This week, I'm looking for the third healthcare sector representative of six for my Ivy portfolio.

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Healthcare industries are: biotechnology; diagnostics & research; drug manufacturers - major and - specialty & generic; healthcare plans; long-term care facilities; medical care; medical devices; medical distribution; medical supplies.

Today I'm reviewing another large-cap drug manufacturer - major named Merck & Co Inc (MRK).

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. From a geographical perspective, close to half of the company's sales are generated in the United States.

It has collaborations with Pfizer Inc.; AstraZeneca PLC; Bayer AG; Eisai Co., Ltd.; IO Biotech; Premier Inc.; Cue Biopharma, Inc.; Foundation Medicine, Inc.; Daiichi Sankyo Company, Limited; Cold Genesys, Inc.; Kyn Therapeutics; Adlai Nortye Ltd.; Cocrystal Pharma, Inc.; and Instituto Butantan.

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

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

I use three key data points to gauge the value of any dividend equity-like Merck & Co Inc:

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest.

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

MRK Price

Merck's price per share closed at $80.59 yesterday. A year ago its price was $54.72. Price rose $25.87 per share last year, or over 47%.

Assuming Merck's stock trades in the range of $60 to $95 this year, Merck's recent $80.59 price could rise by $2.41 and go to $83.00 by late-February, 2020.

MRK Dividends

Merck's most recent Quarterly dividend was $0.55 declared January 29th and payable Friday, April 5.

That quarterly dividend equates to a $2.20 annual payout and a yield of 2.73% at yesterday's $80.59 closing price.

Gains For MRK?

Adding the $2.20 annual estimated dividend to my $2.41 Merck estimated price upside shows a $4.61 potential gross annual gain, per share, which will be reduced by costs to trade those shares.

Say we put a little under $1,000.00 today at the $80.59 recent stock price would buy us 12 Merck & Co Inc shares.

A $10 broker fee paid half at purchase and half at sale costs $0.83 per share.

Subtract that $0.83 brokerage cost from the estimated $4.61 gross annual gain leaves a net gain of $3.78 X 12 shares

= $45.36 or a nearly 4.6% net gain on a $967.08 investment.

Therefore, Merck & Co Inc whose trading ticker symbol is MRK now shows a possible net gain of 4.6% including a 2.73% dividend yield.

Sixteen brokers cover this stock:

Nine say "buy" MRK.

Four say MRK will "outperform" peers.

Two say "hold" on to your MRK shares.

One says MRK will "underperform" peers.

Therefore, you can look at  Merck & Co Inc and see it has made money, is making money, and could throw a net gain of 4.6% including a 2.73% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to determine if Merck & Co Inc is worth your time and money.