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 between 2% and 10%, a dividend payout ratio percentage of 90% or less, a liquidity rating of 2 stars or greater, an Algorithm score of 12 or higher, have made at least 10 dividend payments over the last 5 years, and finally, the stock's current price must be within 30% or lower of its 52-week low. This report is sorted by 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 Ex-Dividend Date Trailing Annual Dividend Rate Trailing Annual Dividend Yield Percentage Dividend Payout Ratio Percentage Has Options? ATM Call Premium ATM Put Premium Liquidity Rating Algorithm Score Lists
1 MO Altria Group Inc 44.29 45.00 37.33 3/22 3.88 8.76% 81.17% Options Chain 0.76 1.02 13 None
2 EPD Enterprise Products Partners L P 28.35 29.46 23.39 4/29 2.03 7.16% 79.61% Options Chain 0.32 0.26 13 None
3 TD Toronto Dominion Bank 56.01 63.77 53.37 4/08 3.96 7.07% 85.53% Options Chain 1.00 0.98 12 None
4 RIO Rio Tinto plc 69.02 72.10 54.85 3/07 4.35 6.30% 70.50% Options Chain 1.85 2.43 14 None
5 SLF Sun Life Financial Inc 53.02 55.46 44.07 2/27 3.06 5.77% 79.48% Options Chain 0.33 15 None
6 VIV Telefonica Brasil S.A. 9.27 11.13 7.46 9/25 0.52 5.63% 87.04% Options Chain 16 None
7 KHC Kraft Heinz Company 35.89 39.27 29.99 6/06 2.00 5.57% 87.34% Options Chain 0.62 0.84 12 None
8 BMY Bristol-Myers Squibb Company 43.67 68.94 47.58 4/04 2.34 5.36% 60.62% Options Chain 1.28 1.33 12 None
9 BEN Franklin Resources Inc 23.49 29.66 21.40 3/27 1.22 5.19% 70.52% Options Chain 0.20 0.30 12 None
10 MGA Magna International Inc 47.08 63.64 45.92 5/16 2.33 4.95% 66.01% Options Chain 1.43 1.98 15 None
11 LYB LyondellBasell Industries NV - Class A 102.18 106.69 81.58 3/01 5.00 4.89% 77.16% Options Chain 1.08 1.75 13 None
12 EXC Exelon Corp 37.91 41.90 32.99 5/10 1.84 4.85% 78.97% Options Chain 0.73 1.50 13 None
13 CVS CVS Health Corp 55.74 81.71 53.70 4/19 2.54 4.56% 44.56% Options Chain 1.77 1.49 14 None
14 BP BP plc 37.57 40.40 32.41 2/15 1.71 4.54% 33.11% Options Chain 0.73 0.80 14 None
15 EOG EOG Resources Inc 130.26 138.73 102.12 7/17 5.88 4.51% 46.52% Options Chain 4.20 5.00 15
Dividend Stock List
16 ED Consolidated Edison Inc 97.50 98.12 78.98 5/14 4.09 4.19% 78.05% Options Chain 1.83 1.98 12 None
17 JNJ Johnson & Johnson 148.95 172.01 142.71 5/20 6.00 4.03% 89.15% Options Chain 2.24 1.40 16 None
18 XOM Exxon Mobil Corp 116.15 123.75 94.89 5/14 4.67 4.02% 57.23% Options Chain 2.60 2.77 12 None
19 CHK Chesapeake Energy Corp - New 88.62 93.58 72.33 5/15 3.48 3.93% 46.40% Options Chain 1.65 2.15 15 None
20 WTRG Essential Utilities Inc 38.69 42.18 31.51 5/09 1.52 3.92% 71.82% Options Chain 0.40 0.20 12 None
21 XEL Xcel Energy Inc 54.93 66.93 46.29 3/14 2.11 3.84% 63.29% Options Chain 1.53 1.65 12 None
