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 greater than or equal to 2%, 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. 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 APO Apollo Global Management Inc 100.25 155.46 99.56 0.69% 2/19 No 2.04 2.03% 2.38% 1.18% 6.26% 16.29% 36.82% Options Chain 7.65 8.90 0.09 13 64 None
2 ACN Accenture plc - Class A 197.20 320.13 188.73 4.49% 1/13 Yes 6.22 3.15% 7.41% 3.64% 12.78% 13.10% 51.36% Options Chain 14.65 16.35 0.08 16 68 None
3 NTR Nutrien Ltd 85.85 85.36 44.54 92.75% 3/31 No 2.18 2.54% 0.92% 0.46% 3.46% 9.91% 46.78% Options Chain 5.30 6.90 0.08 15 72 None
4 IBM International Business Machines Corp 247.68 323.06 209.30 18.34% 2/10 Yes 6.72 2.71% 0.15% 0.07% 0.49% 4.75% 60.38% Options Chain 13.90 19.08 0.08 14 74 None
5 FHN First Horizon Corporation 22.17 26.36 14.77 50.10% 3/13 Yes 0.62 2.80% 13.33% 6.46% 3.18% 3.95% 33.16% Options Chain 1.18 1.68 0.08 15 68 None
6 SLB SLB 44.56 52.45 30.19 47.60% 2/11 Yes 1.15 2.57% 3.51% 1.74% 16.08% 3.48% 48.94% Options Chain 2.65 3.26 0.07 8 60 None
7 BBY Best Buy Co. Inc 62.86 83.88 52.85 18.94% 3/24 No 3.80 6.05% 1.05% 0.52% 2.20% 14.06% 77.39% Options Chain 3.80 4.30 0.07 14 48 None
8 NXPI NXP Semiconductors NV 191.22 256.36 146.07 30.91% 3/25 No 4.06 2.12% 0.00% 0.00% 4.66% 21.67% 50.95% Options Chain 10.55 13.05 0.07 9 66 None
9 PSX Phillips 66 174.09 178.38 87.79 98.30% 2/23 Yes 4.87 2.77% 6.95% 3.42% 7.32% 11.21% 45.13% Options Chain 10.35 11.80 0.07 16 71 None
10 CTRA Coterra Energy Inc 31.98 32.43 21.72 47.24% 3/11 No 0.88 2.75% 0.00% 0.00% -22.90% 13.10% 39.29% Options Chain 1.85 2.10 0.07 15 70 None
11 EOG EOG Resources Inc 133.04 134.36 98.86 34.57% 4/16 Yes 3.99 3.00% 3.42% 1.70% 7.99% 15.56% 43.75% Options Chain 7.50 8.40 0.06 10 66 None
12 FITB Fifth Third Bancorp 43.59 55.44 31.41 38.78% 12/31 Yes 1.54 3.53% 6.94% 6.41% 7.81% 8.25% 43.63% Options Chain 2.35 2.68 0.06 10 73 None
13 USB U.S. Bancorp. 51.48 61.19 34.10 50.97% 12/31 Yes 2.04 3.96% 1.96% 0.98% 2.56% 8.74% 44.16% Options Chain 2.35 3.13 0.06 13 66 None
14 BAC Bank Of America Corp 47.15 57.23 32.34 45.79% 3/06 Yes 1.10 2.33% 3.70% 1.84% 6.83% 4.49% 28.87% Options Chain 2.38 2.84 0.06 10 64 None
15 MRK Merck & Co Inc 115.91 125.14 71.26 62.66% 3/16 Yes 3.28 2.83% 3.66% 1.81% 4.97% 9.06% 45.05% Options Chain 6.08 6.93 0.06 12 75 None
16 QCOM Qualcomm Inc 131.15 203.60 118.03 11.12% 3/05 No 3.56 2.72% 1.14% 0.57% 4.99% 16.60% 72.36% Options Chain 7.78 5.98 0.06 11 72 None
17 CNQ Canadian Natural Resources Ltd 48.90 48.87 23.71 106.24% 3/20 Yes 2.35 4.81% 6.38% 3.14% 12.69% 23.08% 62.01% Options Chain 2.58 2.90 0.06 15 72 None
