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.
| 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 | ACN | Accenture plc - Class A | 208.68 | 344.25 | 188.73 | 10.57% | 1/13 | No | 6.22 | 3.05% | 7.41% | 3.64% | 12.78% | 13.10% | 47.44% | Options Chain | 15.30 | 17.10 | 0.08 | 13 | 60 | None | |
| 2 | CF | CF Industries Holdings Inc | 99.54 | 105.27 | 65.81 | 51.25% | 2/13 | No | 2.00 | 2.06% | 0.00% | 0.00% | 7.46% | 28.93% | 24.18% | Options Chain | 5.65 | 7.15 | 0.07 | 11 | 61 | None | |
| 3 | SLB | SLB | 51.22 | 52.40 | 30.19 | 69.66% | 2/11 | No | 1.15 | 2.24% | 3.51% | 1.74% | 16.08% | 3.48% | 48.94% | Options Chain | 2.44 | 3.48 | 0.07 | 8 | 65 | None | |
| 4 | VLO | Valero Energy Corp | 214.91 | 206.77 | 96.17 | 123.47% | 2/05 | No | 4.59 | 2.24% | 6.19% | 3.05% | 5.19% | 16.12% | 60.47% | Options Chain | 11.75 | 14.40 | 0.07 | 12 | 69 | None | |
| 5 | TRI | Thomson-Reuters Corp | 96.03 | 215.09 | 79.71 | 20.47% | 2/17 | No | 2.44 | 2.53% | 10.08% | 4.92% | 9.14% | 4.53% | 74.16% | Options Chain | 6.35 | 6.25 | 0.07 | 11 | 64 | None | |
| 6 | IBM | International Business Machines Corp | 239.66 | 323.06 | 209.30 | 14.51% | 2/10 | No | 6.72 | 2.78% | 0.15% | 0.07% | 0.49% | 4.75% | 60.32% | Options Chain | 12.40 | 15.50 | 0.06 | 14 | 73 | None | |
| 7 | FANG | Diamondback Energy Inc | 174.08 | 183.31 | 111.64 | 55.93% | 3/05 | No | 4.00 | 2.40% | 5.00% | 2.47% | -17.26% | 34.11% | 28.07% | Options Chain | 8.95 | 11.15 | 0.06 | 9 | 70 | None | |
| 8 | CTRA | Coterra Energy Inc | 30.77 | 32.67 | 21.87 | 40.70% | 3/11 | No | 0.88 | 2.93% | 0.00% | 0.00% | -22.90% | 13.10% | 40.74% | Options Chain | 1.33 | 1.95 | 0.06 | 10 | 61 | None | |
| 9 | CVE | Cenovus Energy Inc | 22.31 | 23.56 | 9.96 | 124.00% | 3/13 | No | 0.78 | 3.53% | 2.56% | 1.27% | 14.59% | -0.18% | 49.68% | Options Chain | 1.23 | 1.40 | 0.06 | 15 | 65 | None | |
| 10 | CDW | CDW Corp | 122.64 | 189.13 | 118.44 | 3.55% | 2/25 | No | 2.51 | 2.03% | 0.60% | 0.30% | 4.79% | 26.12% | 31.10% | Options Chain | 7.00 | 7.35 | 0.06 | 14 | 58 | None | |
| 11 | EOG | EOG Resources Inc | 124.08 | 126.20 | 98.86 | 25.51% | 4/16 | No | 3.99 | 3.28% | 3.42% | 1.70% | 7.99% | 15.56% | 43.75% | Options Chain | 5.95 | 7.25 | 0.06 | 10 | 65 | None | |
| 12 | CFG | Citizens Financial Group Inc | 60.19 | 68.79 | 31.45 | 91.38% | 2/04 | No | 1.76 | 2.76% | 6.98% | 3.43% | 3.23% | 15.70% | 45.60% | Options Chain | 2.35 | 3.50 | 0.06 | 13 | 69 | None | |
