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 IBM International Business Machines Corp 305.63 320.70 212.34 43.93% 5/08 Yes 6.73 2.04% 0.75% 0.37% 0.64% 4.75% 59.50% Options Chain 24.58 30.90 0.10 10 63 None
2 ACN Accenture plc - Class A 177.43 313.59 155.82 13.87% 4/09 Yes 6.37 3.41% 7.41% 3.64% 12.78% 13.10% 52.17% Options Chain 13.80 17.75 0.10 18 68 None
3 HPQ HP Inc 26.04 29.65 17.28 50.69% 6/10 No 1.18 4.34% 2.72% 1.35% 4.34% 10.08% 43.66% Options Chain 1.89 2.25 0.09 13 52 None
4 CMCSA Comcast Corp - Class A 23.52 32.98 23.43 0.38% 7/01 No 1.32 5.31% 1.54% 0.77% 5.64% 28.34% 25.88% Options Chain 1.60 1.98 0.08 15 69 None
5 DVN Devon Energy Corp 46.44 52.71 30.53 52.11% 6/15 No 0.96 2.08% 33.33% 15.47% -29.46% 9.68% 26.74% Options Chain 2.29 3.50 0.08 9 60 None
6 CTSH Cognizant Technology Solutions Corp - Class A 53.51 85.98 45.16 18.49% 5/18 No 1.28 2.32% 6.45% 3.18% 5.14% 6.46% 27.77% Options Chain 2.63 4.00 0.07 16 62 None
7 UNH Unitedhealth Group Inc 377.92 404.15 229.79 64.46% 6/15 No 8.84 2.34% 6.30% 3.10% 9.73% 22.72% 66.47% Options Chain 21.90 25.90 0.07 10 64 None
8 HON Honeywell International Inc 223.26 246.82 184.82 20.80% 5/15 Yes 4.70 2.00% 3.93% 1.95% 4.64% 6.13% 75.20% Options Chain 11.15 14.85 0.07 7 64 None
9 GIS General Mills Inc 32.32 52.23 31.85 1.48% 4/10 Yes 2.44 7.38% 0.83% 0.41% 3.82% 7.44% 59.66% Options Chain 1.38 2.13 0.07 11 61 None
10 DG Dollar General Corp 105.09 157.48 94.26 11.49% 7/07 No 2.36 2.22% 0.00% 0.00% 9.86% 13.12% 34.45% Options Chain 6.25 6.80 0.06 12 54 None
11 ABT Abbott Laboratories 86.99 136.28 81.97 6.12% 4/15 Yes 2.44 2.81% 6.78% 3.33% 7.60% 8.42% 68.35% Options Chain 4.40 5.55 0.06 12 63 None
12 MGA Magna International Inc 68.20 69.19 34.58 97.22% 5/15 No 1.96 2.88% 2.06% 1.03% 2.41% 8.99% 82.70% Options Chain 2.80 4.35 0.06 10 64 None
13 STZ Constellation Brands Inc - Class A 136.50 173.43 124.80 9.38% 4/29 Yes 4.09 2.99% 1.23% 0.61% 6.86% 11.65% 42.56% Options Chain 5.70 8.60 0.06 11 69 None
14 EOG EOG Resources Inc 141.50 150.70 99.86 41.70% 7/17 No 4.04 2.91% 3.42% 1.70% 7.99% 15.56% 39.71% Options Chain 6.75 8.80 0.06 12 68 None
15 PM Philip Morris International Inc 175.94 193.05 139.58 26.05% 3/19 Yes 5.76 3.27% 4.26% 2.11% 3.93% 5.94% 81.13% Options Chain 9.55 10.70 0.06 8 61 None
16 OVV Ovintiv Inc 58.54 63.46 35.01 67.21% 6/15 No 1.20 2.05% 0.00% 0.00% 6.01% 2.93% 39.47% Options Chain 2.95 3.55 0.06 11 71 None
17 FAST Fastenal Company 46.46 49.83 38.55 20.52% 4/28 Yes 0.92 2.06% 9.71% 4.74% 11.55% 12.78% 81.42% Options Chain 2.05 2.78 0.06 13 52 None
