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, 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.
| 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 | INTU | Intuit Inc | 267.00 | 808.22 | 268.01 | 0.38% | 7/09 | No | 4.64 | 1.72% | 11.11% | 5.41% | 14.22% | 13.96% | 27.82% | Options Chain | 20.55 | 23.85 | 0.09 | 13 | 61 | None | |
| 2 | ACN | Accenture plc - Class A | 127.98 | 299.95 | 155.82 | 17.87% | 4/09 | No | 6.37 | 4.01% | 7.41% | 3.64% | 12.78% | 13.10% | 52.21% | Options Chain | 10.25 | 9.60 | 0.08 | 16 | 59 | None | |
| 3 | IBM | International Business Machines Corp | 249.10 | 332.46 | 212.34 | 17.31% | 5/08 | Yes | 6.73 | 2.57% | 0.75% | 0.37% | 0.64% | 4.75% | 59.61% | Options Chain | 16.95 | 18.85 | 0.08 | 13 | 72 | None | |
| 4 | KKR | KKR & Co. Inc | 97.01 | 152.85 | 82.51 | 17.57% | 5/15 | Yes | 0.75 | 0.76% | 6.85% | 3.37% | 6.34% | 0.20% | 25.51% | Options Chain | 5.40 | 6.60 | 0.07 | 10 | 64 | None | |
| 5 | MSFT | Microsoft Corporation | 379.40 | 551.05 | 355.51 | 6.72% | 8/20 | Yes | 3.56 | 0.94% | 7.06% | 3.47% | 9.41% | 12.54% | 21.22% | Options Chain | 20.25 | 24.60 | 0.06 | 15 | 72 | None | |
| 6 | HON | Honeywell International Inc | 229.01 | 246.82 | 184.82 | 23.91% | 5/15 | Yes | 4.70 | 2.06% | 3.93% | 1.95% | 4.64% | 6.13% | 75.20% | Options Chain | 10.20 | 12.80 | 0.06 | 9 | 68 | None | |
| 7 | AXP | American Express Company | 338.00 | 385.41 | 286.07 | 18.15% | 7/02 | Yes | 3.41 | 1.00% | 20.25% | 9.66% | 17.55% | 8.02% | 21.30% | Options Chain | 14.38 | 17.08 | 0.05 | 12 | 70 | None | |
| 8 | LOW | Lowe`s Cos. Inc | 222.20 | 291.66 | 203.40 | 9.24% | 7/22 | No | 4.80 | 2.14% | 6.38% | 3.14% | 7.82% | 16.42% | 40.57% | Options Chain | 7.95 | 10.65 | 0.05 | 10 | 65 | None | |
| 9 | HD | Home Depot Inc | 334.28 | 418.06 | 286.95 | 16.49% | 6/04 | No | 9.26 | 2.83% | 1.30% | 0.65% | 5.23% | 27.51% | 65.72% | Options Chain | 14.00 | 15.43 | 0.05 | 6 | 62 | None | |
| 10 | CMCSA | Comcast Corp - Class A | 22.43 | 32.98 | 23.13 | 3.03% | 7/01 | Yes | 1.32 | 5.82% | 1.54% | 0.77% | 5.64% | 28.34% | 25.88% | Options Chain | 0.75 | 1.03 | 0.05 | 12 | 59 | None | |
| 11 | NTR | Nutrien Ltd | 62.86 | 84.75 | 52.19 | 20.44% | 6/30 | No | 2.19 | 3.40% | 0.92% | 0.46% | 3.46% | 9.91% | 44.50% | Options Chain | 2.60 | 2.88 | 0.05 | 16 | 65 | None | |
| 12 | SCHW | Charles Schwab Corp | 91.70 | 106.76 | 83.96 | 9.22% | 5/08 | Yes | 1.18 | 1.29% | 18.52% | 8.87% | 11.10% | 18.32% | 22.78% | Options Chain | 3.35 | 4.19 | 0.05 | 17 | 69 | None | |
