S tocks with high dividend yields aren’t hard to find in the utility and REIT space. Problem is, very few stocks are showing relative strength.
But it’s a different story for a couple of Dividend Leaders.
Dow componentsPfizer ( PFE ) andMerck ( MRK ) are often mentioned in the same breath, but one is showing distinctly better price action than the other. Pfizer, which currently yields an annualized 3.2%, is holding up much better than Merck, which yields 3%.
A recent base breakout for Pfizer over a 35.63 buy point has sputtered, but it’s still holding above its 50-day moving average.
Merck, on the other hand, recently flashed a sell signal when it fell 8% below a 61.47 buy point. Heading into Thursday, it was working on a new base, but it gapped below its 50-day moving average Thursday in heavy volume, dampening its base-building efforts.
Sales growth has been declining in recent quarters at Pfizer, but the company has been plowing money into research and development. In 2014, R&D expenses made up 16.9% of total revenue.
Pfizer’s pipeline is strong, with several drugs and compounds in development. Phase three clinical trials have started for its cholesterol drug bococizumab as well as an anti-diabetic drug ertuglifozin that lowers blood glucose levels.
Pfizer currently pays a quarterly dividend of 28 cents a share.
Meanwhile,Lockheed Martin ( LMT ) hasn’t given up much ground after a cup-with-handle breakout over a 205.49 buy point July 29.
Earlier this month, the company received a contract from the Transportation Security Administration (TSA) worth up to $450 million to deploy security technology equipment at airports, ports, terminals and cargo facilities in the western U.S.
The stock’s quarterly dividend of $1.50 a share gives it an annualized yield of 2.8%.