18 DKS Dicks Sporting Goods Inc 224.15 237.75 167.78 33.60% 6/12 No 4.89 2.28% 3.09% 1.53% 26.54% 19.10% 47.64% Options Chain 11.75 13.20 0.06 13 70 None
19 DRI Darden Restaurants Inc 198.27 221.49 166.47 19.10% 4/10 Yes 6.00 3.03% 3.45% 1.71% 6.75% 13.54% 63.29% Options Chain 8.70 11.65 0.06 9 61 None
20 LMT Lockheed Martin Corp 512.03 687.50 399.32 28.23% 6/01 Yes 13.65 2.66% 3.37% 1.67% 4.89% 10.31% 66.07% Options Chain 26.35 29.95 0.06 11 71 None
21 SLB SLB 57.00 58.51 31.05 83.57% 6/03 No 1.16 2.04% 3.51% 1.74% 16.08% 3.48% 51.10% Options Chain 3.25 3.30 0.06 10 66 None
22 XOM Exxon Mobil Corp 149.56 175.22 99.51 50.30% 5/15 No 4.08 2.67% 3.00% 1.49% 3.79% 5.76% 68.57% Options Chain 7.08 8.55 0.06 11 70 None
23 ZTS Zoetis Inc - Class A 76.33 168.90 72.38 5.46% 7/20 No 2.06 2.65% 6.00% 2.96% 13.01% 19.26% 33.77% Options Chain 4.35 4.35 0.06 14 65 None
24 BBY Best Buy Co. Inc 71.73 82.62 55.10 30.18% 6/18 No 3.81 5.23% 1.05% 0.52% 2.20% 14.06% 75.60% Options Chain 3.65 4.05 0.06 15 55 None
25 CFG Citizens Financial Group Inc 62.37 68.30 38.45 62.21% 4/30 Yes 1.80 2.89% 6.98% 3.43% 3.23% 15.70% 42.65% Options Chain 2.28 3.45 0.06 17 77 None
26 CNQ Canadian Natural Resources Ltd 47.69 50.98 28.30 68.52% 6/23 No 2.39 5.06% 6.38% 3.14% 12.69% 23.08% 62.01% Options Chain 2.10 2.60 0.05 10 63 None
27 RF Regions Financial Corp 27.40 30.93 20.57 33.20% 6/01 Yes 1.06 3.87% 2.91% 1.45% 9.40% -1.38% 43.98% Options Chain 0.93 1.48 0.05 18 70 None
28 USB U.S. Bancorp. 54.60 60.56 40.82 33.76% 3/31 Yes 2.06 3.77% 1.96% 0.98% 2.56% 8.74% 43.19% Options Chain 2.31 2.94 0.05 15 75 None
29 BAC Bank Of America Corp 52.40 57.23 42.95 22.00% 6/05 Yes 1.10 2.10% 3.70% 1.84% 6.83% 4.49% 27.30% Options Chain 2.02 2.77 0.05 14 74 None
30 NTES NetEase Inc 124.75 157.33 106.06 17.62% 6/05 No 2.98 2.38% -5.11% -2.59% 17.29% 17.99% 38.14% Options Chain 4.75 6.55 0.05 19 58
Dividend Stock List
31 SU Suncor Energy Inc 65.54 70.29 34.95 87.53% 6/04 No 2.37 3.63% 3.90% 1.93% 6.30% 13.28% 62.20% Options Chain 2.85 3.43 0.05 11 64 None
32 NTR Nutrien Ltd 68.81 84.75 52.19 31.85% 6/30 No 2.19 3.19% 0.92% 0.46% 3.46% 9.91% 43.96% Options Chain 3.20 3.60 0.05 11 62 None
33 TFC Truist Financial Corporation 48.12 55.06 37.16 29.49% 5/08 Yes 2.08 4.39% 0.00% 0.00% 0.99% 7.08% 51.49% Options Chain 1.65 2.48 0.05 16 73 None
34 HD Home Depot Inc 312.97 421.19 289.10 8.26% 6/04 No 9.26 2.97% 1.30% 0.65% 5.23% 27.51% 65.77% Options Chain 14.50 15.18 0.05 8 67 None
