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.
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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. 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% |
| Procter & Gamble Co. (PG) | 2.5% |
| Home Depot Inc. (HD) | 2.3% |
| Coca-Cola Co. (KO) | 3.2% |
| Chevron Corp. (CVX) | 4.4% |
| Merck & Co. Inc. (MRK) | 3.2% |
| Cisco Systems Inc. (CSCO) | 2.7% |
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 and other large U.S. banks will benefit from the incoming Trump administration. Poonawala anticipates analysts will revise their bank earnings estimates higher, providing an additional catalyst for the stocks. Bank of America has a “buy” rating and $260 price target for JPM stock, which closed at $240.85 on Jan. 6.
Sector: Financials Yield: 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 the market will likely reward reliable, dividend-paying consumer staples bellwethers like Procter in 2025. Spillane says Procter & Gamble’s stock trades at a premium valuation relative to peers, but this valuation is warranted given the company’s efforts in recent years to shed non-core categories and brands. He says this initiative has helped drive earnings and revenue growth and allowed Procter to defend its market share. Bank of America has a “buy” rating and $185 price target for PG stock, which closed at $160.60 on Jan. 6.
Sector: Consumer staples Yield: 2.5%
Home Depot Inc. (HD)
Home Depot is the largest North American home improvement retailer. Analyst Robert Ohmes says the renovation category is well positioned for both the short and long term. Ohmes says improvements to the company’s supply chain and productivity will help Home Depot expand its margins. Lower interest rates could also boost demand for larger discretionary home improvement projects that typically require financing, such as kitchen and bathroom remodels. Finally, Home Depot has opportunities to market more complex projects to professional customers. Bank of America has a “buy” rating and $450 price target for HD stock, which closed at $389.37 on Jan. 6.
Sector: Consumer discretionary Yield: 2.3%
[SEE: 7 Best Monthly Dividend Stocks to Buy Now.]
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Spillane says Coca-Cola deserves to trade at a premium valuation to its beverage peers thanks to its superior product mix and pricing power. Coca-Cola shares have fallen since the November election as investors are concerned Trump and Robert F. Kennedy Jr.’s Make America Healthy Again agenda could threaten soda profits. Nevertheless, Spillane says Coca-Cola remains a best-in-class company with an attractive balance between growth opportunities in emerging markets and consistent profits in established markets. Bank of America has a “buy” rating and $77 price target for KO stock, which closed at $60.81 on Jan. 6.
Sector: Consumer staples Yield: 3.2%
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, petrochemical, refining, and marketing businesses. Analyst Jean Ann Salisbury says she is more bullish on Chevron than rivals Exxon Mobil Corp. (XOM) and Occidental Petroleum Corp. (OXY) because Chevron has under-appreciated cash flow opportunities. Salisbury estimates new projects coming online will add $5.5 billion in free cash flow over the next two to three years. Arbitration related to Chevron’s Hess takeover creates uncertainty, but Salisbury says an arbitration resolution could be a bullish catalyst in 2025. Bank of America has a “buy” rating and $180 price target for CVX stock, which closed at $147.26 on Jan. 6.
Sector: Energy Yield: 4.4%
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 Tim Anderson says Merck is arguably the best growth-at-any-price investment in the U.S. biopharmaceutical space. Anderson says potential Chinese competition for Gardasil spooked investors in 2024. However, he says Merck can still be a “beat and raise” stock even if Gardasil’s long-term growth slows to a modest pace and the company does not achieve its 2030 Gardasil sales target of $11 billion. Bank of America has a “buy” rating and $121 price target for MRK stock, which closed at $99.72 on Jan. 6.
Sector: Health care Yield: 3.2%
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud, and cybersecurity hardware and software solutions. Analyst Tal Liani says Splunk synergies, cloud networking and security growth acceleration will be the three primary catalysts for Cisco in 2025 and beyond. While the growth environment has been challenging for Cisco, Liani says strong cloud, artificial intelligence and security order momentum has Cisco set up for growth acceleration in the second half of 2025. In addition, Liani says new product announcements and ethernet-based AI buildouts should support Cisco’s security business. Bank of America has a “buy” rating and $72 price target for CSCO stock, which closed at $58.77 on Jan. 6.
Sector: Technology Yield: 2.7%
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Update 01/07/25: This story was previously published at an earlier date and has been updated with new information.
