A portfolio of stocks I've been building since September 3 is named Volio Folio. It will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the first of four healthcare stocks striving to be picked to join my Volio folio. This could be the thirteenth pick for Volio!

That healthcare sector includes ten industries all related to testing, diagnosing and treating what ails us. Health 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.

My subject today is a large-cap drug manufacturer - a major company named, Merck & Co. Inc Their trading ticker symbol is MRK.

I last reported on Merck on February 28th, when I chose Merck & Co Inc for my Ivy portfolio

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 40% of the firm's sales are generated in the United States.

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 dividend-paying equities or funds 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, or not.

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

MRK Price

Merck's price per share closed at $85.45 on Friday. A year ago its price was $75.44. So, in the past year, its price rose $10.01 or 13.25%.

Assuming Merck's stock trades in a range of $75 to $100 this next year, it's recent $85.45 price could rise by $10.00 again tot hit $95.45 by late-November, 2020, assuming upward price momentum continues.

MRK Dividends

Merck's latest declared quarterly dividend was $0.61, payable January 8th.

That $0.61 Q dividend equates to $2.44 annually and yields 2.44% based on Friday's $85.45 closing price.

MRK Gains?

Adding the $2.44 annual estimated dividend to my $10.00 estimate of Merck's price upside shows a $12.44 potential gross gain, per share, which will be reduced by any costs to trade these shares.

Say, for costs, we put a little over $1,000.00 today into Merck & Co Inc at its recent $85.45 price, we'd buy 12 shares of MRK.

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

Subtract that $0.83 brokerage cost from the estimated $12.44 gross estimated gain per share leaves a net gain of $11.61X12 shares = $139.32 or a 13.9 % net gain on a $1,025.40 investment.

Therefore, Merck & Co Inc, whose trading ticker symbol is MRK shows a possible 13.9% net gain including a 2.86% 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 learn if Merck & Co Inc is worth your time and money.