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 |
| Procter & Gamble Co. (ticker: PG) | 2.7% |
| Home Depot Inc. (HD) | 2.5% |
| Chevron Corp. (CVX) | 4.4% |
| Coca-Cola Co. (KO) | 2.9% |
| Cisco Systems Inc. (CSCO) | 2.4% |
| International Business Machines Corp. (IBM) | 2.7% |
| Goldman Sachs Group Inc. (GS) | 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’s multibillion-dollar brands and diversified portfolio of products that have leading global market share positions make the company a bellwether of the consumer staples sector. Spillane says Procter has dealt with a difficult market in recent years, but its efforts to focus on its core portfolio of products will likely continue to pay off via earnings beats and guidance hikes in upcoming quarters. Bank of America has a “buy” rating and $180 price target for PG stock, which closed at $150.47 on July 31.
Sector: Consumer staples Yield: 2.7%
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. In June, Home Depot announced a deal for its special trade distribution subsidiary SRS Distribution to acquire North American specialty building products distributor GMS for roughly $5.5 billion. Analyst Robert Ohmes says GMS will add a new vertical that includes wallboards, steel framing and ceilings to SRS’s existing business, which already includes roofing, landscaping and pool services. Ohmes says complex professional project sales growth will help Home Depot continue to gain market share. Bank of America has a “buy” rating and $450 price target for HD stock, which closed at $367.51 on July 31.
Sector: Consumer discretionary Yield: 2.5%
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, petrochemical and refining and marketing businesses. In July, Chevron completed its acquisition of Hess following nearly two years of regulatory uncertainty. Analyst Jean Ann Salisbury says Chevron’s arbitration win against Exxon Mobil Corp. (XOM) regarding the Hess deal was a best-case scenario for Chevron and opens the door for roughly $1 billion in pre-tax synergies within the next year. Salisbury says Hess will give Chevron control of one of the world’s lowest-cost and fastest-growing oil developments. Bank of America has a “buy” rating and $170 price target for CVX stock, which closed at $151.64 on July 31.
Sector: Energy Yield: 4.4%
[SEE: 7 Best Monthly Dividend Stocks to Buy Now.]
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Analyst Peter Galbo says Coca-Cola is a best-in-class soft drink company with a clear strategic direction that provides investors with a healthy balance of profitable core markets and high-growth, emerging-market opportunities. The company’s recent earnings report didn’t impress Wall Street, but Galbo says it will likely end up being one of the strongest performances of the quarter from the consumer staples sector. He says increasing Fairlife milk capacity could help North American volumes re-accelerate in 2026. Bank of America has a “buy” rating and $78 price target for KO stock, which closed at $67.89 on July 31.
Sector: Consumer staples Yield: 2.9%
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud, and cybersecurity hardware and software solutions. Analyst Tal Liani says ethernet-based artificial intelligence infrastructure demand and normalization of campus switching sales should help Cisco’s networking business rebound. Meanwhile, Liani says new product announcements and launches coupled with ongoing synergies from the Splunk acquisition should support accelerating growth in Cisco’s security business. Looking ahead, Liani says Cisco’s ongoing transition to recurring subscription revenue, which now represents more than half of overall revenue, will help provide stability and financial clarity for investors. Bank of America has a “buy” rating and $76 price target for CSCO stock, which closed at $68.08 on July 31.
Sector: Technology Yield: 2.4%
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 recurring sales, its opportunities to gain market share, its strong balance sheet and its relatively stable margins make it an excellent defensive tech investment. In the long term, Mohan says IBM will likely look to boost its software and services portfolio via acquisitions and gain information technology customers via AI and cloud initiatives. He says the company’s infrastructure business has been particularly strong in 2025. Bank of America has a “buy” rating and $310 price target for IBM stock, which closed at $253.15 on July 31.
Sector: Technology Yield: 2.7%
Goldman Sachs Group Inc. (GS)
Goldman Sachs is one of the world’s leading investment banks and securities companies. Analyst Ebrahim Poonawala says Goldman is one of the best financial franchises in the world, particularly when it comes to risk management. Poonawala says Goldman shares are undervalued at current levels given the bank’s return on equity potential. He says the stock could close its current valuation gap relative to its historical range once investors fully appreciate Goldman’s cyclical tailwinds from rebounding investment banking activity and multiple long-term growth opportunities, including asset management. Bank of America has a “buy” rating and $782 price target for GS stock, which closed at $723.59 on July 31.
Sector: Financial Yield: 2.2%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 08/01/25: This story was previously published at an earlier date and has been updated with new information.
