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 | HPQ | HP Inc | 18.39 | 28.45 | 17.28 | 6.42% | 3/11 | Yes | 1.18 | 6.33% | 2.72% | 1.35% | 4.34% | 10.08% | 44.65% | Options Chain | 1.30 | 1.56 | 0.08 | 13 | 51 | None | |
| 2 | BBY | Best Buy Co. Inc | 64.50 | 82.62 | 57.08 | 13.00% | 3/24 | No | 3.81 | 5.90% | 1.05% | 0.52% | 2.20% | 14.06% | 75.60% | Options Chain | 3.60 | 5.00 | 0.08 | 18 | 57 | None | |
| 3 | QCOM | Qualcomm Inc | 127.56 | 203.60 | 121.99 | 4.57% | 3/05 | Yes | 3.56 | 2.83% | 1.14% | 0.57% | 4.99% | 16.60% | 71.77% | Options Chain | 7.53 | 9.05 | 0.07 | 11 | 72 | None | |
| 4 | ACN | Accenture plc - Class A | 179.53 | 317.43 | 177.50 | 1.14% | 4/09 | No | 6.22 | 3.09% | 7.41% | 3.64% | 12.78% | 13.10% | 50.98% | Options Chain | 9.35 | 11.20 | 0.06 | 17 | 67 | None | |
| 5 | IBM | International Business Machines Corp | 237.12 | 323.06 | 219.00 | 8.27% | 2/10 | Yes | 6.72 | 2.74% | 0.15% | 0.07% | 0.49% | 4.75% | 60.32% | Options Chain | 14.53 | 14.75 | 0.06 | 13 | 74 | None | |
| 6 | SLB | SLB | 52.58 | 54.80 | 31.21 | 68.47% | 2/11 | Yes | 1.15 | 2.31% | 3.51% | 1.74% | 16.08% | 3.48% | 48.94% | Options Chain | 2.75 | 3.12 | 0.06 | 8 | 65 | None | |
| 7 | NTR | Nutrien Ltd | 73.24 | 84.75 | 50.21 | 45.87% | 3/31 | Yes | 2.19 | 2.90% | 0.92% | 0.46% | 3.46% | 9.91% | 46.89% | Options Chain | 3.60 | 4.15 | 0.06 | 11 | 65 | None | |
| 8 | CTRA | Coterra Energy Inc | 33.07 | 36.88 | 21.72 | 52.26% | 3/11 | Yes | 0.88 | 2.55% | 0.00% | 0.00% | -22.90% | 13.10% | 39.29% | Options Chain | 1.08 | 1.85 | 0.06 | 15 | 70 | None | |
| 9 | CSCO | Cisco Systems Inc | 83.10 | 87.71 | 52.62 | 57.92% | 4/02 | Yes | 1.65 | 2.09% | 3.07% | 1.52% | 2.70% | 10.35% | 59.35% | Options Chain | 4.03 | 4.58 | 0.06 | 9 | 65 | None | |
| 10 | UNH | Unitedhealth Group Inc | 306.34 | 441.06 | 229.79 | 33.31% | 3/09 | Yes | 8.84 | 3.14% | 1.26% | 0.63% | 8.41% | 22.72% | 66.82% | Options Chain | 14.40 | 16.28 | 0.05 | 10 | 65 | None | |
| 11 | CMCSA | Comcast Corp - Class A | 28.42 | 32.98 | 23.58 | 20.53% | 4/01 | Yes | 1.32 | 4.73% | 1.54% | 0.77% | 5.64% | 28.34% | 24.49% | Options Chain | 1.23 | 1.48 | 0.05 | 10 | 60 | None | |
| 12 | GILD | Gilead Sciences Inc | 142.49 | 156.40 | 90.95 | 56.67% | 3/13 | Yes | 3.19 | 2.30% | 3.80% | 1.88% | 2.95% | 6.19% | 47.05% | Options Chain | 6.28 | 7.30 | 0.05 | 10 | 64 | None | |
