Merck & Co., Inc.

MRK
Healthcare
$125.99
2.67%Overvalued

Merck & Co., Inc. (MRK) is a Healthcare company that currently yields 2.67% — historically overvalued based on 10 years of dividend yield history. The Weiss valuation model places the undervaluation threshold at $83.34 and the overvaluation threshold at $121.60. 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

Underval. $83.34Overval. $121.60

Distance to undervalued

Entry price is stretched

Needs 33.9% downside to reach the Weiss buy zone

Undervaluation starts near $83.34, where the annual dividend would imply roughly 4.03% yield. That is 1.36% above today's yield.

Buy-zone price

$83.34

Target yield

4.03%

Research checklist

What to clear before buying the yield

Updated Jul 9, 2026

Dividend durability

14Y

Long 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

2026-07-082026-07-09

Price

-2.2%

$128.86 $125.99

Price fell 2.2% since the prior snapshot.

Why Now?

Merck & Co., Inc. is trading near its historical overvaluation band.

Current yield 2.7% vs historical max 5.8% (46% 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

$285

Year 10 Income

$710

Yield on Cost

7.46%

Total Income

$4,624

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

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MRK Dividend Quality Score

Quality Score

45/ 100

Average

Payout Ratio0/25
Dividend Streak20/25
Growth (CAGR 5Y)15/20
Yield vs History0/15
FCF Coverage10/15

Key Metrics

Current Price$125.99
Annual Dividend$3.36
Current Yield2.67%
Yield — Max (10Y)5.81%
Yield — Min (10Y)2.85%
Undervalued Below$83.34
Overvalued Above$121.60
Payout Ratio93.52%
CAGR Dividend 5Y6.7%
CAGR Dividend 10Y6.6%
Years No Cut14y

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14
consecutive years of dividend growth