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 HUM Humana Inc 186.66 313.18 191.39 2.47% 12/26 Yes 3.54 1.80% 0.00% 0.00% 6.04% 7.72% 33.12% Options Chain 14.75 17.80 0.10 12 56 None
2 GPN Global Payments Inc 72.50 112.82 65.33 10.98% 12/12 Yes 1.00 1.40% 0.00% 0.00% 2.96% 15.02% 15.17% Options Chain 3.35 5.55 0.08 12 62 None
3 INTU Intuit Inc 487.50 810.72 520.69 6.37% 1/09 Yes 4.48 0.89% 11.11% 5.41% 14.22% 13.96% 30.77% Options Chain 35.95 35.00 0.07 10 63 None
4 ACN Accenture plc - Class A 266.79 389.59 226.59 17.74% 1/13 Yes 6.22 2.36% 7.41% 3.64% 12.78% 13.10% 51.45% Options Chain 12.55 18.95 0.07 13 63 None
5 CARR Carrier Global Corp 60.36 80.43 50.03 20.65% 1/20 Yes 0.92 1.54% 20.75% 9.89% 0.00% 15.95% 57.19% Options Chain 2.68 3.85 0.06 11 62 None
6 ZTS Zoetis Inc - Class A 124.94 174.85 114.76 8.87% 1/20 Yes 2.03 1.62% 6.00% 2.96% 13.01% 19.26% 33.33% Options Chain 5.80 7.85 0.06 14 64 None
7 EFX Equifax Inc 198.82 279.24 198.71 0.06% 11/24 Yes 1.89 0.94% 21.15% 10.07% 4.91% 6.62% 36.21% Options Chain 9.00 11.95 0.06 10 64 None
8 EOG EOG Resources Inc 108.41 131.01 98.86 9.66% 1/16 Yes 3.99 3.56% 3.42% 1.70% 7.99% 15.56% 39.62% Options Chain 5.60 5.30 0.05 13 69 None
9 AIG American International Group Inc 73.92 87.29 70.24 5.24% 12/16 Yes 1.75 2.34% 12.18% 11.80% 8.13% 4.67% 31.47% Options Chain 2.85 3.40 0.05 11 69 None
10 HD Home Depot Inc 378.13 424.01 320.39 18.02% 12/04 Yes 9.20 2.47% 2.22% 4.90% 8.66% 27.51% 62.80% Options Chain 15.53 17.35 0.05 8 67 None
11 UNM Unum Group 76.47 82.55 65.28 17.14% 1/30 Yes 1.80 2.37% 4.55% 2.25% 9.93% 5.89% 34.82% Options Chain 2.85 3.45 0.05 15 69 None
12 AJG Arthur J. Gallagher & Company 245.27 348.85 236.34 3.78% 3/06 No 2.60 1.04% 7.69% 3.77% 8.24% 11.36% 41.60% Options Chain 8.60 10.95 0.04 9 61 None
13 YUM Yum Brands Inc 155.00 161.06 126.27 22.75% 12/02 Yes 2.84 1.82% 5.97% 8.33% 9.16% 13.77% 55.36% Options Chain 5.25 6.90 0.04 8 65 None
14 COST Costco Wholesale Corp 968.36 1,072.35 842.91 14.88% 1/30 Yes 5.20 0.55% 2.77% 1.37% 10.48% 12.92% 28.21% Options Chain 38.58 42.98 0.04 15 62 None
15 CLX Clorox Company 113.29 152.78 95.60 18.50% 1/28 Yes 4.94 4.38% 0.81% 0.41% 1.46% 8.78% 75.42% Options Chain 5.00 4.40 0.04 13 50 None
16 STZ Constellation Brands Inc - Class A 155.66 192.99 125.63 23.90% 1/29 No 4.08 2.62% 0.25% 0.12% 6.60% 11.65% 63.16% Options Chain 6.45 6.65 0.04 8 68 None
17 QSR Restaurant Brands International Inc 66.98 73.05 57.09 17.32% 12/23 Yes 2.48 3.70% 6.90% 6.17% 4.00% 21.18% 87.94% Options Chain 2.23 2.68 0.04 9 69 None
18 BAH Booz Allen Hamilton Holding Corp - Class A 87.50 131.39 79.23 10.44% 2/13 No 2.20 2.49% 7.27% 3.57% 8.23% 14.94% 32.64% Options Chain 3.45 3.30 0.04 16 53 None
19 MSI Motorola Solutions Inc 403.68 489.48 359.36 12.33% 12/15 Yes 4.48 1.11% 11.17% 11.25% 11.29% 7.15% 35.96% Options Chain 15.60 15.90 0.04 10 64 None
20 CP Canadian Pacific Kansas City Ltd 75.05 83.28 66.06 13.61% 3/27 No 0.87 1.18% 4.35% 2.15% 4.66% 8.47% 26.40% Options Chain 2.08 2.93 0.04 8 60 None
21 DGX Quest Diagnostics Inc 185.00 196.65 155.09 19.29% 1/13 Yes 3.20 1.71% 1.59% 0.79% 5.33% 10.67% 36.66% Options Chain 7.00 5.65 0.04 13 71 None
