Best Dividend Stocks for Option Income
This report lists what Tim considers to be the best dividend stocks for producing option income. The criteria for the stocks on this list are that they must have a market cap of $10 billion or greater, have a dividend yield greater than or equal to 2%, free cash flow per share must be greater than their trailing dividend rate, a dividend payout ratio percentage of 90% or less, a liquidity rating of 2 stars or greater, an Algorithm score of 12 or higher, and have made at least 10 dividend payments over the last 5 years. Finally, the stock's current price must be within 25% or lower of its 52-week low. This report is sorted by average ATM premium as well as trailing annual dividend yield percentage and is intended to find solid dividend stocks that are ideal for selling covered calls or cash-secured puts on. The report also has direct links to the options chain page for each stock as well.
| Ranking | Ticker | Company | Current Price | 52-Week High | 52-Week Low | Last Price to 52 Week Low | Ex-Dividend Date | Earnings Overlap? | Trailing Annual Dividend Rate | Trailing Annual Dividend Yield Percentage | Dividend Payout Ratio Percentage | Has Options? | ATM Call Premium | ATM Put Premium | Premium To Stock Price Ratio | Liquidity Rating | Algorithm Score | Safety Score | Lists |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 1 | DG | Dollar General Corp | 76.50 | 165.52 | 72.12 | 6.07% | 10/08 | Yes | 2.36 | 3.08% | 36.70% | Options Chain | 5.98 | 7.98 | 0.10 | 12 | 64 | None | |
| 2 | NKE | Nike Inc - Class B | 73.36 | 121.92 | 70.43 | 4.16% | 12/02 | Yes | 1.88 | 2.56% | 53.87% | Options Chain | 3.63 | 4.30 | 0.06 | 15 | 60 | None | |
| 3 | VLO | Valero Energy Corp | 141.20 | 182.31 | 117.70 | 19.97% | 11/20 | No | 4.28 | 2.97% | 37.61% | Options Chain | 5.60 | 6.95 | 0.05 | 12 | 73 | None | |
| 4 | HAL | Halliburton Company | 31.18 | 41.12 | 27.26 | 14.38% | 12/04 | No | 0.84 | 2.69% | 29.37% | Options Chain | 1.32 | 1.15 | 0.04 | 16 | 67 | None | |
| 5 | SLB | SLB | 43.53 | 54.98 | 38.66 | 12.60% | 12/04 | No | 1.35 | 3.10% | 43.13% | Options Chain | 1.34 | 1.83 | 0.04 | 16 | 70 | None | |
| 6 | SHEL | Shell Plc ADR (Representing - ) | 65.43 | 72.99 | 57.95 | 12.91% | 11/15 | No | 2.75 | 4.21% | 55.93% | Options Chain | 0.73 | 2.50 | 0.04 | 14 | 72 | None | |
| 7 | AZN | Astrazeneca plc | 63.95 | 87.67 | 59.19 | 8.04% | 8/09 | No | 1.49 | 2.32% | 71.74% | Options Chain | 1.82 | 2.26 | 0.04 | 12 | 66 | None | |
| 8 | MRK | Merck & Co Inc | 97.44 | 133.74 | 94.48 | 3.13% | 12/16 | No | 3.89 | 3.99% | 81.38% | Options Chain | 2.89 | 3.23 | 0.03 | 12 | 72 | None | |
| 9 | CMCSA | Comcast Corp - Class A | 42.32 | 46.04 | 35.87 | 17.98% | 1/08 | No | 1.53 | 3.62% | 41.24% | Options Chain | 1.28 | 1.07 | 0.03 | 13 | 62 | None | |
| 10 | TGT | Target Corp | 121.72 | 179.22 | 126.93 | 4.10% | 11/20 | Yes | 4.44 | 3.65% | 45.87% | Options Chain | 3.45 | 3.23 | 0.03 | 17 | 66 | None | |