35 UNP Union Pacific Corp 262.13 278.25 207.45 26.36% 5/29 Yes 5.52 2.07% 1.47% 0.73% 2.10% 8.29% 45.43% Options Chain 10.65 12.55 0.05 9 66 None
36 FHN First Horizon Corporation 23.63 26.36 18.65 26.70% 6/12 Yes 0.62 2.58% 13.33% 6.46% 3.18% 3.95% 31.16% Options Chain 1.13 0.98 0.05 19 68 None
37 AMGN AMGEN Inc 338.22 388.36 260.01 30.08% 5/15 No 9.80 2.98% 5.88% 2.90% 6.76% 15.64% 68.15% Options Chain 13.90 15.98 0.05 14 73 None
38 MTB M & T Bank Corp 214.03 235.70 170.99 25.17% 6/01 Yes 6.00 2.76% 5.26% 2.60% 5.74% 11.94% 33.67% Options Chain 9.35 8.35 0.04 17 78 None
39 GILD Gilead Sciences Inc 128.99 156.40 102.48 25.87% 6/15 No 3.19 2.50% 3.80% 1.88% 2.95% 6.19% 43.40% Options Chain 5.13 5.63 0.04 9 66 None
40 MDT Medtronic Plc 77.95 104.70 73.67 5.81% 6/26 Yes 2.84 3.83% 1,273.85% 270.66% 95.35% 16.03% 79.33% Options Chain 2.96 3.40 0.04 11 65 None
41 PRU Prudential Financial Inc 100.79 116.55 90.64 11.20% 5/26 No 5.50 5.46% 3.70% 1.84% 3.93% 9.95% 56.64% Options Chain 3.03 4.35 0.04 17 69 None
42 BDX Becton Dickinson & Company 147.13 186.16 126.09 16.69% 6/09 No 4.18 2.90% 0.72% 0.36% 4.51% 10.49% 72.95% Options Chain 4.95 6.05 0.04 11 63 None
43 AIG American International Group Inc 72.55 86.78 70.83 2.43% 6/15 No 1.80 2.41% 14.29% 6.90% 11.80% 4.67% 31.69% Options Chain 1.95 2.93 0.04 11 69 None
44 TTE TotalEnergies SE 89.40 94.17 55.82 60.16% 6/30 No 3.40 3.80% -12.83% -6.64% 8.06% 5.47% 50.45% Options Chain 2.95 3.55 0.04 14 60 None
45 BMY Bristol-Myers Squibb Company 54.72 62.25 41.46 31.98% 4/02 No 2.50 4.59% 1.61% 0.80% 3.93% 7.12% 70.03% Options Chain 2.08 2.15 0.04 15 64 None
46 CL Colgate-Palmolive Company 84.87 98.72 73.64 15.25% 4/20 No 2.09 2.37% 2.91% 1.45% 3.33% 8.52% 81.01% Options Chain 3.30 2.88 0.04 9 62 None
47 KMI Kinder Morgan Inc - Class P 31.37 34.81 24.97 25.63% 5/04 Yes 1.18 3.74% 2.15% 1.07% 1.93% -1.07% 78.86% Options Chain 0.98 1.19 0.04 11 67 None
48 T AT&T Inc 23.55 29.14 22.71 3.70% 4/10 Yes 1.11 4.71% 0.00% 0.00% -4.82% 1.94% 36.51% Options Chain 0.88 0.82 0.04 13 69 None
49 VZ Verizon Communications Inc 46.65 50.91 37.18 25.47% 4/10 No 2.77 5.93% 3.95% 1.96% 2.41% 2.96% 67.44% Options Chain 1.60 1.73 0.04 13 73 None
50 QSR Restaurant Brands International Inc 72.76 81.96 59.68 21.92% 6/23 No 2.51 3.45% 4.84% 2.39% 4.74% 21.18% 80.71% Options Chain 2.23 2.68 0.04 8 62 None
51 TD Toronto Dominion Bank 112.36 114.26 67.39 66.73% 7/10 No 4.26 3.79% 6.67% 3.28% 5.91% 9.53% 69.04% Options Chain 2.68 4.10 0.04 13 78 None
52 JNJ Johnson & Johnson 222.89 251.71 146.24 52.41% 5/26 Yes 5.24 2.35% 4.28% 2.12% 4.76% 12.87% 60.79% Options Chain 7.23 8.05 0.04 8 66 None
