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 | CMCSA | Comcast Corp - Class A | 30.27 | 37.31 | 25.75 | 17.55% | 1/14 | Yes | 1.30 | 4.29% | 8.20% | 4.02% | 7.73% | 28.34% | 21.59% | Options Chain | 1.18 | 1.77 | 0.06 | 13 | 64 | None | |
| 2 | STZ | Constellation Brands Inc - Class A | 136.81 | 223.40 | 126.45 | 8.19% | 10/30 | Yes | 4.07 | 2.97% | 3.83% | 8.30% | 7.66% | 11.65% | 59.24% | Options Chain | 6.75 | 7.95 | 0.06 | 6 | 61 | None | |
| 3 | PGR | Progressive Corp | 224.86 | 292.65 | 199.90 | 12.49% | 1/02 | No | 4.90 | 2.18% | 4,630.43% | 587.78% | 70.75% | 39.19% | 26.89% | Options Chain | 3.90 | 11.55 | 0.05 | 16 | 74 | None | |
| 4 | CF | CF Industries Holdings Inc | 78.29 | 103.22 | 66.16 | 18.33% | 11/14 | No | 2.00 | 2.55% | 0.00% | 11.80% | 13.62% | 28.93% | 24.18% | Options Chain | 3.40 | 2.98 | 0.04 | 14 | 73 | None | |
| 5 | ACN | Accenture plc - Class A | 272.25 | 391.86 | 227.92 | 19.45% | 10/10 | No | 6.07 | 2.23% | 13.46% | 14.25% | 13.87% | 13.10% | 49.96% | Options Chain | 8.60 | 11.20 | 0.04 | 15 | 65 | None | |
| 6 | LMT | Lockheed Martin Corp | 470.14 | 512.11 | 404.05 | 16.36% | 12/01 | Yes | 13.35 | 2.84% | 4.71% | 4.82% | 5.94% | 10.31% | 74.41% | Options Chain | 16.95 | 18.40 | 0.04 | 11 | 69 | None | |
| 7 | EOG | EOG Resources Inc | 102.61 | 134.20 | 99.80 | 2.82% | 1/16 | No | 3.94 | 3.84% | 12.09% | 5.87% | 26.12% | 15.56% | 39.18% | Options Chain | 3.70 | 3.85 | 0.04 | 14 | 77 | None | |
| 8 | LOW | Lowe`s Cos. Inc | 247.71 | 273.63 | 203.22 | 21.89% | 1/21 | No | 4.70 | 1.90% | 6.67% | 3.28% | 14.42% | 16.42% | 38.91% | Options Chain | 5.40 | 8.98 | 0.04 | 9 | 62 | None | |
| 9 | MA | Mastercard Incorporated - Class A | 566.21 | 600.98 | 463.61 | 22.13% | 1/09 | Yes | 3.04 | 0.54% | 31.82% | 14.81% | 18.58% | 25.10% | 19.45% | Options Chain | 17.98 | 18.90 | 0.03 | 9 | 62 | None | |
| 10 | HD | Home Depot Inc | 354.99 | 424.01 | 320.39 | 10.80% | 12/04 | No | 9.20 | 2.58% | 2.22% | 4.90% | 8.66% | 27.51% | 62.76% | Options Chain | 11.63 | 11.65 | 0.03 | 7 | 60 | None | |
| 11 | UNP | Union Pacific Corp | 234.42 | 250.85 | 200.99 | 16.63% | 12/05 | Yes | 5.44 | 2.32% | 3.03% | 2.28% | 6.12% | 8.29% | 45.45% | Options Chain | 7.40 | 6.75 | 0.03 | 10 | 63 | None | |
| 12 | XOM | Exxon Mobil Corp | 116.54 | 120.47 | 95.18 | 22.44% | 11/14 | Yes | 4.00 | 3.43% | 4.17% | 4.26% | 3.47% | 5.76% | 56.82% | Options Chain | 3.12 | 3.65 | 0.03 | 9 | 67 | None | |
| 13 | MO | Altria Group Inc | 58.39 | 67.51 | 47.59 | 22.69% | 12/26 | Yes | 4.12 | 6.96% | 4.00% | 4.08% | 4.26% | 8.01% | 78.63% | Options Chain | 1.32 | 1.82 | 0.03 | 9 | 60 | None | |
| 14 | PG | Procter & Gamble Company | 145.52 | 176.39 | 138.14 | 5.34% | 10/24 | Yes | 4.18 | 2.87% | 5.47% | 5.74% | 5.28% | 8.60% | 59.84% | Options Chain | 3.48 | 4.40 | 0.03 | 12 | 64 | None | |
| 15 | V | Visa Inc - Class A | 346.01 | 374.10 | 297.38 | 16.35% | 11/12 | No | 2.44 | 0.70% | 13.49% | 14.23% | 16.27% | 21.37% | 23.95% | Options Chain | 9.83 | 0.03 | 9 | 64 | None | ||
