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, and have made at least 10 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 | 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 | DG | Dollar General Corp | 76.50 | 165.52 | 72.12 | 6.07% | 10/08 | Yes | 2.36 | 3.08% | 36.70% | Options Chain | 5.98 | 7.98 | 0.10 | 12 | 64 | None | |
| 2 | HPE | Hewlett Packard Enterprise Company | 21.65 | 22.66 | 14.17 | 52.79% | 9/19 | Yes | 0.52 | 2.46% | 36.88% | Options Chain | 1.15 | 1.38 | 0.06 | 15 | 62 | None | |
| 3 | BBY | Best Buy Co. Inc | 87.81 | 103.48 | 64.86 | 35.38% | 9/19 | No | 3.74 | 4.26% | 64.59% | Options Chain | 4.88 | 5.53 | 0.06 | 16 | 65 | None | |
| 4 | HPQ | HP Inc | 36.85 | 38.90 | 26.98 | 36.58% | 9/11 | No | 1.10 | 3.01% | 38.68% | Options Chain | 1.81 | 2.28 | 0.06 | 12 | 59 | None | |
| 5 | NKE | Nike Inc - Class B | 73.36 | 121.92 | 70.43 | 4.16% | 12/02 | Yes | 1.88 | 2.56% | 53.87% | Options Chain | 3.63 | 4.30 | 0.06 | 15 | 60 | None | |
| 6 | VLO | Valero Energy Corp | 141.20 | 182.31 | 117.70 | 19.97% | 11/20 | No | 4.28 | 3.03% | 37.64% | Options Chain | 5.60 | 6.95 | 0.05 | 12 | 73 | None | |
| 7 | FDX | Fedex Corp | 293.09 | 312.31 | 230.87 | 26.95% | 12/09 | Yes | 6.66 | 2.27% | 41.16% | Options Chain | 12.35 | 14.23 | 0.05 | 14 | 72 | None | |
| 8 | TPR | Tapestry Inc | 55.30 | 58.49 | 29.17 | 89.58% | 12/06 | No | 1.75 | 3.16% | 50.72% | Options Chain | 2.63 | 1.63 | 0.05 | 13 | 67 | None | |
| 9 | QCOM | Qualcomm Inc | 154.27 | 229.44 | 123.10 | 25.32% | 12/05 | No | 4.15 | 2.69% | 46.42% | Options Chain | 6.73 | 7.00 | 0.05 | 16 | 73 | None | |
| 10 | HAL | Halliburton Company | 30.48 | 41.12 | 27.26 | 11.81% | 12/04 | No | 0.84 | 2.69% | 29.37% | Options Chain | 1.32 | 1.15 | 0.04 | 16 | 67 | None | |
| 11 | SLB | SLB | 43.53 | 54.98 | 38.66 | 12.60% | 12/04 | No | 1.35 | 3.10% | 43.13% | Options Chain | 1.34 | 1.83 | 0.04 | 16 | 70 | None | |
| 12 | GOLD | Barrick Gold Corp | 17.80 | 21.35 | 13.52 | 31.66% | 11/29 | No | 0.50 | 2.79% | 54.35% | Options Chain | 0.68 | 0.73 | 0.04 | 17 | 61 | None | |
| 13 | CF | CF Industries Holdings Inc | 87.54 | 90.36 | 68.30 | 28.17% | 11/15 | No | 2.00 | 2.28% | 31.70% | Options Chain | 3.25 | 3.40 | 0.04 | 13 | 69 | None | |
| 14 | WFC | Wells Fargo & Company | 73.58 | 74.69 | 41.31 | 78.12% | 11/08 | No | 1.50 | 2.04% | 31.19% | Options Chain | 2.26 | 2.84 | 0.04 | 18 | 73 | None | |
| 15 | SHEL | Shell Plc ADR (Representing - ) | 65.43 | 72.99 | 57.95 | 12.91% | 11/15 | No | 2.75 | 4.21% | 55.93% | Options Chain | 0.73 | 2.50 | 0.04 | 14 | 72 | None | |
| 16 | AZN | Astrazeneca plc | 63.95 | 87.67 | 59.19 | 8.04% | 8/09 | No | 1.49 | 2.32% | 71.74% | Options Chain | 1.82 | 2.26 | 0.04 | 12 | 66 | None | |
