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 | Dividend yield | Implied upside* |
| Home Depot Inc. (ticker: HD) | 2.4% | 15.7% |
| Procter & Gamble Co. (PG) | 2.8% | 14.5% |
| Chevron Corp. (CVX) | 4.4% | 19.8% |
| Coca-Cola Co. (KO) | 3.0% | 14.0% |
| Cisco Systems Inc. (CSCO) | 2.3% | 20.3% |
| International Business Machines Corp. (IBM) | 2.4% | 9.3% |
| Goldman Sachs Group Inc. (GS) | 2.1% | 11.4% |
*From Oct. 20 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 superior strategy and execution have helped the company consistently gain market share over the past decade. Ohmes says the home renovation market has bullish long-term tailwinds, and he expects Home Depot will outperform its home improvement peers. Bank of America has a “buy” rating and $450 price target for HD stock, which closed at $388.89 on Oct. 20.
Sector: Consumer discretionary Yield: 2.4%
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’s multiple billion-dollar brands and its diversified product portfolio have earned the company leading shares of several large, global consumer staples markets. In the near term, Galbo says Procter’s 2025 weakness will likely carry over into the first half of fiscal 2026. However, he says the company’s outlook will improve from that point forward as Procter faces easier comparisons and completes non-core portfolio restructuring initiatives. Bank of America has a “buy” rating and $174 price target for PG stock, which closed at $151.96 on Oct. 20.
Sector: Consumer staples Yield: 2.8%
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 stock trades at a material valuation discount to competitor Exxon Mobil’s, likely because investors underappreciate Chevron’s free cash flow, or FCF, inflection potential. Salisbury estimates Chevron’s FCF per share annual run rate will jump to greater than $17 by the second half of 2027 as new projects come online. Bank of America has a “buy” rating and $185 price target for CVX stock, which closed at $154.48 on Oct. 20.
Sector: Energy Yield: 4.4%
[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 an attractive mix of global markets that are currently contributing profit growth and investment markets that could support future upside. He says Coca-Cola is a top stock pick among multinational consumer staples stocks given its organic sales growth outlook. The company’s incidence pricing model, in which bottlers pay a percentage of final sales, has contributed to overall revenue growth. Galbo says Coca-Cola’s balanced business and massive scale warrant a premium valuation relative to beverage competitors. Bank of America has a “buy” rating and $78 price target for KO stock, which closed at $68.44 on Oct. 20.
Sector: Consumer staples Yield: 3%
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud, and cybersecurity hardware and software solutions. Analyst Tal Liani says ethernet-based artificial intelligence buildouts and normalization of campus switching demand will support renewed growth for Cisco’s networking business. Meanwhile, Liani says new product launches should stimulate the company’s security business. More than half of Cisco’s overall revenue is now recurring, subscription-based revenue, which helps provide financial visibility for investors. Liani says Cisco has improved its execution and will continue to ride the wave of AI and data infrastructure growth. Bank of America has a “buy” rating and $85 price target for CSCO stock, which closed at $70.65 on Oct. 20.
Sector: Technology Yield: 2.3%
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 software sales, its strong FCF growth and its rock-solid balance sheet make the stock an attractive defensive investment in an uncertain macroeconomic environment. Mohan is bullish on IBM’s stable margins, software acquisition potential and possibility for market share gains over time. In the long term, Mohan anticipates IBM to win over additional customers with its AI and cloud services offerings. Bank of America has a “buy” rating and $310 price target for IBM stock, which closed at $283.65 on Oct. 20.
Sector: Technology 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 best risk managers with one of the strongest financial franchises within the investment banking group. He says the stock is also trading at a discounted valuation given its potential for returns on equity (ROE) in the mid-teen percentage range. Poonawala says ROE defensibility and greater contributions from the asset management business will unlock value for Goldman investors. He also sees potential for near-term earnings upside. Bank of America has a “buy” rating and $850 price target for GS stock, which closed at $763.32 on Oct. 20.
Sector: Financial Yield: 2.1%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 10/21/25: This story was previously published at an earlier date and has been updated with new information.
