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The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its fourteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today I'll review the fourth of five healthcare sector stock candidates vying to be that fourteenth selection in the Vista portfolio.

My subject today is a large-cap drug manufacturer - a general company named Merck & Co Inc. Its trading ticker symbol is MRK. This is my second report on Merck & Co Inc for Vista and it was selected for one of my previous portfolios.

Merck & Co Inc makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiometabolic disease, cancer, and infections. 

Within cancer, the firm's immuno-oncology platform is growing as a major contributor to overall sales. 

The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. 

Additionally, Merck sells animal health-related drugs. From a geographical perspective, close to 40% of the firm's sales are generated in the United States.

It serves drug wholesalers and retailers, hospitals, and government agencies; managed health care providers; and physicians and physician distributors, veterinarians, and animal producers. 

The company was founded in 1891 and is headquartered in Kenilworth, New Jersey.

I use three key data points to gauge dividend equities or funds like Merck & Co Inc:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money. 

MRK Price

Merck's price per share closed at $83.47 yesterday. A year ago its price was $89.10. Price is down $5.63 or  6.32% on the year.

If Merck's stock trades in the range of $65 to $95 this next year, its recent $83.47 price might rise by $6.53. to reach $90.00 by December 10, 2021. 

MRK Dividends

Merck's most recently declared quarterly dividend was $0.65 payable on January 8th. Dividends are estimated to total $2.60 per share annually and yield 3.11% at yesterday's $83.47 closing price.

MRK Gains?

Adding the $2.60 annual anticipated dividend to my $6.53 optimistic estimate of Merck & Co Inc's price upside shows a $9.13 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in  Merck & Co Inc at $83.47 and we would buy 12 shares MRK stock.

A $10 broker fee (if any) paid half at purchase and half at sale could cost us about $0.83 per share.

Subtract that maybe $0.83 brokerage cost from my estimated  $9.13 gross gain per share results in a net gain of $8.30 X 12 shares = $99.60 or a 9.9% net gain on a $1,001.64 investment.

So it goes that Merck & Co Inc shows a possible 9.9% net gain including a 3.11% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of Merck & Co Inc. Only time and money invested in this stock will determine its worth.