Merck Announces Second-Quarter 2025 Dividend and $10 Billion Share Repurchase Authorization

Rhea-AI Summary

Merck (NYSE: MRK) has announced two significant shareholder-focused initiatives. The company's Board of Directors has declared a quarterly dividend of $0.81 per share for the second quarter of 2025, which will be paid on April 7, 2025, to shareholders of record as of March 17, 2025. Additionally, the Board has authorized a new $10 billion share repurchase program with no time limit for completion.

Positive

• $10 billion share repurchase authorization shows strong commitment to shareholder returns
• Continued quarterly dividend payments demonstrate stable cash flow distribution
• No time limit on buyback provides flexibility in execution

Negative

• None.

Insights

Financial Analyst

Merck's newly announced $10 billion share repurchase authorization and quarterly dividend of $0.81 per share represents a significant commitment to shareholder returns that warrants careful analysis. The dividend payment maintains Merck's position as a reliable income generator, with an annualized dividend of $3.24 per share.

The $10 billion buyback program is particularly noteworthy, representing approximately 4% of Merck's current market capitalization. This substantial authorization provides management with strategic flexibility to opportunistically repurchase shares without time constraints, potentially supporting earnings per share growth through share count reduction. The absence of a time limit suggests a measured approach to execution, allowing management to capitalize on market volatility and optimal pricing windows.

From a balance sheet perspective, this capital return strategy appears well-supported by Merck's robust cash flow generation and strong financial position. The pharmaceutical giant's diverse product portfolio, led by blockbuster cancer drug Keytruda, continues to drive substantial free cash flow. This enables the company to maintain a balanced approach between investing in R&D, pursuing strategic M&A and returning capital to shareholders.

Compared to industry peers, this capital return program positions Merck among the more shareholder-friendly large-cap pharmaceutical companies. The combination of consistent dividends and substantial buyback capacity provides investors with a compelling total return proposition, particularly important in the current market environment where investors are increasingly focused on companies with strong cash return profiles.

RAHWAY, N.J.--(BUSINESS WIRE)-- Merck (NYSE: MRK), known as MSD outside of the United States and Canada, announced today that the Board of Directors has declared a quarterly dividend of $0.81 per share of the company’s common stock for the second quarter of 2025. Payment will be made on April 7, 2025, to shareholders of record at the close of business on March 17, 2025. The Board also authorized an additional $10 billion of treasury stock purchases with no time limit for completion.

About Merck
At Merck, known as MSD outside of the United States and Canada, we are unified around our purpose: We use the power of leading-edge science to save and improve lives around the world. For more than 130 years, we have brought hope to humanity through the development of important medicines and vaccines. We aspire to be the premier research-intensive biopharmaceutical company in the world – and today, we are at the forefront of research to deliver innovative health solutions that advance the prevention and treatment of diseases in people and animals. We foster a diverse and inclusive global workforce and operate responsibly every day to enable a safe, sustainable and healthy future for all people and communities. For more information, visit www.merck.com and connect with us on X (formerly Twitter), Facebook, Instagram, YouTube and LinkedIn.

Forward-Looking Statement of Merck & Co., Inc., Rahway, N.J., USA
This news release of Merck & Co., Inc., Rahway, N.J., USA (the “company”) includes “forward-looking statements” within the meaning of the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. These statements are based upon the current beliefs and expectations of the company’s management and are subject to significant risks and uncertainties. If underlying assumptions prove inaccurate or risks or uncertainties materialize, actual results may differ materially from those set forth in the forward-looking statements.

Risks and uncertainties include but are not limited to, general industry conditions and competition; general economic factors, including interest rate and currency exchange rate fluctuations; the impact of pharmaceutical industry regulation and health care legislation in the United States and internationally; global trends toward health care cost containment; technological advances, new products and patents attained by competitors; challenges inherent in new product development, including obtaining regulatory approval; the company’s ability to accurately predict future market conditions; manufacturing difficulties or delays; financial instability of international economies and sovereign risk; dependence on the effectiveness of the company’s patents and other protections for innovative products; and the exposure to litigation, including patent litigation, and/or regulatory actions.

The company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. Additional factors that could cause results to differ materially from those described in the forward-looking statements can be found in the company’s Annual Report on Form 10-K for the year ended December 31, 2023 and the company’s other filings with the Securities and Exchange Commission (SEC) available at the SEC’s Internet site (www.sec.gov).

View source version on businesswire.com: https://www.businesswire.com/news/home/20250128053159/en/

Media Contacts:

Robert Josephson

(203) 914-2372

robert.josephson@merck.com

Michael Levey

(215) 872-1462

michael.levey@merck.com

Investor Contacts:

Peter Dannenbaum

(732) 594-1579

peter.dannenbaum@merck.com

Steven Graziano

(732) 594-1583

steven.graziano@merck.com

Source: Merck & Co., Inc.

FAQ

What is the amount of Merck's (MRK) new share repurchase program announced in 2025?

Merck announced a $10 billion share repurchase authorization with no time limit for completion.

When will Merck (MRK) pay its Q2 2025 dividend?

Merck will pay its Q2 2025 dividend of $0.81 per share on April 7, 2025, to shareholders of record as of March 17, 2025.

How much is Merck's (MRK) quarterly dividend for Q2 2025?

Merck's quarterly dividend for Q2 2025 is $0.81 per share.

What is the record date for Merck's (MRK) Q2 2025 dividend?

The record date for Merck's Q2 2025 dividend is March 17, 2025.

Is there a time limit for Merck's (MRK) $10 billion share repurchase program?

No, Merck's $10 billion share repurchase program has no time limit for completion.