Why Merck Is A Better Dividend Stock Than Gilead Sciences

  • I reiterate my Hold rating on Merck & Co., Inc. and downgrade Gilead Sciences, Inc. to Sell, as MRK outperforms on dividend growth and valuation metrics. Compared to GILD, MRK features a longer dividend growth streak, a higher recent dividend increase, and a superior PEGY ratio. Both companies have similar payout ratios and mixed buyback histories, but GILD's inventory management is notably better than MRK's.