SmarterDividends

ALC vs MRK: Which Is the Better Dividend Stock?

As of September 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 2.31%, MRK has the higher dividend-safety score, and MRK trades at the larger discount to fair value (-8%).

MetricALCMRK
Forward yield0.55%2.31%
Annual dividend$0.36$3.40
Payout ratio27%269%
Years of growth4 yr15 yr
5-yr dividend growth6.7%
5-yr total return-22%67%
Dividend safety score76 (B)88 (A)
Fair value estimate$57.34$135.77
Upside to fair value-12%-8%
Frequencyannualquarterly
Market cap$31.4B$362.4B
P/E ratio49.6117.5

Higher yield

MRK

2.31%

Safer dividend

MRK

Grade A

Faster growth

MRK

6.7%

Better value

MRK

-8% upside

ALC vs MRK — FAQ

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