The Dow Is Outperforming the S&P 500 and Nasdaq in 2026. 3 Unstoppable Dow Stocks to Buy in August.
When the Dow is quietly beating the S&P and Nasdaq over stretches of 2026, it’s usually not because of some obscure industrial stock. It’s because a handful of large, consumer‑facing companies keep grinding out earnings and dividends in a way that looks unstoppable, even when tech gets choppy.
Three of those names still look compelling to me in August: Procter & Gamble (PG +0.45%), McDonald’s (MCD -0.28%), and Home Depot (NYSE: HD).
Image source: Getty Images.
1. Procter & Gamble: Daily habits, durable cash
Procter & Gamble is not going to double overnight, but it’s exactly the kind of engine that quietly powers higher year after year. In fiscal 2026, Procter & Gamble grew net sales 3% to $87 billion, organic sales 1%, and core EPS 1% to $6.89, despite flat volumes and higher costs.
Its fourth-quarter print was mixed, while revenue slightly missed, yet the company still generated strong cash flows and reaffirmed its long‑term strategy.
Underneath those modest numbers is a portfolio of brands that people use every day: Tide, Pampers, Gillette, Crest, and more. Procter & Gamble has raised its dividend for 70 consecutive years and currently returns more than $15 billion annually to shareholders through dividends and buybacks. The company is a Dividend King, which is one that’s grown its dividend payment for at least 50 consecutive years. In an index like the Dow, that kind of consistency matters more than the latest AI narrative.
As a buyer in August, you’re getting a fair price for a company that has proved it can grow slowly, protect margins, and share the gains.
Today’s Change
(0.45%) $0.65
Current Price
$146.44
Key Data Points
Market Cap
Day’s Range
$144.15 – $146.46
52wk Range
$137.62 – $167.25
Volume
2.1K
Avg Vol
8.9M
Gross Margin
50.87%
Dividend Yield
2.93%
2. McDonald’s: Global scale and digital loyalty
McDonald’s is dealing with a tougher consumer backdrop, but its second-quarter 2026 results show a system that’s still very much in motion.
Global comparable sales increased 1.3%, U.S. comps edged up 0.8%, and systemwide sales rose 5% to $37 billion. Diluted EPS climbed 6% to $3.32, or $3.38 on an adjusted basis, and trailing-12-month systemwide sales to loyalty members exceeded $40 billion, with active users up 13% to nearly 220 million.
Traffic in some markets has softened as lower‑income consumers feel pressure, but McDonald’s is leaning into digital ordering, loyalty, and menu management to keep volumes and pricing balanced. That gives it levers to pull that most restaurant chains simply do not have. As a Dow stock, McDonald’s offers exposure to global consumer spending, a growing dividend, and a business model that has proven it can weather multiple cycles.
Today’s Change
(-0.28%) $-0.76
Current Price
$273.72
Key Data Points
Market Cap
Day’s Range
$270.36 – $275.75
52wk Range
$260.96 – $341.75
Volume
2.8K
Avg Vol
4.6M
Gross Margin
57.38%
Dividend Yield
2.69%
3. Home Depot: Home improvement as a long game
Home Depot is another consumer‑facing Dow giant that keeps putting up numbers even when housing headlines look scary.
In its first quarter of fiscal 2026, the company reported sales of $41.8 billion, up 4.8% from a year earlier, with U.S. comparable sales up 0.4%. Adjusted EPS of $3.43 beat expectations, and management reiterated guidance for full‑year sales growth of 2.5% to 4.5% and adjusted EPS growth of up to 4%.
That may sound pedestrian, but it’s happening in an environment of higher interest rates and affordability concerns. Home Depot’s scale, professional customer relationships, and digital capabilities give it a structural advantage over smaller rivals. As households keep investing in maintenance and renovation rather than moving, Home Depot is positioned to collect a steady stream of spending that doesn’t depend on home sales booms.
Today’s Change
(-1.36%) $-4.84
Current Price
$350.78
Key Data Points
Market Cap
Day’s Range
$347.06 – $354.00
52wk Range
$289.10 – $426.75
Volume
49.8
Avg Vol
4.7M
Gross Margin
31.14%
Dividend Yield
2.64%
How these three fit a Dow‑focused portfolio
If you’re looking at the Dow’s performance and wondering how to tap into the boring part of this market rally, these three names are a good place to start. They aren’t going to be the top performers in every quarter, but they are aligned with what the Dow has been rewarding in 2026: solid earnings, resilient demand, and the capacity to return cash to shareholders while investing for the future.
In August, adding Procter & Gamble, McDonald’s, and Home Depot is less about chasing a hot index move and more about building a foundation of consumer‑facing businesses that have already shown they can contribute to Dow outperformance over full cycles, not just a single quarter.
