Discovering stocks to buy and hold for decades can be challenging because it is always difficult to anticipate long-term economic shifts and risks. However, large-cap companies that have stable or growing profits and leading market shares in stable industries can provide the type of reliability that investors are looking for.
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Dividends can play a particularly important role in long-term returns. In fact, dividends have accounted for about 40% of total stock market returns over the past 90 years. The seven stocks included below are all attractively valued dividend stocks that offer investors a compelling mix of security, income and upside potential, according to Bank of America analysts:
| Stock | Dividend yield | Implied upside* |
| Home Depot Inc. (ticker: HD) | 2.4% | 13% |
| Procter & Gamble Co. (PG) | 2.7% | 9% |
| Chevron Corp. (CVX) | 3.9% | 3% |
| Coca-Cola Co. (KO) | 2.6% | 9% |
| Cisco Systems Inc. (CSCO) | 1.9% | 9% |
| Merck & Co. Inc. (MRK) | 2.9% | 12% |
| International Business Machines Corp. (IBM) | 2.3% | 15% |
*From Feb. 9 close.
Home Depot Inc. (HD)
Home Depot is one of the largest North American home improvement retailers. The company caters to both professional contractors and do-it-yourself home improvement amateurs, selling a wide range of building, decorating, and lawn and garden products and services. Analyst Robert Ohmes says Home Depot has consistently gained market share over the past decade thanks to its impressive strategy and execution. Ohmes anticipates positive tailwinds for the home renovation market in both the short and long term, and he says Home Depot will continue to outperform peers. Bank of America has a “buy” rating and $430 price target for HD stock, which closed at $381 on Feb. 9.
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 is a cornerstone of the consumer staples industry, and the company has leading global market shares in a wide range of product categories. He says the company’s initiative to focus on core products is paying off and Procter is positioned to exceed revenue expectations in coming quarters. In fact, he expects revenue growth will accelerate in the second half of fiscal 2026. Bank of America has a “buy” rating and $171 price target for PG stock, which closed at $157.33 on Feb. 9.
Sector: Consumer staples Yield: 2.7%
Chevron Corp. (CVX)
Chevron is a global oil major that operates exploration and production, petrochemical and refining and marketing businesses. In 2025, Chevron acquired Hess following nearly two years of regulatory uncertainty. Analyst Jean Ann Salisbury says Chevron is among the best-positioned U.S. energy stocks to benefit from the recent U.S. political intervention in Venezuela. Salisbury says Chevron has well-established relationships, personnel and payment mechanisms in Venezuela. In fact, Chevron says it can potentially grow its Venezuelan assets by an additional 50% in the next two years. Bank of America has a “buy” rating and $188 price target for CVX stock, which closed at $182.60 on Feb. 9.
Sector: Energy Yield: 3.9%
Coca-Cola Co. (KO)
Coca-Cola is a leading non-alcoholic beverage company. Galbo says Coca-Cola has a clear strategic direction and is a best-in-class investment that has an attractive balance of mature markets currently generating profit growth and investment markets that could support future growth. Coca-Cola is one of Galbo’s top beverage stock picks for 2026, but the stock’s long-term performance suggests it is far more than a 12-month investment. In fact, Coca-Cola has been a top holding of legendary long-term value investor Warren Buffett since 1988. Bank of America has a “buy” rating and $85 price target for KO stock, which closed at $77.97 on Feb. 9.
Sector: Consumer staples Yield: 2.6%
Cisco Systems Inc. (CSCO)
Cisco Systems provides networking, cloud and cybersecurity hardware and software solutions. Analyst Tal Liani says Ethernet-based AI buildouts and normalization of campus switching demand will support a rebound in Cisco’s networking business, especially as artificial intelligence expands further into enterprise environments. In its security segment, Liani says Cisco’s primary catalysts will be new product launches. He says more than half of Cisco’s revenue is now recurring, and he says this ongoing shift toward more consistent, highly visible revenue will help support the stock and reduce volatility. Bank of America has a “buy” rating and $95 price target for CSCO stock, which closed at $86.78 on Feb. 9.
Sector: Technology Yield: 1.9%
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 strong commercial performance from Keytruda and other core drugs coupled with ongoing new drug launches will help Merck maintain solid near-term revenue growth. In the past year, Anderson says Merck has also acquired assets that should ensure healthy growth beyond 2027. He says Merck has the type of favorable risk-reward profile and limited downside that long-term investors love to see. Bank of America has a “buy” rating and $132 price target for MRK stock, which closed at $117.65 on Feb. 9.
Sector: Health care Yield: 2.9%
International Business Machines Corp. (IBM)
IBM is a global technology company that provides enterprise software, infrastructure and services. The company’s four major segments include infrastructure, consulting, software and financing. Analyst Wamsi Mohan says IBM’s solid balance sheet, high exposure to recurring sales and relatively stable margins make the stock an excellent defensive technology sector investment for the long term. Mohan says IBM has additional cost-cutting levers to pull to improve profitability and has opportunities to leverage its cloud services and AI initiatives to gain market share from competitors over time. Bank of America has a “buy” rating and $340 price target for IBM stock, which closed at $296.34 on Feb. 9.
Sector: Technology Yield: 2.3%
[Read: 15 Best Dividend Stocks to Buy Now]
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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com
Update 02/10/26: This story was previously published at an earlier date and has been updated with new information.
