Buying and holding dividend stocks can be a critical part of a long-term investing strategy. Dividend stocks provide a reliable source of passive income that investors can use to pay the bills, hedge against inflation or simply reinvest to compound their returns over time. In fact, through the end of 2024, dividends accounted for about 40% of the S&P 500’s total return over the past 95 years.
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High-quality companies that pay dividends also tend to be established leaders within their respective industries, limiting downside risk during economic recessions. Here are seven dividend stocks to buy and hold forever, according to Bank of America:
| Stock | Dividend | Implied upside* |
| Chevron Corp. (ticker: ) | 3.9% | 13% |
| Procter & Gamble Co. () | 2.9% | 16% |
| Coca-Cola Co. () | 2.7% | 15% |
| Home Depot Inc. () | 2.9% | 18% |
| Merck & Co. Inc. () | 3.1% | 17% |
| International Business Machines Corp. () | 2.9% | 31% |
| 3M Co. () | 2.2% | 40% |
*From May 8 close.
Chevron Corp. ()
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 should see minimal disruptions from ongoing conflicts in the Middle East, and the company’s near-term free cash flow growth opportunities could be a bullish catalyst for the stock. Salisbury says Chevron management prioritizes discipline and consistency, which allows the company to reduce costs and optimize its asset portfolio. Bank of America has a “buy” rating and $206 price target for CVX stock, which closed at $181.62 on May 8.
Sector: Energy Yield: 3.9%
Procter & Gamble Co. ()
Procter & Gamble produces household consumer products and owns several popular brands, including Pampers, Tide and Gillette. Analyst Peter Galbo says Procter is a bellwether for the entire sector, and its multiple billion-dollar brands and diverse product portfolio make it an excellent long-term investment. Galbo says Procter’s efforts to streamline its portfolio in recent years have set the company up for sustainable revenue upside. He says these improving top-line trends in a difficult environment should also unlock value for investors. Bank of America has a “buy” rating and $170 price target for PG stock, which closed at $146.42 on May 8.
Sector: Consumer staples Yield: 2.9%
Coca-Cola Co. ()
Coca-Cola is a leading non-alcoholic beverage company. Galbo says Coca-Cola has an attractive balance between established global markets that are generating strong results in 2026 and investment markets that will help the company maintain growth in the long term. He says Coca-Cola is one of the only consumer staples stocks that is reporting both price realization gains and volume growth, a dynamic that bodes well for ongoing growth and operating margin expansion. Galbo says stronger shipments helped Coca-Cola generate 10% organic sales growth last quarter. Bank of America has a “buy” rating and $90 price target for KO stock, which closed at $78.42 on May 8.
Sector: Consumer staples Yield: 2.7%
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Home Depot Inc. ()
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 Christopher Nardone says Home Depot is his top home improvement stock pick. Nardone says Home Depot’s higher penetration of the pro market and its positive traffic trends will help its same-store sales growth outshine competitors. Pro revenue now accounts for about half of Home Depot’s total sales. Bank of America has a “buy” rating and $374 price target for HD stock, which closed at $317.45 on May 8.
Sector: Consumer discretionary Yield: 2.9%
Merck & Co. Inc. ()
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 has a favorable risk-reward skew for investors at its current valuation. Gerberry says Keytruda and other core drugs are still performing well, while new product launches and acquisition deals will help maintain growth and offset loss of exclusivity on legacy products beyond 2027. He says Merck also has plenty of pipeline update catalysts coming in the next 18 months. Bank of America has a “buy” rating and $130 price target for MRK stock, which closed at $111.38 on May 8.
Sector: Health care Yield: 3.1%
International Business Machines Corp. ()
IBM is a global 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 stable margins, highly recurring sales, cost-cutting opportunities, market share gains and strong balance sheet make it an ideal defensive tech sector investment. In addition, Mohan says IBM will likely continue to improve its services and software portfolio via acquisitions, which will help expand its cloud and AI footprint. is also a potentially lucrative wildcard. Bank of America has a “buy” rating and $300 price target for IBM stock, which closed at $229.76 on May 8.
Sector: Technology Yield: 2.9%
3M Co. ()
3M is a diversified global manufacturing company that provides a wide range of manufacturing, industrial, safety and consumer products. Its leading consumer brands include Scotch, Post-it and Command. Analyst Andrew Obin says 3M has been refocusing the company on improving operations and prioritizing growth now that 3M is mostly past its environmental contamination and product liability litigation concerns. Obin says 3M will gain market share and improve execution in its safety and industrial segment in 2026, and a product refresh will boost its transportation and electronics business. Bank of America has a “buy” rating and $200 price target for MMM stock, which closed at $143.29 on May 8.
Sector: Industrials Yield: 2.2%
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Update 05/11/26: This story was previously published at an earlier date and has been updated with new information.
