Blue chip drug makers such as Merck (NYSE:MRK) have historically been very popular with income investors because of their defensive nature, meaning that drug demand isn't really affected by economic downturns.
However, what many investors fail to realize is that, while the pharmaceutical industry as a whole may be recession resistant, successful long-term dividend growth investing is far harder to achieve at the company level.
This is why just two drug makers are part of the venerable dividend aristocrats list, meaning they are S&P 500 companies that have managed to raise their payouts for at least 25 consecutive years.
Let's take a look at Merck to see if this high-yield favorite is a reasonable choice for a diversified dividend portfolio, especially in light of recent challenges that have sent MRK's stock on its largest two-day decline in more than eight years, according to Reuters.
