2 Top Dividend Stocks to Buy on the Dip

Group 1: Pfizer - Pfizer has faced declining financial results and competition, with key products like Eliquis and Xtandi losing patent protection in the coming years [4] - Despite recent stock performance challenges, Pfizer's shares are considered attractive due to a strong pipeline, particularly in oncology, with plans to increase blockbuster cancer medicines from five to eight by 2030 [5][6] - The company has launched a new RSV vaccine, Abrysvo, generating $143 million in sales in Q2 2023, and has plans for further label expansions [7] - Pfizer aims for $4.5 billion in net cost savings this year, which contributed to an earnings beat in Q2, enhancing profitability [8] - The company offers a solid dividend yield over 7%, with a 19.5% increase in payouts over the past five years, making it a good long-term investment for income-seeking investors [9] Group 2: Merck - Merck is experiencing challenges, particularly with increased competition for its leading drug Keytruda and an impending patent cliff in 2028 [10] - The company's Q2 revenue declined by 2% year over year to $15.8 billion, with adjusted earnings per share down 7% to $2.13 [10] - However, Merck's new product Winrevair reported sales of $336 million, and its animal health segment saw an 11% sales increase to $1.6 billion [11] - Merck has promising pipeline candidates, including a subcutaneous version of Keytruda, which could extend patent protection and mitigate revenue losses [12] - The company offers a forward dividend yield of 4.1%, with a 39% increase in dividends over the past five years, making it an attractive option for dividend investors [13]