Should You Forget Pfizer and Buy This Magnificent Dividend Stock Instead?

Core Viewpoint - Pfizer offers a high dividend yield of 7.1%, significantly above the S&P 500's 1.3% and the average healthcare stock's 1.7%, but Merck may be a better choice for dividend investors due to its more stable dividend history [1][6][12] Group 1: Company Comparison - Pfizer and Merck have similar business models, focusing on research and development to create new blockbuster drugs, supported by strong marketing and distribution systems [2][4] - Both companies have a history of making large acquisitions to enhance their drug portfolios, but their current positioning may vary based on their respective drug pipelines [5][11] Group 2: Dividend History - Pfizer has a history of 15 consecutive dividend increases, but it previously cut its dividend during the Great Recession, while Merck maintained its dividend during the same period [6][8][9] - Merck's more consistent dividend growth, despite periods of stagnation, provides a level of trust for income investors that Pfizer's past cut does not [9][12] Group 3: Investment Considerations - Both Pfizer and Merck offer portfolios of already approved drugs, allowing investors to engage in the pharmaceutical sector without needing deep industry knowledge [10][11] - For dividend investors, the historical performance of dividends is crucial, making Merck a potentially safer investment compared to Pfizer [12]