CVS vs MRK: Which Is the Better Dividend Stock?
As of July 2026, MRK (Merck & Co., Inc.) screens as the stronger dividend stock, winning 7 of 8 head-to-head metrics. MRK offers the higher yield at 2.73%, MRK has the higher dividend-safety score, and CVS trades at the larger discount to fair value (+18%).
| Metric | CVS | MRK |
|---|---|---|
| Forward yield | 2.47% | 2.73% |
| Annual dividend | $2.66 | $3.40 |
| Payout ratio | 117% | 94% |
| Years of growth | 0 yr | 15 yr |
| 5-yr dividend growth | 5.9% | 6.7% |
| 5-yr total return | 24% | 67% |
| Dividend safety score | 85 (A) | 90 (A) |
| Fair value estimate | $126.39 | $128.06 |
| Upside to fair value | +18% | +0% |
| Frequency | quarterly | quarterly |
| Market cap | $141.1B | $311.8B |
| P/E ratio | 47.3 | 35.1 |
Higher yield
MRK
2.73%
Safer dividend
MRK
Grade A
Faster growth
MRK
6.7%
Better value
CVS
+18% upside
CVS vs MRK — FAQ
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