Dow Stocks to Watch in September

The Dow Jones Industrial Average has historically performed poorly in September, averaging about a 0.7% loss over the past 75 years.

Despite this trend, three stocks stand out as solid investments for this month: Home Depot, Visa, and Procter & Gamble.

Home Depot's stock price has fallen by nearly 19% over the past year, making it a potential contrarian pick. The company's business is closely tied to housing turnover and large renovation projects, both of which have been affected by elevated mortgage rates. A rate cut could boost demand for Home Depot's products.

Visa, on the other hand, is a steady grower that can benefit from rising consumer spending and digital payments. The company's business model involves taking a small cut of payment volume regardless of what consumers buy or whether the market falls. Visa Direct, tokenization, and digitization of commercial payments are also key drivers of growth.

Procter & Gamble is a defensive stock that provides stability during market volatility. Its dividend payout ratio sits at 64%, allowing it to retain meaningful cash while returning $10 billion annually to shareholders.