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 CNQ Canadian Natural Resources Ltd 34.43 40.83 27.87 23.54% 6/17 Yes 2.00 5.81% 81.63% Options Chain 3.13 4.75 0.14 12 None
2 CVS CVS Health Corp 58.65 80.80 52.18 12.40% 7/22 Yes 2.60 4.43% 45.61% Options Chain 3.28 3.93 0.07 15 None
3 SBUX Starbucks Corp 74.05 106.21 71.26 3.92% 8/16 Yes 2.81 3.79% 77.41% Options Chain 3.45 4.35 0.06 12 None
4 ROK Rockwell Automation Inc 277.04 333.62 248.69 11.40% 8/12 Yes 6.18 2.23% 60.53% Options Chain 13.70 16.10 0.06 13 None
5 KHC Kraft Heinz Company 33.36 38.51 29.64 12.55% 6/06 Yes 1.60 4.80% 69.87% Options Chain 0.78 1.75 0.05 13 None
6 TAP Molson Coors Beverage Company - Class B 54.33 68.88 49.19 10.45% 8/30 Yes 2.14 3.94% 42.71% Options Chain 2.08 2.70 0.05 16 None
7 DRI Darden Restaurants Inc 141.90 173.62 129.89 9.25% 7/10 Yes 5.33 3.76% 62.49% Options Chain 4.55 6.25 0.04 13 None
8 HSY Hershey Company 192.67 229.89 176.36 9.25% 5/16 Yes 5.12 2.65% 50.73% Options Chain 7.10 8.30 0.04 12 None
9 NKE Nike Inc - Class B 72.56 122.47 71.08 2.08% 6/03 No 1.45 2.00% 38.87% Options Chain 3.10 2.78 0.04 15 None
10 MCD McDonald`s Corp 252.00 298.74 241.32 4.43% 9/03 Yes 8.20 3.25% 69.73% Options Chain 8.13 10.65 0.04 12 None
11 BP BP plc 35.25 39.93 32.73 7.70% 5/16 Yes 1.74 4.95% 53.85% Options Chain 1.26 1.48 0.04 13 None
12 MGA Magna International Inc 43.53 63.01 40.83 6.61% 5/16 Yes 1.87 4.30% 52.97% Options Chain 1.58 1.80 0.04 15 None
13 GSK GSK Plc 39.07 45.80 32.70 19.48% 5/16 Yes 1.49 3.74% 52.80% Options Chain 1.43 1.60 0.04 12 None
14 QSR Restaurant Brands International Inc 67.98 81.99 60.38 12.59% 6/21 Yes 2.26 3.32% 58.40% Options Chain 2.35 2.78 0.04 12 None
15 CSCO Cisco Systems Inc 47.24 56.37 44.57 5.99% 7/05 Yes 1.58 3.34% 53.38% Options Chain 1.88 1.72 0.04 13 None
16 IPG Interpublic Group Of Cos. Inc 30.26 34.80 26.36 14.80% 6/04 No 1.28 4.13% 45.23% Options Chain 1.10 1.18 0.04 12 None
17 CMCSA Comcast Corp - Class A 38.24 46.38 36.13 5.84% 10/02 No 1.51 3.95% 40.16% Options Chain 1.43 1.46 0.04 13 None
18 ITUB Itau Unibanco Holding S.A. 6.03 6.95 4.83 24.84% 8/02 Yes 0.46 7.65% 72.46% Options Chain 0.23 0.04 17 None
19 F Ford Motor Company 11.16 14.85 9.17 21.70% 8/07 No 0.78 6.99% 81.25% Options Chain 0.33 0.42 0.04 14 None
20 SLB SLB 48.83 61.08 42.61 14.60% 9/04 No 1.32 2.71% 43.30% Options Chain 1.66 1.76 0.04 14 None
21 XOM Exxon Mobil Corp 117.33 122.75 94.12 24.66% 5/14 Yes 3.76 3.20% 46.02% Options Chain 3.95 3.75 0.03 12 None
22 RIO Rio Tinto plc 65.06 74.24 55.95 16.28% 3/07 Yes 4.35 6.69% 70.62% Options Chain 1.73 1.98 0.03 15 None
23 GPC Genuine Parts Company 137.97 163.31 123.76 11.48% 6/07 No 3.90 2.75% 45.14% Options Chain 3.80 4.00 0.03 13 None
24 LYB LyondellBasell Industries NV - Class A 97.26 105.58 85.05 14.36% 6/03 Yes 5.09 5.23% 78.55% Options Chain 1.90 2.48 0.03 14 None
25 BEN Franklin Resources Inc 23.08 29.25 21.11 9.33% 6/28 Yes 1.23 5.33% 71.10% Options Chain 0.30 0.58 0.03 13 None
26 TTE TotalEnergies SE 67.85 74.00 55.20 22.92% 12/31 Yes 4.81 7.09% 54.33% Options Chain 1.40 1.70 0.03 18 None
27 SYY Sysco Corp 72.85 81.77 60.99 19.45% 7/05 Yes 2.01 2.76% 49.02% Options Chain 1.80 1.25 0.02 15 None
28 SLF Sun Life Financial Inc 49.90 54.81 43.10 15.78% 5/29 No 3.12 6.25% 81.25% Options Chain 1.18 0.02 16 None
29 VICI VICI Properties Inc 30.88 31.74 25.52 21.00% 6/18 Yes 1.66 5.38% 65.87% Options Chain 0.45 0.65 0.02 12 None
30 HMC Honda Motor 30.87 37.65 28.86 6.96% 3/27 Yes 1.34 4.28% 31.11% Options Chain 0.20 0.55 0.02 18 None
31 ORAN Orange. 11.17 11.88 9.82 13.75% 6/03 Yes 0.78 6.95% 89.27% Options Chain 0.15 0.01 16 None