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 UNH Unitedhealth Group Inc 331.02 594.32 231.57 42.95% 12/08 Yes 8.73 2.58% 6.72% 9.43% 11.74% 22.72% 45.47% Options Chain 17.88 19.95 0.06 13 67 None
2 DVN Devon Energy Corp 36.38 38.72 25.37 43.40% 12/15 Yes 0.96 2.53% -33.79% -42.16% -16.45% 9.68% 22.64% Options Chain 1.39 2.06 0.06 9 67 None
3 IBM International Business Machines Corp 305.67 324.90 209.20 46.11% 11/10 Yes 6.71 2.17% 0.60% 0.60% 0.61% 4.75% 80.07% Options Chain 14.88 16.90 0.06 9 63 None
4 TGT Target Corp 111.11 138.93 83.44 33.16% 11/12 No 4.52 4.07% 1.80% 1.82% 9.36% 11.28% 54.79% Options Chain 4.90 5.68 0.05 12 66 None
5 CTRA Coterra Energy Inc 25.71 29.04 21.87 17.56% 11/13 No 0.88 3.47% 4.76% -13.27% 9.15% 13.10% 40.74% Options Chain 1.30 1.10 0.05 13 70 None
6 HAL Halliburton Company 32.57 33.72 18.31 77.88% 12/03 Yes 0.68 2.08% 0.00% 3.08% 39.41% 2.12% 45.03% Options Chain 1.24 1.57 0.05 9 63 None
7 SLB SLB 46.73 46.39 30.37 53.87% 12/03 Yes 1.14 2.45% 3.64% 6.77% 22.88% 3.48% 44.36% Options Chain 1.82 2.14 0.05 12 58 None
8 QCOM Qualcomm Inc 161.39 204.90 118.79 35.86% 12/04 Yes 3.52 2.18% 5.07% 5.71% 6.95% 16.60% 70.26% Options Chain 7.23 7.18 0.04 12 69 None
9 AIG American International Group Inc 72.93 87.29 70.24 3.83% 12/16 Yes 1.75 2.40% 12.18% 11.80% 8.13% 4.67% 31.47% Options Chain 3.20 3.25 0.04 13 78 None
10 GILD Gilead Sciences Inc 121.26 127.86 89.19 35.96% 12/15 Yes 3.16 2.60% 2.60% 2.63% 2.71% 6.19% 48.92% Options Chain 4.70 5.38 0.04 12 74 None
11 MRK Merck & Co Inc 110.97 112.90 71.26 55.73% 12/15 Yes 3.28 3.04% 5.13% 5.27% 5.58% 9.06% 43.39% Options Chain 4.13 4.90 0.04 10 65 None
12 CLX Clorox Company 111.23 158.28 96.66 15.07% 1/28 Yes 4.92 4.42% 0.81% 0.41% 1.46% 8.78% 77.24% Options Chain 3.80 4.85 0.04 13 51 None
13 AMGN AMGEN Inc 330.41 346.38 255.23 29.46% 2/13 Yes 9.52 2.90% 5.88% 2.90% 6.76% 15.64% 73.63% Options Chain 11.70 14.25 0.04 11 72 None
14 PM Philip Morris International Inc 172.56 181.91 118.05 46.18% 12/26 Yes 5.64 3.30% 6.42% 4.75% 3.58% 5.94% 80.57% Options Chain 6.60 7.40 0.04 9 68 None
15 NTR Nutrien Ltd 67.83 63.38 44.54 52.29% 12/31 Yes 2.18 3.21% 0.93% 1.41% 4.33% 9.91% 58.76% Options Chain 2.90 2.78 0.04 10 63 None
16 FITB Fifth Third Bancorp 49.16 50.47 31.41 56.51% 12/31 Yes 1.54 3.17% 6.94% 6.41% 7.81% 8.25% 45.97% Options Chain 2.00 2.10 0.04 9 71 None
17 OKE Oneok Inc 73.35 105.47 64.02 14.57% 11/03 No 4.12 5.62% 4.04% 3.85% 2.45% 6.96% 75.74% Options Chain 1.83 3.13 0.04 11 67 None
18 BMY Bristol-Myers Squibb Company 55.26 60.28 41.88 31.95% 1/02 Yes 2.49 4.37% 1.61% 0.80% 3.93% 7.12% 83.84% Options Chain 1.72 2.31 0.04 13 60 None
