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 QCOM Qualcomm Inc 170.61 258.96 121.54 40.37% 9/03 Yes 3.59 2.10% 4.55% 2.25% 5.86% 16.60% 38.56% Options Chain 15.83 21.03 0.12 14 72 None
2 HPQ HP Inc 24.14 29.29 17.07 41.42% 9/09 Yes 1.19 4.93% 2.72% 1.35% 4.34% 10.08% 43.41% Options Chain 1.70 2.01 0.08 14 54 None
3 ACN Accenture plc - Class A 143.50 285.21 116.75 22.91% 7/09 No 6.52 4.52% 7.41% 3.64% 12.78% 13.10% 53.62% Options Chain 9.50 11.85 0.08 16 62 None
4 APA APA Corporation 34.29 45.36 17.38 97.30% 7/22 Yes 1.00 2.92% 0.00% 0.00% 12.47% 5.71% 23.31% Options Chain 2.31 2.77 0.08 15 64 None
5 IBM International Business Machines Corp 219.05 332.46 204.44 7.15% 5/08 Yes 6.73 3.07% 0.75% 0.37% 0.64% 4.75% 57.42% Options Chain 14.70 15.53 0.07 13 73 None
6 CTSH Cognizant Technology Solutions Corp - Class A 44.75 85.98 37.08 20.69% 5/18 Yes 1.28 2.86% 6.45% 3.18% 5.14% 6.46% 27.77% Options Chain 2.98 3.15 0.07 17 66 None
7 TGT Target Corp 140.21 142.82 81.83 71.34% 8/12 Yes 4.56 3.25% 2.65% 1.32% 4.04% 11.28% 58.39% Options Chain 8.20 9.30 0.07 9 62 None
8 LEN Lennar Corp - Class A 86.40 142.23 81.18 6.43% 7/10 No 2.00 2.31% 0.00% 0.00% 7.46% 10.73% 31.70% Options Chain 4.50 5.25 0.06 12 61 None
9 SU Suncor Energy Inc 62.43 69.83 36.87 69.32% 6/04 Yes 2.37 3.91% 3.90% 1.93% 6.30% 13.28% 62.20% Options Chain 2.70 3.70 0.06 12 72 None
10 SIRI Sirius XM Holdings Inc 30.59 31.42 19.33 58.25% 5/11 Yes 1.08 3.44% 0.00% 0.00% 4.64% 12.87% 45.76% Options Chain 1.36 1.80 0.06 15 71 None
11 NTR Nutrien Ltd 67.28 83.98 51.72 30.09% 6/30 Yes 2.19 3.26% 0.92% 0.46% 3.46% 9.91% 44.60% Options Chain 2.85 3.85 0.06 11 62 None
12 NKE Nike Inc - Class B 43.76 78.01 40.00 9.40% 6/01 No 1.63 3.66% 1.86% 0.93% 6.92% 15.27% 77.62% Options Chain 2.29 2.47 0.06 13 58 None
13 CVE Cenovus Energy Inc 28.00 31.89 13.60 105.88% 6/15 Yes 0.82 3.01% 12.82% 6.22% 17.35% -0.18% 46.59% Options Chain 1.55 1.48 0.06 13 66 None
14 DKS Dicks Sporting Goods Inc 217.98 244.38 184.42 18.20% 6/12 No 4.92 2.27% 3.09% 1.53% 26.54% 19.10% 49.05% Options Chain 10.25 11.65 0.05 10 62 None
15 GILD Gilead Sciences Inc 134.28 155.38 105.01 27.87% 6/15 Yes 3.22 2.36% 3.80% 1.88% 2.95% 6.19% 43.81% Options Chain 6.00 7.03 0.05 15 72 None
16 ZTS Zoetis Inc - Class A 76.56 158.55 71.47 7.12% 7/20 Yes 2.06 2.68% 6.00% 2.96% 13.01% 19.26% 33.94% Options Chain 2.98 3.95 0.05 15 65 None
17 XOM Exxon Mobil Corp 147.36 175.22 102.27 44.09% 5/15 Yes 4.08 2.80% 3.00% 1.49% 3.79% 5.76% 68.69% Options Chain 6.60 7.60 0.05 9 64 None
18 CMCSA Comcast Corp - Class A 23.86 32.20 21.83 9.30% 7/01 Yes 1.32 5.48% 1.54% 0.77% 5.64% 28.34% 26.77% Options Chain 1.20 1.20 0.05 12 58 None
19 MDT Medtronic Plc 83.20 103.76 72.65 14.52% 6/26 Yes 2.85 3.41% 1.77% 0.88% 1.91% 16.03% 73.45% Options Chain 3.70 4.18 0.05 14 72 None
20 PM Philip Morris International Inc 192.98 194.58 138.43 39.41% 6/25 Yes 5.88 3.10% 4.26% 2.11% 3.93% 5.94% 78.82% Options Chain 7.85 9.35 0.05 11 68 None
