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 the S&P 500’s total returns over the past 90 years.
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Here are seven attractively valued dividend stocks you can bet on for the long term, according to Argus analysts:
| Stock | Forward Yield* | Upside potential** |
| JPMorgan Chase & Co. (ticker: JPM) | 2.1% | 8.4% |
| Procter & Gamble Co. (PG) | 2.3% | 7.9% |
| Johnson & Johnson (JNJ) | 2.9% | 8.0% |
| Home Depot Inc. (HD) | 2.5% | 9.4% |
| Coca-Cola Co. (KO) | 2.7% | 4.4% |
| Merck & Co. Inc. (MRK) | 2.7% | 21.3% |
| Chevron Corp. (CVX) | 4.7% | 50.4% |
*As of Sept. 10.**Based on Argus analysts’ 12-month target price and the share price as of the Sept. 9 market close.
JPMorgan Chase & Co. (JPM)
JPMorgan Chase is one of the world’s largest banks and financial services companies, with roughly $3.5 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 Corp., or FDIC
. Analyst Stephen Biggar says First Republic’s assets were healthy and valuable, and the acquisition boosted JPMorgan’s exposure to high-net-worth clients. In addition, Biggar is bullish on JPMorgan’s attractive loan growth profile and credit card franchise. Argus has a “buy” rating and $235 price target for JPM stock, which closed at $216.81 on Sept. 9.
Sector: Financials Yield: 2.1%
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, advertising improvements and streamlined productivity will drive long-term earnings growth for Procter. Conrad says innovative products such as Dawn Powerwash are gaining market share from competitors and allowing the company to raise prices to offset the negative impacts of inflation and customers trading down to store brands. In fact, Procter & Gamble’s margins have expanded in fiscal 2024 despite higher materials and distribution costs. Argus has a “buy” rating and $190 price target for PG stock, which closed at $176.06 on Sept. 9.
Sector: Consumer staples Yield: 2.3%
Johnson & Johnson (JNJ)
Johnson & Johnson is a global leader in the pharmaceutical, medical device and consumer health care products industries. Analyst David Toung says there are plenty of things for long-term investors to love about Johnson & Johnson, including its strong pharmaceutical pipeline, its numerous growth opportunities, its impressive track record of successful acquisitions and its shareholder-friendly dividend policy. Toung says the company’s pharmaceutical and medical technology segments have several exciting product launches ahead and numerous drugs on track for regulatory approval. He says licensing agreements will also contribute to future growth. Argus has a “buy” rating and $180 price target for JNJ stock, which closed at $166.61 on Sept. 9.
Sector: Health care Yield: 2.9%
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. Analyst Christopher Graja says Home Depot is facing near-term challenges as homeowners wait for lower interest rates to begin remodeling projects. Graja estimates about 75% of U.S. homeowners are locked into mortgages with interest rates of below 4.5% and are unlikely to purchase new homes. About 70% of U.S. homes are more than 25 years old and in need of significant updates and repairs, a potentially bullish setup for home improvement demand. Argus has a “buy” rating and $400 price target for HD stock, which closed at $365.52 on Sept. 9.
Sector: Consumer discretionary Yield: 2.5%
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Conrad says he expects Coca-Cola to make further progress in diversifying its business away from sugary sodas. In recent years, the company has cut hundreds of unproductive products and adjusted pack sizes, serving sizes and core offerings to improve profitability and reduce costs. Coca-Cola has also made strategic acquisitions, including its buyout of coffee company Costa. Conrad says refranchising Coca-Cola’s bottling operations has boosted margins, and a more focused and profitable brand portfolio will help generate long-term earnings growth. Argus has a “buy” rating and $75 price target for KO stock, which closed at $71.85 on Sept. 9.
Sector: Consumer staples Yield: 2.7%
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 Gardasil. Analyst Jasper Hellweg says Merck’s share price took a hit after the company disclosed a one-time charge related to its acquisition of Eyebiotech. However, Hellweg says the Eyebiotech deal will ultimately still benefit Merck in the long term as the company positions itself for growth. In the meantime, he says Merck is consistently gaining additional regulatory approvals and label expansions for Keytruda and other core products. Argus has a “buy” rating and $140 price target for MRK stock, which closed at $115.41 on Sept. 9.
Sector: Health care Yield: 2.7%
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 has a top-tier management team and a long history of shareholder-friendly capital returns. While the oil market is notoriously volatile, Selesky says Chevron’s history of dividend payments and share buybacks is remarkably consistent in all kinds of different energy market environments. He says recent acquisitions and project startups will allow Chevron to continue to grow earnings and revenue in coming years. Argus has a “buy” rating and $211 price target for CVX stock, which closed at $140.30 on Sept. 9.
Sector: Energy Yield: 4.7%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 09/10/24: This story was previously published at an earlier date and has been updated with new information.