| 13 | JPM | JPMorgan Chase & Company | 325.22 | 338.09 | 266.92 | 21.84% | 7/06 | Yes | 5.90 | 1.76% | 8.11% | 3.98% | 10.67% | 5.01% | 28.24% | Options Chain | 11.28 | 14.05 | 0.04 | 11 | 77 | None | |
| 14 | MDT | Medtronic Plc | 79.34 | 104.70 | 73.31 | 8.23% | 6/26 | No | 2.84 | 3.63% | 1.77% | 0.88% | 1.91% | 16.03% | 76.14% | Options Chain | 2.69 | 3.40 | 0.04 | 12 | 65 | None | |
| 15 | T | AT&T Inc | 22.01 | 29.14 | 22.32 | 1.39% | 4/10 | Yes | 1.11 | 4.94% | 0.00% | 0.00% | -4.82% | 1.94% | 36.75% | Options Chain | 0.92 | 0.94 | 0.04 | 9 | 61 | None | |
| 16 | VZ | Verizon Communications Inc | 45.84 | 50.91 | 37.18 | 23.29% | 7/10 | Yes | 2.77 | 6.09% | 3.95% | 1.96% | 2.41% | 2.96% | 67.44% | Options Chain | 1.78 | 1.65 | 0.04 | 9 | 64 | None | |
| 17 | PG | Procter & Gamble Company | 150.38 | 166.00 | 135.63 | 10.88% | 4/24 | No | 4.26 | 2.83% | 4.24% | 2.10% | 4.80% | 8.60% | 61.90% | Options Chain | 4.53 | 5.35 | 0.04 | 9 | 65 | None | |
| 18 | COST | Costco Wholesale Corp | 951.45 | 1,096.50 | 841.69 | 13.04% | 5/01 | No | 5.37 | 0.56% | 16.21% | 7.80% | 13.93% | 12.92% | 27.01% | Options Chain | 32.08 | 33.75 | 0.04 | 13 | 59 | None | |
| 19 | V | Visa Inc - Class A | 327.24 | 357.14 | 293.28 | 11.58% | 5/12 | No | 2.60 | 0.79% | 9.84% | 4.80% | 14.21% | 21.37% | 22.69% | Options Chain | 10.48 | 11.15 | 0.03 | 11 | 70 | None | |
| 20 | KO | Coca-Cola Company | 79.39 | 83.50 | 64.04 | 23.97% | 6/15 | Yes | 2.08 | 2.60% | 3.92% | 1.94% | 4.76% | 9.24% | 65.41% | Options Chain | 2.29 | 2.46 | 0.03 | 11 | 70 | None | |
| 21 | MCD | McDonald`s Corp | 278.61 | 337.56 | 270.15 | 3.13% | 6/02 | No | 7.35 | 2.59% | 3.77% | 1.87% | 7.08% | 17.52% | 60.59% | Options Chain | 8.28 | 7.70 | 0.03 | 9 | 62 | None | |
| 22 | TRI | Thomson-Reuters Corp | 78.58 | 210.40 | 77.08 | 1.95% | 5/20 | No | 2.53 | 3.22% | 8.38% | 4.11% | 8.72% | 4.53% | 72.67% | Options Chain | 13 | 66 | None | ||||
| 23 | OTIS | Otis Worldwide Corp | 73.27 | 99.40 | 69.16 | 5.94% | 5/15 | No | 1.70 | 2.34% | 6.67% | 3.28% | 12.21% | 15.72% | 45.21% | Options Chain | 13 | 53 | None | ||||
| 24 | SYK | Stryker Corp | 307.80 | 401.86 | 281.00 | 9.54% | 6/30 | No | 3.44 | 1.12% | 3.53% | 1.75% | 5.56% | 11.89% | 39.86% | Options Chain | 11 | 63 | None | ||||
