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.
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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) | 2.1% |
| Procter & Gamble Co. (PG) | 2.5% |
| Home Depot Inc. (HD) | 2.5% |
| Coca-Cola Co. (KO) | 2.8% |
| Cisco Systems Inc. (CSCO) | 2.6% |
| International Business Machines Corp. (IBM) | 2.6% |
| Chevron Corp. (CVX) | 5.0% |
JPMorgan Chase & Co. (JPM)
JPMorgan Chase is one of the world’s largest banks and financial services companies, with nearly $4 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 JPMorgan has demonstrated superior execution and offers investors an attractive risk-reward profile given the company’s exposure to key banking growth trends such as wealth management, private credit and artificial intelligence financial technology. Bank of America has a “buy” rating and $300 price target for JPM stock, which closed at $263.84 on May 30.
Sector: Financials Yield: 2.1%
Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns a number of popular brands, including Pampers, Tide and Gillette. Analyst Bryan Spillane says Procter & Gamble’s underlying business has been resilient in the face of tariff headwinds. Spillane says Procter has long-term earnings power, and investors should not get too concerned about negative near-term impacts of the global trade war. He says Procter has multiple multibillion-dollar brands that have leading market shares in their respective industries. Looking ahead, Spillane predicts sustainable sales beats and guidance hikes from Procter. Bank of America has a “buy” rating and $180 price target for PG stock, which closed at $169.88 on May 30.
Sector: Consumer staples Yield: 2.5%
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. Analyst Robert Ohmes says the macroeconomic environment for home improvement retailers will likely remain choppy in the coming quarters. However, Ohmes says Home Depot’s market share gains will continue thanks in part to accelerating sales growth from professionals taking on complex projects. In addition, Ohmes says demand for large discretionary home improvement products that require financing, such as kitchen and bathroom remodels, could pick up when the Federal Reserve eventually resumes interest rate cuts. Bank of America has a “buy” rating and $450 price target for HD stock, which closed at $368.01 on May 30.
Sector: Consumer discretionary Yield: 2.5%
[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’s strong first-quarter performance suggests the company is on track to hit its initial 2025 financial guidance targets, a rarity among consumer staples stocks. While volumes declined in both North America and Mexico in the first quarter, Spillane says management is taking steps to address the issue by emphasizing affordability and advertising. He says Coca-Cola’s product mix and pricing power set it apart from peers. Coca-Cola also has a clear strategic direction and significant international growth opportunities. Bank of America has a “buy” rating and $77 price target for KO stock, which closed at $72.09 on May 30.
Sector: Consumer staples Yield: 2.8%
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud and cybersecurity hardware and software solutions. Analyst Tal Liani says Cisco is generating impressive AI infrastructure order growth and has positive momentum in U.S. federal orders as well. However, Liani says the company’s security sales are lagging, even after a firewall refresh and new platform launches. Nevertheless, Liani says Cisco’s margin profile and free cash generation are strong, and additional new product launches should help support security sales. Finally, roughly half of Cisco’s revenue is now recurring, increasing financial visibility. Bank of America has a “buy” rating and $76 price target for CSCO stock, which closed at $63.04 on May 30.
Sector: Technology Yield: 2.6%
International Business Machines Corp. (IBM)
IBM is a global technology company that provides enterprise software, infrastructure and services. Analyst Wamsi Mohan says IBM’s cost-cutting opportunities, its high percentage of recurring revenue, its relatively stable margins and its strong balance sheet make the stock an attractive defensive play for long-term dividend investors. In addition to potential market-share gains and cost-cutting measures, Mohan says IBM will likely continue to supplement its software and services offerings via targeted acquisitions. He is particularly bullish on IBM’s cloud and AI technology initiatives. Bank of America has a “buy” rating and $270 price target for IBM stock, which closed at $258.80 on May 30.
Sector: Technology Yield: 2.6%
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, petrochemical, refining and marketing businesses. In January, Chevron reported its first oil production from its 50% owned TengizChevroil Future Growth Project in the Tengiz oil field in Kazakhstan. Analyst Jean Ann Salisbury says uncertainty related to OPEC oil production and the health of the U.S. economy have weighed on oil producer valuations, but Chevron’s solid balance sheet and free cash flow growth make it an attractive investment at current oil prices. Bank of America has a “buy” rating and $172 price target for CVX stock, which closed at $136.62 on May 30.
Sector: Energy Yield: 5%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 06/02/25: This story was previously published at an earlier date and has been updated with new information.
