SmarterDividends

ALC vs MRK: Which Is the Better Dividend Stock?

As of July 2026, MRK (Merck & Co., Inc.) screens as the stronger dividend stock, winning 6 of 7 head-to-head metrics. MRK offers the higher yield at 2.61%, MRK has the higher dividend-safety score, and MRK trades at the larger discount to fair value (-2%).

MetricALCMRK
Forward yield0.53%2.61%
Annual dividend$0.36$3.40
Payout ratio20%94%
Years of growth4 yr15 yr
5-yr dividend growth6.7%
5-yr total return-18%72%
Dividend safety score76 (B)90 (A)
Fair value estimate$61.01$128.13
Upside to fair value-10%-2%
Frequencyannualquarterly
Market cap$33.1B$323.7B
P/E ratio40.736.9

Higher yield

MRK

2.61%

Safer dividend

MRK

Grade A

Faster growth

MRK

6.7%

Better value

MRK

-2% upside

ALC vs MRK — FAQ

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