| 13 | MRK | Merck & Co Inc | 123.02 | 124.22 | 70.74 | 73.90% | 3/16 | Yes | 3.32 | 2.78% | 3.66% | 1.81% | 4.97% | 9.06% | 45.60% | Options Chain | 5.50 | 5.80 | 0.05 | 12 | 75 | None | |
| 14 | HD | Home Depot Inc | 339.20 | 421.19 | 315.31 | 7.58% | 3/12 | Yes | 9.23 | 2.90% | 1.30% | 0.65% | 5.23% | 27.51% | 64.91% | Options Chain | 13.38 | 15.60 | 0.05 | 7 | 69 | None | |
| 15 | AIG | American International Group Inc | 76.87 | 86.78 | 70.83 | 8.53% | 3/16 | Yes | 1.80 | 2.39% | 2.86% | 1.42% | 8.90% | 4.67% | 33.15% | Options Chain | 2.90 | 3.28 | 0.04 | 11 | 62 | None | |
| 16 | XOM | Exxon Mobil Corp | 154.33 | 176.41 | 98.73 | 56.32% | 2/12 | Yes | 4.04 | 2.47% | 3.00% | 1.49% | 3.79% | 5.76% | 60.30% | Options Chain | 6.53 | 5.45 | 0.04 | 9 | 64 | None | |
| 17 | CL | Colgate-Palmolive Company | 84.34 | 99.33 | 74.10 | 13.82% | 4/20 | Yes | 2.08 | 2.44% | 2.91% | 1.45% | 3.33% | 8.52% | 79.09% | Options Chain | 2.55 | 3.50 | 0.04 | 9 | 62 | None | |
| 18 | PG | Procter & Gamble Company | 146.90 | 167.46 | 136.65 | 7.50% | 1/23 | Yes | 4.23 | 2.96% | 1.20% | 0.60% | 4.03% | 8.60% | 62.53% | Options Chain | 5.70 | 5.10 | 0.04 | 8 | 65 | None | |
| 19 | VZ | Verizon Communications Inc | 47.85 | 50.91 | 37.18 | 28.70% | 4/10 | Yes | 2.73 | 5.56% | 3.95% | 1.96% | 2.41% | 2.96% | 67.36% | Options Chain | 1.58 | 1.74 | 0.04 | 9 | 73 | None | |
| 20 | ABT | Abbott Laboratories | 102.60 | 136.28 | 93.92 | 9.24% | 4/15 | No | 2.40 | 2.31% | 6.78% | 3.33% | 7.60% | 8.42% | 64.69% | Options Chain | 3.50 | 3.65 | 0.04 | 13 | 63 | None | |
| 21 | KMI | Kinder Morgan Inc - Class P | 32.85 | 34.73 | 24.38 | 34.74% | 2/02 | Yes | 1.17 | 3.51% | 0.43% | 0.21% | 1.50% | -1.07% | 85.40% | Options Chain | 0.97 | 1.15 | 0.04 | 10 | 67 | None | |
| 22 | BAC | Bank Of America Corp | 52.55 | 57.23 | 35.69 | 47.24% | 3/06 | No | 1.10 | 2.23% | 3.70% | 1.84% | 6.83% | 4.49% | 28.87% | Options Chain | 1.76 | 1.68 | 0.03 | 13 | 74 | None | |
| 23 | MDT | Medtronic Plc | 88.58 | 104.70 | 77.47 | 14.34% | 3/27 | Yes | 2.84 | 3.29% | 0.35% | 0.18% | 1.56% | 16.03% | 79.33% | Options Chain | 2.77 | 2.69 | 0.03 | 11 | 65 | None | |
| 24 | JNJ | Johnson & Johnson | 241.50 | 251.71 | 141.20 | 71.03% | 2/24 | No | 5.20 | 2.18% | 1.17% | 0.58% | 3.97% | 12.87% | 47.10% | Options Chain | 6.58 | 6.83 | 0.03 | 10 | 66 | None | |
| 25 | NTAP | Netapp Inc | 95.89 | 124.86 | 79.11 | 21.21% | 4/02 | No | 2.08 | 2.13% | 0.00% | 0.00% | 0.99% | 11.47% | 34.21% | Options Chain | 14 | 67 | None | ||||
