3 Unstoppable Dow Stocks to Buy in September

September has averaged about a 0.7% loss in the S&P 500 index over the past 75 years, the worst showing of any month. That weakness has persisted through massive changes in market structure.

The Dow Jones Industrial Average tracks 30 industry leaders, making it a useful benchmark for identifying solid investments. Three components stand out as worth watching heading into the month.

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1. Home Depot

Home Depot (NYSE: HD) is the contrarian pick here. The stock has fallen about 19% over the past 12 months and sits near $327, down roughly 23% from its 52-week high of $426.75. That's unusual for a company some describe as delivering strong historical returns on the back of scale, operational excellence, and concise merchandising.

What makes September relevant is the interest rate cycle. Home Depot's business runs on housing turnover and large renovation projects, both of which have been frozen by elevated mortgage rates. Any easing shifts demand back toward professional customers, who make up the higher-ticket, higher-frequency side of the business. Home Depot has spent years building out through supply chain investments and its acquisition of SRS Distribution.

Return on invested capital still exceeds 21%, indicating the operating model has not broken down. It just seems that demand has paused. September's midterm housing push, alongside a potential rate cut, could influence consumer spending and, in turn, Home Depot's home-improvement demand and margins.

2. Visa

Visa (NYSE: V) trades near $379 and accounts for about 4% of the Dow. The seasonal data is instructive but honest: Visa's strongest documented window runs from mid-December through mid-March, beating the S&P 500 by an average of 3.8% in 15 of 17 years.

That matters for September because buying a stock ahead of a seasonally strong period is generally better than chasing it. Visa's business also does something useful in a weak month: It takes a small cut of payment volume regardless of what consumers buy or whether the market falls. Inflation raises transaction values, which mechanically increases Visa's revenue. There is no credit risk on the balance sheet because issuers hold the loans.

The growth story for Visa right now is about Visa Direct, tokenization, and the digitization of commercial payments rather than more traditional card swipes from everyday people. Visa Direct allows banks, businesses, and governments to move money to eligible cards, accounts, and wallets in near real time, expanding Visa's role well beyond the point of sale. Tokenization is another important piece, replacing sensitive card numbers with secure digital credentials that make online and mobile payments both safer and more seamless.

As these technologies gain adoption, Visa has more opportunities to capture payment volume and, in turn, more money. That gives Visa a relatively durable growth profile and makes the stock, in my view, a compelling long-term holding.

3. Procter & Gamble

Procter & Gamble (NYSE: PG) trades near $145 and yields roughly 3% after raising its dividend for 70 consecutive years. The payout ratio sits near 64%, so the company retains meaningful cash while returning about $10 billion annually to shareholders.

September is when defensive positioning tends to pay. P&G brands include Tide, Pampers, Gillette, Crest, and Bounty -- products people buy in every economic condition. Consumer staples historically hold up better than the market during drawdowns, and P&G is the anchor of that group. Recent results from the company showed core earnings per share (EPS) of $1.59 on revenue of $21.2 billion, both ahead of expectations, with growth spread across categories and regions rather than concentrated in one.

These three together are strong in September

So that's why these three stocks are excellent choices. Home Depot gives you a discounted cyclical with an identifiable catalyst. Visa gives you a toll booth on spending that benefits from inflation. Procter & Gamble gives you some ballast.

Seasonality describes a long-term tendency rather than a reliable short-term signal, and it can be overwhelmed by earnings and positioning in any given year. In other words, these aren't just September trades, but they are at a discount right now. These are Dow businesses that happen to be reasonably priced going into a month when people get nervous.

Micah Zimmerman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Home Depot and Visa. The Motley Fool has a disclosure policy.