These 2 High-Yield Dividend Stocks Are Some of the Safest Buys Right Now

Group 1: Federal Reserve Actions - The Federal Reserve cut the benchmark rate by 0.25 points to approximately 3.9% in late October, marking the second cut of the year to support growth and hiring despite inflation remaining above the 2% target [1] - Two Fed officials indicated that future rate reductions will depend on incoming data rather than a predetermined easing strategy, leading to a market reaction where the dollar strengthened and gold prices fell [2] Group 2: Investment Focus - Investors are increasingly prioritizing dependable cash flow and balance sheet strength, with a focus on high-yield stocks like Merck (MRK) and Duke Energy (DUK) as safer dividend options in a volatile market [3] Group 3: Merck & Company Overview - Merck & Co. has a market capitalization of approximately $252.7 billion and offers a forward annual dividend of $3.24 per share, resulting in a forward yield of 3.09% and a payout ratio of 37.38% [4] - As of December 3, Merck's stock price is $102.81, reflecting a year-to-date increase of 3.2% and a 0.82% rise over the last 52 weeks [5] Group 4: Financial Performance - Merck's latest quarterly report for the period ending September 25 showed total worldwide sales of $17.3 billion, representing a 4% year-over-year increase, or 3% when excluding currency effects [7] - KEYTRUDA was a significant revenue driver with sales of $8.1 billion, up 10% reported and 8% on a constant-currency basis, while WINREVAIR revenue surged by 141% to $360 million [7] - GARDASIL/GARDASIL 9 sales decreased to $1.7 billion, down 24%, while Animal Health sales grew by 9% to $1.6 billion [8] - The company reported GAAP EPS of $2.32 and non-GAAP EPS of $2.58, exceeding the consensus estimate of $2.36 by $0.22, representing a 9.32% upside surprise [8]