| 25 | SYY | Sysco Corp | 78.70 | 91.16 | 67.68 | 16.28% | 7/02 | No | 2.16 | 2.76% | 4.76% | 2.35% | 3.46% | 15.19% | 60.00% | Options Chain | 11 | 63 | None | ||||
| 26 | PRU | Prudential Financial Inc | 106.53 | 116.55 | 90.64 | 17.53% | 5/26 | No | 5.50 | 5.13% | 3.70% | 1.84% | 3.93% | 9.95% | 56.58% | Options Chain | 16 | 69 | None | ||||
| 27 | QSR | Restaurant Brands International Inc | 73.44 | 81.96 | 59.68 | 23.06% | 6/23 | No | 2.51 | 3.42% | 4.84% | 2.39% | 4.74% | 21.18% | 80.71% | Options Chain | 12 | 69 | None | ||||
| 28 | RMD | Resmed Inc | 188.63 | 291.57 | 180.27 | 4.64% | 5/14 | No | 2.40 | 1.27% | 6.19% | 3.05% | 8.69% | 8.60% | 23.17% | Options Chain | 21 | 62 |
Dividend Stock List |
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| 29 | RSG | Republic Services Inc | 204.94 | 248.44 | 196.41 | 4.34% | 7/02 | No | 2.46 | 1.18% | 5.71% | 2.81% | 9.02% | 12.12% | 35.07% | Options Chain | 9 | 62 | None | ||||
| 30 | NTES | NetEase Inc | 121.33 | 156.41 | 105.44 | 15.07% | 6/05 | No | 3.02 | 2.50% | -5.11% | -2.59% | 17.29% | 17.99% | 38.67% | Options Chain | 18 | 60 |
Dividend Stock List |
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| 31 | WCN | Waste Connections Inc | 153.97 | 190.36 | 146.89 | 4.82% | 5/06 | No | 1.36 | 0.89% | 8.11% | 3.98% | 10.33% | 13.88% | 33.29% | Options Chain | 9 | 65 | None | ||||
| 32 | WM | Waste Management Inc | 214.60 | 246.08 | 191.77 | 11.90% | 6/05 | No | 3.54 | 1.65% | 14.55% | 7.03% | 9.81% | 7.31% | 51.23% | Options Chain | 11 | 68 | None | ||||
| 33 | XYL | Xylem Inc | 111.42 | 152.72 | 104.88 | 6.24% | 5/28 | No | 1.66 | 1.51% | 7.50% | 3.68% | 9.42% | 11.15% | 41.29% | Options Chain | 16 | 68 | None | ||||
| 34 | YUM | Yum Brands Inc | 151.99 | 168.57 | 135.39 | 12.26% | 5/27 | No | 2.92 | 1.92% | 5.63% | 2.78% | 7.10% | 13.77% | 47.02% | Options Chain | 13 | 66 | None | ||||
| 35 | YUMC | Yum China Holdings Inc | 42.93 | 57.69 | 40.98 | 4.76% | 5/27 | No | 1.06 | 2.47% | 20.83% | 9.92% | 24.68% | 14.77% | 40.61% | Options Chain | 14 | 52 | None | ||||
| 36 | ZTS | Zoetis Inc - Class A | 78.71 | 159.30 | 72.38 | 8.75% | 7/20 | No | 2.06 | 2.62% | 6.00% | 2.96% | 13.01% | 19.26% | 33.77% | Options Chain | 12 | 56 | None | ||||
| 37 | ITW | Illinois Tool Works Inc | 264.09 | 301.25 | 233.65 | 13.03% | 6/30 | No | 6.33 | 2.42% | 3.54% | 1.75% | 6.21% | 13.46% | 58.83% | Options Chain | 11 | 65 | None | ||||
| 38 | A | Agilent Technologies Inc | 127.06 | 159.62 | 108.35 | 17.27% | 6/30 | No | 1.01 | 0.81% | 6.69% | 3.29% | 7.07% | 9.10% | 20.20% | Options Chain | 15 | 61 | None | ||||
