Covered Calls With Upcoming Dividends

This report lists what Tim considers to be the best dividend stocks for producing covered call option income with an upcoming ex-dividend date. The idea of this strategy is to collect premium from the covered call, and either have the stock get called away before the ex-dividend date, called away after the ex-dividend date and collect the dividend income, or not be called away at all (and keep all of the premium and dividend 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 between 2% and 10%, a dividend payout ratio percentage of 90% or less, a liquidity rating of 2 stars or greater, an Algorithm score of 12 or higher, have made at least 10 dividend payments over the last 5 years, and have an upcoming ex-dividend date within the next 45 days. The report is sorted in order of the nearest upcoming dividend date and is intended to find solid dividend stocks that are ideal for selling covered calls on. The report also has direct links to the options chain page for each stock as well.

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Ticker Company Options Chain Bid Ask Premium Return on Investment Premium to Strike Price Ratio Implied Volatility Delta Theta Underlying Stock Price Strike Price Contract Expiration Earnings Overlap? Ex-Dividend Date Previous Dividend Amount Current Dividend Amount 5-Year Dividend Payments Count Total Years Dividends Increasing Liquidity Rating Algorithm Score Safety Score Lists
LLY Lilly(Eli) & Company Options Chain 55.45 59.35 57.40
Profitability Analysis 5.20%
0.05 0.36 0.54 -0.67 1,073.29 1,070.00 2/27/2026 Yes 2/13 1.50 1.73 21 11 9 62 None
LLY Lilly(Eli) & Company Options Chain 53.40 58.25 55.83
Profitability Analysis 5.52%
0.05 0.37 0.53 -0.67 1,073.29 1,075.00 2/27/2026 Yes 2/13 1.50 1.73 21 11 9 62 None
CAT Caterpillar Inc Options Chain 33.50 36.05 34.78
Profitability Analysis 5.09%
0.05 0.37 0.54 -0.36 638.75 635.00 2/27/2026 Yes 1/20 1.51 1.51 21 12 11 66 None
CAT Caterpillar Inc Options Chain 30.75 33.80 32.28
Profitability Analysis 5.49%
0.05 0.37 0.52 -0.36 638.75 640.00 2/27/2026 Yes 1/20 1.51 1.51 21 12 11 66 None
AMAT Applied Materials Inc Options Chain 19.75 20.35 20.05
Profitability Analysis 6.17%
0.07 0.50 0.55 -0.26 301.89 300.00 2/20/2026 Yes 2/19 0.46 0.46 21 8 13 66 None
MSFT Microsoft Corporation Options Chain 19.55 20.00 19.78
Profitability Analysis 4.64%
0.04 0.30 0.53 -0.24 459.38 460.00 2/27/2026 Yes 2/19 0.91 0.91 21 21 14 69 None
AMAT Applied Materials Inc Options Chain 17.10 20.30 18.70
Profitability Analysis 7.38%
0.06 0.48 0.51 -0.23 301.89 305.00 2/27/2026 Yes 2/19 0.46 0.46 21 8 13 66 None
LOW Lowe`s Cos. Inc Options Chain 9.80 12.05 10.93
Profitability Analysis 4.43%
0.04 0.29 0.52 -0.12 274.95 275.00 2/27/2026 Yes 1/21 1.20 1.20 21 40 8 63 None
AMGN AMGEN Inc Options Chain 8.55 12.95 10.75
Profitability Analysis 4.35%
