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. In fact, dividends alone have accounted for about 40% of total stock market returns over the past 90 years.
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Here are seven attractively valued dividend stocks investors can bet on for the long term, according to Bank of America analysts:
| Stock | Yield | Implied upside/downside* |
| Procter & Gamble Co. (ticker: PG) | 2.9% | 19% |
| Home Depot Inc. (HD) | 2.6% | 20% |
| Coca-Cola Co. (KO) | 2.8% | 11% |
| Chevron Corp. (CVX) | 4.5% | 20% |
| Cisco Systems Inc. (CSCO) | 2.2% | 25% |
| International Business Machines Corp. (IBM) | 2.2% | 3% |
| Merck & Co. Inc. (MRK) | 3.3% | -4% |
*From Dec. 1 close.
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, diversified product portfolio and leading positions in global markets make the stock a core consumer staples
holding for any dividend investor. Galbo says recent efforts to focus the company’s portfolio are already bearing financial fruit, and he anticipates at least several quarters of earnings beats and guidance hikes ahead. Despite tariff concerns, Galbo says Procter has long-term earnings power. Bank of America has a “buy” rating and $175 price target for PG stock, which closed at $147.44 on Dec. 1.
Sector: Consumer staples Yield: 2.9%
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 track record of strong execution and superior strategy has helped it outperform in the past 10 years. Ohmes anticipates Home Depot can expand margins via supply chain and productivity improvements and will continue to outshine other home improvement stocks. Bank of America has a “buy” rating and $430 price target for HD stock, which closed at $357.33 on Dec. 1.
Sector: Consumer discretionary Yield: 2.6%
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Galbo says Coca-Cola is a best-in-class consumer staples investment that has an excellent management team and a compelling balance of profit growth markets and investment markets that have high long-term sales growth potential. In addition, Coca-Cola recently announced its largest independent bottler, Coca-Cola Consolidated, will be buying back 18.8 million shares of its stock from Coca-Cola. Galbo says the transaction is the latest example of Coca-Cola pursuing an “asset right” approach by reducing its financial exposure to bottlers. Bank of America has a “buy” rating and $80 price target for KO stock, which closed at $71.95 on Dec. 1.
Sector: Consumer staples Yield: 2.8%
[SEE: 9 Highest Dividend-Paying Stocks in the S&P 500]
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 strong project execution and its massive free cash flow potential through the end of the decade make it her top stock pick among integrated oil and gas stocks. She says Chevron’s recent investor day event underscored its positive outlook and provided clarity on its free cash flow runway. Bank of America has a “buy” rating and $183 price target for CVX stock, which closed at $152.54 on Dec. 1.
Sector: Energy Yield: 4.5%
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. In addition, Liani says new product announcements and Splunk synergies could help Cisco’s security business rebound in late 2026. More than half of the company’s revenue is now recurring as Cisco continues to transition to a subscription-centric model, and Liani says Cisco could be a major winner of the enterprise AI investment boom. Bank of America has a “buy” rating and $95 price target for CSCO stock, which closed at $76.04 on Dec. 1.
Sector: Technology 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 initiatives, its highly recurring sales and its strong balance sheet make the stock an excellent defensive technology play for long-term investors. Mohan says IBM’s relatively stable margins, potential market share gains and opportunities for additional services and software acquisitions could create significant value over time. He says IBM’s AI initiatives and cloud services business will help the company expand its large customer base. Bank of America has a “buy” rating and $315 price target for IBM stock, which closed at $305.67 on Dec. 1.
Sector: Technology Yield: 2.2%
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’s strong fundamentals and attractive valuation suggest the stock has limited downside risk from current levels. Anderson says Keytruda and other core commercial drugs are performing well and helping Merck produce solid revenue numbers in the near term. In the long term, he says new drug launches will help Merck overcome a challenging growth outlook following Keytruda’s main patent expiration in 2028. Bank of America has a “buy” rating and $98 price target for MRK stock, which closed at $101.83 on Dec. 1.
Sector: Health care Yield: 3.3%
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 12/02/25: This story was previously published at an earlier date and has been updated with new information.