21 LOW Lowe`s Cos. Inc 216.16 291.66 203.40 6.27% 7/22 Yes 4.80 2.22% 6.38% 3.14% 7.82% 16.42% 39.38% Options Chain 8.65 10.35 0.05 10 65 None
22 HD Home Depot Inc 348.02 418.06 286.95 21.28% 6/04 Yes 9.26 2.66% 1.30% 0.65% 5.23% 27.51% 65.77% Options Chain 14.08 16.63 0.05 6 62 None
23 T AT&T Inc 21.98 28.75 19.63 11.97% 7/10 Yes 1.11 5.05% 0.00% 0.00% -4.82% 1.94% 37.88% Options Chain 0.92 1.02 0.05 9 61 None
24 MO Altria Group Inc 73.03 75.28 53.01 37.77% 6/15 Yes 4.24 5.81% 1.92% 0.96% 3.60% 8.01% 85.48% Options Chain 3.18 3.28 0.04 12 67 None
25 KEY Keycorp 23.55 24.07 15.97 47.46% 9/01 Yes 0.82 3.42% 0.00% 0.00% 0.94% 3.23% 50.31% Options Chain 0.63 1.00 0.04 15 68 None
26 VZ Verizon Communications Inc 43.59 50.06 36.55 19.26% 7/10 Yes 2.79 6.37% 3.95% 1.96% 2.41% 2.96% 68.67% Options Chain 1.64 1.84 0.04 13 73 None
27 UL Unilever plc 62.39 73.71 54.43 14.62% 5/15 No 2.28 3.63% -4.83% -2.45% 1.88% 4.10% 77.78% Options Chain 2.10 2.53 0.04 13 65 None
28 MET Metlife Inc 93.70 93.81 66.82 40.23% 8/04 Yes 2.29 2.45% 5.45% 2.69% 4.60% 6.89% 44.56% Options Chain 2.60 3.75 0.04 15 61 None
29 MCD McDonald`s Corp 267.71 337.56 264.09 1.37% 6/02 Yes 7.35 2.69% 3.77% 1.87% 7.08% 17.52% 61.82% Options Chain 9.25 10.40 0.04 12 67 None
30 USB U.S. Bancorp. 63.14 64.27 41.79 51.09% 6/30 No 2.08 3.25% 1.96% 0.98% 2.56% 8.74% 43.61% Options Chain 1.59 2.42 0.04 13 65 None
31 QSR Restaurant Brands International Inc 75.01 81.22 59.14 26.83% 6/23 Yes 2.54 3.29% 4.84% 2.39% 4.74% 21.18% 81.67% Options Chain 2.83 2.43 0.04 8 62 None
32 YUMC Yum China Holdings Inc 43.87 57.69 40.15 9.27% 5/27 Yes 1.06 2.39% 20.83% 9.92% 24.68% 14.77% 40.61% Options Chain 1.45 1.65 0.04 17 19 None
33 DRI Darden Restaurants Inc 200.06 217.62 165.13 21.15% 7/10 No 6.12 3.04% 11.72% 5.70% 8.83% 13.54% 58.56% Options Chain 6.60 7.50 0.04 12 70 None
34 PRU Prudential Financial Inc 118.25 117.16 90.64 30.46% 5/26 Yes 5.50 4.65% 3.70% 1.84% 3.93% 9.95% 56.64% Options Chain 3.75 4.40 0.04 13 57 None
35 SYY Sysco Corp 82.25 90.56 67.23 22.34% 7/02 Yes 2.17 2.64% 4.76% 2.35% 3.46% 15.19% 60.61% Options Chain 2.45 3.03 0.04 11 63 None
36 BCE BCE Inc 21.83 26.12 20.87 4.60% 6/15 Yes 1.75 7.90% -24.24% -12.96% -16.96% 2.64% 35.79% Options Chain 0.25 0.80 0.04 14 68 None
37 PG Procter & Gamble Company 149.98 166.00 135.63 10.58% 7/24 Yes 4.26 2.82% 4.24% 2.10% 4.80% 8.60% 62.26% Options Chain 5.35 5.48 0.04 10 65 None
38 JNJ Johnson & Johnson 249.97 269.43 151.01 65.53% 8/25 No 5.24 2.10% 4.28% 2.12% 4.76% 12.87% 60.72% Options Chain 7.08 9.08 0.04 9 66 None
39 RF Regions Financial Corp 31.65 32.47 22.04 43.60% 9/01 Yes 1.06 3.27% 16.50% 7.94% 12.85% -1.38% 43.98% Options Chain 0.88 1.13 0.04 16 70 None
40 CINF Cincinnati Financial Corp 180.73 194.81 140.72 28.43% 6/23 Yes 3.62 2.05% 8.05% 3.95% 8.04% 8.94% 20.99% Options Chain 6.45 5.00 0.04 14 60 None