| 16 | COST | Costco Wholesale Corp | 857.59 | 1,073.82 | 868.14 | 1.22% | 10/31 | Yes | 5.06 | 0.59% | 12.44% | 13.04% | 13.31% | 12.92% | 27.73% | Options Chain | 23.88 | 24.30 | 0.03 | 14 | 59 | None | |
| 17 | HON | Honeywell International Inc | 198.08 | 225.21 | 166.26 | 19.14% | 11/14 | No | 4.58 | 2.29% | 4.81% | 4.80% | 4.99% | 6.13% | 47.31% | Options Chain | 5.35 | 4.65 | 0.03 | 14 | 68 | None | |
| 18 | CTRA | Coterra Energy Inc | 25.43 | 29.04 | 21.87 | 16.28% | 11/13 | No | 0.88 | 3.46% | 4.76% | -13.27% | 9.15% | 13.10% | 40.74% | Options Chain | 0.63 | 0.65 | 0.03 | 11 | 60 | None | |
| 19 | MCD | McDonald`s Corp | 319.65 | 321.79 | 270.24 | 18.28% | 12/01 | No | 7.17 | 2.25% | 5.75% | 7.28% | 8.10% | 17.52% | 60.30% | Options Chain | 5.38 | 7.53 | 0.02 | 9 | 65 | None | |
| 20 | DRI | Darden Restaurants Inc | 192.88 | 224.86 | 169.00 | 14.13% | 1/09 | No | 5.80 | 3.01% | 10.70% | 5.21% | 14.84% | 13.54% | 60.86% | Options Chain | 11 | 63 | None | ||||
| 21 | ICE | Intercontinental Exchange Inc | 160.07 | 188.26 | 140.70 | 13.77% | 12/16 | No | 1.92 | 1.19% | 6.67% | 6.90% | 9.82% | 12.61% | 34.97% | Options Chain | 8 | 65 | None | ||||
| 22 | 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 | |
| 23 | LIN | Linde Plc. | 418.99 | 483.05 | 387.78 | 8.05% | 12/03 | No | 6.00 | 1.43% | 7.91% | 8.47% | 9.07% | 12.85% | 40.16% | Options Chain | 9 | 64 | None | ||||
| 24 | CP | Canadian Pacific Kansas City Ltd | 74.21 | 83.46 | 66.20 | 12.10% | 12/31 | No | 0.84 | 1.13% | 15.00% | 7.24% | 3.56% | 8.47% | 24.73% | Options Chain | 10 | 67 | None | ||||
| 25 | CLX | Clorox Company | 99.39 | 158.46 | 98.20 | 1.21% | 1/28 | No | 4.92 | 4.95% | 2.48% | 1.23% | 2.24% | 8.78% | 77.24% | Options Chain | 13 | 53 | None | ||||
| 26 | AJG | Arthur J. Gallagher & Company | 252.64 | 348.85 | 236.34 | 6.90% | 12/05 | No | 2.60 | 1.03% | 8.33% | 8.71% | 7.87% | 11.36% | 41.47% | Options Chain | 10 | 65 | None | ||||
| 27 | ALL | Allstate Corp (The) | 206.00 | 214.88 | 173.06 | 19.03% | 12/01 | No | 4.00 | 1.94% | 8.70% | 6.00% | 5.41% | 8.08% | 12.97% | Options Chain | 19 | 75 | None | ||||
| 28 | AVB | Avalonbay Communities Inc | 179.13 | 224.32 | 166.73 | 7.44% | 12/31 | No | 6.95 | 3.88% | 2.94% | 2.99% | 2.43% | 5.15% | 84.86% | Options Chain | 12 | 68 | None | ||||
| 29 | BAH | Booz Allen Hamilton Holding Corp - Class A | 85.26 | 143.80 | 79.23 | 7.61% | 11/14 | No | 2.20 | 2.58% | 7.84% | 8.18% | 10.42% | 14.94% | 33.54% | Options Chain | 15 | 60 | None | ||||
| 30 | BCE | BCE Inc | 22.84 | 25.34 | 19.48 | 17.25% | 12/15 | No | 2.31 | 10.11% | -42.11% | -22.74% | -9.87% | 2.64% | 47.83% | Options Chain | 14 | 65 | None | ||||
| 31 | BDX | Becton Dickinson & Company | 194.70 | 246.65 | 160.60 | 21.23% | 12/08 | No | 4.17 | 2.14% | 7.20% | 6.45% | 5.55% | 10.49% | 71.65% | Options Chain | 11 | 61 | None | ||||
