Identifying stocks to buy and hold for decades rather than months or years can be difficult. The world and the economy are constantly changing, creating risks for long-term investors. A dividend payment from a large, profitable company with a leading market share in a stable or growing industry is about the closest thing to a guarantee a long-term investor can find in the market. In fact, dividends alone have accounted for about 40% of total stock market returns since 1930.
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Here are seven attractively valued dividend stocks investors can bet on for the long term, according to Argus analysts:
| Dividend Stock | Current Dividend Yield* | Analysts’ Implied Upside* |
| JPMorgan Chase & Co. (ticker: JPM) | 2.3% | 2.8% |
| Home Depot Inc. (HD) | 2.5% | 10.5% |
| Procter & Gamble Co. (PG) | 2.4% | 15.4% |
| Johnson & Johnson (JNJ) | 3.1% | 25.3% |
| Merck & Co. Inc. (MRK) | 2.4% | 10.6% |
| Chevron Corp. (CVX) | 4% | 30.8% |
| Coca-Cola Co. (KO) | 3.3% | 18.1% |
*As of April 8 close.
JPMorgan Chase & Co. (JPM)
JPMorgan Chase is one of the world’s largest banks and financial services companies with roughly $3.8 trillion in assets. JPMorgan took advantage of the 2023 U.S. regional banking crisis and acquired failed First Republic Bank after it was seized by the Federal Deposit Insurance Corporation, or FDIC. Analyst Stephen Biggar says First Republic provides a healthy collection of loans and deposits to add to JPMorgan’s high-net-worth client base, and JPMorgan has a better growth profile than competitors. Argus has a “buy” rating and $204 price target for JPM stock, which closed at $198.48 on April 8.
Sector: Financials Current yield: 2.3%
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. Analyst Christopher Graja says underinvestment in U.S. housing supply has created a problem for millennial homebuyers entering the market. In fact, about 70% of U.S. homes available to homebuyers are more than 25 years old and in need of repairs and upgrades. That new-home shortage should continue to serve as a tailwind for home improvement retailers. Home Depot has said it will take at least five years to resolve the housing shortage. Argus has a “buy” rating and $400 price target for HD stock, which closed at $362.05 on April 8.
Sector: Consumer discretionary Current yield: 2.5%
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Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns several popular brands, including Pampers, Tide and Gillette. Analyst Taylor Conrad says product innovation, improved advertising and better productivity will help drive continued earnings growth for Procter in the long term. Conrad says unique products like Dawn Powerwash have helped Procter & Gamble use price hikes to offset rising costs. He says Procter’s history of dividend growth signals confidence in the company’s financial position and future. Procter reported positive growth in all segments in the fiscal second quarter. Argus has a “buy” rating and $180 price target for PG stock, which closed at $156.04 on April 8.
Sector: Consumer staples Current yield: 2.4%
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical, medical device and consumer health care products industries. Analyst David Toung says Johnson & Johnson has an impressive track record of landing and integrating acquisitions, and its combination of a leading commercial drug portfolio and a promising development pipeline makes it a compelling investment. Following the separation of Johnson & Johnson’s consumer health business, Toung says the company will shift its focus to growing its pharmaceutical and medical technology segments. The company is targeting $57 billion in innovative medicine sales by 2025. Argus has a “buy” rating and $190 price target for JNJ stock, which closed at $151.59 on April 8.
Sector: Health care Current yield: 3.1%
Merck & Co. Inc. (MRK)
Merck is one of the world’s largest pharmaceutical companies, and its leading products include cancer drug Keytruda and HPV vaccine Guardasil. Analyst Jasper Hellweg says Merck continues to secure regulatory approvals, including new indications for Keytruda and approval of Welireg for treating certain adult patients with advanced renal cell carcinoma (RCC). Merck has also secured Food and Drug Administration priority review status for vaccine candidate V116 for pneumococcal disease and pneumococcal pneumonia and for patritumab deruxtecan (HER3-DXd) for the treatment of adult patients with specific forms of non-small-cell lung cancer. Argus has a “buy” rating and $140 price target for MRK stock, which closed at $126.56 on April 8.
Sector: Health care Current yield: 2.4%
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, refining and marketing, and petrochemical businesses. Analyst Bill Selesky says Chevron’s acquisition of Hess Corp. (HES) is on track to close by mid-2024, and he believes the deal will create significant value for Chevron. Selesky says Hess assets will provide Chevron with high-quality, high-growth properties in the offshore Guyana, Bakken shale and Gulf of Mexico regions. He is particularly bullish on the deal’s potential to increase Chevron’s shale oil output by 40% and says Chevron’s dividend remains safe. Argus has a “buy” rating and $211 price target for CVX stock, which closed at $161.27 on April 8.
Sector: Energy Current yield: 4%
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Conrad says Coca-Cola management has begun prioritizing a shift away from sugary sodas and is already making significant progress toward diversifying the business. The company made several key strategic adjustments in recent years, including eliminating unproductive products, adjusting pack sizes and serving sizes, and completing strategic acquisitions, such as its buyout of coffee company Costa. Conrad says the outlook for Coca-Cola will be challenging, but it has proven the value of its core brands and is making changes to improve profitability. Argus has a “buy” rating and $70 price target for KO stock, which closed at $59.27 on April 8.
Sector: Consumer staples Current yield: 3.3%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 04/09/24: This story was previously published at an earlier date and has been updated with new information.
