NEW YORK ( TheStreet) -- As a trader, I love when a stock moves higher after I bought it. As an investor, I rarely will consider a stock for a long-term investor that doesn't pay a dividend. The bigger the better, as long as its chances of a continued payout are reasonable.
Synthesizing monster dividend payers with briskly appreciating stocks is on par with finding the S600 you started hint-dropping as a great holiday gift idea on a clearance sale for less than half price (with 4matic thrown in for free).
Unlike my odds of Benz calling in the next couple of weeks, the odds of finding what you want in investments is significantly easier, and can move you a long way towards the AMG model.
MRK data by
Merck is a global research-driven pharmaceutical company dedicated to putting patients first. Established in 1891, Merck discovers, develops, manufactures and markets vaccines and medicines to address unmet medical needs. The company devotes extensive efforts to increase access to medicines through far-reaching programs that not only donate Merck medicines but help deliver them to the people who need them. Merck also publishes unbiased health information as a not-for-profit service. Merck trades an average of 11 million shares per day with a market cap of $141 billion52 Week Range: $33.13 to $48.00 Book Value: $18.16 Price To Book: 2.5 Earnings Payout Percentage: 55% For 2012, Merck shares are like Superman, up up and away. Merck shares are up about 40% in the last year, and the company continues to pay a dividend yield well above 3%. Investors are receiving $1.68 in dividends per year, for a yield of 3.7%. Analysts are calling for a price target of $48.50. We are not far from the target price, and often when a target price is breached, analysts guide higher. Just the act of guiding higher puts a spring in the step of the company's stock. There is almost no desire by short-sellers to move against this stock. Short interest hardly moves the needle with only 0.7% of the float. MRK Dividend data by YCharts
LLY data by YCharts
Eli Lilly (LLY)
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