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.



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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 TGT Target Corp 89.98 152.54 85.36 5.41% 11/12 Yes 4.50 4.84% 1.80% 1.82% 9.36% 11.28% 52.45% Options Chain 5.53 7.00 0.08 13 66 None
2 OC Owens Corning 122.72 210.45 122.13 0.48% 10/20 Yes 2.76 2.21% 15.00% 15.19% 27.63% 15.74% 33.78% Options Chain 8.05 8.70 0.07 13 73 None
3 ACN Accenture plc - Class A 242.90 391.86 227.92 6.57% 10/10 Yes 6.07 2.43% 13.46% 14.25% 13.87% 13.10% 50.00% Options Chain 13.80 16.90 0.07 16 66 None
4 GPN Global Payments Inc 79.96 118.69 65.53 22.02% 9/12 No 1.00 1.29% 0.00% 0.00% 2.96% 15.76% 17.04% Options Chain 4.80 4.45 0.06 14 72 None
5 HPQ HP Inc 25.94 38.25 20.76 24.95% 9/10 Yes 1.16 4.18% 3.71% 1.84% 8.63% 10.23% 42.09% Options Chain 1.38 1.49 0.06 13 50 None
6 OXY Occidental Petroleum Corp 40.08 52.36 34.41 16.48% 9/10 Yes 0.94 2.31% 9.09% 4.45% 121.34% -0.92% 55.29% Options Chain 1.93 2.29 0.06 7 64 None
7 DRI Darden Restaurants Inc 180.22 224.86 153.27 17.58% 10/10 Yes 5.80 3.25% 7.01% 7.28% 13.87% 13.54% 62.23% Options Chain 8.60 10.05 0.06 14 70 None
8 BAH Booz Allen Hamilton Holding Corp - Class A 85.46 187.12 82.23 3.93% 11/14 No 2.16 2.48% 7.84% 8.18% 10.42% 14.94% 32.93% Options Chain 4.75 4.60 0.06 15 59 None
9 ZBH Zimmer Biomet Holdings Inc 103.18 113.87 88.77 16.23% 9/30 No 0.96 0.96% 0.00% 0.00% 0.00% 2.43% 23.41% Options Chain 4.30 5.60 0.05 9 64 None
10 CMCSA Comcast Corp - Class A 27.44 43.57 25.75 6.56% 1/14 No 1.30 4.67% 8.20% 4.02% 7.73% 28.34% 21.59% Options Chain 1.38 1.43 0.05 13 58 None
11 SBAC SBA Communications Corp - Class A 196.20 242.78 185.45 5.80% 8/21 Yes 4.31 2.25% 13.27% 6.43% 17.62% 20.49% 52.95% Options Chain 8.90 10.20 0.05 13 60 None
12 STZ Constellation Brands Inc - Class A 129.18 239.24 127.00 1.72% 10/30 No 4.07 3.16% 3.83% 8.30% 7.66% 11.65% 59.24% Options Chain 6.60 6.20 0.05 9 69 None
13 GIS General Mills Inc 46.38 65.70 45.94 0.96% 10/10 Yes 2.42 5.19% 1.68% 3.48% 4.36% 7.44% 45.75% Options Chain 1.63 2.33 0.05 13 63 None
14 KR Kroger Company 63.76 74.52 55.12 15.67% 11/14 Yes 1.31 2.06% 9.84% 10.37% 14.49% 12.45% 33.25% Options Chain 2.63 3.16 0.05 15 59 None
15 OMC Omnicom Group Inc 73.54 103.30 67.75 8.55% 9/02 No 2.80 3.73% 0.00% 0.00% 0.00% 10.60% 41.30% Options Chain 2.13 3.45 0.05 15 71 None
16 BRO Brown & Brown Inc 78.99 125.31 76.96 2.64% 11/05 No 0.60 0.75% 13.89% 13.79% 12.79% 10.59% 18.18% Options Chain 2.90 3.70 0.05 10 65 None
17 CTSH Cognizant Technology Solutions Corp - Class A 72.81 89.77 64.98 12.05% 11/18 No 1.23 1.70% 3.33% 3.39% 6.61% 6.46% 28.47% Options Chain 3.38 3.00 0.05 16 63 None
18 MRK Merck & Co Inc 83.86 101.32 71.87 16.68% 9/15 No 3.24 3.77% 3.85% 1.90% 5.25% 9.17% 42.86% Options Chain 2.68 3.88 0.05 16 73 None
19 SLB SLB 36.12 43.66 30.61 18.00% 12/03 No 1.13 3.11% 3.64% 6.77% 22.88% 3.48% 43.97% Options Chain 1.67 1.61 0.05 12 69 None
