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 FDX Fedex Corp 224.18 303.39 193.05 16.13% 9/08 Yes 5.59 2.42% 7.41% 3.64% 18.92% 16.72% 33.25% Options Chain 11.18 15.65 0.07 12 64 None
2 HAL Halliburton Company 22.69 31.90 18.56 22.25% 9/03 No 0.68 3.00% 0.00% 0.00% 39.41% 2.18% 31.92% Options Chain 1.15 1.34 0.06 12 64 None
3 ACN Accenture plc - Class A 256.17 394.41 236.67 8.24% 7/10 Yes 5.92 2.28% 10.65% 5.19% 13.16% 13.01% 47.10% Options Chain 13.75 14.85 0.06 18 64 None
4 GIS General Mills Inc 49.32 72.85 48.29 2.13% 7/10 Yes 2.41 4.98% 2.52% 1.25% 4.58% 7.59% 58.78% Options Chain 1.60 2.50 0.05 11 62 None
5 ARE Alexandria Real Estate Equities Inc 80.91 118.73 66.16 22.29% 6/30 No 5.26 6.38% 1.73% 0.86% 4.19% 3.89% -4,046.15% Options Chain 3.95 3.55 0.05 10 66 None
6 SLB SLB 35.90 45.17 30.85 16.37% 9/03 No 1.12 3.04% 3.64% 1.80% 22.88% 3.48% 38.36% Options Chain 1.37 1.64 0.05 11 69 None
7 TGT Target Corp 92.44 155.50 85.44 8.19% 8/13 No 4.50 4.69% 2.70% 1.34% 9.60% 11.54% 52.45% Options Chain 3.58 4.18 0.05 13 66 None
8 OMC Omnicom Group Inc 76.93 104.25 68.37 12.52% 9/02 No 2.80 3.57% 0.00% 0.00% 0.00% 10.60% 40.06% Options Chain 3.15 3.30 0.04 14 70 None
9 CTRA Coterra Energy Inc 24.74 29.29 21.55 14.80% 8/14 No 0.87 3.57% 4.76% 2.35% 9.15% 13.36% 41.63% Options Chain 0.85 1.03 0.04 12 70 None
10 MRK Merck & Co Inc 85.48 116.37 72.58 17.77% 9/15 No 3.20 3.85% 3.85% 1.90% 5.25% 9.17% 49.31% Options Chain 3.48 3.35 0.04 14 73 None
11 EQNR Equinor ASA 24.78 27.84 20.38 21.59% 11/14 No 1.44 5.88% 8.15% 15.21% 27.07% 4.93% 47.68% Options Chain 0.88 1.00 0.04 11 62 None
12 WY Weyerhaeuser Company 24.89 33.04 23.71 4.98% 8/29 No 0.83 3.21% 5.00% 2.47% -8.15% 2.22% 218.42% Options Chain 1.00 0.95 0.04 7 51 None
13 PCAR Paccar Inc 98.86 114.66 84.08 17.58% 8/14 No 3.99 3.99% 12.82% 6.22% 10.25% 9.67% 68.44% Options Chain 3.30 3.85 0.04 13 70 None
14 OKE Oneok Inc 74.62 113.92 72.18 3.38% 8/01 No 4.08 5.34% 4.04% 2.00% 2.45% 7.04% 79.53% Options Chain 2.90 2.90 0.04 14 75 None
15 CLX Clorox Company 119.98 166.90 116.17 3.28% 8/13 No 4.90 4.15% 2.48% 1.23% 2.24% 8.97% 75.15% Options Chain 4.50 3.80 0.04 15 59 None
16 KDP Keurig Dr Pepper Inc 28.91 37.26 28.70 0.73% 6/27 No 0.92 3.14% 5.14% 2.54% 8.05% -0.22% 81.42% Options Chain 0.90 1.05 0.04 10 60 None
17 BDX Becton Dickinson & Company 188.15 249.34 162.35 15.89% 9/08 No 4.07 2.11% 6.94% 3.41% 5.48% 10.58% 74.41% Options Chain 4.90 6.65 0.04 13 60 None
18 LMT Lockheed Martin Corp 452.50 606.41 410.11 10.34% 9/02 No 13.05 2.86% 3.53% 1.75% 5.64% 10.52% 73.15% Options Chain 13.30 15.70 0.03 10 66 None
19 MFC Manulife Financial Corp 30.48 32.17 25.39 20.05% 8/20 No 1.72 5.61% 10.00% 4.88% 10.75% 10.90% 76.79% Options Chain 0.70 1.05 0.03 17 71 None
20 CCI Crown Castle Inc 98.10 115.80 81.93 19.74% 9/15 Yes 5.76 5.81% -32.11% -17.60% -6.07% 12.84% -63.97% Options Chain 3.35 3.25 0.03 5 55 None
21 UNP Union Pacific Corp 221.99 252.32 202.16 9.81% 8/29 No 5.40 2.42% 4.55% 2.25% 6.51% 8.43% 46.87% Options Chain 5.65 7.55 0.03 12 64 None
22 AMT American Tower Corp 200.49 235.86 169.77 18.10% 6/13 No 6.64 3.26% 4.94% 2.44% 6.89% 17.88% 124.11% Options Chain 6.80 6.50 0.03 11 62 None
23 VZ Verizon Communications Inc 43.80 45.87 36.41 20.30% 7/10 No 2.71 6.13% 1.40% 0.70% 1.81% 2.99% 63.02% Options Chain 0.98 1.46 0.03 14 72 None
