What was Merck's compound annual growth rate (CAGR) since 2020?

Merck's CAGR from 2020 to September 2026 was 11.6% per year. For comparison, the S&P 500 has historically averaged around 10% annually. Merck significantly outperformed traditional equity markets on an annualized basis.

How does Merck compare to the S&P 500 since 2020?

The same $1,000 invested in an S&P 500 index fund in 2020 would be worth approximately $2,624.85 today. Merck underperformed the S&P 500 by $527.04.

How much of the Merck gain would you keep after taxes?

Sold today, the $1,097.81 gain would be a long-term capital gain for US federal tax. At the 15% rate most people pay, you'd keep about $1,933.14. At the top rate of 23.8% (20% plus the 3.8% net investment income tax) you'd keep about $1,836.53, and lower incomes pay 0%. State tax is extra, and gains inside a Roth IRA aren't taxed.

What is the inflation-adjusted return on $1,000 in Merck since 2020?

Adjusted for cumulative US inflation since 2020, the real purchasing-power value of the Merck position is approximately $1,665.38 in 2020 dollars. Inflation shrinks the gain, but the investment still grew faster than prices.

How did Merck perform in 2020?

Merck fell 9.2% during 2020, from $71.16 at the start of the year to $64.58 at the start of 2021.

What If You Invested $1,000 in Merck in 2020?

Try your own numbers

If I had putintoat the start of…

it would be worth today

$2,098

+$1,098 profit2.10x11.6% a year

The same $1,000 in an S&P 500 index fund: $2,625

Its shares paid about $47.78 in dividends over the last 12 months.

Aftertax on the gain, you’d keep$1,933

US federal long-term rates: 15% for most people, 0% on lower incomes, 20% + 3.8% on high incomes. No state tax included; none inside a Roth IRA.

Compare with

Growth Over Time

Performance Metrics

Total Invested

$1,000.00

Current Value

$2,097.81

Total Profit

$1,097.81

Multiplier

2.10x

CAGR

11.6%

Max Drawdown

-40.0%

Inflation-Adjusted

$1,665.38

Benchmark Comparison

How does $1,000.00 invested in 2020 compare across different asset classes?

Asset	Value Today	Return
Merck	$2,097.81	2.10x
S&P 500	$2,624.85	2.62x
Gold	$2,778.51	2.78x
Savings (2% APY)	$1,142.92	1.14x

Dividends

Over the last 12 months, the 14.05 shares you'd own now paid about $47.78 in dividends (about $3.98 a month). That's 4.8% of the $1,000 put in.

Price growth alone turned $1,000 into $1,700; reinvested dividends added the other $398.16, 36% of the gain.

Dividends from Yahoo Finance. Shares today assume every dividend was reinvested.

Back in 2020

In February 2020, Merck announced plans to spin off its women's health, legacy brands and biosimilars businesses into a new company. sec.gov
In 2020, a gallon of gas averaged $2.17 and the new iPhone 12 Pro started at $999. eia.gov apple.com
During 2020 itself, Merck fell 9.2%, #95 of the 103 investments we track. The best was Tesla (+747%); the worst was AMC Entertainment (−73%). Full 2020 results →

$1,000 in Merck, year by year

Of the 103 investments we track that were available at the start of 2020, Merck ranks #60 by growth to today — just behind Netflix and ahead of Citigroup. See the full 2020 ranking →

Merck started 2020 at its highest start-of-year price up to then, after rising 25% in 2019. It was worth less than the $1,000 put in at the start of 2021 and 2022, and has been above it since the start of 2023. Today's $2,098 is more than it was worth at any January since. It rose in 4 of the 6 full years since. It fell behind the same $1,000 in the S&P 500 at the start of 2024 and hasn't caught up. Month by month, the deepest fall ran from Mar 2024 ($1,715) to May 2025 ($1,028), a drop of 40%. At its lowest month-end, in Feb 2021, it was worth $814.04.

When	Worth	Change	S&P 500
Start of 2020	$1,000	—	$1,000
Start of 2021	$908	−9.2%	$1,184
Start of 2022	$936	+3.1%	$1,524
Start of 2023	$1,397	+49%	$1,248
Start of 2024	$1,463	+4.7%	$1,576
Start of 2025	$1,316	−10%	$1,970
Start of 2026	$1,466	+11%	$2,322
Today	$2,098	+43%	$2,625

Values at the start of each year (first trading day for stocks). The S&P 500 column includes reinvested dividends, like the stock values.

Historical Context

At the start of 2020, Merck was priced at $71.16 (adjusted for later splits and dividends). $1,000 would have bought about 14.05 shares. Merck is a pharmaceutical company whose products include the cancer drug Keytruda.

Measured from one January to the next, Merck's best year since then was 2022 (+49%) and its worst was 2024 (−10%).

Frequently Asked Questions

A $1,000 investment in Merck at the start of 2020 would be worth approximately $2,097.81 today — a 2.10x return ($1,097.81 profit) over 6.7 years.

Methodology & Sources

Price data: Historical prices are the closing price on the first trading day of each year, adjusted for splits and dividends (so returns assume dividends were reinvested), from Yahoo Finance and MacroTrends. Current prices come from Yahoo Finance and refresh hourly; if that source is unavailable, the last saved price is used.

Calculation: Assumes a single purchase at the start of 2020 (or the first trading day, for companies that listed that year), held until today. No transaction fees, taxes, or slippage are included.

Benchmarks: The S&P 500 comparison uses the S&P 500 Total Return index (dividends reinvested, like an index fund) at the start of2020 and today. Gold uses the price per troy ounce. Savings account assumes a 2% APY compounded annually.

Inflation adjustment: Uses U.S. CPI-U annual averages from the Bureau of Labor Statistics. The 2026 CPI value is estimated.

Educational purposes only. Past performance does not guarantee future results. Not financial advice.