| 32 | CARR | Carrier Global Corp | 53.20 | 80.78 | 50.30 | 5.77% | 1/20 | No | 0.90 | 1.69% | 6.71% | 11.89% | 0.00% | 15.95% | 56.25% | Options Chain | 12 | 62 | None | ||||
| 33 | CB | Chubb Ltd | 310.96 | 313.46 | 248.87 | 24.95% | 12/12 | No | 3.82 | 1.23% | 6.41% | 5.84% | 4.69% | 12.44% | 15.96% | Options Chain | 16 | 73 | None | ||||
| 34 | VICI | VICI Properties Inc | 28.10 | 33.01 | 26.43 | 6.32% | 12/17 | No | 1.76 | 6.28% | 4.13% | 4.70% | 6.34% | 8.49% | 66.86% | Options Chain | 13 | 79 | None | ||||
| 35 | TW | Tradeweb Markets Inc Cls A | 103.46 | 152.21 | 101.59 | 1.84% | 12/01 | No | 0.48 | 0.46% | 20.00% | 15.47% | 10.67% | 8.45% | 16.38% | Options Chain | 13 | 62 | None | ||||
| 36 | UL | Unilever plc | 65.20 | 72.61 | 59.24 | 10.06% | 11/07 | No | 2.29 | 3.52% | 9.06% | 4.74% | 0.07% | 4.10% | 77.64% | Options Chain | 10 | 65 | None | ||||
| 37 | WM | Waste Management Inc | 218.32 | 239.91 | 193.36 | 12.91% | 12/05 | No | 3.30 | 1.52% | 10.00% | 8.56% | 9.45% | 7.31% | 51.89% | Options Chain | 10 | 67 | None | ||||
| 38 | YUMC | Yum China Holdings Inc | 48.41 | 53.13 | 40.35 | 19.98% | 12/02 | No | 0.96 | 1.98% | 50.00% | 35.87% | 18.92% | 14.77% | 39.83% | Options Chain | 13 | 55 | None | ||||
| 39 | ZBH | Zimmer Biomet Holdings Inc | 89.13 | 113.87 | 85.33 | 4.45% | 12/30 | No | 0.96 | 1.08% | 0.00% | 0.00% | 0.00% | 2.24% | 23.82% | Options Chain | 10 | 62 | None | ||||
| 40 | ZTS | Zoetis Inc - Class A | 122.24 | 175.60 | 115.25 | 6.07% | 1/20 | No | 2.00 | 1.64% | 22.69% | 10.76% | 20.67% | 19.26% | 33.96% | Options Chain | 14 | 64 | None | ||||
| 41 | SYK | Stryker Corp | 353.11 | 403.95 | 327.71 | 7.75% | 12/31 | No | 3.36 | 0.95% | 4.94% | 5.58% | 7.09% | 11.89% | 44.09% | Options Chain | 9 | 66 | None | ||||
| 42 | QSR | Restaurant Brands International Inc | 69.91 | 73.70 | 57.60 | 21.37% | 12/23 | No | 2.44 | 3.48% | 6.90% | 6.17% | 4.00% | 21.18% | 86.52% | Options Chain | 8 | 69 | None | ||||
| 43 | RMD | Resmed Inc | 242.55 | 293.11 | 198.60 | 22.13% | 11/13 | No | 2.26 | 0.92% | 11.88% | 10.83% | 8.68% | 8.60% | 23.27% | Options Chain | 20 | 61 |
Dividend Stock List |
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| 44 | MSI | Motorola Solutions Inc | 373.74 | 489.48 | 359.36 | 4.00% | 12/15 | No | 4.48 | 1.20% | 11.17% | 11.25% | 11.29% | 7.15% | 36.01% | Options Chain | 11 | 65 | None | ||||
| 45 | OKE | Oneok Inc | 71.69 | 105.47 | 64.02 | 11.98% | 11/03 | No | 4.12 | 5.75% | 4.04% | 3.85% | 2.45% | 6.96% | 75.74% | Options Chain | 14 | 75 | None | ||||
| 46 | OMC | Omnicom Group Inc | 81.66 | 87.40 | 67.75 | 20.53% | 12/19 | No | 2.90 | 3.61% | 3.57% | 1.77% | 0.88% | 10.42% | 42.77% | Options Chain | 11 | 62 | None | ||||
| 47 | MMC | Marsh & McLennan Cos. Inc | 185.73 | 245.83 | 174.18 | 6.63% | 10/02 | No | 3.43 | 1.85% | 12.46% | 14.86% | 14.44% | 6.97% | 41.08% | Options Chain | 12 | 70 | None | ||||
| 48 | MAS | Masco Corp | 65.11 | 80.67 | 55.74 | 16.81% | 11/07 | No | 1.24 | 1.90% | 6.90% | 4.29% | 10.06% | 5.52% | 31.71% | Options Chain | 12 | 54 | None |