History Says These are 3 Stocks to Buy for December

Key Points

• Historical trends show RTX, Unilever, and Southern Company consistently outperform the market in December, offering reliable seasonal upside.
• Each stock trades below analyst price targets, giving investors a mix of value, dividend income, and strong year-end momentum potential.
• With long track records of positive December returns, these three names may outperform the S&P 500’s typical 1.5% gain for the month.

A popular holiday song touts December as “the most wonderful time of the year.” This is especially true for investors, as in the last 20 years, the S&P 500 index has moved higher in December 75% of the time. In each of those years, the index gained an average of 1.5%

One reason for this is that fund managers often use the month of December to rotate into top-performing stocks in order to improve their portfolio appearance. 

While some investors prefer to buy the SPDR S&P 500 ETF Trust NYSEARCA: SPY and call it a year, there are individual stocks that could deliver a return of more than 1.5%. This article focuses on three stocks with a history of outperforming in December.

RTX: A High-Yield Dividend Stock With December Upside

RTX NYSE: RTX is a conglomerate formed from the merger of Raytheon Technologies and United Technologies Group. The company is a leader in the defense and commercial aerospace sectors.

RTX stock is up 49% in 2025, but it’s down about 3% since it delivered its third-quarter earnings report.

In the report, the company stated that it would continue to face tariff-related costs that would impact margins and cash conversion, which was the likely the cause of the share price dip. 

However, RTX still offers a reliable dividend that has an annual payout of $2.72 per share.

As for its December history, RTX has increased in 22 out of 27 years, with an average return of 3.99% overall and 5.67% in years with positive performance.

The stock has a current consensus price target of $180.44—a 4.2% increase from today—which may cause investors to wonder if this December could be another high-performing month.

Unilever: A Consumer Staple Stock with Staying Power

Consumer staples stocks continue to be laggards as many low- to middle-income consumers navigate sticky inflation and an uncertain labor outlook. However, Unilever PLC NYSE: UL has been a slight exception; as of the market close on Nov. 24, 2025, UL stock has gained 5.15%.

There are several reasons to like UL stock for this December.

First, it’s trading about 22% below the analyst consensus target of $73. Second, the stock appears attractively valued at around 18 times forward earnings.

Analysts also forecast about 6.7% earnings growth over the next 12 months.

However, that estimate may move higher after the company completes its spin-off of the Magnum Ice Cream Company in early December.

UL stock has moved higher in December in 19 out of 25 years. The average return across all years has been 4.16%, and 4.66% in the 19 years the stock moved higher.

Southern Company: A Utility Player That Can Recharge a Portfolio

Southern Company NYSE: SO is a utility company with a diverse energy portfolio that includes natural gas, nuclear, and coal, as well as renewable energy sources like solar and wind.

In its most recent earnings report, the company reported a 17% year-over-year (YOY) increase in data center usage, indicating that it benefits from the tailwinds of AI.

SO stock currently trades about 11% below its consensus price target of $99.03. At around 20 times forward earnings, Southern Company is trading at a discount to its historic average.

The company is also a dividend aristocrat and has recently increased its dividend for the 25th consecutive year.

Historically, December has been particularly strong for Southern Company. The stock has posted gains in 23 of the last 27 years (85%), with an average return of 3.54% overall and 4.47% in up years.