53 CNI Canadian National Railway Company 119.45 122.45 89.58 33.34% 6/09 No 3.58 2.95% 3.10% 1.54% 5.72% 14.96% 65.05% Options Chain 3.65 4.20 0.04 12 72 None
54 MFC Manulife Financial Corp 38.17 40.04 28.67 33.14% 5/29 No 1.85 4.81% 10.23% 4.99% 10.10% 10.87% 73.71% Options Chain 0.90 1.33 0.03 14 62 None
55 UNM Unum Group 84.17 85.27 67.06 25.51% 4/24 No 1.84 2.20% 4.55% 2.25% 9.93% 5.89% 39.83% Options Chain 2.85 2.63 0.03 11 61 None
56 MCD McDonald`s Corp 273.29 337.56 270.15 1.16% 6/02 No 7.35 2.65% 3.77% 1.87% 7.08% 17.52% 60.64% Options Chain 8.83 8.30 0.03 12 69 None
57 YUMC Yum China Holdings Inc 43.39 57.69 40.98 5.88% 5/27 No 1.06 2.47% 20.83% 9.92% 24.68% 14.77% 42.23% Options Chain 0.90 1.40 0.03 17 19 None
58 MET Metlife Inc 80.96 85.29 66.82 21.16% 5/12 No 2.29 2.77% 5.45% 2.69% 4.60% 6.89% 44.39% Options Chain 2.50 2.60 0.03 15 63 None
59 BMO Bank of Montreal 162.33 165.92 100.37 61.73% 7/30 No 6.60 3.99% 6.21% 3.06% 5.89% 5.29% 69.92% Options Chain 5.00 4.25 0.03 15 70 None
60 BCE BCE Inc 24.51 26.46 20.48 19.68% 6/15 No 1.75 7.10% -24.24% -12.96% -16.96% 2.64% 35.64% Options Chain 0.75 0.63 0.03 14 65 None
61 AVB Avalonbay Communities Inc 183.19 201.98 158.58 15.52% 3/31 No 7.03 3.83% 1.71% 0.85% 2.86% 5.15% 87.11% Options Chain 5.55 4.85 0.03 11 71 None
62 TROW T. Rowe Price Group Inc 104.01 113.69 85.22 22.05% 6/15 No 5.11 4.91% 2.36% 1.17% 2.02% 16.78% 54.83% Options Chain 2.28 3.15 0.03 20 70
Dividend Stock List
63 KEY Keycorp 20.88 22.89 14.95 39.67% 6/02 No 0.82 3.87% 0.00% 0.00% 0.94% 3.23% 50.31% Options Chain 0.63 0.58 0.03 15 68 None
64 KO Coca-Cola Company 78.76 82.66 64.45 22.20% 6/15 No 2.06 2.63% 3.92% 1.94% 4.76% 9.24% 64.78% Options Chain 1.85 2.09 0.03 9 63 None
65 ITUB Itau Unibanco Holding S.A. 7.59 9.56 5.48 38.50% 12/02 No 0.16 2.05% -95.32% -78.36% -30.51% 2.43% 19.69% Options Chain 0.20 0.10 0.03 16 47 None
66 PFG Principal Financial Group Inc 101.19 105.00 72.92 38.77% 6/01 No 3.19 3.15% 6.49% 3.20% 6.39% 11.14% 45.77% Options Chain 2.48 2.28 0.02 15 61 None
67 SPG Simon Property Group Inc 203.55 208.79 150.01 35.69% 6/09 No 8.65 4.25% 5.26% 2.60% 6.87% 5.14% 60.19% Options Chain 3.55 4.30 0.02 13 74 None
68 BTI British American Tobacco Plc 58.62 67.30 44.11 32.90% 12/29 No 3.24 5.36% 3.96% 5.81% 6.04% 11.35% 69.00% Options Chain 1.23 1.08 0.02 12 70 None
69 VICI VICI Properties Inc 27.54 32.48 26.55 3.73% 3/19 No 1.78 6.46% 1.98% 0.99% 4.66% 8.49% 61.04% Options Chain 0.48 0.15 0.02 9 68 None