41 KMI Kinder Morgan Inc - Class P 32.54 34.81 24.97 30.32% 5/04 No 1.18 3.61% 2.15% 1.07% 1.93% -1.07% 78.86% Options Chain 1.15 0.95 0.04 11 66 None
42 FHN First Horizon Corporation 25.40 26.31 19.39 31.00% 6/12 No 0.64 2.52% 13.33% 6.46% 3.18% 3.95% 32.16% Options Chain 0.78 0.88 0.03 14 61 None
43 OVV Ovintiv Inc 57.79 63.13 34.83 65.92% 6/15 Yes 1.20 2.13% 0.00% 0.00% 6.01% 2.93% 39.47% Options Chain 2.00 1.58 0.03 9 64 None
44 KO Coca-Cola Company 81.56 85.68 64.04 27.36% 9/15 Yes 2.08 2.45% 3.92% 1.94% 4.76% 9.24% 65.41% Options Chain 2.38 2.75 0.03 12 67 None
45 TFC Truist Financial Corporation 52.50 55.06 39.49 32.95% 5/08 Yes 2.08 3.91% 0.00% 0.00% 0.99% 7.08% 50.61% Options Chain 1.55 1.73 0.03 11 66 None
46 SPG Simon Property Group Inc 228.70 231.53 152.45 50.02% 6/09 Yes 8.80 3.85% 5.26% 2.60% 6.87% 5.14% 61.15% Options Chain 6.80 7.45 0.03 13 71 None
47 AVB Avalonbay Communities Inc 192.53 198.63 157.12 22.54% 6/30 Yes 7.06 3.63% 1.71% 0.85% 2.86% 5.15% 85.16% Options Chain 4.75 6.25 0.03 11 73 None
48 CFG Citizens Financial Group Inc 72.60 74.70 44.85 61.87% 7/30 No 1.80 2.42% 6.98% 3.43% 3.23% 15.70% 39.22% Options Chain 2.10 2.33 0.03 15 75 None
49 TTE TotalEnergies SE 81.39 90.79 54.01 50.69% 9/30 Yes 3.40 4.31% -12.83% -6.64% 8.06% 5.47% 50.45% Options Chain 2.13 2.55 0.03 15 63 None
50 ITUB Itau Unibanco Holding S.A. 8.20 9.47 5.43 51.01% 12/02 Yes 0.17 2.09% -95.32% -78.36% -30.51% 2.43% 21.73% Options Chain 0.08 0.25 0.03 16 47 None
51 TD Toronto Dominion Bank 123.90 124.87 69.92 77.20% 7/10 No 4.33 3.49% 6.67% 3.28% 5.91% 9.53% 72.41% Options Chain 2.70 3.65 0.03 12 76 None
52 TROW T. Rowe Price Group Inc 117.35 121.17 84.21 39.35% 6/15 Yes 5.14 4.32% 2.36% 1.17% 2.02% 16.78% 55.87% Options Chain 3.08 3.15 0.03 20 68
Dividend Stock List
53 MKC McCormick & Co. Inc (Non Voting) 52.90 71.54 44.42 19.09% 7/06 No 1.89 3.57% 4.92% 2.43% 6.37% 11.06% 31.45% Options Chain 1.05 1.38 0.03 11 65 None
54 CM Canadian Imperial Bank Of Commerce 121.50 120.78 68.77 76.68% 6/29 No 4.18 3.46% 7.54% 3.70% 6.60% 5.27% 58.30% Options Chain 1.70 3.00 0.02 13 65 None
55 FNF Fidelity National Financial Inc 51.96 57.15 42.32 22.78% 6/16 Yes 2.06 3.96% 2.97% 1.47% 4.12% 2.92% 73.31% Options Chain 0.70 1.23 0.02 17 66 None
56 BNS Bank Of Nova Scotia 89.40 90.47 52.63 69.87% 7/07 No 4.44 4.95% 5.56% 2.74% 2.95% 9.96% 86.89% Options Chain 1.95 1.20 0.02 12 65 None
57 BTI British American Tobacco Plc 63.15 66.38 47.85 31.97% 12/29 No 3.28 5.19% 3.96% 5.81% 6.04% 11.35% 66.14% Options Chain 1.35 1.10 0.02 12 71 None
58 BMO Bank of Montreal 182.99 184.21 106.83 71.29% 7/30 No 6.60 3.61% 6.21% 3.06% 5.89% 5.29% 72.45% Options Chain 2.83 3.55 0.02 14 71 None
59 RY Royal Bank Of Canada 216.07 218.57 124.70 73.27% 7/27 No 6.36 2.94% 16.56% 7.96% 9.15% 8.37% 58.94% Options Chain 3.08 2.93 0.01 12 76 None
60 VICI VICI Properties Inc 26.87 31.94 25.82 4.07% 6/18 Yes 1.80 6.63% 1.98% 0.99% 4.66% 8.49% 61.64% Options Chain 0.38 0.13 0.01 9 61 None