| 13 | STZ | Constellation Brands Inc - Class A | 157.49 | 192.99 | 125.63 | 25.36% | 1/29 | Yes | 4.08 | 2.62% | 0.25% | 0.12% | 6.60% | 11.65% | 63.95% | Options Chain | 6.95 | 8.90 | 0.06 | 7 | 68 | None | |
| 14 | KEY | Keycorp | 20.74 | 23.34 | 12.29 | 68.76% | 3/03 | No | 0.82 | 3.79% | 0.00% | 0.00% | 0.94% | 3.23% | 53.95% | Options Chain | 0.96 | 1.16 | 0.06 | 15 | 68 | None | |
| 15 | NTES | NetEase Inc | 114.97 | 158.90 | 87.33 | 31.65% | 3/16 | No | 3.04 | 2.66% | 52.87% | 23.64% | 32.14% | 17.99% | 37.33% | Options Chain | 5.85 | 6.40 | 0.06 | 19 | 61 |
Dividend Stock List |
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| 16 | NTR | Nutrien Ltd | 75.07 | 78.00 | 44.54 | 68.55% | 3/31 | No | 2.18 | 2.90% | 0.92% | 0.46% | 3.46% | 9.91% | 58.13% | Options Chain | 3.90 | 4.10 | 0.05 | 14 | 73 | None | |
| 17 | STT | State Street Corp | 129.46 | 137.05 | 71.30 | 81.57% | 4/01 | Yes | 3.20 | 2.49% | 7.69% | 3.77% | 11.42% | 12.03% | 34.04% | Options Chain | 6.20 | 6.85 | 0.05 | 13 | 67 | None | |
| 18 | XOM | Exxon Mobil Corp | 152.50 | 155.89 | 94.55 | 61.29% | 2/12 | No | 4.04 | 2.72% | 3.00% | 1.49% | 3.79% | 5.76% | 60.39% | Options Chain | 7.20 | 8.03 | 0.05 | 9 | 66 | None | |
| 19 | NTAP | Netapp Inc | 99.03 | 125.50 | 70.84 | 39.79% | 4/02 | No | 2.08 | 2.10% | 0.00% | 0.00% | 0.99% | 11.47% | 35.49% | Options Chain | 5.15 | 4.70 | 0.05 | 15 | 67 | None | |
| 20 | MET | Metlife Inc | 72.07 | 83.25 | 63.33 | 13.80% | 2/03 | No | 2.27 | 2.99% | 1.00% | 0.50% | 3.48% | 6.89% | 46.90% | Options Chain | 2.38 | 3.70 | 0.05 | 14 | 69 | None | |
| 21 | QCOM | Qualcomm Inc | 142.36 | 204.90 | 118.79 | 19.84% | 3/05 | No | 3.52 | 2.43% | 1.14% | 0.57% | 4.99% | 16.60% | 70.97% | Options Chain | 7.30 | 6.38 | 0.05 | 11 | 70 | None | |
| 22 | HBAN | Huntington Bancshares Inc | 16.80 | 19.45 | 11.59 | 44.95% | 3/18 | No | 0.62 | 3.54% | 0.00% | 0.00% | 0.00% | 3.80% | 44.60% | Options Chain | 0.78 | 0.85 | 0.05 | 9 | 66 | None | |
| 23 | RF | Regions Financial Corp | 27.97 | 31.53 | 17.18 | 62.81% | 3/02 | Yes | 1.04 | 3.75% | 2.91% | 1.45% | 9.40% | -1.38% | 44.47% | Options Chain | 1.40 | 1.25 | 0.05 | 15 | 69 | None | |
| 24 | BAC | Bank Of America Corp | 49.76 | 57.55 | 32.53 | 52.97% | 3/06 | No | 1.08 | 2.17% | 3.70% | 1.84% | 6.83% | 4.49% | 28.35% | Options Chain | 2.22 | 2.46 | 0.05 | 12 | 73 | None | |