| 26 | MET | Metlife Inc | 74.14 | 83.25 | 67.33 | 10.11% | 2/03 | No | 2.27 | 3.19% | 1.00% | 0.50% | 3.48% | 6.89% | 48.20% | Options Chain | 13 | 70 | None | ||||
| 27 | MFC | Manulife Financial Corp | 37.40 | 38.85 | 27.04 | 38.31% | 2/25 | No | 1.80 | 5.12% | 10.23% | 4.99% | 10.10% | 10.87% | 82.05% | Options Chain | 14 | 74 | None | ||||
| 28 | SPG | Simon Property Group Inc | 198.50 | 203.05 | 138.92 | 42.89% | 3/10 | No | 8.65 | 4.55% | 2.92% | 1.45% | 6.27% | 5.14% | 61.04% | Options Chain | 14 | 77 | None | ||||
| 29 | STT | State Street Corp | 139.00 | 143.59 | 77.39 | 79.61% | 4/01 | No | 3.28 | 2.55% | 7.69% | 3.77% | 11.42% | 12.03% | 34.89% | Options Chain | 14 | 75 | None | ||||
| 30 | NXPI | NXP Semiconductors NV | 205.05 | 255.04 | 160.11 | 28.07% | 3/25 | No | 4.06 | 2.08% | 0.00% | 0.00% | 4.66% | 21.67% | 51.02% | Options Chain | 9 | 66 | None | ||||
| 31 | PRU | Prudential Financial Inc | 97.70 | 118.16 | 90.91 | 7.47% | 2/17 | No | 5.45 | 5.57% | 3.70% | 1.84% | 3.93% | 9.95% | 54.55% | Options Chain | 18 | 73 | None | ||||
| 32 | TD | Toronto Dominion Bank | 99.87 | 104.08 | 58.33 | 71.22% | 4/09 | No | 4.23 | 4.44% | 2.86% | 1.42% | 4.96% | 9.53% | 47.64% | Options Chain | 17 | 75 | None | ||||
| 33 | TFC | Truist Financial Corporation | 50.55 | 55.64 | 33.39 | 51.39% | 2/13 | No | 2.08 | 4.41% | 0.00% | 0.00% | 0.99% | 7.08% | 54.45% | Options Chain | 11 | 67 | None | ||||
| 34 | RF | Regions Financial Corp | 28.20 | 31.23 | 18.06 | 56.15% | 3/02 | No | 1.04 | 3.91% | 2.91% | 1.45% | 9.40% | -1.38% | 45.43% | Options Chain | 14 | 61 | None | ||||
| 35 | TROW | T. Rowe Price Group Inc | 93.00 | 113.69 | 78.62 | 18.29% | 3/16 | No | 5.11 | 5.72% | 2.36% | 1.17% | 2.02% | 16.78% | 55.30% | Options Chain | 18 | 62 |
Dividend Stock List |
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| 36 | UNM | Unum Group | 76.63 | 81.65 | 67.45 | 13.61% | 4/24 | No | 1.80 | 2.37% | 4.55% | 2.25% | 9.93% | 5.89% | 42.15% | Options Chain | 9 | 61 | None | ||||
| 37 | VICI | VICI Properties Inc | 28.18 | 32.48 | 26.55 | 6.14% | 3/19 | No | 1.78 | 6.44% | 1.98% | 0.99% | 4.66% | 8.49% | 68.30% | Options Chain | 10 | 77 | None | ||||
| 38 | YUMC | Yum China Holdings Inc | 50.50 | 58.07 | 40.13 | 25.84% | 3/04 | No | 1.01 | 2.09% | 20.83% | 9.92% | 24.68% | 14.77% | 40.24% | Options Chain | 17 | 17 | None | ||||