| 17 | USB | U.S. Bancorp. | 50.74 | 51.76 | 34.85 | 45.60% | 9/30 | No | 1.97 | 3.88% | 59.88% | Options Chain | 1.52 | 1.79 | 0.04 | 16 | 75 | None | |
| 18 | SU | Suncor Energy Inc | 40.83 | 41.52 | 28.52 | 43.16% | 12/03 | No | 2.75 | 6.74% | 62.22% | Options Chain | 1.12 | 1.41 | 0.03 | 13 | 74 | None | |
| 19 | SBUX | Starbucks Corp | 98.26 | 102.02 | 70.40 | 39.57% | 11/15 | No | 2.32 | 2.36% | 70.09% | Options Chain | 2.95 | 3.36 | 0.03 | 12 | 52 | None | |
| 20 | NEE | NextEra Energy Inc | 76.88 | 86.10 | 53.26 | 44.35% | 11/22 | No | 2.53 | 3.29% | 75.00% | Options Chain | 2.29 | 2.55 | 0.03 | 14 | 71 | None | |
| 21 | MRK | Merck & Co Inc | 97.44 | 133.74 | 94.48 | 3.13% | 12/16 | No | 3.89 | 3.99% | 81.38% | Options Chain | 2.89 | 3.23 | 0.03 | 12 | 72 | None | |
| 22 | EOG | EOG Resources Inc | 135.18 | 137.21 | 106.69 | 26.70% | 1/17 | No | 6.12 | 4.52% | 49.31% | Options Chain | 4.25 | 4.35 | 0.03 | 15 | 79 |
Dividend Stock List |
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| 23 | NOK | Nokia Corp | 4.25 | 4.95 | 2.83 | 50.18% | 10/22 | No | 0.14 | 3.31% | 82.80% | Options Chain | 0.13 | 0.03 | 15 | 50 | None | ||
| 24 | CMCSA | Comcast Corp - Class A | 42.32 | 46.04 | 35.87 | 17.98% | 1/08 | No | 1.53 | 3.62% | 41.24% | Options Chain | 1.28 | 1.07 | 0.03 | 13 | 62 | None | |
| 25 | LOW | Lowe`s Cos. Inc | 263.03 | 285.80 | 192.56 | 36.60% | 1/22 | Yes | 5.65 | 2.15% | 46.20% | Options Chain | 7.58 | 7.75 | 0.03 | 12 | 55 | None | |
| 26 | XOM | Exxon Mobil Corp | 120.32 | 125.31 | 92.61 | 29.92% | 11/14 | No | 3.84 | 3.19% | 47.82% | Options Chain | 2.86 | 3.43 | 0.03 | 12 | 65 | None | |
| 27 | TGT | Target Corp | 121.72 | 179.22 | 126.93 | 4.10% | 11/20 | Yes | 4.44 | 3.65% | 45.87% | Options Chain | 3.45 | 3.23 | 0.03 | 17 | 66 | None | |
| 28 | MO | Altria Group Inc | 55.98 | 56.55 | 36.85 | 51.91% | 9/16 | No | 3.96 | 7.07% | 66.89% | Options Chain | 1.14 | 1.58 | 0.03 | 12 | 69 | None | |
| 29 | F | Ford Motor Company | 11.07 | 14.43 | 9.22 | 20.07% | 11/07 | No | 0.78 | 7.05% | 88.64% | Options Chain | 0.28 | 0.26 | 0.03 | 15 | 66 | None | |
| 30 | JNJ | Johnson & Johnson | 153.25 | 168.85 | 140.91 | 8.76% | 11/26 | No | 4.91 | 3.21% | 81.16% | Options Chain | 1.93 | 1.93 | 0.01 | 13 | 71 | None | |
| 31 | MGA | Magna International Inc | 42.65 | 57.88 | 37.16 | 14.77% | 11/15 | No | 1.90 | 4.45% | 50.94% | Options Chain | 16 | 60 | None | ||||
| 32 | HIG | Hartford Financial Services Group Inc | 116.82 | 123.23 | 75.20 | 55.35% | 12/02 | No | 2.40 | 2.03% | 24.12% | Options Chain | 21 | 71 |
Dividend Stock List |
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| 33 | INFY | Infosys Ltd | 21.73 | 23.21 | 15.54 | 39.83% | 10/29 | No | 0.58 | 2.65% | 75.78% | Options Chain | 17 | 60 | None | ||||
| 34 | IPG | Interpublic Group Of Cos. Inc | 27.66 | 34.44 | 26.88 | 2.90% | 12/02 | No | 1.63 | 5.74% | 76.89% | Options Chain | 13 | 66 | None | ||||
