In a market where interest rates swing unpredictably and investors juggle inflation worries with recession chatter, the appetite for safe high-yield dividend stocks has surged to new heights. The Federal Reserve’s messaging in late 2025 added fresh uncertainty to an already complex landscape. After delivering its second rate cut of the year—bringing the benchmark rate down to roughly 3.9%—policymakers quickly reminded markets that future easing isn’t guaranteed. The dollar strengthened, gold retreated, and investors were forced to re-evaluate which income plays can truly withstand volatility.
Against this backdrop, two companies quietly stood out for the right reasons: Merck (MRK) and Duke Energy (DUK). Both offer high yields, durable cash flows, and business models that don’t crumble at the first sign of tightening financial conditions. While the broader market buzzes about AI, tech earnings, and geopolitical risk, these two companies continue to deliver the kind of stability income investors crave.
Below, we take a deeper look into what makes Merck and Duke Energy two of the safest high-yield dividend stocks available today—and why their dependable performance is especially valuable during uncertain times.
Merck & Co. (MRK): A Healthcare Dividend Giant Backed by Durable Growth
For decades, Merck has been one of the most reliable names in global pharmaceuticals, and 2025 only reinforced why it remains a top contender for income-focused portfolios. With a market cap exceeding $252 billion and a dividend yield holding firm above 3%, Merck combines financial strength with meaningful innovation—a rare blend in today’s healthcare sector.
A Strong Dividend Profile With Room to Grow
Merck’s forward annual dividend sits at $3.24 per share, producing a stable 3.09% yield, comfortably supported by a payout ratio near 37%. That low payout ratio is crucial—it gives the company room to continue increasing dividends even during periods of uneven earnings.
Its stock price, hovering around $102.81, has shown modest but consistent resilience: up 3.2% year-to-date and slightly green over the last 52 weeks.
Undervalued Despite Consistent Strength
Merck trades at 12.12x earnings, significantly below the sector average. On a PEG basis, it is also more affordable than competitors, making it one of the few large pharmaceutical companies still offering growth at a reasonable price.
KEYTRUDA Leads the Charge
While Merck’s pipeline is broad, KEYTRUDA, its flagship oncology therapy, remains the powerhouse. Sales surged to $8.1 billion, up 10% YoY, demonstrating continued global demand. Beyond oncology, Merck delivered impressive momentum in:
- WINREVAIR (up 141% YoY to $360M)
- CAPVAXIVE, a new vaccine generating $244M in early sales
- Animal Health, up 9% YoY
Quarterly earnings were equally healthy, with non-GAAP EPS of $2.58, beating estimates by nearly 10%.
Massive Investment in Future Breakthroughs
Merck isn’t standing still. In 2025, the company made a strategic $9.2 billion acquisition of Cidara Therapeutics to develop season-long influenza protection—a potential blockbuster if trials continue to impress.
It’s also making meaningful progress in neurology, particularly with Alzheimer’s research. Early-stage candidates, including MK-2214 and MK-1167, will be closely watched at upcoming scientific presentations.
Analysts See Steady Upside
Most Wall Street analysts maintain a “Moderate Buy” rating, with a price target near $104.83. While not explosive upside, Merck’s appeal lies in its consistency—not speculation.
When paired with stable earnings growth and a protected dividend, Merck easily earns a place among today’s most dependable high-yield dividend stocks.
Duke Energy (DUK): A Regulated Utility Powerhouse Built for Stability
In a turbulent rate environment, utilities often shine. And few utilities combine size, stability, and dividend strength more effectively than Duke Energy.
With a market cap approaching $94 billion and operations spanning the Carolinas, Florida, the Midwest, and beyond, Duke continues to deliver essential services in markets with growing populations and rising energy demands.
A High and Reliable Dividend
Duke offers a 3.44% dividend yield, supported by predictable cash flows and a payout ratio around 64%. Utilities traditionally operate with higher payout ratios, but Duke’s is well within a sustainable range—especially given its regulated revenue model.
The stock trades at $118.95, up 10% YTD and 5% over the last year.
Earnings Keep Improving
Recent results were stronger than expected:
- Revenue: $8.54B (+13.77% YoY)
- Net Income: $1.42B (+44% YoY)
- EPS: $1.81 (beat by $0.07)
Even though Q4 earnings are projected to dip slightly, Duke’s full-year EPS is expected to climb over 7%.
Grid Modernization Is a Multi-Decade Opportunity
One of the major catalysts for Duke’s long-term dividend safety is its ongoing investment in grid upgrades and infrastructure modernization. This includes:
- Storm-hardening measures
- Capacity expansion for fast-growing counties
- Accommodations for surging data center and manufacturing demand
- Efficiency upgrades at existing plants
These projects not only support future earnings—they are typically approved by regulators, meaning Duke can recoup costs through rate adjustments.
Analysts See Meaningful Upside
Duke holds a “Moderate Buy” rating from analysts, with a target price near $137, implying double-digit upside from current levels.
For investors prioritizing income and stability rather than rapid capital appreciation, DUK remains one of the safest high-yield dividend stocks money can buy.
Final Thoughts: When Stability Matters Most, These 2 Dividend Stocks Deliver
In a market defined by rate speculation, geopolitical tension, and unpredictable economic signals, investors increasingly seek assets that can endure the turbulence. Merck and Duke Energy both meet that challenge with sturdy fundamentals, disciplined capital allocation, and income streams that don’t require perfect economic conditions to flourish.
Neither stock is designed for wild, short-term breakouts—but for long-term investors who value reliability, predictable growth, and inflation-resistant dividends, they are exactly the kind of steady performers that help anchor a balanced portfolio.
If you are searching for safe high-yield dividend stocks that offer genuine staying power, Merck and Duke Energy both deserve serious consideration.