20 CARR Carrier Global Corp 57.55 80.78 53.68 7.21% 10/29 No 0.90 1.51% 13.21% 6.40% 0.00% 15.95% 56.25% Options Chain 1.98 2.65 0.05 12 63 None
21 AJG Arthur J. Gallagher & Company 251.70 349.78 239.47 5.11% 12/05 No 2.55 1.02% 8.33% 8.71% 7.87% 11.36% 38.64% Options Chain 11.50 10.30 0.05 10 65 None
22 RMD Resmed Inc 246.40 293.81 199.07 23.78% 11/13 No 2.19 0.87% 11.88% 10.83% 8.68% 8.60% 22.39% Options Chain 8.00 11.25 0.05 20 59
Dividend Stock List
23 CTRA Coterra Energy Inc 25.85 29.29 22.06 17.18% 8/14 Yes 0.87 3.72% 4.76% 2.35% 9.15% 13.36% 41.63% Options Chain 0.95 1.18 0.05 14 70 None
24 ZTS Zoetis Inc - Class A 124.46 179.46 138.28 9.99% 10/31 Yes 2.00 1.39% 15.74% 15.47% 18.92% 19.26% 34.42% Options Chain 5.65 5.10 0.05 12 61 None
25 TW Tradeweb Markets Inc Cls A 104.85 152.38 101.70 3.10% 12/01 No 0.46 0.44% 20.00% 15.47% 10.67% 8.45% 15.70% Options Chain 4.75 3.85 0.05 13 62 None
26 COP Conoco Phillips 87.91 112.56 78.56 11.90% 8/18 Yes 3.12 3.54% 0.00% 0.00% 12.47% 5.93% 41.82% Options Chain 3.88 3.78 0.04 11 76 None
27 AMGN AMGEN Inc 296.70 330.26 247.06 20.09% 11/21 No 9.39 3.15% 5.78% 2.85% 7.84% 16.50% 76.78% Options Chain 11.88 13.00 0.04 12 72 None
28 EQNR Equinor ASA 23.97 27.84 20.38 17.62% 11/14 No 1.44 6.01% 8.15% 15.21% 27.07% 4.93% 67.29% Options Chain 0.83 1.05 0.04 12 63 None
29 KDP Keurig Dr Pepper Inc 26.46 35.62 25.03 5.71% 9/26 No 0.92 3.39% 5.14% 6.25% 8.05% 0.16% 79.31% Options Chain 0.78 1.15 0.04 10 61 None
30 COST Costco Wholesale Corp 940.74 1,073.82 868.14 8.36% 10/31 No 5.06 0.55% 12.44% 13.04% 13.31% 12.92% 27.77% Options Chain 36.13 40.80 0.04 14 61 None
31 YUMC Yum China Holdings Inc 44.82 53.40 40.55 10.53% 9/02 Yes 0.88 2.01% 50.00% 22.47% 18.92% 8.79% 36.36% Options Chain 1.93 1.70 0.04 17 56 None
32 BDX Becton Dickinson & Company 179.04 248.00 161.47 10.88% 9/08 Yes 4.16 2.33% 6.94% 3.41% 5.48% 10.58% 76.19% Options Chain 7.25 7.60 0.04 13 61 None
33 MKC McCormick & Co. Inc (Non Voting) 64.02 84.64 63.15 1.38% 10/14 No 1.80 2.81% 5.26% 2.60% 6.68% 11.16% 62.50% Options Chain 2.00 2.70 0.04 11 61 None
34 QSR Restaurant Brands International Inc 66.23 71.08 57.60 14.98% 12/23 Yes 2.44 3.64% 6.90% 6.17% 4.00% 21.18% 86.52% Options Chain 1.70 2.68 0.04 9 69 None
35 LMT Lockheed Martin Corp 484.98 560.63 407.12 19.12% 12/01 No 13.20 2.68% 4.71% 4.82% 5.94% 10.31% 73.54% Options Chain 15.25 19.35 0.04 11 68 None
36 DPZ Dominos Pizza Inc 406.88 495.24 392.47 3.67% 12/15 No 6.73 1.67% 15.23% 19.92% 16.64% 22.63% 39.29% Options Chain 14.00 16.20 0.04 12 52 None
37 MDT Medtronic Plc 90.42 99.37 76.99 17.44% 9/26 Yes 2.82 3.11% 1.79% 0.89% 3.55% 16.48% 77.90% Options Chain 2.78 3.57 0.04 15 62 None
38 TSCO Tractor Supply Company 53.05 63.75 46.46 14.18% 8/25 No 0.91 1.68% 4.55% 2.25% 21.95% 27.92% 43.96% Options Chain 1.95 2.08 0.04 9 61 None
39 CNI Canadian National Railway Company 95.76 111.36 90.48 5.84% 12/09 No 3.51 3.76% 5.03% 5.99% 9.60% 14.96% 67.71% Options Chain 3.70 3.00 0.04 12 68 None
