A new 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 fifth stock this coming 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 we'll review the fourth of five healthcare sector stock candidates vying to be the fifth selection for the Vista portfolio.

My subject today is a large-cap drug manufacturer general, Merck & Co Inc. Its trading ticker symbol is MRK. This is my first report on Merck & Co Inc for this Vista dog of the week portfolio. I have reviewed it for my other portfolios, however.  

Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiovascular disease, asthma, 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. Geographically, about 40% of the firm's sales are generated in the United States.

Additionally, the company offers clinical, and health analytic services. Merck & Co., Inc. has collaborations with AstraZeneca PLC; Bayer AG; Eisai Co., Ltd.; Almac Discovery Ltd.; Skyhawk Therapeutics, Inc.; Ridgeback Biotherapeutics; Shanghai Junshi Biosciences Co., Ltd.; and FUJIFILM Corporation. 

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 $80.02 yesterday. A year ago its price was $84.39. Price fell $4.37 or just about 5.2% last year.

If Merck's stock trades in the range of $65 to $95 this next year, its recent $80.02 price might rise by $13.48 to reach $93.50 by October 8, 2021. 

MRK Dividends

Merck's most recently declared quarterly dividend was $0.61 paid on July 9th. dividends are estimated to total $2.44 per share annually and yield 3.05% at yesterday's $80.02 closing price.

MRK Gains?

Adding the $2.44 annual anticipated dividend to my $13.48 optimistic estimate of MRK's price upside shows a $15.92 potential gross gain, per share, to be reduced by any costs to trade the shares.  

If we put little over $1,000.00 today in Merck & Co Inc at $80.02, we would buy 13 shares of MRK stock.

A $10 broker fee paid half at purchase and half at sale could cost us  $0.77 per share.

Subtract that $0.77 brokerage cost from my estimated $15.92 gross gain per share results in a net gain of $15.15 X 13 shares = $196.95 for a 19.5% net gain on a $1040.26 investment.

So it goes that Merck & Co Inc shows a possible 19.5% net gain including a 3.05% 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.