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 over the past 90 years.
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Here are seven attractively valued dividend stocks that investors can bet on for the long term, according to Argus analysts:
| Stock | Dividend yield | Upside potential |
| JPMorgan Chase & Co. (ticker:JPM) | 2.4% | 11.4% |
| Home Depot Inc. (HD) | 2.2% | -2.0% |
| Procter & Gamble Co. (PG) | 2.4% | 13.7% |
| Johnson & Johnson (JNJ) | 3.1% | 12.8% |
| Coca-Cola Co. (KO) | 2.8% | 8.7% |
| Merck & Co. Inc. (MRK) | 2.8% | 28.9% |
| Chevron Corp. (CVX) | 4.3% | 39.6% |
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 he is bullish on JPMorgan compared to other large banks because of its strong credit card business, its impressive lending growth profile and its opportunities to gain share in the capital markets business. Argus has a “buy” rating and $235 price target for JPM stock, which closed at $210.93 on Oct. 7.
Sector: Financials Yield: 2.4%
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. Analyst Christopher Graja says Home Depot’s immediate challenge is customers waiting for lower interest rates before they begin major kitchen or bathroom remodeling projects. Fortunately, Graja says the estimated 75% of U.S. homeowners with mortgage rates locked in at below 4.5% will likely choose to make significant improvements to their existing homes rather than sell. In the long term, he says Home Depot’s acquisition of trade distribution company SRS Distribution will boost growth opportunities. Argus has a “buy” rating and $400 price target for HD stock, which closed at $408.06 on Oct. 7.
Sector: Consumer discretionary Yield: 2.2%
Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns a number of popular brands, including Pampers, Tide and Gillette. Analyst Taylor Conrad says better productivity, product innovation and improvements in advertising will drive earnings growth and share price upside for Procter in the long term. Dawn Powerwash and other leading products are gaining market share, and Conrad says innovative and differentiated products have allowed Procter to raise prices to offset the negative impacts of inflation. In fact, the company has even expanded profit margins in fiscal 2024. Argus has a “buy” rating and $190 price target for PG stock, which closed at $167.12 on Oct. 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’s pharmaceutical and med tech segments have an impressive outlook that includes several new drug launches and products on track for regulatory approval. In addition to its buyout of Abiomed and other tuck-in acquisitions, Toung says Johnson & Johnson is pursuing licensing agreements for commercial rights to advanced medical devices, a potentially significant future growth driver. The company has also raised its dividend for 62 consecutive years, making it a so-called “Dividend King.” Argus has a “buy” rating and $180 price target for JNJ stock, which closed at $159.53 on Oct. 7.
Sector: Health care Yield: 3.1%
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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 Coca-Cola faces plenty of challenges, but it has demonstrated its ability to adapt and successfully leverage its valuable brands and products. Argus has a “buy” rating and $75 price target for KO stock, which closed at $69.01 on Oct. 7.
Sector: Consumer staples Yield: 2.8%
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 continues to secure additional approvals and indications for Keytruda and other leading drugs. The U.S. Food and Drug Administration has approved invasive pneumococcal disease and pneumococcal pneumonia vaccine Capvaxive. The U.S. Department of Agriculture has also approved canine influenza vaccine Nobivac NXT Canine Flu H3N2. Hellweg says the positive approval headlines and Merck’s attractive valuation make it an excellent investment. Argus has a “buy” rating and $140 price target for MRK stock, which closed at $108.59 on Oct. 7.
Sector: Health care Yield: 2.8%
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 world-class management team and a long track record of consistently returning cash to shareholders throughout the dramatic ups and downs of the oil market. Selesky says he expects Chevron to maintain its commitment to shareholder returns. He projects new project startups and recent acquisitions, including Hess, will help Chevron maintain industry-leading profit growth and steady revenue growth for the foreseeable future. Argus has a “buy” rating and $211 price target for CVX stock, which closed at $151.12 on Oct. 7.
Sector: Energy Yield: 4.3%
[SEE: 9 Highest Dividend-Paying Stocks in the S&P 500]
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 10/08/24: This story was previously published at an earlier date and has been updated with new information.
