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.


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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 Lists
1 SBUX Starbucks Corp 76.59 106.21 71.26 7.48% 8/16 Yes 2.81 3.67% 77.41% Options Chain 4.00 3.78 0.05 12 None
2 CVS CVS Health Corp 58.33 80.80 52.18 11.79% 7/22 Yes 2.60 4.36% 45.61% Options Chain 2.89 3.00 0.05 15 None
3 SLB SLB 49.36 61.08 42.61 15.84% 6/05 No 1.32 2.68% 44.17% Options Chain 1.82 1.96 0.04 13 None
4 CSCO Cisco Systems Inc 46.76 56.37 44.57 4.91% 7/05 Yes 1.58 3.34% 53.38% Options Chain 1.30 1.78 0.04 13 None
5 HSY Hershey Company 191.18 239.65 176.36 8.40% 5/16 Yes 5.12 2.68% 50.78% Options Chain 6.15 6.65 0.03 12 None
6 GSK GSK Plc 39.41 45.80 32.70 20.52% 5/16 Yes 1.49 3.78% 52.80% Options Chain 1.10 1.35 0.03 12 None
7 KHC Kraft Heinz Company 32.84 38.51 29.64 10.80% 6/06 Yes 1.60 4.88% 69.87% Options Chain 0.88 1.11 0.03 13 None
8 BP BP plc 35.36 39.93 32.73 8.04% 5/16 Yes 1.74 4.94% 53.85% Options Chain 0.95 1.19 0.03 13 None
9 CMCSA Comcast Corp - Class A 39.39 46.38 36.13 9.02% 7/03 Yes 1.20 2.99% 31.83% Options Chain 0.99 1.31 0.03 14 None
10 MCD McDonald`s Corp 259.36 298.74 241.32 7.48% 6/03 Yes 6.53 2.52% 55.91% Options Chain 8.15 7.75 0.03 12 None
11 XOM Exxon Mobil Corp 115.43 122.75 94.12 22.64% 5/14 Yes 3.76 3.26% 46.08% Options Chain 3.25 3.58 0.03 12 None
12 VALE Vale S.A. 10.96 15.40 10.88 0.74% 3/12 No 1.41 12.88% 77.69% Options Chain 0.22 0.02 12 None
13 LYB LyondellBasell Industries NV - Class A 97.47 105.58 85.05 14.60% 6/03 No 5.09 5.22% 78.55% Options Chain 14 None
14 IPG Interpublic Group Of Cos. Inc 29.67 34.80 26.36 12.56% 6/04 No 1.28 4.31% 45.55% Options Chain 12 None
15 QSR Restaurant Brands International Inc 72.69 81.99 60.38 20.39% 6/21 No 2.26 3.11% 58.40% Options Chain 12 None
16 RIO Rio Tinto plc 63.90 74.24 55.95 14.21% 3/07 No 4.35 6.80% 70.50% Options Chain 15 None
17 ROK Rockwell Automation Inc 276.62 333.62 248.69 11.23% 8/12 No 6.18 2.24% 60.47% Options Chain 13 None
18 SLF Sun Life Financial Inc 50.15 54.81 43.10 16.36% 5/29 No 3.12 6.24% 80.62% Options Chain 16 None
19 SYY Sysco Corp 74.10 81.77 60.99 21.50% 7/05 No 2.01 2.73% 49.02% Options Chain 15 None
20 TAP Molson Coors Beverage Company - Class B 52.21 68.89 49.19 6.14% 8/30 No 2.14 4.08% 42.71% Options Chain 16 None
21 TTE TotalEnergies SE 68.58 74.00 55.20 24.24% 6/18 No 3.23 4.71% 36.49% Options Chain 18 None
22 MGA Magna International Inc 44.51 63.01 40.83 9.01% 5/16 No 1.87 4.20% 52.97% Options Chain 15 None
23 BEN Franklin Resources Inc 23.54 29.25 21.11 11.51% 6/28 No 1.23 5.23% 71.10% Options Chain 13 None
24 HMC Honda Motor 32.50 37.65 28.86 12.61% 3/27 No 1.34 4.14% 31.25% Options Chain 18 None
25 GPC Genuine Parts Company 138.90 163.31 123.76 12.23% 6/07 No 3.90 2.82% 43.43% Options Chain 13 None
26 DRI Darden Restaurants Inc 143.60 173.62 129.89 10.56% 7/10 No 5.33 3.73% 62.49% Options Chain 13 None
27 VICI VICI Properties Inc 30.43 31.74 25.52 19.24% 6/18 No 1.66 5.46% 65.87% Options Chain 12 None