19 FHN First Horizon Corporation 24.12 24.91 14.88 62.10% 12/12 Yes 0.60 2.49% 0.00% 0.00% 0.00% 3.95% 36.14% Options Chain 0.75 1.00 0.04 12 66 None
20 MPC Marathon Petroleum Corp 178.61 201.28 113.25 57.71% 11/19 Yes 3.73 2.12% 10.19% 10.14% 12.60% 15.09% 39.72% Options Chain 7.30 6.70 0.04 9 63 None
21 HD Home Depot Inc 379.33 424.01 320.39 18.40% 12/04 Yes 9.20 2.45% 2.22% 4.90% 8.66% 27.51% 62.76% Options Chain 14.28 14.93 0.04 6 60 None
22 CVE Cenovus Energy Inc 18.04 18.67 9.96 81.12% 12/15 Yes 0.78 4.22% -4.29% 21.89% 72.79% -0.18% 62.40% Options Chain 0.38 0.70 0.04 15 62 None
23 IVZ Invesco Ltd 29.44 29.05 11.23 162.15% 11/14 Yes 0.83 2.96% 2.45% 2.97% 5.86% 2.83% 56.80% Options Chain 0.95 1.13 0.04 12 54 None
24 ADM Archer Daniels Midland Company 66.68 66.63 39.88 67.20% 11/19 Yes 2.04 3.14% 2.00% 6.46% 8.35% 14.63% 82.93% Options Chain 2.55 2.50 0.04 13 54 None
25 ACN Accenture plc - Class A 287.77 389.59 226.59 27.00% 1/13 No 6.22 2.16% 7.41% 3.64% 12.78% 13.10% 51.45% Options Chain 8.60 10.90 0.04 16 72 None
26 ALL Allstate Corp (The) 195.60 215.00 173.48 12.75% 12/01 Yes 4.00 2.04% 8.70% 6.00% 5.41% 8.08% 12.97% Options Chain 5.05 7.30 0.04 14 66 None
27 T AT&T Inc 23.49 29.13 20.92 12.28% 1/12 Yes 1.11 4.68% 0.00% 0.00% -4.82% 1.94% 36.16% Options Chain 0.85 0.79 0.04 14 69 None
28 XOM Exxon Mobil Corp 129.89 127.14 95.18 36.47% 11/14 Yes 4.00 3.10% 4.17% 4.26% 3.47% 5.76% 58.14% Options Chain 4.38 4.68 0.04 10 74 None
29 HBAN Huntington Bancshares Inc 17.95 18.62 11.59 54.87% 12/18 Yes 0.62 3.51% 0.00% 0.00% 0.61% 3.80% 43.36% Options Chain 0.63 0.55 0.04 11 66 None
30 UNP Union Pacific Corp 230.51 250.85 200.99 14.69% 12/05 Yes 5.44 2.40% 3.03% 2.28% 6.12% 8.29% 46.22% Options Chain 8.05 7.20 0.03 13 73 None
31 USB U.S. Bancorp. 54.40 56.20 34.10 59.53% 12/31 Yes 2.04 3.78% 3.03% 2.81% 3.76% 8.74% 46.68% Options Chain 1.58 1.82 0.03 13 65 None
32 TFC Truist Financial Corporation 50.28 51.52 32.34 55.47% 11/14 Yes 2.08 4.14% 0.00% 0.00% 2.83% 7.08% 55.76% Options Chain 1.44 1.67 0.03 15 76 None
33 VZ Verizon Communications Inc 39.36 44.33 35.51 10.84% 1/12 Yes 2.73 6.89% 1.38% 0.69% 1.77% 2.96% 58.32% Options Chain 1.30 1.07 0.03 15 73 None
34 DD DuPont de Nemours Inc 42.86 44.17 22.13 93.67% 11/28 Yes 1.43 3.29% -5.92% -0.35% 4.48% 0.31% 82.66% Options Chain 1.00 1.35 0.03 14 77 None
35 RF Regions Financial Corp 28.28 29.25 17.18 64.61% 12/01 Yes 1.03 3.64% 5.10% 8.19% 12.20% -1.38% 45.37% Options Chain 0.70 0.88 0.03 14 70 None
36 GIS General Mills Inc 44.51 64.14 42.19 5.50% 1/09 No 2.43 5.33% 0.83% 0.41% 3.82% 7.44% 52.26% Options Chain 1.08 1.38 0.03 11 63 None
37 MDT Medtronic Plc 99.00 105.55 76.87 28.79% 12/26 Yes 2.83 2.93% 1.43% 1.44% 3.46% 16.03% 76.69% Options Chain 3.00 2.78 0.03 12 65 None
