7 dividend stocks to buy and hold forever

Buying and holding dividend stocks can be an important part of a long-term investment strategy. Dividend stocks provide a reliable source of passive income that investors can use to pay bills, hedge against inflation, or reinvest to boost their returns over time. In fact, by the end of 2024, dividends accounted for nearly 40% of the S&P 500’s total returns over the past 95 years.

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High-quality companies that pay dividends also tend to be established leaders in their respective industries, limiting downside risk during economic downturns. According to Bank of America, here are seven dividend stocks to buy and hold forever:

*Closed from 8th May.

Chevron Corporation (cvx)

Chevron is a global oil major that operates exploration and production, petrochemicals, and refining and marketing businesses. In 2025, Chevron acquired Hess after nearly two years of regulatory uncertainty. Analyst Jean Ann Salisbury says Chevron should see minimal disruption from the 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 stability, which allows the company to reduce costs and optimize its asset portfolio. Bank of America has a “buy” rating and a $206 price target for CVX stock, which closed at $181.62 on May 8.

Sector: energy Yield: 3.9%

Procter & Gamble Company (PG)

Procter & Gamble manufactures household consumer products and owns many popular brands, including Pampers, Tide, and Gillette. Analyst Peter Galbo says Procter is a harbinger for the whole consumer staples The region, and its multi-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 growth. He says improving top-line trends in a tough environment should also unlock value for investors. Bank of America has a “buy” rating and a $170 price target for PG stock, which closed at $146.42 on May 8.

Sector: consumer staples Yield: 2.9%

Coca-Cola Company (KO)

Coca-Cola is a leading non-alcohol beverage company. Galbo says Coca-Cola has an attractive balance between established global markets that are driving strong results in 2026 and investment markets that will help the company sustain growth over the long term. He says Coca-Cola is one of the only consumer staples stocks reporting both price realization gains and volume growth, a dynamic that bodes well for ongoing growth and operating margin expansion. Galbo says strong shipments helped Coca-Cola achieve 10% organic sales growth last quarter. Bank of America has a “buy” rating and a $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. (HD)

The Home Depot is one of the largest North American home improvement retailers. The company serves both professional contractors and do-it-yourself home improvement enthusiasts and sells 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 greater penetration of the pro market and its positive traffic trends will help it outperform competitors in same-store sales growth. Pro revenue now accounts for nearly half of Home Depot’s total sales. Bank of America has a “buy” rating and a $374 price target for HD stock, which closed at $317.45 on May 8.

Sector: consumer discretionary Yield: 2.9%

Merck & Co. Inc. (MRK)

Merck is one of the world’s largest pharmaceutical companies and its major products include cancer drug Keytruda and HPV vaccine Gardasil. Analyst Jason Gerberry says the risk-reward is favorable for investors at Merck’s current valuation. Gerberry says Keytruda and other core drugs are still performing well, while new product launches and acquisition deals will help sustain growth and offset the loss of exclusivity on older products after 2027. He says Merck also has a lot of pipeline update catalysts coming over the next 18 months. Bank of America has a “buy” rating and a $130 price target for MRK stock, which closed at $111.38 on May 8.

Sector: Health care Yield: 3.1%

International Business Machines Corporation (IBM)

IBM is a global technology company Which provides enterprise software, infrastructure and services. The four major segments of the company include infrastructure, consulting, software and financing. Analyst Vamsi 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. Additionally, Mohan says IBM will likely continue to improve its services and software portfolio through acquisitions, which will help expand its cloud and AI footprint. quantum computing It’s also a potentially attractive wildcard. Bank of America has a “buy” rating and a $300 price target for IBM stock, which closed at $229.76 on May 8.

Sector: technology Yield: 2.9%

3M Company (mmm)

3M is a diversified global manufacturing company that offers a wide range of manufacturing, industrial, safety and consumer products. Its major consumer brands include Scotch, Post-It and Command. Analyst Andrew Obin says 3M is now refocusing on improving company operations and prioritizing growth, as 3M moves past its environmental pollution and product liability litigation concerns. Obin says 3M will gain market share in 2026 and improve performance in its security and industrial segments, and product refreshes will boost its transportation and electronics businesses. Bank of America has a “Buy” rating and $200 price target for MMM stock, which closed at $143.29 on May 8.

Sector: industrial- Yield: 2.2%

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7 dividend stocks to buy and hold forever originally appeared usnews.com

UPDATE 05/11/26: This story was first published at a later date and has been updated with new information.