# Amgen vs Merck: which dividend keeps growing?

> Two pharma giants both raise dividends yearly, but only one has the portfolio depth to survive the next patent cliff.
- Title: Amgen vs Merck: which dividend keeps growing? · 24/7 Wall St.
- Summary: Two pharma giants both raise dividends yearly, but only one has the portfolio depth to survive the next patent cliff. Amgen's broader product base of 17…
- Keywords: amgen, merck, dividend growth, pharmaceutical companies, patent cliff, keytruda, retirement investing, income stocks, drug patents, portfolio diversification, which, dividend
- Source: 24/7 Wall St. — https://247wallst.com/investing/2026/09/19/amgen-or-merck-which-drugmaker-has-the-stronger-dividend-growth-story
- Author: Chris Lange
- Published: 2026-09-19T12:55:38+00:00
- Read time: 1 min
- Topics: amgen, merck, dividend growth, pharmaceutical companies, patent cliff, keytruda, retirement investing, income stocks, drug patents, portfolio diversification
## The dividend showdown begins
Amgen pays $2.52 quarterly ($10.08 annualized) for a 2.6% yield. Merck pays $0.85 quarterly ($3.40 annualized) for a 2.29% yield. Both raise annually, but the real question is which can keep raising through patent expirations.
## Amgen raises faster and more consistently
Amgen increased its quarterly dividend from $2.13 in 2023 to $2.52 in 2026, with consistent 6% annual raises. Merck went from $0.73 to $0.85 over the same period with smaller percentage increases.
## Merck's Keytruda faces a cliff
Merck's Keytruda franchise generated $8.4 billion in Q2 2026 sales but is reaching peak penetration. The company is betting on 20 new products to replace it, but that's pipeline risk, not proven income.

> total U.S. Keytruda year-over-year growth will moderate as we increasingly reach peak penetration
## Amgen has 17 billion-dollar products
Amgen reported 17 products annualizing above $1 billion in Q2 2026, with six growth drivers (Repatha, Evenity, Tezspire, rare disease, oncology, biosimilars) growing 26% collectively and representing 70% of sales.
## Amgen already weathering biosimilar hits
Prolia and Xgeva combined fell 33% in Q2 2026 due to biosimilar erosion, yet Amgen still raised its dividend. The company generated $3.5 billion in free cash flow that quarter.
## The debt question for Amgen
Amgen carries $57.3 billion in debt at 3.2x EBITDA, higher than Merck's investment-grade profile. But $3.5 billion in quarterly free cash flow easily covers the $1.4 billion quarterly payout.
## Amgen wins for dividend durability
Amgen pays more today, raises faster, and rests on 17 billion-dollar products rather than one $8 billion franchise. For retirement income, Amgen is the safer choice through the next patent cliff.
## Key takeaway

Amgen's broader product base of 17 billion-dollar products makes its dividend more durable than Merck's reliance on the $8.4 billion Keytruda franchise facing patent expiration.