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:

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 is navigating negative tariff impacts in the near term, but the company’s long-term outlook reflects unique earnings-growth opportunities relative to household product peers. Spillane is bullish on the company’s diversified product portfolio and multiple billion-dollar brands that have leading global market shares in their respective categories. He anticipates Procter will exceed earnings expectations over time, especially if tariffs are reduced or lifted. Bank of America has a “buy” rating and $180 price target for PG stock, which closed at $161.22 on July 1.

Sector: Consumer staples Forward yield: 2.6%

Home Depot Inc. (HD)

Home Depot is one of the largest North American home improvement retailers. Analyst Robert Ohmes says the home improvement market will continue to be choppy, but Home Depot is gaining market share via growth in complex professional project sales. Ohmes says Home Depot is managing tariffs effectively and predicts its same-store sales growth could get a boost if the Federal Reserve resumes interest rate cuts in the second half of 2025. Lower rates stimulate housing turnover and demand for large home projects that typically require financing. Bank of America has a “buy” rating and $450 price target for HD stock, which closed at $373.16 on July 1.

Sector: Consumer discretionary Forward yield: 2.5%

Coca-Cola Co. (KO)

Coca-Cola is a leading non-alcoholic beverage company. Spillane says Coca-Cola’s volume, organic sales and earnings have exceeded his expectations on the strength of growth in sparkling beverage and water unit case volumes. He says weakness in U.S. and Mexico volumes may stem from a negative reaction to U.S. immigration policies from Hispanic customers. That being said, Spillane says Coca-Cola’s combination of pricing power and product mix flexibility will continue to create value for investors. He says Coca-Cola has both profitable core markets and high-growth, international expansion opportunities. Bank of America has a “buy” rating and $77 price target for KO stock, which closed at $71.67 on July 1.

Sector: Consumer staples Forward yield: 2.8%

International Business Machines Corp. (IBM)

IBM is a global technology company that provides enterprise software, infrastructure and services. Analyst Wamsi Mohan says IBM has made tremendous strides in the past five years to modernize its business, including rebalancing its product portfolio to address emerging artificial intelligence and cloud trends. The company has also divested high-cost and low-growth businesses and made targeted acquisition deals. Mohan says RedHat and generative AI will be growth accelerators, and IBM’s attractive valuation and reputation as a value trap may not last much longer. Bank of America has a “buy” rating and $320 price target for IBM stock, which closed at $291.20 on July 1.

Sector: Technology Forward yield: 2.2%

Cisco Systems Inc. (CSCO)

Cisco Systems provides networking, cloud and cybersecurity hardware and software solutions. Analyst Tal Liani says Cisco’s security business growth is lagging despite new platform launches and solid performances from SASE, Splunk and XDR. Nevertheless, Liani says Cisco has reported impressive growth in AI infrastructure orders, including 100% growth in Webscale orders in the first quarter. Liani says Cisco’s federal cybersecurity business could support overall security segment growth, and the company’s shift to recurring subscription revenue helps provide financial visibility and supports valuation upside. Bank of America has a “buy” rating and $76 price target for CSCO stock, which closed at $69.10 on July 1.

Sector: Technology Forward yield: 2.3%

Chevron Corp. (CVX)

Chevron is a global oil major that operates exploration and production, petrochemical, refining, and marketing businesses. In January, Chevron reported its first oil production from its 50%-owned TengizChevroil Future Growth Project in the Tengiz oil field in Kazakhstan. Analyst Jean Ann Salisbury says Chevron announced a significant reduction in its share buybacks in early 2025, but that reduction comes as no surprise in a volatile oil market climate. Salisbury is bullish on Chevron’s 2025 free cash flow and its strong balance sheet. Bank of America has a “buy” rating and $170 price target for CVX stock, which closed at $145.57 on July 1.

Sector: Energy Forward yield: 4.7%

Merck & Co. Inc. (MRK)

Merck is one of the world’s largest pharmaceutical companies. Merck reported a 2% drop in revenue in the first quarter, including 4% sales growth from leading cancer drug Keytruda. Sales for Merck’s HPV vaccine Gardasil were down 41%. Analyst Tim Anderson says there’s no question the drop in Gardasil sales is weighing on Merck’s performance, but he says Merck investors are pricing in an overly negative outlook given the company’s long-term growth profile and healthy drug development pipeline. Anderson says patient value investors will be rewarded. Bank of America has a “buy” rating and $99 price target for MRK stock, which closed at $81.81 on July 1.

Sector: Health care Forward yield: 4.1%

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7 Dividend Stocks to Buy and Hold Forever originally appeared on usnews.com

Update 07/02/25: This story was previously published at an earlier date and has been updated with new information.

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