| 35 | ITW | Illinois Tool Works Inc | 266.46 | 277.58 | 230.29 | 15.71% | 12/31 | No | 7.20 | 2.70% | 62.28% | Options Chain | 13 | 66 | None | ||||
| 36 | PAYX | Paychex Inc | 141.83 | 150.71 | 112.14 | 26.48% | 11/07 | No | 3.83 | 2.70% | 81.66% | Options Chain | 16 | 62 | None | ||||
| 37 | PCAR | Paccar Inc | 109.99 | 124.43 | 86.53 | 27.11% | 11/13 | No | 4.37 | 3.97% | 48.88% | Options Chain | 16 | 72 | None | ||||
| 38 | MTB | M & T Bank Corp | 213.52 | 216.84 | 119.04 | 79.37% | 9/03 | No | 5.30 | 2.48% | 39.17% | Options Chain | 13 | 73 | None | ||||
| 39 | NTRS | Northern Trust Corp | 107.88 | 109.54 | 72.75 | 48.29% | 12/06 | No | 3.75 | 3.48% | 46.13% | Options Chain | 17 | 71 | None | ||||
| 40 | OKE | Oneok Inc | 113.16 | 112.93 | 62.38 | 81.40% | 11/01 | No | 3.96 | 3.50% | 81.82% | Options Chain | 12 | 72 | None | ||||
| 41 | OMC | Omnicom Group Inc | 99.08 | 107.00 | 76.40 | 29.69% | 9/20 | No | 2.80 | 2.83% | 37.69% | Options Chain | 13 | 72 | None | ||||
| 42 | OVV | Ovintiv Inc | 45.74 | 55.16 | 36.91 | 23.92% | 12/13 | No | 1.50 | 3.28% | 19.79% | Options Chain | 13 | 72 | None | ||||
| 43 | PRU | Prudential Financial Inc | 124.11 | 129.13 | 90.84 | 36.62% | 11/19 | No | 5.20 | 4.19% | 46.35% | Options Chain | 19 | 66 | None | ||||
| 44 | RF | Regions Financial Corp | 26.26 | 26.73 | 15.01 | 74.95% | 12/02 | No | 1.22 | 4.65% | 68.93% | Options Chain | 13 | 71 | None | ||||
| 45 | RIO | Rio Tinto plc | 62.39 | 72.15 | 59.33 | 5.16% | 8/16 | No | 4.35 | 6.97% | 64.83% | Options Chain | 15 | 73 | None | ||||
| 46 | GPC | Genuine Parts Company | 120.30 | 162.12 | 112.74 | 6.71% | 9/06 | No | 3.95 | 3.27% | 50.90% | Options Chain | 14 | 68 | None | ||||
| 47 | GRMN | Garmin Ltd | 207.98 | 215.55 | 117.52 | 76.97% | 12/12 | No | 4.46 | 2.17% | 56.60% | Options Chain | 18 | 62 |
Dividend Stock List |
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| 48 | ERIC | Telefonaktiebolaget L M Ericsson | 8.30 | 8.62 | 4.66 | 78.11% | 4/04 | No | 0.26 | 3.13% | -650.18% | Options Chain | 13 | 50 | None | ||||
| 49 | FHN | First Horizon Corporation | 20.11 | 20.53 | 11.39 | 76.56% | 12/13 | No | 0.75 | 3.73% | 54.74% | Options Chain | 15 | 68 | None | ||||
| 50 | FNF | Fidelity National Financial Inc | 60.96 | 62.97 | 42.49 | 43.47% | 12/17 | No | 2.42 | 3.97% | 88.00% | Options Chain | 13 | 58 | None | ||||
| 51 | GIS | General Mills Inc | 62.81 | 75.27 | 59.87 | 4.91% | 1/10 | No | 2.98 | 4.74% | 70.95% | Options Chain | 13 | 70 | None | ||||
| 52 | CNI | Canadian National Railway Company | 106.71 | 132.66 | 105.28 | 1.36% | 12/09 | No | 4.17 | 3.91% | 69.15% | Options Chain | 13 | 74 | None | ||||
| 53 | EMN | Eastman Chemical Company | 101.28 | 114.50 | 78.23 | 29.46% | 9/16 | No | 3.24 | 3.20% | 43.43% | Options Chain | 14 | 72 | None | ||||
