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

Merck (NYSE: MRK) has a $210 billion market cap. Pfizer (NYSE: PFE) has a market cap of $135 billion. They are both pharmaceutical industry giants with long and successful histories behind them. But there's one huge difference today for dividend investors. Pfizer is offering a 7% dividend yield while Merck's yield is roughly half that at 3.7%. Here's why the lower yield could be the better choice.As noted, Merck and Pfizer are both large pharmaceutical companies. Making and selling drugs is complex, expensive, and competitive. There are massive research and development costs involved in identifying potential drug candidates. When a candidate is discovered, it has to be tested for efficacy and safety. That drug also has to gain the approval of regulators before it can be sold to the public. Mass-producing the drug and selling it might actually be the easiest part of the process.Image source: Getty Images.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool