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 or a Safety Score of 60 or better, and have made at least 20 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 One Year Dividend Growth Rate Percentage Three Year Dividend Growth Rate Percentage Five Year Dividend Growth Rate Percentage All-Time Dividend Growth Rate 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 HAL Halliburton Company 22.61 31.66 18.43 22.68% 9/03 Yes 0.68 3.04% 0.00% 0.00% 39.41% 2.18% 31.92% Options Chain 1.42 1.71 0.08 12 64 None
2 ACN Accenture plc - Class A 240.91 394.41 234.18 2.87% 7/10 Yes 5.92 2.47% 10.65% 5.19% 13.16% 13.01% 47.10% Options Chain 12.80 16.20 0.07 17 65 None
3 MRK Merck & Co Inc 80.40 112.11 71.87 11.87% 9/15 Yes 3.24 3.97% 3.85% 1.90% 5.25% 9.17% 49.92% Options Chain 3.68 4.63 0.06 14 73 None
4 SLB SLB 33.92 44.81 30.61 10.81% 9/03 Yes 1.13 3.25% 3.64% 1.80% 22.88% 3.48% 38.70% Options Chain 1.38 1.71 0.05 12 69 None
5 CMCSA Comcast Corp - Class A 31.49 44.12 31.03 1.48% 10/01 Yes 1.28 4.05% 6.56% 6.79% 7.32% 28.34% 21.23% Options Chain 1.06 1.58 0.05 15 65 None
6 COP Conoco Phillips 92.01 112.56 78.56 17.12% 8/18 Yes 3.12 3.39% 0.00% 0.00% 12.47% 5.93% 41.82% Options Chain 3.75 4.60 0.05 11 76 None
7 TGT Target Corp 86.56 155.50 85.44 1.31% 11/12 No 4.50 5.03% 1.80% 1.82% 9.36% 11.28% 52.45% Options Chain 3.60 4.18 0.05 13 66 None
8 EOG EOG Resources Inc 115.41 135.49 100.76 14.54% 10/17 Yes 3.83 3.24% 8.38% 9.34% 25.07% 15.56% 37.20% Options Chain 4.55 4.85 0.04 15 77 None
9 AMGN AMGEN Inc 283.77 330.26 247.06 14.86% 8/22 Yes 9.39 3.29% 5.78% 2.85% 7.84% 16.50% 76.84% Options Chain 6.83 10.93 0.04 12 72 None
10 FDX Fedex Corp 230.12 301.45 191.82 19.97% 9/08 No 5.66 2.50% 7.41% 3.64% 18.92% 16.72% 33.18% Options Chain 8.50 8.63 0.04 15 66 None
11 XOM Exxon Mobil Corp 112.02 121.93 96.01 16.68% 8/15 Yes 3.96 3.48% 3.13% 1.55% 3.21% 5.80% 56.25% Options Chain 3.28 3.95 0.04 11 75 None
12 CVX Chevron Corp 156.05 165.09 129.01 20.96% 8/19 Yes 6.76 4.26% 4.91% 2.42% 6.53% 6.15% 87.00% Options Chain 4.33 5.40 0.03 11 74 None
13 CTRA Coterra Energy Inc 23.10 29.29 21.84 5.77% 8/14 Yes 0.87 3.61% 4.76% 2.35% 9.15% 13.36% 41.63% Options Chain 0.75 0.60 0.03 15 70 None
14 HON Honeywell International Inc 209.00 240.47 177.52 17.73% 8/15 Yes 4.52 2.15% 3.43% 1.70% 4.64% 6.16% 51.42% Options Chain 6.75 6.40 0.03 13 68 None
15 MDT Medtronic Plc 94.62 95.91 77.57 21.98% 9/26 No 2.81 2.94% 1.79% 0.89% 3.55% 16.48% 77.62% Options Chain 2.18 2.96 0.03 15 68 None
16 VZ Verizon Communications Inc 43.16 45.87 36.41 18.54% 10/10 Yes 2.71 6.21% 1.87% 1.89% 1.93% 2.96% 63.02% Options Chain 1.11 1.27 0.03 14 72 None
17 MCD McDonald`s Corp 302.99 322.66 271.86 11.45% 9/02 Yes 7.08 2.35% 4.42% 2.19% 7.76% 17.86% 60.62% Options Chain 7.23 7.75 0.03 11 65 None