40 SSNC SS&C Technologies Holdings Inc 85.72 90.79 69.18 23.91% 9/02 No 1.02 1.22% 10.20% 4.98% 12.26% 16.39% 30.27% Options Chain 1.43 3.30 0.04 12 63 None
41 MET Metlife Inc 79.46 87.16 64.24 23.69% 11/04 Yes 2.25 2.82% 4.29% 4.45% 4.29% 6.89% 38.16% Options Chain 2.93 3.05 0.04 18 71 None
42 AON Aon plc. - Class A 344.21 410.34 321.67 7.01% 11/03 No 2.84 0.83% 10.23% 10.00% 9.97% 5.70% 23.93% Options Chain 8.85 13.20 0.04 10 68 None
43 XOM Exxon Mobil Corp 114.14 119.89 96.01 18.88% 11/14 No 3.96 3.45% 4.17% 4.26% 3.47% 5.76% 56.25% Options Chain 3.60 4.30 0.04 11 75 None
44 PRU Prudential Financial Inc 105.04 125.75 88.12 19.20% 8/19 No 5.35 5.19% 3.85% 1.90% 4.09% 10.52% 73.29% Options Chain 3.50 3.95 0.04 17 70 None
45 V Visa Inc - Class A 340.30 374.85 297.98 14.20% 11/12 No 2.36 0.68% 13.49% 14.23% 16.27% 21.37% 23.16% Options Chain 11.40 12.70 0.04 9 70 None
46 HON Honeywell International Inc 196.46 215.77 159.42 23.23% 11/14 No 4.52 2.25% 4.81% 4.80% 4.99% 6.13% 47.68% Options Chain 7.05 5.55 0.04 15 68 None
47 MMC Marsh & McLennan Cos. Inc 180.50 245.83 174.18 3.63% 10/02 No 3.43 1.93% 12.46% 14.86% 14.44% 6.97% 41.13% Options Chain 6.35 5.15 0.04 13 68 None
48 CL Colgate-Palmolive Company 76.55 98.37 74.55 2.68% 10/17 No 2.06 2.67% 4.04% 3.85% 3.57% 8.52% 57.87% Options Chain 2.68 2.15 0.04 12 58 None
49 UNP Union Pacific Corp 220.91 252.32 202.16 9.27% 8/29 No 5.40 2.47% 4.55% 2.25% 6.51% 8.43% 45.80% Options Chain 7.70 6.60 0.03 13 64 None
50 VZ Verizon Communications Inc 39.32 45.09 35.79 9.86% 10/10 No 2.72 6.99% 1.87% 1.89% 1.93% 2.96% 58.05% Options Chain 0.89 1.34 0.03 15 65 None
51 CLX Clorox Company 110.42 165.17 108.93 1.37% 10/22 Yes 4.92 4.37% 1.65% 1.67% 2.03% 8.78% 75.46% Options Chain 2.38 3.75 0.03 15 59 None
52 DGX Quest Diagnostics Inc 178.03 197.55 146.30 21.69% 10/03 No 3.15 1.79% 6.42% 6.26% 6.81% 10.67% 37.02% Options Chain 4.55 5.90 0.03 13 70 None
53 MCD McDonald`s Corp 299.21 322.66 271.86 10.06% 12/01 Yes 7.08 2.37% 5.75% 7.28% 8.10% 17.52% 60.67% Options Chain 8.88 9.88 0.03 11 66 None
54 MO Altria Group Inc 57.31 67.51 47.59 20.42% 9/15 No 4.12 7.31% 6.00% 2.96% 4.76% 8.12% 78.63% Options Chain 1.65 1.86 0.03 12 66 None
55 WM Waste Management Inc 200.68 240.84 194.11 3.38% 9/12 No 3.23 1.61% 10.00% 4.88% 9.45% 7.18% 50.79% Options Chain 6.35 5.55 0.03 12 68 None
56 ECL Ecolab Inc 258.66 285.35 220.55 17.28% 9/16 No 2.60 1.01% 10.17% 4.96% 7.46% 9.66% 37.46% Options Chain 7.25 8.15 0.03 11 63 None
57 WCN Waste Connections Inc 168.73 201.00 164.37 2.65% 11/05 No 1.26 0.74% 10.68% 11.06% 11.26% 13.88% 52.72% Options Chain 3.55 5.30 0.03 8 63 None
58 VICI VICI Properties Inc 30.25 33.54 26.86 12.62% 9/18 No 1.75 5.92% 6.19% 3.05% 6.87% 9.24% 66.44% Options Chain 0.95 0.80 0.03 12 79 None
59 ABT Abbott Laboratories 125.80 139.33 109.21 15.19% 10/15 No 2.36 1.92% 7.27% 7.56% 7.01% 8.42% 29.65% Options Chain 3.29 3.93 0.03 15 63 None
