where the annual dividend would imply roughly 4.08% yield. That is 1.37% above today's yield.
Buy-zone price
$81.28
Target yield
4.08%
Research checklist
What to clear before buying the yield
Updated May 25, 2026
Dividend durability
14YLong dividend history supports a deeper look.
Earnings payout
94%Coverage deserves a closer look in filings.
Cash payout
60%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
2026-05-23 → 2026-05-25
No major change in signal, yield, price, quality, or payout since the last update.
Why Now?
Merck & Co., Inc. is trading near its historical overvaluation band.
Current yield 2.7% vs historical max 5.8% (47% of maximum).
14 consecutive years without a dividend cut.
Elevated payout ratio of 94%.
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.
Start by checking whether payout coverage and business durability still support the dividend.
MRK Dividend Income Projection — DRIP Compounder
Dividend Compounder (DRIP)
Year 1 Income
$289
Year 10 Income
$726
Yield on Cost
7.63%
Total Income
$4,717
Assumes dividends reinvested at current price. Simplified model — for illustrative purposes only.
More research
Full price history & technical analysis
TradingView ↗Fundamentals, valuation & analyst ratings
FinViz ↗Moat rating & analyst fair value
Morningstar ↗MRK Dividend Quality Score
Quality Score
Average
Key Metrics
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In-depth analysis
→ MRK Dividend Analysis Article