22 NOK Nokia Corp 3.73 4.19 2.88 4/22 0.14 3.79% 88.28% Options Chain 0.07 0.08 18 None
23 HPQ HP Inc 29.44 33.00 24.77 3/12 1.08 3.66% 31.56% Options Chain 1.02 1.50 14 None
24 RPRX Royalty Pharma plc - Class A 27.99 34.14 25.54 5/16 1.02 3.64% 40.32% Options Chain 0.55 0.73 12 None
25 SWKS Skyworks Solutions Inc 93.24 114.38 83.90 5/20 3.34 3.58% 62.90% Options Chain 3.60 3.50 12 None
26 STT State Street Corp 75.32 79.18 61.67 3/28 2.70 3.58% 49.72% Options Chain 1.28 1.70 15 None
27 DRI Darden Restaurants Inc 147.03 175.37 131.20 4/09 5.24 3.56% 61.50% Options Chain 4.10 5.05 13 None
28 TEL TE Connectivity Ltd 144.80 147.98 114.01 2/21 4.96 3.43% 45.21% Options Chain 3.70 3.65 12 None
29 GIS General Mills Inc 69.53 87.77 59.28 4/09 2.36 3.39% 54.76% Options Chain 1.60 1.60 13 None
30 SYY Sysco Corp 74.62 82.37 61.44 7/05 2.51 3.36% 61.22% Options Chain 1.80 1.70 14 None
31 CSCO Cisco Systems Inc 47.28 56.86 44.32 4/03 1.57 3.32% 47.72% Options Chain 1.70 1.47 16 None
32 CINF Cincinnati Financial Corp 117.20 124.35 92.80 6/18 3.87 3.30% 25.77% Options Chain 1.80 1.80 17 None
33 CPB Campbell Soup Company 45.16 52.84 37.31 4/03 1.48 3.28% 58.04% Options Chain 1.08 1.25 12 None
34 SRE Sempra 75.23 77.11 62.68 3/20 2.40 3.20% 50.21% Options Chain 0.28 1.35 13 None
35 BKR Baker Hughes Co - Class A 31.78 37.10 26.39 5/03 1.01 3.18% 56.42% Options Chain 1.05 0.98 14 None
36 GPC Genuine Parts Company 154.35 170.35 124.63 6/07 4.85 3.14% 54.13% Options Chain 2.88 3.40 12 None
37 HSY Hershey Company 199.96 269.47 177.55 5/16 6.16 3.08% 55.70% Options Chain 5.40 5.55 12 None
38 CMCSA Comcast Corp - Class A 38.49 46.76 36.43 4/02 1.18 3.07% 31.30% Options Chain 0.83 0.78 13 None
39 GOLD Barrick Gold Corp 16.72 19.36 13.65 5/31 0.50 2.99% 60.98% Options Chain 0.54 0.79 18 None
40 HPE Hewlett Packard Enterprise Company 17.18 19.92 13.30 3/14 0.50 2.91% 34.48% Options Chain 0.95 1.03 14 None
41 TAP Molson Coors Beverage Company - Class B 58.21 69.47 54.90 2/29 1.67 2.87% 33.33% Options Chain 0.70 1.18 14 None
42 APD Air Products & Chemicals Inc 248.00 301.67 210.69 3/28 7.02 2.83% 63.41% Options Chain 5.60 7.70 12 None
43 SLB SLB 47.86 61.47 41.88 6/05 1.30 2.72% 43.33% Options Chain 1.85 1.38 13 None
44 BG Bunge Global SA 105.36 114.32 85.46 2/15 2.61 2.48% 21.07% Options Chain 3.25 2.85 15 None
45 ROK Rockwell Automation Inc 273.59 343.92 249.85 5/10 6.11 2.23% 58.14% Options Chain 5.60 6.90 12 None
46 CTSH Cognizant Technology Solutions Corp - Class A 67.66 80.09 60.28 5/17 1.47 2.17% 35.25% Options Chain 1.93 1.55 14 None
47 FMX Fomento Economico Mexicano S.A.B. de C.V. 119.92 142.11 93.77 4/16 2.59 2.16% 54.74% Options Chain 3.45 3.20 17 None