60 SCI Service Corp International 81.62 87.99 71.18 14.67% 9/15 No 1.26 1.50% 6.67% 3.28% 9.82% 8.83% 33.96% Options Chain 1.60 2.53 0.03 8 63 None
61 LIN Linde Plc. 417.94 484.83 406.06 2.93% 12/03 No 5.89 1.41% 7.91% 8.47% 9.07% 12.85% 39.45% Options Chain 11.40 12.50 0.03 12 70 None
62 YUM Yum Brands Inc 149.55 161.70 120.37 24.24% 9/02 Yes 2.80 2.01% 5.97% 2.94% 9.16% 14.20% 55.23% Options Chain 4.40 4.45 0.03 10 65 None
63 SYY Sysco Corp 73.10 83.12 66.22 10.39% 10/03 No 2.10 2.81% 3.96% 2.99% 3.36% 15.19% 56.30% Options Chain 1.50 2.10 0.03 11 62 None
64 GRMN Garmin Ltd 205.45 261.69 167.87 22.39% 3/13 No 3.30 1.54% 20.81% 9.91% 8.27% 5.36% 40.69% Options Chain 5.90 5.80 0.03 18 64
Dividend Stock List
65 RSG Republic Services Inc 207.74 257.43 197.66 5.10% 1/02 No 2.37 1.13% 21.36% 10.16% 10.78% 12.12% 35.14% Options Chain 5.45 5.95 0.03 12 66 None
66 CTVA Corteva Inc 62.50 77.22 53.14 17.61% 12/01 Yes 0.69 1.12% 6.06% 6.26% 6.70% 6.13% 31.80% Options Chain 1.55 1.78 0.03 14 65 None
67 UNM Unum Group 78.20 83.05 65.68 19.06% 10/24 Yes 1.76 2.39% 12.10% 12.52% 10.75% 5.89% 21.10% Options Chain 2.20 2.20 0.03 16 71 None
68 HIG Hartford Financial Services Group Inc 127.94 135.17 103.64 23.45% 12/01 No 2.08 1.67% 11.92% 11.26% 10.76% 2.69% 17.02% Options Chain 3.50 2.13 0.03 19 73 None
69 CB Chubb Ltd 285.65 304.83 249.66 14.42% 9/12 No 3.76 1.36% 8.08% 3.96% 5.10% 12.67% 15.71% Options Chain 7.80 7.25 0.03 16 72 None
70 PCAR Paccar Inc 96.92 114.66 84.08 15.27% 11/12 No 3.99 4.04% 12.82% 12.66% 10.25% 9.75% 78.24% Options Chain 2.60 2.60 0.03 11 70 None
71 CVX Chevron Corp 153.39 165.09 129.01 18.90% 8/19 No 6.76 4.40% 4.91% 2.42% 6.53% 6.15% 87.00% Options Chain 3.80 3.90 0.03 10 74 None
72 T AT&T Inc 24.44 29.47 20.72 17.95% 10/10 No 1.11 4.50% 0.00% 0.00% -14.53% 1.94% 36.16% Options Chain 0.62 0.57 0.03 14 69 None
73 ICE Intercontinental Exchange Inc 146.98 188.82 141.12 4.15% 12/16 No 1.89 1.29% 6.67% 6.90% 9.82% 12.61% 34.43% Options Chain 3.40 3.50 0.02 9 71 None
74 ITW Illinois Tool Works Inc 244.92 273.07 212.05 15.50% 12/31 No 6.11 2.50% 7.24% 7.13% 7.14% 13.46% 59.21% Options Chain 5.55 4.55 0.02 13 64 None
75 SYK Stryker Corp 362.61 403.95 327.71 10.65% 9/30 No 3.36 0.91% 3.70% 1.84% 6.78% 12.41% 44.09% Options Chain 7.65 8.20 0.02 9 65 None
76 MAS Masco Corp 63.00 81.95 56.02 12.46% 11/07 No 1.22 1.88% 6.90% 4.29% 10.06% 5.52% 31.20% Options Chain 1.28 1.30 0.02 12 53 None
77 UL Unilever plc 60.81 65.01 52.97 14.80% 11/07 No 1.99 3.26% 9.06% 4.74% 0.07% 4.10% 76.07% Options Chain 0.95 1.25 0.02 9 64 None
78 TTE TotalEnergies SE 61.25 63.88 50.30 21.77% 3/31 No 3.66 5.94% 6.01% 8.46% -3.41% 1.07% 59.12% Options Chain 1.25 1.20 0.02 14 71 None
79 PG Procter & Gamble Company 147.17 176.39 145.95 0.84% 10/24 No 4.18 2.79% 5.47% 5.74% 5.28% 8.60% 60.89% Options Chain 3.00 2.73 0.02 12 64 None
80 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