| 39 | GIS | General Mills Inc | 36.83 | 55.31 | 34.04 | 8.20% | 4/10 | No | 2.43 | 6.60% | 0.83% | 0.41% | 3.82% | 7.44% | 59.41% | Options Chain | 10 | 62 | None | ||||
| 40 | HBAN | Huntington Bancshares Inc | 16.42 | 19.26 | 12.87 | 27.58% | 3/18 | No | 0.62 | 3.90% | 0.00% | 0.00% | 0.00% | 3.80% | 42.76% | Options Chain | 9 | 66 | None | ||||
| 41 | BMO | Bank of Montreal | 144.31 | 153.67 | 88.15 | 63.71% | 4/29 | No | 6.52 | 4.79% | 3.73% | 1.85% | 5.27% | 5.29% | 75.46% | Options Chain | 13 | 70 | None | ||||
| 42 | ITUB | Itau Unibanco Holding S.A. | 9.04 | 9.51 | 4.66 | 93.99% | 12/02 | No | 0.22 | 2.65% | -95.32% | -78.36% | -30.51% | -0.44% | 28.48% | Options Chain | 13 | 50 | None | ||||
| 43 | 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 | |
| 44 | KDP | Keurig Dr Pepper Inc | 26.55 | 35.02 | 24.61 | 7.88% | 3/27 | No | 0.92 | 3.61% | 0.00% | 0.00% | 4.81% | 0.16% | 60.13% | Options Chain | 12 | 62 | None | ||||
| 45 | BTI | British American Tobacco Plc | 58.81 | 62.31 | 37.87 | 55.29% | 7/10 | No | 3.24 | 5.57% | 3.99% | 5.83% | 6.04% | 11.35% | 70.21% | Options Chain | 12 | 67 | None | ||||
| 46 | CFG | Citizens Financial Group Inc | 65.40 | 68.79 | 32.75 | 99.69% | 2/04 | No | 1.76 | 2.89% | 6.98% | 3.43% | 3.23% | 15.70% | 45.60% | Options Chain | 15 | 77 | None | ||||
| 47 | CTSH | Cognizant Technology Solutions Corp - Class A | 59.38 | 86.59 | 57.39 | 3.47% | 2/18 | No | 1.26 | 2.00% | 6.45% | 3.18% | 5.14% | 6.46% | 27.63% | Options Chain | 15 | 69 | None | ||||
| 48 | CVE | Cenovus Energy Inc | 25.63 | 27.65 | 11.23 | 128.23% | 3/13 | No | 0.80 | 3.01% | 2.56% | 1.27% | 14.59% | -0.18% | 51.61% | Options Chain | 12 | 64 | None | ||||
| 49 | DKS | Dicks Sporting Goods Inc | 211.71 | 234.45 | 163.07 | 29.83% | 3/27 | No | 4.89 | 2.55% | 3.09% | 1.53% | 26.54% | 19.10% | 49.02% | Options Chain | 8 | 64 | None | ||||
| 50 | FANG | Diamondback Energy Inc | 186.48 | 204.91 | 124.36 | 49.95% | 3/05 | No | 4.05 | 2.09% | 5.00% | 2.47% | -17.26% | 34.11% | 70.68% | Options Chain | 8 | 69 | None | ||||
| 51 | FHN | First Horizon Corporation | 24.43 | 26.36 | 15.99 | 52.78% | 3/13 | No | 0.62 | 2.71% | 13.33% | 6.46% | 3.18% | 3.95% | 33.16% | Options Chain | 18 | 70 | None | ||||
| 52 | FITB | Fifth Third Bancorp | 50.14 | 54.94 | 31.65 | 58.42% | 3/31 | No | 1.57 | 3.33% | 3.90% | 1.93% | 6.15% | 8.25% | 44.48% | Options Chain | 10 | 74 | None |