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:
| Stock | Forward Yield* |
| JPMorgan Chase & Co. (ticker: JPM) | 2.4% |
| Procter & Gamble Co. (PG) | 2.4% |
| Johnson & Johnson (JNJ) | 3.3% |
| Home Depot Inc. (HD) | 2.6% |
| Merck & Co. Inc. (MRK) | 2.4% |
| Chevron Corp. (CVX) | 4% |
| Coca-Cola Co. (KO) | 3.1% |
*As of May 8.
JPMorgan Chase & Co. (JPM)
JPMorgan Chase is one of the world’s largest banks and financial services companies with roughly $3.6 trillion in assets. The company 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 the First Republic assets helped JPMorgan generate impressive net interest income growth in the first quarter. Biggar says JPMorgan is a top bank stock thanks in part to its impressive loan growth profile. Argus has a “buy” rating and $215 price target for JPM stock, which closed at $191.75 on May 7.
Sector: Financials Yield: 2.4%
Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns several popular brands, including Pampers, Tide and Gillette. Analyst Taylor Conrad says productivity improvements, product innovation and improved advertising will help Procter grow its earnings and its share price over the long term. Conrad says the company is gaining market share with groundbreaking products like Dawn Powerwash. The company’s innovation has also given it pricing power to help offset rising costs and preserve profit margins. Conrad says the company’s recent dividend hike also conveys confidence about the future. Argus has a “buy” rating and $185 price target for PG stock, which closed at $165.76 on May 7.
Sector: Consumer staples 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 is an attractive investment given its impressive pharmaceutical pipeline, multiple growth opportunities and track record of successful acquisitions. The company has a string of new drug launches and regulatory approvals ahead in its pharmaceutical and medical technology segments. Following the divestment of J&J’s consumer health business, Toung says management is focused on growing the pharma and medtech segments via both targeted acquisitions and internal innovation. Argus has a “buy” rating and $180 price target for JNJ stock, which closed at $148.72 on May 7.
Sector: Health care Yield: 3.3%
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Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. Analyst Christopher Graja says there has been significant under-investment in U.S. housing, a phenomenon which has become increasingly obvious now that millennials have entered the housing market. About 70% of existing U.S. homes are at least 25 years old and in need of significant repairs and renovations. Graja says the housing shortage will push U.S. investment in homes and home improvement to as high as 5% of GDP in coming years. Argus has a “buy” rating and $400 price target for HD stock, which closed at $340.69 on May 7.
Sector: Consumer discretionary Yield: 2.6%
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 is consistently gaining new drug approvals and label expansions for its pharmaceutical portfolio, including additional indications for leading drug Keytruda. Hellweg says Keytruda is a “cash cow” for Merck, and the company generates impressive cash flow from its hospital care, oncology and antiviral products. In addition, CEO Robert Davis has prioritized acquisition opportunities in the $1 billion to $15 billion valuation range. Argus has a “buy” rating and $140 price target for MRK stock, which closed at $130.38 on May 7.
Sector: Health care 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 investors don’t seem to fully appreciate the value Chevron will get out of the assets it gains from its acquisition of Hess Corp. (HES), which is expected to close in the second quarter. Selesky says the deal should boost Chevron’s presence in the offshore Guyana region, and Chevron and Hess’ Gulf of Mexico assets are complementary. In addition, Chevron acquires 465,000 quality Bakken shale acres. Argus has a “buy” rating and $211 price target for CVX stock, which closed at $162.67 on May 7.
Sector: Energy Yield: 4%
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Conrad says Coca-Cola’s management team has recognized the need for the company to diversify away from sugary sodas and has made much-needed structural changes to the company’s business in recent years. In addition to eliminating more than 600 underperforming products, Coca-Cola has adjusted pack sizes and serving sizes. It has also completed targeted acquisition deals, such as its buyout of coffee company Costa. As a result, Conrad says Coca-Cola has a more focused core product portfolio and a more profitable business. Argus has a “buy” rating and $70 price target for KO stock, which closed at $62.62 on May 7.
Sector: Consumer staples Yield: 3.1%
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Update 05/08/24: This story was previously published at an earlier date and has been updated with new information.
