Merck: This Cancer‑Drug Powerhouse Could Be a Core Dividend Holding for Decades

The Motley Fool

by newsfeedback@fool.com (Prosper Junior Bakiny)

February 22, 2026

AI-Generated Deep Dive Summary

Merck (NYSE: MRK) has seen its shares rise by an impressive 46% over the past year, despite facing challenges such as declining revenue from its HPV vaccines, Gardasil and Gardasil 9, and increased competition for its flagship cancer drug, Keytruda. While these factors have weighed on the company's financial performance, Merck remains a standout choice for long-term investors, particularly those seeking reliable income through dividends. The healthcare giant's resilience highlights its ability to navigate market pressures while maintaining a strong position in the oncology space. Keytruda, one of the most critical products in Merck's portfolio, continues to face competition but retains significant growth potential due to its proven efficacy and widespread adoption in cancer treatment. Additionally, Merck's diversified product lineup and robust pipeline of innovative therapies provide a buffer against revenue declines in any single franchise. Investors should also consider Merck's commitment to returning value to shareholders through consistent dividend payments. With a long history of increasing dividends, the company positions itself as a stable and reliable holding for income-focused portfolios. As Merck adapts to evolving market dynamics, its focus on innovation and strategic partnerships further underscores its potential to remain a leader in the healthcare industry. For finance enthusiasts, Merck's story is compelling due to its blend of growth opportunities and defensive characteristics. The company's ability to generate steady cash flows, coupled with its focus on high-margin products like Keytruda, makes it a standout option for both income seekers and those looking for long-term capital appreciation. As the healthcare landscape continues to shift, Merck's strategic positioning and adaptability position it as a core holding with staying power over the decades ahead.

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Originally published on The Motley Fool on 2/22/2026