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.
Here are seven attractively valued dividend stocks investors can bet on for the long term, according to Bank of America analysts:
Stock
Home Depot Inc. （ticker: HD）
Procter & Gamble Co. （PG）
Chevron Corp. （CVX）
Cisco Systems Inc. （CSCO）
Coca-Cola Co. （KO）
International Business Machines Corp. （IBM）
Merck & Co. Inc. （MRK）
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 a combination of superior execution and excellent strategy has helped Home Depot consistently gain market share over the past decade. Looking ahead, Ohmes says the renovation market has long-term tailwinds and the company’s SRS Distribution business will continue to be a growth driver. Bank of America has a “buy” rating and $430 price target for HD stock, which closed at $345.82 on Jan. 2.
Sector: Consumer discretionary
Yield: 2.7%
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 one of the best diversified investments within the consumer staples sector, and its multiple billion-dollar brands with leading global market shares will create value for investors in the long term. Galbo says Procter is dealing with near-term challenges from tariffs and restructuring, but the company has tremendous earnings power in coming years. In addition, he says Procter is prioritizing innovation. Bank of America has a “buy” rating and $170 price target for PG stock, which closed at $141.79 on Jan. 2.
Sector: Consumer staples
Yield: 3%
Chevron Corp. （CVX）
Chevron is a global oil major that operates exploration and production, petrochemical and refining, and marketing businesses. In 2025, Chevron completed its acquisition of Hess Corp. following nearly two years of regulatory uncertainty. Analyst Jean Ann Salisbury says Chevron was her top stock pick last year among integrated oil and refining stocks, and she is bullish on the company’s significant free cash flow generation. Chevron’s recent investor meeting reinforced her positive outlook, and Salisbury is confident Chevron can maintain its impressive cash flow through at least 2030. Bank of America has a “buy” rating and $180 price target for CVX stock, which closed at $155.90 on Jan. 2.
Sector: Energy
Yield: 4.4%
Cisco Systems Inc. （CSCO）
Cisco Systems provides networking, cloud, and cybersecurity hardware and software solutions. Analyst Tal Liani says demand for ethernet-based artificial intelligence buildouts, AI expansion into enterprise environments and normalization of campus switching demand will fuel a rebound in Cisco’s networking business. In addition, Liani says ongoing synergies with Splunk, which Cisco acquired in 2024, and new product rollouts will drive a re-acceleration of Cisco’s security sales growth. Half of Cisco’s revenue is recurring. Liani says the shift to recurring and subscription revenue has been a positive change and has improved Cisco’s financial visibility. Bank of America has a “buy” rating and a $95 price target for CSCO stock, which closed at $76.04 on Jan. 2.
Sector: Technology
Yield: 2.2%
Coca-Cola Co. （KO）
Coca-Cola is a leading non-alcoholic beverage company. Galbo says Coca-Cola is one of his top consumer staples stock picks for 2026 and is a best-in-class beverage giant. In December, Coca-Cola announced chief operations officer Henrique Braun will be the company’s new CEO, a move that Galbo has praised. He says Braun’s roots as a Latin America operator suggest he has strong industry relationships within that important geographical region. Bank of America has a “buy” rating and $85 price target for KO stock, which closed at $69.12 on Jan. 2.
Sector: Consumer staples
Yield: 3.0%
International Business Machines Corp. （IBM）
IBM is a global technology company that provides enterprise software, infrastructure and services. In December, IBM announced an $11 billion acquisition of data streaming platform Confluent Inc. （CFLT）。 Analyst Wamsi Mohan says the all-cash deal for Confluent will be dilutive to IBM’s earnings per share, but he says revenue and operating synergies will make the deal worthwhile in the long haul. While IBM gives investors exposure to the exciting field of AI technology, Mohan says it is also an excellent defensive investment because of its highly recurring revenue. Bank of America has a “buy” rating and $315 price target for IBM stock, which closed at $291.50 on Jan. 2.
Sector: Technology
Yield: 2.3%
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 Jason Gerberry says Merck offers investors a rare combination of an attractively valued stock with an impressive core business and an exciting pipeline of future products that could help Merck maintain its growth over the long term. Gerberry says Merck’s recent acquisition strategy has helped de-risk the stock. He anticipates Merck’s key 2026 commercial product launches will include Keytruda QLEX, Winrevair and Ohtuvayre. Bank of America has a “buy” rating and $120 price target for MRK stock, which closed at $106.45 on Jan. 2.
Sector: Health care
Yield: 3.2%