September's Unlikely Winners: Dow Stocks to Watch

September is not typically a strong month for the stock market, with an average loss of 0.7% in the S&P 500 index over the past 75 years. However, three Dow stocks stand out as potential buys: Home Depot (HD), Visa (V), and Procter & Gamble (PG).

Home Depot is a cyclical stock that has fallen by about 19% over the past year, making it an attractive contrarian pick. The company's business relies on housing turnover and large renovation projects, which have been frozen due to elevated mortgage rates. If interest rates fall, this could boost demand for Home Depot's services.

Visa is a steady grower that benefits from rising consumer spending and digital payments. Its strongest documented window runs from mid-December through mid-March, but it also performs well in September due to its toll-booth-like business model, which takes a small cut of payment volume regardless of market conditions.

Procter & Gamble is a defensive stock with a long history of stability and dividend payments. The company's brands include Tide, Pampers, Gillette, Crest, and Bounty - products that people buy in every economic condition.