Better Pharma Dividend Stock: Novartis vs. Merck

2026-04-17 14:57:00 ET

The pharmaceutical industry is a good place to look for solid dividend stocks. Since they offer lifesaving therapies, drugmakers generally see consistent demand for their products, even amid severe economic challenges. That allows them to generate consistent financial results and grow their dividends even during tough times. However, not all pharma dividend stocks are equally worth investing in. Consider Merck (NYSE: MRK) and Novartis (NYSE: NVS) , two of the largest in the game. They have a lot in common: deep product lineups, strong pipelines, and both have beaten the S&P 500 over the past 12 months (as of writing). But which one of these is the better dividend stock? Let's find out.

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Merck has faced some challenges in recent years, as its HPV vaccines, Gardasil and Gardasil 9, have seen declining sales due to issues in Asia. Further, Merck may face increased competition in the oncology market, where it is a leader thanks to Keytruda, a medicine approved across many cancers. Despite the obstacles, there are good reasons to stick with Merck. Here's one: Keytruda remains the world's best-selling cancer drug.

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