SmarterDividends

MRK vs RMD: Which Is the Better Dividend Stock?

As of July 2026, MRK (Merck & Co., Inc.) screens as the stronger dividend stock, winning 6 of 8 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%).

MetricMRKRMD
Forward yield2.61%1.23%
Annual dividend$3.40$2.40
Payout ratio94%22%
Years of growth15 yr13 yr
5-yr dividend growth6.7%7.7%
5-yr total return72%-33%
Dividend safety score90 (A)88 (A)
Fair value estimate$128.13$176.22
Upside to fair value-2%-10%
Frequencyquarterlyquarterly
Market cap$323.7B$28.3B
P/E ratio36.918.8

Higher yield

MRK

2.61%

Safer dividend

MRK

Grade A

Faster growth

RMD

7.7%

Better value

MRK

-2% upside

MRK vs RMD — FAQ

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