| 11 | F | Ford Motor Company | 11.07 | 14.43 | 9.22 | 20.07% | 11/07 | No | 0.78 | 7.05% | 88.64% | Options Chain | 0.28 | 0.26 | 0.03 | 15 | 66 | None | |
| 12 | JNJ | Johnson & Johnson | 153.11 | 168.85 | 140.91 | 8.66% | 11/26 | No | 4.91 | 3.21% | 81.16% | Options Chain | 1.93 | 1.93 | 0.01 | 13 | 71 | None | |
| 13 | GIS | General Mills Inc | 62.81 | 75.27 | 59.87 | 4.91% | 1/10 | No | 2.98 | 4.74% | 70.95% | Options Chain | 13 | 70 | None | ||||
| 14 | GPC | Genuine Parts Company | 120.30 | 162.12 | 112.74 | 6.71% | 9/06 | No | 3.95 | 3.27% | 50.90% | Options Chain | 14 | 68 | None | ||||
| 15 | DRI | Darden Restaurants Inc | 160.85 | 174.32 | 134.67 | 19.44% | 10/10 | No | 5.42 | 3.37% | 62.51% | Options Chain | 14 | 71 | None | ||||
| 16 | CNI | Canadian National Railway Company | 106.71 | 132.66 | 105.28 | 1.36% | 12/09 | No | 4.17 | 3.91% | 69.15% | Options Chain | 13 | 74 | None | ||||
| 17 | CVE | Cenovus Energy Inc | 16.05 | 21.46 | 14.31 | 12.16% | 12/13 | No | 0.95 | 5.95% | 67.25% | Options Chain | 14 | 65 | None | ||||
| 18 | BDX | Becton Dickinson & Company | 223.00 | 246.89 | 217.86 | 2.36% | 12/09 | No | 4.84 | 2.17% | 81.76% | Options Chain | 12 | 60 | None | ||||
| 19 | BG | Bunge Global SA | 88.88 | 113.25 | 81.56 | 8.97% | 2/18 | No | 3.38 | 3.81% | 42.87% | Options Chain | 16 | 69 | None | ||||
| 20 | MGA | Magna International Inc | 42.65 | 57.88 | 37.16 | 14.77% | 11/15 | No | 1.90 | 4.45% | 50.94% | Options Chain | 16 | 60 | None | ||||
| 21 | IPG | Interpublic Group Of Cos. Inc | 28.38 | 34.44 | 26.88 | 5.58% | 12/02 | No | 1.63 | 5.74% | 76.89% | Options Chain | 13 | 66 | None | ||||
| 22 | ITW | Illinois Tool Works Inc | 266.38 | 277.58 | 230.29 | 15.67% | 12/31 | No | 7.20 | 2.70% | 62.28% | Options Chain | 12 | 66 | None | ||||
| 23 | SWKS | Skyworks Solutions Inc | 83.43 | 120.08 | 82.13 | 1.58% | 12/03 | No | 2.76 | 3.31% | 74.80% | Options Chain | 16 | 64 |
Dividend Stock List |
||||
| 24 | SYY | Sysco Corp | 73.63 | 81.22 | 68.50 | 7.49% | 1/03 | No | 2.53 | 3.44% | 64.38% | Options Chain | 14 | 62 | None | ||||
| 25 | TAP | Molson Coors Beverage Company - Class B | 60.38 | 68.04 | 48.79 | 23.75% | 8/30 | No | 1.73 | 2.87% | 38.96% | Options Chain | 13 | 75 | None | ||||
| 26 | RIO | Rio Tinto plc | 62.39 | 72.15 | 59.33 | 5.16% | 8/16 | No | 4.35 | 6.97% | 64.83% | Options Chain | 15 | 73 | None | ||||
| 27 | OVV | Ovintiv Inc | 45.74 | 55.16 | 36.91 | 23.92% | 12/13 | No | 1.50 | 3.28% | 19.79% | Options Chain | 13 | 72 | None | ||||
| 28 | VICI | VICI Properties Inc | 32.12 | 33.85 | 26.33 | 21.99% | 9/18 | No | 1.68 | 5.26% | 61.45% | Options Chain | 13 | 79 | None | ||||
| 29 | SJM | J.M. Smucker Company | 112.08 | 129.77 | 103.71 | 8.07% | 11/15 | No | 4.28 | 3.82% | 58.55% | Options Chain | 12 | 67 | None | ||||
| 30 | TTE | TotalEnergies SE | 60.52 | 73.07 | 58.46 | 3.52% | 3/25 | No | 4.91 | 8.11% | 69.24% | Options Chain | 16 | 74 | None |