| 39 | HIG | Hartford Financial Services Group Inc | 128.25 | 143.21 | 117.55 | 9.10% | 6/01 | No | 2.32 | 1.79% | 11.11% | 5.41% | 11.02% | 2.69% | 16.32% | Options Chain | 13 | 64 | None | ||||
| 40 | MKC | McCormick & Co. Inc (Non Voting) | 46.64 | 75.95 | 44.82 | 4.06% | 4/20 | No | 1.86 | 4.00% | 4.92% | 2.43% | 6.37% | 11.06% | 30.49% | Options Chain | 12 | 63 | None | ||||
| 41 | AJG | Arthur J. Gallagher & Company | 214.06 | 323.70 | 190.12 | 12.59% | 6/05 | No | 2.70 | 1.25% | 7.69% | 3.77% | 8.24% | 11.36% | 44.19% | Options Chain | 10 | 68 | None | ||||
| 42 | ALL | Allstate Corp (The) | 221.17 | 226.43 | 185.28 | 19.37% | 6/01 | No | 4.16 | 1.88% | 8.00% | 3.92% | 6.17% | 8.08% | 9.15% | Options Chain | 19 | 76 | None | ||||
| 43 | AVB | Avalonbay Communities Inc | 177.32 | 201.98 | 158.58 | 11.82% | 6/30 | No | 7.03 | 3.91% | 1.71% | 0.85% | 2.86% | 5.15% | 87.11% | Options Chain | 11 | 73 | None | ||||
| 44 | BDX | Becton Dickinson & Company | 143.98 | 184.86 | 125.21 | 14.99% | 6/09 | No | 4.19 | 2.96% | 0.72% | 0.36% | 4.51% | 10.49% | 73.12% | Options Chain | 11 | 63 | None | ||||
| 45 | BRO | Brown & Brown Inc | 59.10 | 110.12 | 53.81 | 9.83% | 5/11 | No | 0.65 | 1.09% | 7.32% | 3.59% | 11.80% | 10.59% | 21.01% | Options Chain | 11 | 65 | None | ||||
| 46 | CB | Chubb Ltd | 323.40 | 343.58 | 260.77 | 24.02% | 6/12 | No | 3.93 | 1.20% | 6.81% | 3.35% | 5.53% | 12.44% | 13.90% | Options Chain | 16 | 73 | None | ||||
| 47 | CINF | Cincinnati Financial Corp | 170.20 | 173.53 | 141.00 | 20.71% | 6/23 | No | 3.55 | 2.07% | 8.05% | 3.95% | 8.04% | 8.94% | 20.30% | Options Chain | 18 | 70 | None | ||||
| 48 | CTSH | Cognizant Technology Solutions Corp - Class A | 43.70 | 85.98 | 43.41 | 0.67% | 5/18 | No | 1.28 | 2.62% | 6.45% | 3.18% | 5.14% | 6.46% | 27.77% | Options Chain | 13 | 57 | None | ||||
| 49 | DGX | Quest Diagnostics Inc | 195.00 | 212.58 | 162.47 | 20.02% | 7/08 | No | 3.26 | 1.65% | 9.21% | 4.50% | 7.25% | 10.67% | 36.02% | Options Chain | 11 | 63 | None | ||||
| 50 | ECL | Ecolab Inc | 269.12 | 307.61 | 242.49 | 10.98% | 6/16 | No | 2.84 | 1.06% | 8.96% | 4.38% | 9.11% | 9.76% | 38.43% | Options Chain | 8 | 62 | None | ||||
| 51 | FAST | Fastenal Company | 45.89 | 49.83 | 38.55 | 19.04% | 4/28 | No | 0.92 | 2.05% | 9.71% | 4.74% | 11.55% | 12.78% | 81.42% | Options Chain | 14 | 54 | None |