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Top 10 Dow Dividend Stocks for October

You can find plenty of reliable income in venerable blue chips

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#5: Merck

Merck & Co. (NYSE:MRK)Current Dividend Yield: 3.5%
Performance So Far in 2012:

Merck (NYSE:MRK) is similar to Pfizer (NYSE:PFE) in many ways — namely that it faces patent expirations, it hopes its pipeline can step up to fill the void, and it pays a huge dividend.

Except Merck has soared in 2012 because, unlike Pfizer, it hasn’t taken as hard a hit on its pipeline and has seen big successes in up-and-coming treatments to replace the ones it will lose to generic competition. A new osteoporosis drug looks very promising for the drugmaker, and investors have piled in since July, driving up shares about 15% since then and up 46% in the last calendar year!

Plus, the continued roll-in of the $41 billion Schering-Plough buyout from a few years ago will provide new opportunities for Merck, or at least ensure the company won’t fade away.

MRK also is sitting on a huge war chest. Some $17.5 billion in cash and short-term investments keeps this pick pretty safe when it comes to writing dividend checks.

Merck reports earnings Oct. 26.

Article printed from InvestorPlace Media,

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