18 PG Procter & Gamble Company 153.07 177.63 149.91 2.11% 7/18 Yes 4.13 2.62% 6.74% 3.32% 5.59% 8.68% 63.39% Options Chain 3.17 3.28 0.02 11 71 None
19 CNI Canadian National Railway Company 92.01 115.58 90.48 1.69% 9/08 No 3.51 3.76% 5.03% 2.48% 9.60% 15.33% 66.56% Options Chain 13 68 None
20 BAH Booz Allen Hamilton Holding Corp - Class A 100.25 187.12 98.46 1.82% 8/14 No 2.16 2.11% 7.84% 3.85% 10.42% 15.55% 26.54% Options Chain 16 62 None
21 CLX Clorox Company 119.93 166.90 116.17 3.24% 10/22 No 4.90 4.03% 1.65% 1.67% 2.03% 8.78% 75.15% Options Chain 15 58 None
22 EQNR Equinor ASA 24.43 27.84 20.38 19.87% 11/14 No 1.44 5.86% 8.15% 15.21% 27.07% 4.93% 47.68% Options Chain 11 62 None
23 DRI Darden Restaurants Inc 185.21 226.68 151.81 22.00% 10/10 No 5.70 2.96% 7.01% 7.28% 13.87% 13.54% 64.26% Options Chain 14 71 None
24 ITW Illinois Tool Works Inc 260.89 274.76 213.36 22.28% 9/30 No 6.00 2.28% 11.03% 5.37% 8.08% 13.63% 52.68% Options Chain 14 61 None
25 JNPR Juniper Networks Inc 39.95 39.96 33.22 20.26% 6/02 No 0.88 2.20% 0.00% 0.00% 2.41% 9.16% 83.81% No N/A N/A N/A 12 48 None
26 KDP Keurig Dr Pepper Inc 25.95 37.26 25.92 0.12% 9/26 No 0.92 3.38% 5.14% 6.25% 8.05% 0.16% 81.42% Options Chain 10 62 None
27 SYY Sysco Corp 81.37 83.23 66.65 22.09% 10/03 No 2.07 2.53% 3.96% 2.99% 3.36% 15.19% 55.50% Options Chain 11 64 None
28 GIS General Mills Inc 50.07 71.96 48.29 3.69% 7/10 No 2.41 4.83% 2.52% 1.25% 4.58% 7.59% 45.56% Options Chain 13 64 None
29 TTE TotalEnergies SE 60.77 66.80 51.01 19.13% 9/30 No 3.54 5.77% 20.91% 9.96% 7.01% 1.07% 64.14% Options Chain 12 72 None
30 UL Unilever plc 60.49 65.01 52.97 14.20% 8/15 No 1.99 3.23% 11.97% 5.82% 0.73% 3.75% 74.92% Options Chain 9 64 None
31 VICI VICI Properties Inc 31.43 33.54 26.86 17.01% 9/18 No 1.75 5.44% 6.19% 3.05% 6.87% 9.24% 66.95% Options Chain 12 79 None
32 MFC Manulife Financial Corp 31.73 32.35 25.39 24.97% 8/20 No 1.72 5.48% 10.00% 4.88% 10.75% 10.90% 76.11% Options Chain 17 71 None
33 MKC McCormick & Co. Inc (Non Voting) 64.63 85.22 64.53 0.15% 7/07 No 1.77 2.67% 5.26% 2.60% 6.68% 11.16% 61.67% Options Chain 9 61 None
34 OKE Oneok Inc 71.62 113.92 70.63 1.40% 8/01 No 4.08 5.54% 4.04% 2.00% 2.45% 7.04% 79.53% Options Chain 14 75 None
35 OMC Omnicom Group Inc 74.53 103.30 67.75 10.01% 9/02 No 2.80 3.68% 0.00% 0.00% 0.00% 10.60% 40.06% Options Chain 15 70 None
36 PAYX Paychex Inc 130.40 160.03 128.23 1.69% 7/21 No 4.12 3.14% 12.79% 6.20% 13.53% 24.65% 89.96% Options Chain 9 62 None
37 PCAR Paccar Inc 97.07 114.66 84.08 15.45% 11/12 No 3.99 3.93% 12.82% 12.66% 10.25% 9.75% 68.44% Options Chain 12 70 None
38 YUMC Yum China Holdings Inc 43.10 53.40 37.36 15.36% 9/02 No 0.88 2.04% 50.00% 22.47% 18.92% 8.79% 36.36% Options Chain 17 56 None