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* |
| Home Depot Inc. (ticker: HD) | 2.2% |
| Procter & Gamble Co. (PG) | 2.6% |
| Chevron Corp. (CVX) | 4.2% |
| Coca-Cola Co. (KO) | 2.9% |
| Cisco Systems Inc. (CSCO) | 2.4% |
| Goldman Sachs Group Inc. (GS) | 2.2% |
| International Business Machines Corp. (IBM) | 2.8% |
*As of Aug. 29 close.
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 Home Depot’s management team has had the vision and execution over the past decade to gain significant market share, and Ohmes sees more of the same in the next decade. He says the renovation market has near- and long-term tailwinds. Bank of America has a “buy” rating and $450 price target for HD stock, which closed at $406.77 on Aug. 29.
Sector: Consumer discretionary Forward yield: 2.2%
Procter & Gamble Co. (PG)
Procter & Gamble produces household consumer products and owns a number of popular brands, including Pampers, Tide and Gillette. Analyst Peter Galbo says Procter is a cornerstone of the consumer staples sector thanks to its billion-dollar brands, diversified product portfolio and leading market share in several key categories. Galbo says the company’s recent efforts to focus on its core products have positioned Procter to exceed earnings and revenue growth expectations in the coming years. He says Procter will maintain earnings power despite negative near-term impacts from tariffs. Bank of America has a “buy” rating and $180 price target for PG stock, which closed at $157.04 on Aug. 29.
Sector: Consumer staples Forward yield: 2.6%
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 initial guidance following the Hess deal is encouraging. Chevron forecasts between 450 million and 500 million barrels of oil equivalent per day of production from Hess in the second half of 2025 and $12.5 billion in total free cash flow to help fund Chevron’s dividend in 2026. Bank of America has a “buy” rating and $170 price target for CVX stock, which closed at $160.60 on Aug. 29.
Sector: Energy Forward yield: 4.2%
[SEE: 9 Highest Dividend-Paying Stocks in the S&P 500]
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Galbo says Coca-Cola has a clear strategic direction, an exceptional management team and a healthy balance between profitable, established markets and attractive growth markets. He says Coca-Cola faces relatively easy consumption comparisons in the third quarter, and the company’s gross and operating margin momentum should continue in the second half of the year. Galbo says new Fairlife capacity could support North American volumes, and he projects solid 4.7% revenue growth and 8.5% net income growth in 2026. Bank of America has a “buy” rating and $78 price target for KO stock, which closed at $68.99 on Aug. 29.
Sector: Consumer staples Forward yield: 2.9%
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud and cybersecurity hardware and software solutions. Analyst Tal Liani says Cisco has several bullish long-term catalysts, including a revamped product portfolio and improved execution. The massive artificial intelligence-driven boom in infrastructure demand and data growth will also support demand. While recent financial results haven’t wowed Wall Street, Liani says Cisco has generated consistent, gradual improvement. He says networking trends have been positive and security growth has recovered. Excluding the weak Federal segment, Cisco reported 10% earnings growth last quarter. Bank of America has a “buy” rating and $85 price target for CSCO stock, which closed at $69.09 on Aug. 29.
Sector: Technology Forward yield: 2.4%
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 top global financial franchises and is particularly strong at risk management. Goldman is currently focusing on ultra-high-net-worth wealth management and private credit and equity asset management. Poonawala says Goldman’s stock trades at an attractive valuation but has room to re-rate higher in the coming years as investors fully appreciate the company’s return on equity potential, growth opportunities and increased contributions from the asset management business. Bank of America has a “buy” rating and $782 price target for GS stock, which closed at $745.25 on Aug. 29.
Sector: Financial Forward yield: 2.2%
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, highly visible recurring sales, potential market share gains and relatively stable margins make the stock a rare defensive investment among large-cap tech stocks. Mohan anticipates IBM will expand its services and software portfolio via targeted acquisitions while remaining committed to cost cutting. In the long term, Mohan says IBM will be a central player in the high-growth fields of AI technology and cloud services. Bank of America has a “buy” rating and $310 price target for IBM stock, which closed at $243.49 on Aug. 29.
Sector: Technology Forward yield: 2.8%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 09/02/25: This story was previously published at an earlier date and has been updated with new information.
