Is Merck A Great Dividend Stock?

Investors shouldn't settle for just an average dividend stock, certainly not during the COVID-19 pandemic when many dividend stocks are proving to be unstable. Instead, investors should look for great dividend stocks -- ones that offer sustainable payouts that are also safe, pay a good yield, and are likely to increase in the future.

Today, I'll look at whether drug manufacturer Merck (NYSE: MRK) falls into the category of a great dividend stock and whether income investors should consider adding it to their portfolios.

Currently, Merck pays its shareholders a quarterly dividend of $0.61. At a price of around $78, that means investors today are earning about 3.1% annually in dividend income. That's higher than the S&P 500 average of 2%, and it means that Merck's dividend passes the first test -- it's above average.

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Source Fool.com