22 ICE Intercontinental Exchange Inc 171.13 188.26 142.74 19.89% 12/16 Yes 1.92 1.10% 6.67% 6.90% 9.82% 12.61% 34.91% Options Chain 5.60 6.45 0.04 8 69 None
23 OMC Omnicom Group Inc 76.52 86.02 67.08 14.07% 12/19 Yes 2.90 3.75% 3.57% 1.77% 0.88% 10.42% 42.77% Options Chain 2.08 2.85 0.04 13 69 None
24 OKE Oneok Inc 75.32 99.51 64.02 17.65% 2/02 Yes 4.16 5.52% 3.88% 1.92% 3.43% 6.96% 76.47% Options Chain 2.73 1.85 0.04 14 76 None
25 DRI Darden Restaurants Inc 200.90 223.20 167.75 19.76% 1/09 Yes 5.90 2.96% 3.45% 1.71% 6.75% 13.54% 61.78% Options Chain 7.20 6.85 0.04 14 69 None
26 SYK Stryker Corp 368.14 402.95 326.90 12.62% 12/31 No 3.40 0.92% 4.94% 5.58% 7.09% 11.89% 44.74% Options Chain 13.10 11.00 0.04 9 63 None
27 VZ Verizon Communications Inc 44.61 44.63 36.64 21.75% 4/10 Yes 2.73 6.13% 3.95% 1.96% 2.41% 2.96% 67.36% Options Chain 1.40 1.55 0.03 15 73 None
28 UNP Union Pacific Corp 235.23 247.30 200.99 17.04% 12/05 No 5.44 2.31% 3.03% 2.28% 6.12% 8.29% 45.41% Options Chain 8.15 7.10 0.03 12 74 None
29 SHW Sherwin-Williams Company 356.36 378.76 306.78 16.16% 11/14 No 3.16 0.89% 10.49% 14.27% 9.48% 11.73% 30.83% Options Chain 12.10 12.30 0.03 10 62 None
30 ALL Allstate Corp (The) 200.42 215.00 173.48 15.53% 12/01 Yes 4.00 2.01% 8.70% 6.00% 5.41% 8.08% 12.97% Options Chain 4.40 6.85 0.03 13 65 None
31 ABT Abbott Laboratories 109.41 138.63 105.27 3.93% 1/15 No 2.40 2.27% 6.78% 3.33% 7.60% 8.42% 64.52% Options Chain 3.39 3.55 0.03 12 69 None
32 GIS General Mills Inc 45.59 64.14 42.19 8.06% 4/10 Yes 2.43 5.47% 0.83% 0.41% 3.82% 7.44% 52.26% Options Chain 1.45 1.15 0.03 11 63 None
33 V Visa Inc - Class A 333.84 374.10 297.38 12.26% 2/10 No 2.44 0.73% 9.84% 4.80% 14.21% 21.37% 22.91% Options Chain 10.48 10.25 0.03 11 70 None
34 CB Chubb Ltd 311.25 316.94 259.71 19.85% 12/12 Yes 3.82 1.23% 6.41% 5.84% 4.69% 12.44% 15.96% Options Chain 9.35 9.55 0.03 13 63 None
35 BRO Brown & Brown Inc 71.30 125.05 70.92 0.54% 2/04 No 0.61 0.85% 7.32% 3.59% 11.80% 10.59% 19.46% Options Chain 0.88 2.18 0.03 11 63 None
36 OTIS Otis Worldwide Corp 86.15 105.37 83.46 3.22% 2/13 No 1.65 1.92% 1.82% 0.90% 10.92% 15.72% 47.14% Options Chain 2.35 2.60 0.03 13 60 None
37 PG Procter & Gamble Company 153.19 175.15 136.65 12.10% 1/23 No 4.23 2.79% 1.20% 0.60% 4.03% 8.60% 62.63% Options Chain 3.12 4.40 0.03 8 64 None
38 WCN Waste Connections Inc 168.10 200.58 162.06 3.73% 11/05 Yes 1.29 0.77% 10.68% 11.06% 11.26% 13.88% 53.73% Options Chain 3.63 4.35 0.03 8 62 None
39 VICI VICI Properties Inc 27.95 33.01 27.19 2.80% 12/17 Yes 1.76 6.28% 4.13% 4.70% 6.34% 8.49% 67.11% Options Chain 0.18 0.65 0.02 12 77 None
40 MKC McCormick & Co. Inc (Non Voting) 61.10 84.05 59.62 2.48% 12/29 No 1.83 2.98% 7.02% 7.28% 7.12% 11.06% 62.46% Options Chain 1.38 0.70 0.02 11 63 None
41 UL Unilever plc 68.77 72.61 59.24 16.09% 11/07 Yes 2.29 3.35% 9.06% 4.74% 0.07% 4.10% 75.59% Options Chain 1.33 1.43 0.02 9 65 None
42 WM Waste Management Inc 223.16 239.91 193.36 15.41% 12/05 No 3.30 1.49% 10.00% 8.56% 9.45% 7.31% 49.48% Options Chain 3.85 3.85 0.02 10 65 None
43 MSFT Microsoft Corporation 423.37 553.50 342.95 23.45% 2/19 No 3.40 0.78% 7.06% 3.47% 9.41% 12.54% 21.25% Options Chain 15 71 None
44 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 47 None