About Merck & Co. Inc. (MRK) — Dividend Analysis 2026
Merck is a Dividend Aristocrat with 14+ consecutive years of increases. Keytruda (pembrolizumab) is the world's best-selling cancer drug and drives exceptional cash generation. The company's oncology and vaccines pipeline provides long-term growth visibility beyond the Keytruda patent cliff in the 2030s.
Is MRK a good dividend investment in 2026?
MRK offers a 3.25% forward yield with a 42% payout ratio. With a safety score of 100/100, the dividend appears very safe. The 5-year dividend CAGR of 8.2% demonstrates strong, consistent growth that outpaces inflation.
MRK DRIP calculator — what's the difference?
With DRIP on a $10,000 investment over 10 years, your MRK portfolio grows to $30.7K vs $27.5K without reinvestment — a DRIP bonus of $3.2K. This is the compound interest effect in action.
MRK dividend growth history & forecast
MRK has grown its dividend by 5.5% over the last year and 8.2% annually over 5 years. At this pace, an investor who holds for 10+ years will see their yield on cost grow substantially above the current 3.25% — illustrating why dividend growth stocks are powerful long-term wealth builders.
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🌍 MRK Yield by Country & Account Type
Real after-tax yield depends on where you live and how you hold MRK.
Gross yield
3.25%
Tax rate
15.00%
After-tax yield
2.76%
Real yield (−CPI)
-0.04%
Account/Country
Tax Rate
After-tax Yield
Real Yield
$10K Annual Income
🇺🇸 Roth IRA / 401k
0%
3.25%
0.45%
$325 / yr
🇺🇸 US Taxable (15%) ✓
15%
2.76%
-0.04%
$276 / yr
🇺🇸 US Taxable (20%)
20%
2.60%
-0.20%
$260 / yr
🇬🇧 UK ISA
0%
3.25%
0.45%
$325 / yr
🇬🇧 UK Taxable
8.75%
2.97%
0.17%
$297 / yr
🇨🇦 TFSA
0%
3.25%
0.45%
$325 / yr
🇨🇦 CA Taxable
25%
2.44%
-0.36%
$244 / yr
🇦🇺 Super (pension)
15%
2.76%
-0.04%
$276 / yr
🇦🇺 AU Taxable
30%
2.27%
-0.52%
$228 / yr
🇩🇪 DE Taxable
26.375%
2.39%
-0.41%
$239 / yr
🇫🇷 FR Taxable
30%
2.27%
-0.52%
$228 / yr
Real yield = after-tax yield minus US CPI of 2.8%. Click any row to select. US withholding tax (30%, reducible by treaty) applies to non-US residents holding US stocks in taxable accounts.
🎯 MRK Income Goal & Break-Even
Dividend Break-Even
18yr
Years for dividends to repay your full MRK investment price of $94.80/share (🇺🇸 US Taxable (15%) · 15.00% tax)
$10K invested · 10 Years
Dividends earned (DRIP)
$5.0K
Lost to inflation (~2.8% CPI)
−$2.5K
Real purchasing power gain
$2.6K
How much do I need to invest in MRK for:
Shares needed
9,168
Capital required
$869,126
Monthly income
$2,000
Based on current dividend of $3.08/share/yr · 🇺🇸 US Taxable (15%) · static projection (no growth assumed).
📅 MRK Dividend Payment Schedule
MRK pays quarterly — 4 times per year. Next ex-div: Mar 14, 2026.
Jan
Feb
Mar
💰
Apr
May
Jun
💰
Jul
Aug
Sep
💰
Oct
Nov
Dec
💰
10 shares
$6.54 / payment
$26.18 / year after tax
100 shares
$65.45 / payment
$261.80 / year after tax
1,000 shares
$654.50 / payment
$2618.00 / year after tax
📊 MRK vs Healthcare Sector Benchmarks
How MRK compares to typical Healthcare sector averages.
Dividend YieldMRK: +3.25% vs sector avg 2.80% ✓ Better
MRK━━ Healthcare avg: 2.80%
5Y Dividend CAGRMRK: +8.20% vs sector avg 6.80% ✓ Better
MRK━━ Healthcare avg: 6.80%
Payout RatioMRK: 42.00% vs sector avg 55.00% ✓ Better
MRK━━ Healthcare avg: 55.00%
⚠️ Disclaimer: All projections are for educational purposes only. Dividend payments, stock prices, and growth rates are estimates based on historical data. Past performance does not guarantee future results. This is not financial advice — consult a qualified financial professional before investing. Data sourced from public financial records and updated regularly.