18 TGT Target Corp 115.75 126.00 82.60 40.13% 5/13 No 4.54 3.87% 0.88% 0.44% 3.59% 11.28% 55.43% Options Chain 6.15 6.80 0.06 12 66 None
19 BMY Bristol-Myers Squibb Company 59.26 62.89 41.88 41.50% 4/02 Yes 2.49 4.20% 1.61% 0.80% 3.93% 7.12% 71.97% Options Chain 2.59 3.48 0.06 15 60 None
20 AMGN AMGEN Inc 368.26 391.29 253.48 45.28% 5/15 Yes 9.66 2.62% 5.88% 2.90% 6.76% 15.64% 67.84% Options Chain 19.58 21.58 0.06 14 71 None
21 XOM Exxon Mobil Corp 154.25 159.61 94.55 63.14% 2/12 Yes 4.04 2.62% 3.00% 1.49% 3.79% 5.76% 60.30% Options Chain 6.38 8.95 0.06 11 73 None
22 SU Suncor Energy Inc 59.75 58.63 29.61 101.79% 3/04 No 2.34 3.90% 3.90% 1.93% 6.30% 13.28% 65.92% Options Chain 3.03 3.45 0.06 10 63 None
23 TFC Truist Financial Corporation 44.37 55.64 32.02 38.57% 2/13 Yes 2.08 4.70% 0.00% 0.00% 0.99% 7.08% 54.45% Options Chain 1.61 2.50 0.06 12 72 None
24 STZ Constellation Brands Inc - Class A 148.32 192.99 125.63 18.06% 1/29 Yes 4.08 2.76% 0.25% 0.12% 6.60% 11.65% 63.95% Options Chain 8.30 8.05 0.06 7 67 None
25 NTAP Netapp Inc 96.93 125.50 70.84 36.83% 4/02 No 2.08 2.15% 0.00% 0.00% 0.99% 11.47% 34.90% Options Chain 3.90 5.35 0.06 14 66 None
26 FANG Diamondback Energy Inc 177.01 186.66 110.97 59.51% 3/05 No 4.05 2.29% 5.00% 2.47% -17.26% 34.11% 70.80% Options Chain 7.95 9.65 0.05 9 69 None
27 PM Philip Morris International Inc 172.00 191.30 140.83 22.13% 3/19 Yes 5.64 3.28% 4.26% 2.11% 3.93% 5.94% 77.69% Options Chain 8.60 9.15 0.05 9 61 None
28 DRI Darden Restaurants Inc 198.43 223.20 167.75 18.29% 1/09 Yes 5.90 2.97% 3.45% 1.71% 6.75% 13.54% 61.84% Options Chain 10.55 8.90 0.05 14 69 None
29 JPM JPMorgan Chase & Company 282.89 335.87 199.32 41.93% 1/06 Yes 5.80 2.05% 8.11% 3.98% 10.67% 5.01% 29.10% Options Chain 13.30 14.73 0.05 9 79 None
30 KEY Keycorp 19.22 23.12 12.17 57.93% 3/03 Yes 0.82 4.27% 0.00% 0.00% 0.94% 3.23% 53.95% Options Chain 0.91 0.99 0.05 15 67 None
31 GILD Gilead Sciences Inc 145.21 157.29 91.47 58.75% 3/13 Yes 3.19 2.20% 3.80% 1.88% 2.95% 6.19% 47.05% Options Chain 6.78 7.28 0.05 10 64 None
32 RF Regions Financial Corp 25.32 31.23 17.02 48.77% 3/02 Yes 1.04 4.09% 2.91% 1.45% 9.40% -1.38% 46.44% Options Chain 1.25 1.20 0.05 15 69 None
33 AIG American International Group Inc 77.12 87.29 71.25 8.24% 3/16 No 1.75 2.27% 2.86% 1.42% 8.90% 4.67% 32.23% Options Chain 3.60 3.80 0.05 12 71 None
34 CTSH Cognizant Technology Solutions Corp - Class A 61.18 86.59 60.04 1.90% 2/18 No 1.26 2.06% 6.45% 3.18% 5.14% 6.46% 27.63% Options Chain 2.20 2.93 0.05 13 62 None
35 CSCO Cisco Systems Inc 77.74 88.19 51.21 51.81% 4/02 No 1.64 2.11% 3.07% 1.52% 2.70% 10.35% 58.99% Options Chain 3.23 3.68 0.05 10 65 None
