3 Stocks to Buy Hand Over Fist Before the Fed (Probably) Cuts Rates in September

Core Viewpoint - Federal Reserve Chairman Jerome Powell indicated that interest rates may be reduced next month, which could lead to a surge in the stock market and particularly benefit certain stocks [1][2]. Group 1: Dominion Energy - Utility stocks like Dominion Energy are expected to rise when interest rates fall due to increased interest from income investors and reduced borrowing costs [3]. - Dominion Energy serves over 4.5 million customers across 13 states and has a forward dividend yield of 4.7%, having paid dividends for 386 consecutive quarters [4]. - The company is well-positioned for growth, especially with the rising demand for data centers in Northern Virginia, driven by artificial intelligence [5]. Group 2: D.R. Horton - D.R. Horton, the largest homebuilder in the U.S., is likely to benefit from lower interest rates as they typically lead to lower mortgage rates, making homebuilding more affordable [6][7]. - The stock is considered undervalued with a forward earnings multiple of 12.2 and a low price-to-earnings-to-growth (PEG) ratio of 0.64 [8]. - Even without immediate rate cuts, D.R. Horton is expected to thrive in the long term due to the ongoing housing shortage in the U.S. [9]. Group 3: Realty Income - Real estate investment trusts (REITs) like Realty Income are poised to benefit from rate cuts as lower borrowing costs facilitate property acquisitions [10]. - Realty Income has a strong track record, paying monthly dividends and increasing its payout for 29 consecutive years, owning 15,450 commercial properties [10][11]. - The company has significant growth potential in the U.S. and Europe, with the latter representing an $8.5 trillion total addressable market [12].