38 BAC Bank Of America Corp 52.97 57.55 32.53 62.83% 12/05 No 1.08 2.06% 8.00% 8.35% 8.48% 4.49% 29.51% Options Chain 1.60 1.42 0.03 12 74 None
39 MO Altria Group Inc 61.58 66.30 46.73 31.78% 12/26 Yes 4.16 6.77% 4.00% 4.08% 4.26% 8.01% 79.39% Options Chain 1.75 1.86 0.03 12 69 None
40 PG Procter & Gamble Company 144.76 176.39 137.62 5.19% 1/23 Yes 4.18 2.89% 1.20% 0.60% 4.03% 8.60% 61.07% Options Chain 4.08 4.33 0.03 12 71 None
41 CFG Citizens Financial Group Inc 60.82 62.16 31.67 92.04% 10/29 Yes 1.72 2.87% 2.38% 1.18% 2.47% 15.70% 48.18% Options Chain 1.23 1.65 0.03 15 76 None
42 JNJ Johnson & Johnson 219.20 219.75 137.89 58.97% 2/24 Yes 5.14 2.39% 1.17% 0.58% 3.97% 12.87% 49.66% Options Chain 5.43 5.83 0.03 12 73 None
43 MCD McDonald`s Corp 308.62 321.79 272.39 13.30% 12/01 Yes 7.17 2.33% 5.75% 7.28% 8.10% 17.52% 61.23% Options Chain 6.93 8.18 0.03 11 65 None
44 RY Royal Bank Of Canada 169.33 174.61 103.51 63.59% 1/26 No 6.04 3.57% 8.61% 4.22% 7.24% 8.37% 59.62% Options Chain 2.75 4.25 0.03 12 66 None
45 PRU Prudential Financial Inc 116.04 119.76 86.97 33.43% 11/18 Yes 5.40 4.64% 3.85% 3.92% 4.09% 9.95% 73.97% Options Chain 1.83 2.90 0.02 17 70 None
46 FNF Fidelity National Financial Inc 53.51 62.93 48.10 11.25% 12/17 Yes 2.02 3.89% 4.12% 5.06% 6.67% 2.92% 47.31% Options Chain 0.98 1.28 0.02 17 67 None
47 MET Metlife Inc 78.65 85.60 63.77 23.33% 2/03 Yes 2.25 2.86% 1.00% 0.50% 3.48% 6.89% 42.33% Options Chain 1.80 1.78 0.02 15 62 None
48 BCE BCE Inc 24.24 25.34 19.48 24.44% 12/15 Yes 2.31 9.54% -42.11% -22.74% -9.87% 2.64% 48.13% Options Chain 0.35 0.55 0.02 14 66 None
49 PNC PNC Financial Services Group Inc 215.04 227.00 141.07 52.43% 1/20 Yes 6.60 3.07% 3.03% 1.50% 4.28% 5.95% 42.61% Options Chain 4.80 4.75 0.02 12 80 None
50 QSR Restaurant Brands International Inc 69.53 73.05 57.09 21.79% 12/23 Yes 2.48 3.55% 6.90% 6.17% 4.00% 21.18% 87.94% Options Chain 1.43 1.50 0.02 7 62 None
51 MFC Manulife Financial Corp 37.60 36.99 25.17 49.38% 11/26 Yes 1.76 4.71% 10.00% 9.79% 10.75% 10.87% 77.19% Options Chain 0.70 0.78 0.02 14 62 None
52 DRI Darden Restaurants Inc 213.49 223.20 167.75 27.27% 1/09 No 5.90 2.84% 3.45% 1.71% 6.75% 13.54% 61.84% Options Chain 3.85 3.30 0.02 13 69 None
53 KDP Keurig Dr Pepper Inc 27.99 35.33 24.82 12.77% 1/02 No 0.92 3.27% 0.00% 0.00% 4.81% 0.16% 79.31% Options Chain 0.48 0.48 0.02 10 60 None
54 MPLX MPLX LP 55.97 56.26 42.03 33.17% 11/07 Yes 3.95 7.21% 12.53% 11.48% 9.27% 11.83% 83.60% Options Chain 0.08 0.75 0.01 9 63 None
55 VICI VICI Properties Inc 28.42 33.01 26.43 7.53% 12/17 No 1.76 6.21% 4.13% 4.70% 6.34% 8.49% 67.11% Options Chain 0.18 0.18 0.01 9 67 None
56 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