If, as a retiree, you have a tax-deferred account in which to hold stocks, you are likely often looking for at least some fat dividend stocks. But most of all, you look for reliable pay-outs — from long term, sustainable cash flow.

It is clear that this “article/analysis” was likely mostly generated by an AI agent. It is not… wrong (if you simply want to invest today, and reap high — but double taxed, dividends in cash every year — outside your tax deferred account).

But most people would rather solve for taxes, and look at either stock (or both) being held in a 401(k) or an IRA — and take the dividends as reinvestments in the stock (no immediate cash). That is so, at least until well-after they retire, and then perhaps switch over to cash dividend payouts, for boosted quarterly retirement cash (no need to sell the underlying stock). You will pay taxes on the withdrawn amounts though.

[About 15 to 20 years ago, for five years, we used to an annual comparison of PFE v. MRK. So, consider this as a lazy / potential “slop” update, to those. Heh.]

But the central point we make here today, is sound. PFE yields a higher dividend RATE — because its NYSE price has not appreciated as much as Merck’s on a percentage basis, over the past five years. Both are excellent for your 401(k), or IRA — as those dividends get reinvested in the stock currently tax deferred. But yes, a 6+% annual dividend payout is sweet (since PFE’s stock price is lower, relatively speaking, you can buy in, and get more — more easily, at present).

Even so, though I would argue that Merck’s might be hiked — as we reach the 2030s, and its next gen immuno-oncology offerings come to the fore. If you are like me, you can wait. And I will, in my tax deferred accounts.

But that is just me. Here’s the “bot-written piece” — and a legacy graphic — sorta’ updated:

…Pfizer is now a 6.58% yielder, distributing $9.8 billion in 2025 dividends at $1.72 per share. That payout sits on a $3.22 adjusted EPS base, so coverage looks comfortable even with COVID revenue fading. Non-COVID growth told the real story: Abrysvo jumped 136%, Eliquis added 10%, and oncology biosimilars surged 77%.

Merck pays a smaller yield of 2.74% on a $3.28 annual dividend, but the underlying business is growing faster. KEYTRUDA delivered $8.03 billion in Q1 2026, up 12%, while WINREVAIR rocketed 88% to $525 million. Animal Health added a steady 13%. The recent quarterly dividend bump from $0.81 to $0.85 signals confidence….

But if you just want to harvest cash (and pay the double taxation!) Merck drops more coin in your pocket, quarter by quarter, compared to Pfizer. [Seriously, who writes these pieces?]

Onward, boarding — with a layover in the Rockies — then on, home over Lake Michigan.

नमस्ते