Dividend Yield Theory Says Merck Is A Buy

Summary

• Dividend Yield Theory identifies Merck & Co., Inc. as undervalued, with a 4.09% yield well above its historical mean, suggesting strong total return potential.
• Despite Keytruda's looming patent expiration and political headwinds, Merck's robust pipeline and adaptability offer a credible path to future growth.
• DYT analysis projects a 42%-83% total return over four years, with Merck meeting or exceeding most fundamental quality metrics.
• While risks are real, Merck’s long track record and current valuation create a favorable risk-reward setup; I rate MRK stock a Buy for patient investors.

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Dividend Yield Theory, Investor Fit, and Merck

Dividend Yield Theory is a potent tool to identify undervalued stocks and calculate total return potential from price appreciation and dividends. It's a good fit for investors who:

• See dividends as an important

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in MRK over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.