| 54 | DRI | Darden Restaurants Inc | 160.85 | 174.32 | 134.67 | 19.44% | 10/10 | No | 5.42 | 3.37% | 62.51% | Options Chain | 14 | 71 | None | ||||
| 55 | ALL | Allstate Corp (The) | 196.49 | 201.00 | 132.00 | 48.86% | 11/29 | No | 4.57 | 2.33% | 29.52% | Options Chain | 14 | 71 | None | ||||
| 56 | BDX | Becton Dickinson & Company | 223.00 | 246.89 | 217.86 | 2.36% | 12/09 | No | 4.84 | 2.17% | 81.76% | Options Chain | 12 | 60 | None | ||||
| 57 | BG | Bunge Global SA | 88.88 | 113.25 | 81.56 | 8.97% | 2/18 | No | 3.38 | 3.81% | 42.87% | Options Chain | 16 | 69 | None | ||||
| 58 | CVE | Cenovus Energy Inc | 16.05 | 21.46 | 14.31 | 12.16% | 12/13 | No | 0.95 | 5.95% | 67.25% | Options Chain | 14 | 65 | None | ||||
| 59 | CINF | Cincinnati Financial Corp | 150.58 | 152.85 | 97.24 | 54.85% | 12/19 | No | 3.99 | 2.65% | 20.51% | Options Chain | 17 | 69 | None | ||||
| 60 | CM | Canadian Imperial Bank Of Commerce | 64.33 | 65.09 | 36.05 | 78.45% | 9/27 | No | 3.60 | 5.60% | 73.02% | Options Chain | 12 | 72 | None | ||||
| 61 | SWKS | Skyworks Solutions Inc | 83.43 | 120.08 | 82.13 | 1.58% | 12/03 | No | 2.76 | 3.31% | 74.80% | Options Chain | 16 | 64 |
Dividend Stock List |
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| 62 | SYY | Sysco Corp | 73.63 | 81.22 | 68.50 | 7.49% | 1/03 | No | 2.53 | 3.44% | 64.38% | Options Chain | 14 | 62 | None | ||||
| 63 | TAP | Molson Coors Beverage Company - Class B | 60.38 | 68.04 | 48.79 | 23.75% | 8/30 | No | 1.73 | 2.87% | 38.96% | Options Chain | 13 | 75 | None | ||||
| 64 | RY | Royal Bank Of Canada | 121.79 | 125.91 | 81.84 | 48.81% | 10/24 | No | 5.60 | 4.60% | 69.74% | Options Chain | 12 | 75 | None | ||||
| 65 | TROW | T. Rowe Price Group Inc | 117.52 | 122.23 | 92.23 | 27.42% | 12/13 | No | 6.18 | 5.26% | 67.69% | Options Chain | 21 | 60 |
Dividend Stock List |
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| 66 | TRV | Travelers Companies Inc | 257.19 | 269.56 | 171.26 | 50.18% | 12/10 | No | 5.15 | 2.00% | 26.46% | Options Chain | 19 | 72 | None | ||||
| 67 | TTE | TotalEnergies SE | 60.52 | 73.07 | 58.46 | 3.52% | 3/25 | No | 4.91 | 8.11% | 69.24% | Options Chain | 16 | 74 | None | ||||
| 68 | UNM | Unum Group | 72.62 | 73.62 | 40.75 | 78.21% | 10/25 | No | 1.57 | 2.16% | 17.05% | Options Chain | 15 | 68 | None | ||||
| 69 | VICI | VICI Properties Inc | 32.12 | 33.85 | 26.33 | 21.99% | 9/18 | No | 1.68 | 5.22% | 62.13% | Options Chain | 13 | 79 | None | ||||
| 70 | SJM | J.M. Smucker Company | 112.08 | 129.77 | 103.71 | 8.07% | 11/15 | No | 4.28 | 3.82% | 58.55% | Options Chain | 12 | 67 | None | ||||
| 71 | WRB | W.R. Berkley Corp | 60.94 | 61.96 | 45.08 | 35.18% | 9/23 | No | 1.22 | 2.01% | 31.37% | Options Chain | 15 | 62 | None |