Pharma Titans Trade Dividend Spotlight

Pfizer and Merck have recently released their quarterly reports, sparking renewed interest in their dividend payouts. Pfizer boasts one of Big Pharma's fattest yields at nearly 7%, while its COVID franchise is experiencing a post-pandemic pivot.

Merck, on the other hand, absorbed multi-billion dollar deal charges to reload its pipeline behind Keytruda. The company's revenue landed at $16.29B, topping the $15.85B consensus, with Keytruda producing $8.03B, up 12%.

The dividend math tells the real story. Pfizer pays $0.43 quarterly ($1.72 annualized) against its high yield, while Merck lifted its quarterly dividend from $0.81 to $0.85 starting Q1 2026, with a forward annualized rate of $3.40.

Pfizer is running roughly 20 pivotal trials in 2026, including 10 from the Metsera obesity purchase. The Vyndamax patent settlement extending U.S. exclusivity to June 2031 removes a real overhang for dividend coverage. Merck's watchlist differs, with Keytruda QLEX adoption and Winrevair's PAH ramp shaping whether the raised $65.8B to $67B revenue band holds.