24 AMGN AMGEN Inc 286.92 330.26 247.06 16.13% 8/22 No 9.39 3.26% 5.78% 2.85% 7.84% 16.50% 76.84% Options Chain 7.75 9.40 0.03 13 71 None
25 CMCSA Comcast Corp - Class A 34.13 44.12 31.03 9.99% 10/01 No 1.28 3.81% 6.56% 6.79% 7.32% 28.34% 21.23% Options Chain 1.11 1.05 0.03 14 64 None
26 HON Honeywell International Inc 217.60 240.47 177.52 22.58% 8/15 No 4.52 2.04% 3.43% 1.70% 4.64% 6.16% 51.42% Options Chain 4.80 7.05 0.03 13 70 None
27 MKC McCormick & Co. Inc (Non Voting) 68.80 85.22 68.23 0.84% 7/07 Yes 1.77 2.53% 5.26% 2.60% 6.68% 11.16% 61.67% Options Chain 2.20 1.40 0.03 10 61 None
28 TTE TotalEnergies SE 62.59 66.80 51.01 22.70% 9/30 No 3.54 5.64% 2.08% 1.03% 2.58% 1.07% 64.14% Options Chain 2.00 1.93 0.03 12 61 None
29 MDLZ Mondelez International Inc - Class A 61.79 73.94 53.20 16.15% 9/30 No 1.88 3.07% 11.73% 5.70% 10.74% 5.42% 68.86% Options Chain 1.55 1.90 0.03 10 68 None
30 XOM Exxon Mobil Corp 114.69 121.93 96.01 19.46% 8/15 No 3.96 3.46% 3.13% 1.55% 3.21% 5.80% 56.25% Options Chain 3.38 3.10 0.03 11 75 None
31 CL Colgate-Palmolive Company 84.39 106.90 82.40 2.42% 7/18 No 2.04 2.45% 5.05% 2.49% 3.83% 8.64% 57.30% Options Chain 2.25 2.45 0.03 13 61 None
32 SYY Sysco Corp 80.55 82.64 66.65 20.86% 10/03 No 2.07 2.57% 3.96% 2.99% 3.36% 15.19% 55.50% Options Chain 2.28 1.80 0.03 12 63 None
33 MDT Medtronic Plc 93.33 94.71 77.57 20.32% 9/26 No 2.81 3.06% 1.79% 0.89% 3.55% 16.48% 77.62% Options Chain 2.32 2.60 0.03 14 61 None
34 MCD McDonald`s Corp 315.76 324.48 273.39 15.50% 9/02 No 6.98 2.24% 4.42% 2.19% 7.76% 17.86% 59.76% Options Chain 6.05 8.55 0.03 10 66 None
35 PG Procter & Gamble Company 157.99 177.63 149.91 5.39% 7/18 No 4.13 2.63% 6.74% 3.32% 5.59% 8.68% 63.49% Options Chain 3.80 4.25 0.03 11 71 None
36 PAYX Paychex Inc 135.96 160.03 125.38 8.44% 7/21 Yes 4.12 2.95% 12.79% 6.20% 13.53% 24.65% 89.96% Options Chain 3.60 3.50 0.03 8 63 None
37 O Realty Income Corp 57.74 61.90 49.76 16.04% 9/02 No 3.19 5.43% 5.52% 2.73% 3.61% 3.03% 310.00% Options Chain 1.40 1.10 0.02 9 61 None
38 MAA Mid-America Apartment Communities Inc 142.30 170.00 137.32 3.63% 7/15 No 6.01 4.17% 3.06% 1.52% 10.26% 3.79% 123.77% Options Chain 2.88 3.25 0.02 11 63 None
39 EQR Equity Residential Properties Trust 64.01 76.06 58.81 8.84% 6/24 No 2.73 4.19% 4.53% 2.24% 3.54% 3.41% 102.82% Options Chain 1.28 1.43 0.02 12 64 None
40 DOC Healthpeak OP LLC 17.95 22.06 16.35 9.79% 9/19 No 2.61 14.63% 0.00% 0.00% 0.00% 0.00% 1,088.90% Options Chain 0.40 0.02 9 47 None
41 CNI Canadian National Railway Company 96.63 118.95 91.08 6.09% 9/08 No 3.46 3.61% 5.03% 2.48% 9.60% 15.33% 66.25% Options Chain 0.88 2.08 0.02 12 68 None
42 UDR UDR Inc 38.42 45.62 35.84 7.20% 7/10 No 1.71 4.32% 1.47% 0.73% 4.41% 3.57% 438.46% Options Chain 0.13 0.73 0.02 8 54 None
43 FNF Fidelity National Financial Inc 58.61 66.12 50.61 15.81% 9/16 No 1.98 3.32% 3.09% 1.53% 6.41% 2.85% 50.38% Options Chain 1.03 0.68 0.02 15 67 None
44 VICI VICI Properties Inc 33.34 34.01 27.24 22.39% 6/18 No 1.73 5.12% 2.06% 1.03% 5.81% 9.24% 66.28% Options Chain 0.13 0.55 0.02 12 79 None
45 UL Unilever plc 63.54 64.57 52.97 19.95% 8/15 No 1.99 3.14% 11.97% 5.82% 0.73% 3.75% 75.78% Options Chain 0.95 0.93 0.01 11 64 None
46 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 13 48 None