9 Best Stocks to Buy Now For October 2026

9 Top Stocks To Buy Now For October 2026

I have been contributing to Forbes since 2022 and writing about investments and personal finance for 15 years. I started writing about money after working as a credit analyst for a regional bank in California.

Consumer staples and utilities stocks are traditionally defensive in nature. People need food, toilet paper and power in any economic climate. The enduring demand fosters predictable cash flow and steady, if slow, growth. That’s one reason why you’ll find many long-time dividend payers in these two sectors.

Consumer discretionary stocks are more cyclical, but not equally so. Small-ticket items, like McDonald’s cheeseburgers, lean to the defensive side of the sector. Ferraris, also a discretionary item, do not. Also, discretionary price leaders can benefit in economic slowdowns as households trade down from more expensive options.

The stock picks highlighted below have defensive qualities, as well as attractive valuations, solid market positioning and competitive dividend yields.

Table data source: StockAnalysis.com.

Metrics were sourced on Sept. 10 from company reports and Stockanalysis.com, unless noted otherwise. For more diversified investing options, see best index funds 2026.

1. Procter & Gamble (PG)

Procter & Gamble Business Overview

• Stock price: $142.97
• TTM revenue: $87 billion
• TTM EPS: $6.62
• PE ratio: 21.5
• Dividend yield: 3%
• Beta: 0.38

Procter & Gamble markets and sells branded, daily use products across multiple categories ranging from baby care to home care. Brands include recognized household names such as Bounty, Charmin, Tide, Gillette and Pampers.

Why PG Is A Top Choice

Procter & Gamble enjoys a strong economic moat built on global scale and brand recognition. Unfortunately, those factors don’t insulate the company from geopolitical pressures, inflation and volatile markets—three factors contributing to lackluster growth. Low-single-digit revenue increases have been the result, and investors have responded by driving the stock price down over 10% over the past year.

The decline creates an entry point at a time when Procter & Gamble is prioritizing product innovation and execution. The PE ratio of 21.55 lags the company’s five-year average of 25.16. Patient investors can earn a yield of 3% while they wait for PG to return to healthy growth.

2. The Home Depot (HD)

The Home Depot Business Overview

• Stock price: $305.69
• TTM revenue: $169 billion
• TTM EPS: $14.29
• PE ratio: 21.7
• Dividend yield: 3.1%
• Beta: 0.95

The Home Depot operates 2,300 home improvement retail stores in North America and a collection of ecommerce websites. The company also sells private-branded products and provides home installation and equipment rental services.

Why HD Is A Top Choice

High mortgage rates and rising insurance costs are weighing on the housing market. The latest home sales reporting from the National Association of Realtors cited a 1.2% decline in home sales vs. last year and a 3.2% increase in unsold inventory versus last month.

Still, The Home Depot remains quite profitable, logging diluted EPS of $4.79 in its second quarter, up from $4.58 in the prior-year quarter. The retailer is well positioned to ride the wave of an eventual housing market recovery, according to Katz.

In the meantime, investors can collect their 3% yield and wait for HD to extend its 16-year streak of annual dividend increases.

3. PepsiCo (PEP)

PepsiCo Business Overview

• Stock price: $136.65
• TTM revenue: $96.9 billion
• TTM EPS: $7.63
• PE ratio: 17.9
• Dividend yield: 4.3%
• Beta: 0.36

PepsiCo makes, distributes and sells beverages and convenience foods. The flagship Pepsi franchise is complemented by a portfolio of recognized brands including Fritos, Doritos, Lay’s, Mountain Dew and Rockstar.

Why PEP Is A Top Choice

PepsiCo is another out-of-favor pick with a strong dividend and rising business momentum. Despite investor concerns about the effect of GLP-1 drugs on snack food demand, PepsiCo has delivered several quarters of consecutive revenue growth. International sales have been particularly strong. North American sales have room for improvement, but the company expects gradual growth in the coming quarters.

PepsiCo’s PE ratio of 17.91 is well below its five-year average of 25.6. It’s worth noting that PEP is one of the top dividend stocks for reliable, rising income. The 4.3% yield is generous, particularly for a stock that has raised dividends annually for more than 50 years.

4. McDonald’s Corporation (MCD)

McDonald’s Business Overview

• Stock price: $253.05
• TTM revenue: $27.7 billion
• TTM EPS: $12.31
• PE ratio: 20.6
• Dividend yield: 2.9%
• Beta: 0.41

McDonald’s is a fast-food chain with more than 45,000 restaurant locations in over 100 countries. Most of the locations (95%) are operated by independent franchisees. The corporation manages the real estate, marketing, franchisee training and operational systems.

Why MCD Is A Top Choice

McDonald’s, an historically strong cash flow generator, is trading at a discount due to temporary struggles in its U.S. business. Restaurant traffic has fallen short of expectations, which the company attributes to menu and promotional missteps earlier in the year. Actions taken to reignite U.S. operations include the implementation of a new strategic plan and the appointment of longtime senior leader Skye Anderson as president of McDonald’s USA.

MCD is down nearly 17% for the year, which has brought its PE ratio down to 20.59—well below its five-year average of 26.36. The company’s dividend yield is a solid 2.9% and the dividend growth trend spans 51 consecutive years.

