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* |
| JPMorgan Chase & Co. (ticker: JPM) | 2.0% |
| Home Depot Inc. (HD) | 2.1% |
| Procter & Gamble Co. (PG) | 2.3% |
| Chevron Corp. (CVX) | 4.2% |
| Coca-Cola Co. (KO) | 3.1% |
| Merck & Co. Inc. (MRK) | 3.1% |
| Cisco Systems Inc. (CSCO) | 2.6% |
*As of Dec. 9.
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. Analyst Ebrahim Poonawala says JPMorgan is a “best in class” U.S. bank that generates highly defensible earnings. Poonawala says U.S. banks are positioned to significantly benefit from President-elect Donald Trump’s business-friendly policies in 2025 and beyond. Bank of America has a “buy” rating and $260 price target for JPM stock, which closed at $247.36 on Dec. 6.
Sector: Financials Yield: 2%
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. Analyst Robert Ohmes says Home Depot has relied on stellar strategy and superb execution to gain market share over the past decade. Ohmes says Home Depot will continue to outperform competitors in a U.S. home improvement market that should benefit from several key tailwinds in the coming years. In particular, falling interest rates should encourage consumers to take on larger discretionary projects that require financing, such as kitchen and bathroom remodels. Bank of America has a “buy” rating and $450 price target for HD stock, which closed at $431.37 on Dec. 6.
Sector: Consumer discretionary Yield: 2.1%
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 & Gamble has a long track record of impressive innovation, and the company’s latest investor day event highlighted how successful its strategic vision has been in recent years. Management seems confident the company can continue its growth moving forward. Procter estimates further penetration of North American households could be a $5 billion opportunity, while expansion in Europe and enterprise markets could provide additional upside. Bank of America has a “buy” rating and $185 price target for PG stock, which closed at $173.82 on Dec. 6.
Sector: Consumer staples Yield: 2.3%
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Chevron Corp. (CVX)
Chevron is a global oil company that operates exploration and production, petrochemical, and refining and marketing businesses. Analyst Jean Ann Salisbury says Chevron’s Tengizchevroil joint venture in Kazakhstan is still on track to begin a significant production increase in the first half of 2025. In addition, Chevron plans to cut costs by at least $2 billion by 2026, potentially boosting margins. Chevron has announced it has far exceeded targeted cost synergies from its acquisition of PDC Energy, which bodes well for its integration of Hess assets. Bank of America has a “buy” rating and $168 price target for CVX stock, which closed at $155.24 on Dec. 6.
Sector: Energy Yield: 4.2%
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Spillane says Coca-Cola has maintained a healthy balance between focusing on profit growth markets and investment markets, resulting in defensive sales numbers during cyclical downturns and growth opportunities during market recoveries. He says Coca-Cola’s pricing power, brand value and product mix differentiate it from competitors. Spillane projects a solid 2.6% revenue growth and 4% net income growth in 2025. He says Fairlife has been an impressive performer for Coca-Cola, particularly when it comes to protein shake sales growth. Bank of America has a “buy” rating and $77 price target for KO stock, which closed at $62.53 on Dec. 6.
Sector: Consumer staples 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 Gardasil. Analyst Charlie Yang says strong performance from Merck’s core business in 2025, including Keytruda and Gardasil, will support solid revenue growth and limit downside risk. Some investors are concerned about the negative impact vaccine critic Robert F. Kennedy Jr. could have if approved to head the Department of Health and Human Services. Nevertheless, Yang is optimistic about long-term opportunities in Merck’s drug development pipeline. Bank of America has a “buy” rating and $120 price target for MRK stock, which closed at $103.09 on Dec. 6.
Sector: Health care Yield: 3.1%
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud, and cybersecurity hardware and software solutions. Analyst Tal Liani says campus switching demand and ethernet-based artificial intelligence buildouts will support Cisco’s networking business. Meanwhile, new product rollouts and Splunk synergies could help the company’s security revenue growth reaccelerate in 2025. Liani says Cisco’s conversion to highly recurring subscription revenue has been a tremendous success, with roughly 50% of revenue now recurring. Liani says cloud networking momentum, Splunk synergies and security sales will be the company’s three primary growth drivers. Bank of America has a “buy” rating and $72 price target for CSCO stock, which closed at $59.89 on Dec. 6.
Sector: Technology Yield: 2.6%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 12/09/24: This story was previously published at an earlier date and has been updated with new information.
