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 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 investors can bet on for the long term, according to Bank of America analysts:
| Stock | Forward Dividend Yield* | Upside Potential** |
| JPMorgan Chase & Co. (ticker: JPM) | 2.1% | 1.3% |
| Home Depot Inc. (HD) | 2.2% | 4.7% |
| Procter & Gamble Co. (PG) | 2.4% | 10.3% |
| Coca-Cola Co. (KO) | 3.0% | 20.4% |
| Chevron Corp. (CVX) | 4.1% | 7.1% |
| Merck & Co. Inc. (MRK) | 2.9% | 16.6% |
| Cisco Systems Inc. (CSCO) | 2.7% | 3.3% |
*As of Nov. 11. **As of Nov. 8 market 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 Corp., or FDIC. Analyst Ebrahim Poonawala says Wall Street doesn’t fully appreciate the long-term growth potential created by JPMorgan’s diversified revenue mix and leading market share. Poonawala says growth catalysts include reshoring and digitization of banking services. Bank of America has a “buy” rating and $240 price target for JPM stock, which closed at $236.98 on Nov. 8.
Sector: Financials Yield: 2.1%
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. Analyst Robert Ohmes says Home Depot has opportunities to gain market share both organically and inorganically by winning over complex project professionals. In addition, Ohmes says falling interest rates could stimulate Home Depot’s growth via improved housing turnover and a rebound in discretionary home improvement projects that typically involve financing, such as kitchen and bath remodels. He says Home Depot will likely continue to outperform the overall home renovation market in the long term. Bank of America has a “buy” rating and $425 price target for HD stock, which closed at $405.90 on Nov. 8.
Sector: Consumer discretionary Yield: 2.2%
Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns several popular brands, including Pampers, Tide and Gillette. Analyst Bryan Spillane says Procter has a diversified product portfolio and several multibillion-dollar brands that have leading global market shares in their respective categories. Spillane says the company’s focus on streamlining its business creates potential for sustainable earnings beats and guidance hikes in coming quarters. He says Procter has significant earnings leverage potential as disruptions in China and the Middle East normalize in 2025 and beyond. Bank of America has a “buy” rating and $185 price target for PG stock, which closed at $167.71 on Nov. 8.
Sector: Consumer staples Yield: 2.4%
[READ: 10 of the Best Stocks to Buy for 2024]
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Spillane 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. Spillane says Coca-Cola has valuation upside based on its combination of pricing and product mix leverage, which differentiates it from its peers. Bank of America has a “buy” rating and $77 price target for KO stock, which closed at $63.92 on Nov. 8.
Sector: Consumer staples Yield: 3.0%
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, petrochemical, and refining and marketing businesses. Analyst Jean Ann Salisbury says Chevron’s Tengizchevroil joint venture in Kazakhstan is on track to start ramping up in the first half of 2025, removing uncertainty from the production outlook. Salisbury says Chevron is also targeting between $2 billion and $3 billion in structural cost reductions by 2026. It is looking to achieve those goals via both technological improvements and portfolio optimization. Chevron’s cash flow also facilitates aggressive share buybacks. Bank of America has a “buy” rating and $168 price target for CVX stock, which closed at $156.93 on Nov. 8.
Sector: Energy Yield: 4.1%
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 Gardasil. Analyst Charlie Yang projects declining Gardasil sales in 2025, which will weigh on Merck’s growth and add more pressure on Keytruda’s performance. In addition, Keytruda faces biosimilar competition starting in 2028. Nevertheless, Yang says Merck has a favorable risk-reward profile with limited downside risk. Bank of America has a “buy” rating and $120 price target for MRK stock, which closed at $102.92 on Nov. 8.
Sector: Health care Yield: 2.9%
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud, and cybersecurity hardware and software solutions. Analyst Tal Liani says Cisco’s subscription growth will accelerate in fiscal 2025 as the company announces new product initiatives. Liani projects better growth and margins for Cisco in fiscal 2025 and says the stock is attractively valued at current levels. Liani says campus switching demand and ethernet-based artificial intelligence build-outs will support renewed networking business growth. In addition, more than half the company’s revenue is now recurring, boosting financial visibility and reducing risk. Bank of America has a “buy” rating and $60 price target for CSCO stock, which closed at $58.06 on Nov. 8.
Sector: Technology Yield: 2.7%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 11/11/24: This story was previously published at an earlier date and has been updated with new information.