5. NextEra Energy (NEE)

NextEra Energy Business Overview

• Stock price: $82.44
• TTM revenue: $28.7 billion
• TTM EPS: $4.45
• PE ratio: 18.6
• Dividend yield: 3.0%
• Beta: 0.64

NextEra is North America’s largest electric utility and energy infrastructure company. Through subsidiaries, NextEra generates, stores, transmits and sells electricity to retail, wholesale and data center customers. Its subsidiary NextEra Energy Resources is a dominant producer of wind and solar power.

Why NEE Is A Top Choice

NextEra’s strategy to become the electricity supplier of choice for AI data centers is delivering long-term revenue opportunities, as well as enough backlash to hold the stock price in check. Growing grass-roots resistance to AI data centers has spooked investors, but it doesn’t change NextEra’s attractive positioning in the face of rising electricity demand.

NEE is up 2.7% for the year, which is well below broad market indexes. The company’s PE ratio is 18.6—well below the five-year average of 26.43—and the dividend yield is 3%.

NextEra announced its intention to merge with Dominion Energy in May, and the combination was approved by shareholders in September. The transaction still requires regulatory approval.

6. Lowe’s (LOW)

Lowe’s Business Overview

• Stock price: $196.59
• TTM revenue: $90.4 billion
• TTM EPS: $11.83
• PE ratio: 16.8
• Dividend yield: 2.5%
• Beta: 0.85

Lowe’s is a direct competitor to The Home Depot, selling home improvement products and services through its nationwide network of roughly 1,750 retail stores.

Why LOW Is A Top Choice

The weak housing market that’s affecting The Home Depot’s investment story hits Lowe’s in the same way. New homeowners tend to prioritize renovations and repairs. That activity slows down when home sales are sluggish.

Lowe’s CEO Marvin Ellison confirmed the trend, noting “pressure in discretionary DIY spending” in the last earnings release. But like The Home Depot, Lowe’s remains profitable. The company recorded $4.27 in diluted EPS in the quarter, which was flat with the prior-year quarter.

Lowe’s pays a yield of 2.5% and has a 54-year track record of annual dividend increases.

7. American Electric Power Company (AEP)

American Electric Power Company Business Overview

• Stock price: $123.47
• TTM revenue: $22.9 billion
• TTM EPS: $5.77
• PE ratio: 21.6
• Dividend yield: 3.1%
• Beta: 0.50

American Electric Power Company generates and transmits power. The company delivers electricity to 5.6 million customers across 11 states. It also has signed commitments from data centers for new load capacity in Texas and Ohio.

Why AEP Is A Top Choice

AEP is the dominant leader in 765-kV extra-high voltage infrastructure, which delivers more power, more efficiently than standard 345-kV systems. The efficiency of 765 kV transmission has become increasingly important as electricity demand rises. AEP has used its 765-kV expertise to expand its network through massive joint venture projects, including data centers.

AEP, like NEE, is affected by data center backlash, but the company’s competitive positioning remains very strong. A dividend yield of 3.1% plus 16 years of dividend growth add to the investment case.

8. Constellation Brands (STZ)

Constellation Brands Business Overview

• Stock price: $123.81
• TTM revenue: $9.1 billion
• TTM EPS: $10.48
• PE ratio: 11.6
• Dividend yield: 3.3%
• Beta: 0.40

Constellation Brands sells beer, wine and spirits in the U.S. and abroad. The brand portfolio includes Corona, Modelo, Pacifico, Robert Mondavi Winery, Ruffino 1877 and Casa Noble Tequila.

Why STZ Is A Top Choice

Beer production has been declining steadily since 2021, on declining demand. Competition from other beverage categories and changing consumer behaviors are contributing.

Despite tough market conditions, Constellation Brands is gaining market share across multiple franchises. The company had five of the top 15 dollar-share gaining brands according to researcher Circana. The momentum positions STZ to benefit nicely from an eventual bounce back in beer demand, according to Katz.

STZ pays a yield of 3.3% and has a 10-year track record of dividend increases.

9. Tyson Foods (TSN)

Tyson Foods Business Overview

• Stock price: $52.46
• TTM revenue: $55.7 billion
• TTM EPS: $1.62
• PE ratio: 32.0
• Dividend yield: 3.9%
• Beta: 0.37

Tyson Foods sells beef, pork, chicken, plus frozen and refrigerated prepared foods under popular brand names including Tyson, Jimmy Dean, Hillshire Farm and Ball Park.

Why TSN Is A Top Choice

TSN stock took a hit recently after the company lowered its fiscal 2026 revenue growth guidance. The outlook change was prompted by an ongoing cattle shortage and lower cattle prices. While these dynamics don’t change quickly, a 2026 CattleFax report concluded that the U.S. cattle herd may see gradual growth in 2027.

That makes Tyson Foods a longer-term play. Katz characterized the stock as “deep-cyclical protein at trough earnings.” Patient investors who take advantage of the opportunity can earn a nearly-4% dividend yield while they wait for Tyson to benefit from recovering market conditions.

If the stock market’s recent turn settles into something more serious, you’ll appreciate the decision to get more defensive for the fourth quarter. And if there is no downturn, those defensive positions can still deliver current income and long-term upside.