| 25 | TFC | Truist Financial Corporation | 49.30 | 55.64 | 32.02 | 53.97% | 2/13 | Yes | 2.08 | 4.22% | 0.00% | 0.00% | 0.99% | 7.08% | 54.45% | Options Chain | 2.30 | 2.40 | 0.05 | 11 | 66 | None | |
| 26 | OMC | Omnicom Group Inc | 85.29 | 86.02 | 66.33 | 28.58% | 3/11 | No | 2.90 | 3.45% | 10.34% | 5.05% | 3.39% | 10.42% | 42.77% | Options Chain | 4.15 | 4.15 | 0.05 | 6 | 63 | None | |
| 27 | USB | U.S. Bancorp. | 54.63 | 61.19 | 34.10 | 60.21% | 12/31 | Yes | 2.04 | 3.73% | 3.03% | 2.81% | 3.76% | 8.74% | 44.16% | Options Chain | 2.43 | 2.65 | 0.05 | 13 | 66 | None | |
| 28 | SU | Suncor Energy Inc | 56.52 | 57.13 | 29.84 | 89.41% | 3/04 | No | 2.31 | 4.14% | 3.90% | 1.93% | 6.30% | 13.28% | 65.44% | Options Chain | 2.68 | 2.65 | 0.05 | 13 | 71 | None | |
| 29 | DRI | Darden Restaurants Inc | 213.85 | 223.20 | 167.75 | 27.48% | 1/09 | No | 5.90 | 2.75% | 3.45% | 1.71% | 6.75% | 13.54% | 61.84% | Options Chain | 9.60 | 9.65 | 0.05 | 13 | 69 | None | |
| 30 | TROW | T. Rowe Price Group Inc | 94.63 | 115.38 | 74.96 | 26.24% | 3/16 | No | 5.08 | 5.37% | 2.36% | 1.17% | 2.02% | 16.78% | 54.98% | Options Chain | 3.25 | 4.15 | 0.04 | 16 | 50 |
Dividend Stock List |
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| 31 | CMCSA | Comcast Corp - Class A | 30.96 | 34.17 | 23.84 | 29.87% | 4/01 | No | 1.32 | 4.28% | 1.54% | 0.77% | 5.64% | 28.34% | 24.49% | Options Chain | 1.13 | 1.35 | 0.04 | 14 | 69 | None | |
| 32 | PRU | Prudential Financial Inc | 99.95 | 118.16 | 85.81 | 16.48% | 2/17 | No | 5.45 | 5.54% | 3.70% | 1.84% | 3.93% | 9.95% | 54.28% | Options Chain | 4.35 | 4.05 | 0.04 | 18 | 71 | None | |
| 33 | HD | Home Depot Inc | 375.09 | 424.01 | 320.39 | 17.07% | 3/12 | No | 9.20 | 2.45% | 1.30% | 0.65% | 5.23% | 27.51% | 64.70% | Options Chain | 13.23 | 15.83 | 0.04 | 8 | 66 | None | |
| 34 | MKC | McCormick & Co. Inc (Non Voting) | 71.04 | 84.05 | 59.62 | 19.15% | 12/29 | No | 1.83 | 2.64% | 7.02% | 7.28% | 7.12% | 11.06% | 62.46% | Options Chain | 2.83 | 2.98 | 0.04 | 11 | 60 | None | |
| 35 | AMGN | AMGEN Inc | 388.00 | 390.14 | 253.48 | 53.07% | 2/13 | No | 9.66 | 2.54% | 5.88% | 2.90% | 6.76% | 15.64% | 67.93% | Options Chain | 15.73 | 15.85 | 0.04 | 14 | 72 | None | |
| 36 | MRK | Merck & Co Inc | 119.39 | 122.66 | 71.26 | 67.54% | 3/16 | No | 3.28 | 2.75% | 3.66% | 1.81% | 4.97% | 9.06% | 44.57% | Options Chain | 4.43 | 4.80 | 0.04 | 9 | 67 | None | |