36 CMCSA Comcast Corp - Class A 30.16 33.94 23.84 26.51% 4/01 Yes 1.32 4.38% 1.54% 0.77% 5.64% 28.34% 24.49% Options Chain 1.38 1.41 0.05 14 67 None
37 KMI Kinder Morgan Inc - Class P 33.36 34.24 22.95 45.36% 2/02 Yes 1.17 3.51% 0.43% 0.21% 1.50% -1.07% 85.40% Options Chain 1.01 1.54 0.05 8 60 None
38 ABT Abbott Laboratories 108.35 137.13 105.27 2.93% 4/15 Yes 2.40 2.20% 6.78% 3.33% 7.60% 8.42% 64.34% Options Chain 4.83 5.00 0.05 11 70 None
39 HD Home Depot Inc 349.80 424.01 320.39 9.18% 3/12 No 9.23 2.64% 1.30% 0.65% 5.23% 27.51% 64.95% Options Chain 14.90 15.98 0.05 6 62 None
40 UNP Union Pacific Corp 244.10 268.14 199.94 22.09% 2/27 Yes 5.48 2.26% 1.47% 0.73% 2.10% 8.29% 45.55% Options Chain 9.25 11.10 0.05 11 66 None
41 UNM Unum Group 72.69 82.55 65.28 11.35% 1/30 No 1.80 2.49% 4.55% 2.25% 9.93% 5.89% 42.25% Options Chain 2.50 3.25 0.04 9 68 None
42 STT State Street Corp 123.21 137.05 71.30 72.81% 4/01 Yes 3.20 2.64% 7.69% 3.77% 11.42% 12.03% 34.04% Options Chain 4.25 5.50 0.04 12 68 None
43 OKE Oneok Inc 84.93 98.17 63.16 34.47% 2/02 No 4.16 4.90% 3.88% 1.92% 3.43% 6.96% 76.75% Options Chain 3.75 3.03 0.04 10 66 None
44 PG Procter & Gamble Company 150.50 170.10 136.65 10.14% 1/23 Yes 4.23 2.81% 1.20% 0.60% 4.03% 8.60% 63.66% Options Chain 5.78 6.60 0.04 8 65 None
45 MDT Medtronic Plc 87.38 105.55 77.73 12.41% 3/27 No 2.83 3.24% 0.35% 0.18% 1.56% 16.03% 79.05% Options Chain 3.01 3.75 0.04 13 73 None
46 PRU Prudential Financial Inc 92.34 118.16 85.81 7.61% 2/17 No 5.45 5.81% 3.70% 1.84% 3.93% 9.95% 54.55% Options Chain 3.70 3.95 0.04 19 73 None
47 JNJ Johnson & Johnson 242.04 251.71 137.67 75.81% 2/24 Yes 5.20 2.14% 1.17% 0.58% 3.97% 12.87% 47.14% Options Chain 7.95 10.35 0.04 10 66 None
48 CL Colgate-Palmolive Company 88.01 99.33 74.10 18.77% 4/20 Yes 2.08 2.36% 2.91% 1.45% 3.33% 8.52% 79.09% Options Chain 3.65 3.75 0.04 7 62 None
49 CLX Clorox Company 108.73 144.90 95.60 13.73% 4/22 No 4.94 4.54% 0.81% 0.41% 1.46% 8.78% 80.85% Options Chain 4.55 3.55 0.04 12 54 None
50 CFG Citizens Financial Group Inc 56.94 68.79 31.45 81.05% 2/04 Yes 1.76 3.09% 6.98% 3.43% 3.23% 15.70% 45.60% Options Chain 1.95 2.38 0.04 15 76 None
51 NTES NetEase Inc 116.27 158.90 87.33 33.14% 3/16 No 3.04 2.61% 52.87% 23.64% 32.14% 17.99% 39.94% Options Chain 4.20 4.85 0.04 18 62
Dividend Stock List
52 SPG Simon Property Group Inc 187.57 202.78 129.87 44.43% 3/10 No 8.65 4.61% 2.92% 1.45% 6.27% 5.14% 61.09% Options Chain 4.45 7.15 0.04 14 77 None
53 PCAR Paccar Inc 116.82 131.54 82.54 41.53% 2/11 No 2.39 2.05% 0.00% 0.00% 9.25% 9.75% 52.99% Options Chain 3.00 4.35 0.04 10 66 None
