Merck & Company, Inc.

MRK
Healthcare
$152.55
2.20%Overvalued

Merck & 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

Underval. $83.47Overval. $123.00

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

14Y

Long 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

2026-08-222026-08-23

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

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Fundamentals, valuation & analyst ratings

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Moat rating & analyst fair value

Morningstar ↗

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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$152.55
Annual Dividend$3.36
Current Yield2.20%
Yield — Max (10Y)5.81%
Yield — Min (10Y)2.83%
Undervalued Below$83.47
Overvalued Above$123.00
Payout Ratio268.80%
CAGR Dividend 5Y6.7%
CAGR Dividend 10Y6.6%
Years No Cut14y

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14
consecutive years of dividend growth