| 37 | CSCO | Cisco Systems Inc | 79.46 | 88.19 | 51.21 | 55.17% | 4/02 | No | 1.64 | 2.10% | 3.07% | 1.52% | 2.70% | 10.35% | 58.99% | Options Chain | 2.86 | 3.18 | 0.04 | 9 | 65 | None | |
| 38 | GILD | Gilead Sciences Inc | 148.95 | 157.29 | 91.47 | 62.84% | 3/13 | No | 3.16 | 2.20% | 3.80% | 1.88% | 2.95% | 6.19% | 46.61% | Options Chain | 5.88 | 5.80 | 0.04 | 10 | 64 | None | |
| 39 | KMI | Kinder Morgan Inc - Class P | 33.27 | 34.13 | 22.95 | 44.97% | 2/02 | No | 1.17 | 3.52% | 0.43% | 0.21% | 1.50% | -1.07% | 85.40% | Options Chain | 1.30 | 1.26 | 0.04 | 10 | 67 | None | |
| 40 | PM | Philip Morris International Inc | 186.95 | 191.30 | 140.83 | 32.75% | 12/26 | No | 5.64 | 3.02% | 6.42% | 4.75% | 3.58% | 5.94% | 76.63% | Options Chain | 5.95 | 7.25 | 0.04 | 12 | 68 | None | |
| 41 | AIG | American International Group Inc | 79.51 | 87.29 | 71.25 | 11.59% | 3/16 | No | 1.75 | 2.17% | 2.86% | 1.42% | 8.90% | 4.67% | 32.23% | Options Chain | 2.70 | 3.08 | 0.04 | 12 | 73 | None | |
| 42 | UNP | Union Pacific Corp | 265.20 | 267.17 | 200.99 | 31.95% | 2/27 | No | 5.48 | 2.08% | 1.47% | 0.73% | 2.10% | 8.29% | 45.78% | Options Chain | 8.60 | 10.15 | 0.04 | 10 | 66 | None | |
| 43 | OKE | Oneok Inc | 82.77 | 98.17 | 63.16 | 31.05% | 2/02 | No | 4.16 | 4.95% | 3.88% | 1.92% | 3.43% | 6.96% | 76.47% | Options Chain | 2.53 | 3.15 | 0.04 | 12 | 74 | None | |
| 44 | ABT | Abbott Laboratories | 116.68 | 138.63 | 105.27 | 10.84% | 4/15 | No | 2.40 | 2.06% | 6.78% | 3.33% | 7.60% | 8.42% | 64.52% | Options Chain | 4.00 | 4.43 | 0.04 | 9 | 64 | None | |
| 45 | MDT | Medtronic Plc | 97.66 | 105.55 | 77.73 | 25.64% | 12/26 | No | 2.83 | 2.90% | 1.43% | 1.44% | 3.46% | 16.03% | 79.05% | Options Chain | 3.05 | 3.62 | 0.04 | 11 | 64 | None | |
| 46 | VZ | Verizon Communications Inc | 49.98 | 50.48 | 37.74 | 32.43% | 4/10 | No | 2.73 | 5.45% | 3.95% | 1.96% | 2.41% | 2.96% | 67.36% | Options Chain | 1.59 | 1.85 | 0.04 | 10 | 73 | None | |
| 47 | T | AT&T Inc | 28.01 | 29.30 | 22.95 | 22.05% | 1/12 | No | 1.11 | 4.03% | 0.00% | 0.00% | -4.82% | 1.94% | 37.12% | Options Chain | 0.95 | 1.03 | 0.04 | 12 | 66 | None | |
| 48 | UNM | Unum Group | 71.73 | 82.55 | 65.28 | 9.88% | 1/30 | No | 1.80 | 2.44% | 4.55% | 2.25% | 9.93% | 5.89% | 42.15% | Options Chain | 2.53 | 2.55 | 0.04 | 9 | 62 | None | |