54 BTI British American Tobacco Plc 59.89 63.22 36.35 64.76% 12/29 No 3.21 5.36% 3.99% 5.83% 6.04% 11.35% 68.47% Options Chain 1.55 2.23 0.04 13 70 None
55 MCD McDonald`s Corp 323.91 339.85 278.64 16.25% 3/03 Yes 7.26 2.24% 3.77% 1.87% 7.08% 17.52% 61.32% Options Chain 11.60 11.93 0.04 11 65 None
56 MET Metlife Inc 68.79 83.25 63.33 8.62% 2/03 No 2.27 3.30% 1.00% 0.50% 3.48% 6.89% 48.20% Options Chain 1.95 2.50 0.04 14 69 None
57 VZ Verizon Communications Inc 50.63 51.41 37.74 34.15% 4/10 No 2.73 5.32% 3.95% 1.96% 2.41% 2.96% 67.36% Options Chain 1.68 1.82 0.04 7 65 None
58 UL Unilever plc 64.40 74.41 61.31 5.04% 2/27 No 2.32 3.62% -3.12% -1.57% 2.34% 4.10% 75.79% Options Chain 1.53 2.30 0.04 10 65 None
59 MAS Masco Corp 60.66 78.85 55.50 9.30% 2/20 No 1.25 2.06% 3.23% 1.60% 3.39% 5.52% 32.38% Options Chain 1.50 2.03 0.03 9 61 None
60 TD Toronto Dominion Bank 94.03 99.84 52.64 78.63% 4/09 No 4.23 4.54% 2.86% 1.42% 4.96% 9.53% 50.06% Options Chain 3.13 2.68 0.03 12 68 None
61 CINF Cincinnati Financial Corp 164.23 174.27 120.97 35.76% 3/24 No 3.48 2.12% 8.05% 3.95% 8.04% 8.94% 22.92% Options Chain 4.40 5.35 0.03 18 70 None
62 SYY Sysco Corp 84.91 91.84 65.74 29.16% 4/02 No 2.13 2.49% 2.86% 1.42% 2.99% 15.19% 57.41% Options Chain 2.58 2.23 0.03 10 61 None
63 HST Host Hotels & Resorts Inc 18.70 21.00 11.70 59.83% 3/31 No 0.75 3.90% 0.00% 0.00% 24.78% -0.14% 68.18% Options Chain 0.50 0.55 0.03 12 59 None
64 KDP Keurig Dr Pepper Inc 26.93 35.33 24.82 8.50% 3/27 No 0.92 3.42% 0.00% 0.00% 4.81% 0.16% 60.13% Options Chain 0.60 0.75 0.03 12 62 None
65 MFC Manulife Financial Corp 33.50 38.34 24.92 34.43% 2/24 No 1.85 5.52% 10.23% 4.99% 10.10% 10.87% 82.22% Options Chain 0.78 0.85 0.03 13 67 None
66 OTIS Otis Worldwide Corp 82.63 104.02 82.47 0.19% 2/13 No 1.68 2.03% 1.82% 0.90% 10.92% 15.72% 48.00% Options Chain 1.83 2.08 0.03 11 60 None
67 ITW Illinois Tool Works Inc 265.62 303.15 210.69 26.07% 3/31 No 6.22 2.34% 3.54% 1.75% 6.21% 13.46% 59.24% Options Chain 6.55 5.80 0.02 11 64 None
68 TROW T. Rowe Price Group Inc 87.91 115.38 74.96 17.28% 3/16 No 5.08 5.73% 2.36% 1.17% 2.02% 16.78% 54.98% Options Chain 2.03 2.15 0.02 19 62
Dividend Stock List
69 RY Royal Bank Of Canada 162.97 176.19 102.80 58.53% 4/23 No 6.20 3.99% 8.61% 4.22% 7.24% 8.37% 58.05% Options Chain 3.08 3.85 0.02 10 67 None
70 BCE BCE Inc 25.69 26.52 19.48 31.88% 3/16 No 2.31 8.99% -24.24% -12.96% -16.96% 2.64% 46.20% Options Chain 0.38 0.50 0.02 12 57 None
71 VICI VICI Properties Inc 28.43 33.01 27.19 4.56% 3/19 No 1.76 6.13% 1.98% 0.99% 4.66% 8.49% 67.62% Options Chain 0.15 0.55 0.02 8 68 None
72 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