| 49 | JNJ | Johnson & Johnson | 248.51 | 247.25 | 137.67 | 80.51% | 2/24 | No | 5.20 | 2.09% | 1.17% | 0.58% | 3.97% | 12.87% | 47.14% | Options Chain | 8.50 | 8.75 | 0.04 | 10 | 66 | None | |
| 50 | ITW | Illinois Tool Works Inc | 290.63 | 303.15 | 210.69 | 37.94% | 3/31 | No | 6.22 | 2.14% | 3.54% | 1.75% | 6.21% | 13.46% | 59.29% | Options Chain | 9.45 | 8.60 | 0.03 | 11 | 63 | None | |
| 51 | MFC | Manulife Financial Corp | 35.54 | 38.72 | 25.17 | 41.20% | 2/24 | No | 1.85 | 5.21% | 10.23% | 4.99% | 10.10% | 10.87% | 81.86% | Options Chain | 1.15 | 1.03 | 0.03 | 13 | 68 | None | |
| 52 | SYY | Sysco Corp | 91.24 | 91.84 | 65.74 | 38.79% | 4/02 | No | 2.13 | 2.40% | 2.86% | 1.42% | 2.99% | 15.19% | 57.41% | Options Chain | 2.95 | 2.35 | 0.03 | 11 | 61 | None | |
| 53 | BCE | BCE Inc | 26.35 | 26.49 | 19.48 | 35.27% | 3/16 | No | 2.31 | 8.78% | -24.24% | -12.96% | -16.96% | 2.64% | 46.67% | Options Chain | 0.85 | 0.78 | 0.03 | 12 | 57 | None | |
| 54 | PG | Procter & Gamble Company | 166.76 | 175.15 | 136.65 | 22.03% | 1/23 | No | 4.23 | 2.58% | 1.20% | 0.60% | 4.03% | 8.60% | 63.38% | Options Chain | 4.50 | 5.00 | 0.03 | 11 | 74 | None | |
| 55 | RY | Royal Bank Of Canada | 167.30 | 176.19 | 102.80 | 62.74% | 4/23 | Yes | 6.20 | 3.71% | 8.61% | 4.22% | 7.24% | 8.37% | 59.33% | Options Chain | 4.60 | 5.00 | 0.03 | 14 | 78 | None | |
| 56 | VICI | VICI Properties Inc | 30.18 | 33.01 | 27.19 | 11.00% | 12/17 | Yes | 1.76 | 5.84% | 4.13% | 4.70% | 6.34% | 8.49% | 67.11% | Options Chain | 0.90 | 0.83 | 0.03 | 12 | 77 | None | |
| 57 | CINF | Cincinnati Financial Corp | 165.20 | 174.27 | 120.97 | 36.56% | 3/24 | No | 3.48 | 2.11% | 8.05% | 3.95% | 8.04% | 8.94% | 22.94% | Options Chain | 4.70 | 4.90 | 0.03 | 14 | 58 | None | |
| 58 | MCD | McDonald`s Corp | 341.06 | 341.75 | 280.20 | 21.72% | 3/03 | No | 7.17 | 2.14% | 3.77% | 1.87% | 7.08% | 17.52% | 60.30% | Options Chain | 8.95 | 8.93 | 0.03 | 9 | 65 | None | |
| 59 | CNI | Canadian National Railway Company | 112.19 | 113.08 | 89.88 | 24.82% | 3/10 | No | 3.55 | 3.22% | 3.10% | 1.54% | 5.72% | 14.96% | 64.31% | Options Chain | 2.55 | 2.28 | 0.02 | 13 | 66 | None | |
| 60 | BTI | British American Tobacco Plc | 62.86 | 63.22 | 36.35 | 72.93% | 12/29 | No | 3.21 | 5.13% | 3.99% | 5.83% | 6.04% | 11.35% | 68.18% | Options Chain | 0.85 | 1.35 | 0.02 | 10 | 62 | None | |
| 61 | 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 |