0.03 0.26 0.49 -0.12 328.97 330.00 2/27/2026 Yes 2/13 2.38 2.52 21 15 11 72 None
TEL TE Connectivity plc Options Chain 8.90 10.20 9.55
Profitability Analysis 5.46%
0.04 0.36 0.49 -0.15 237.30 240.00 2/20/2026 Yes 2/20 0.71 0.71 21 15 11 65 None
DELL Dell Technologies Inc - Class C Options Chain 7.60 9.50 8.55
Profitability Analysis 7.06%
0.07 0.49 0.55 -0.10 118.69 118.00 2/27/2026 Yes 1/20 0.53 0.53 16 4 17 63 None
DELL Dell Technologies Inc - Class C Options Chain 7.85 9.10 8.48
Profitability Analysis 7.85%
0.07 0.52 0.53 -0.10 118.69 119.00 2/27/2026 Yes 1/20 0.53 0.53 16 4 17 63 None
WSM Williams-Sonoma Inc Options Chain 6.70 8.60 7.65
Profitability Analysis 4.88%
0.04 0.35 0.46 -0.11 208.15 210.00 2/20/2026 No 1/16 0.66 0.66 21 20 15 64 None
ZTS Zoetis Inc - Class A Options Chain 6.40 8.10 7.25
Profitability Analysis 5.51%
0.06 0.42 0.55 -0.09 125.84 125.00 2/20/2026 Yes 1/20 0.50 0.53 21 13 14 62 None
TMUS T-Mobile US Inc Options Chain 6.80 7.25 7.03
Profitability Analysis 5.74%
0.04 0.33 0.47 -0.12 192.02 195.00 2/20/2026 Yes 2/27 1.02 1.02 10 3 10 67 None
STZ Constellation Brands Inc - Class A Options Chain 6.00 7.10 6.55
Profitability Analysis 3.97%
0.04 0.27 0.55 -0.06 156.36 155.00 2/27/2026 No 1/29 1.02 1.02 21 11 8 68 None
NVT nVent Electric plc Options Chain 5.20 6.40 5.80
Profitability Analysis 6.19%
0.06 0.44 0.52 -0.09 104.54 105.00 2/20/2026 Yes 1/23 0.20 0.21 21 2 8 58 None
JNJ Johnson & Johnson Options Chain 5.55 5.90 5.73
Profitability Analysis 5.77%
0.03 0.22 0.50 -0.09 214.65 220.00 2/20/2026 Yes 2/24 1.30 1.30 21 43 9 68 None
STZ Constellation Brands Inc - Class A Options Chain 4.70 6.10 5.40
Profitability Analysis 4.83%
0.03 0.28 0.48 -0.06 156.36 157.50 2/27/2026 No 1/29 1.02 1.02 21 11 8 68 None
TJX TJX Companies Inc Options Chain 4.95 5.75 5.35
Profitability Analysis 3.64%
0.03 0.24 0.53 -0.06 155.13 155.00 2/27/2026 Yes 2/12 0.42 0.42 21 5 11 56 None
PNC PNC Financial Services Group Inc Options Chain 3.40 7.30 5.35
Profitability Analysis 4.58%
0.02 0.23 0.43 -0.07 212.32 215.00 2/27/2026 Yes 1/20 1.70 1.70 21 15 12 80 None
CLX Clorox Company Options Chain 4.50 5.30 4.90
Profitability Analysis 4.25%
0.04 0.36 0.53 -0.05 111.41 110.00 2/20/2026 Yes 1/28 1.24 1.24 21 40 13 54 None
EOG EOG Resources Inc Options Chain 4.30 5.50 4.90
Profitability Analysis 7.29%
0.04 0.31 0.53 -0.05 108.04 110.00 2/27/2026 Yes 1/16 1.02 1.02 29 8 13 69 None
C Citigroup Inc Options Chain 3.95 4.70 4.33
Profitability Analysis 4.02%
0.04 0.28 0.52 -0.04 112.41 112.00 2/27/2026 Yes 2/02 0.60 0.60 20 3 15 78 None
ZTS Zoetis Inc - Class A Options Chain 4.00 4.60 4.30
Profitability Analysis 7.14%
0.03 0.37 0.43 -0.09 125.84 130.00 2/20/2026 Yes 1/20 0.50 0.53 21 13 14 62 None
BG Bunge Global SA Options Chain 3.60 4.80 4.20
Profitability Analysis 4.21%
0.04 0.30 0.53 -0.05 105.46 105.00 2/20/2026 Yes 2/17 0.70 0.70 21 5 11 73 None
PCAR Paccar Inc Options Chain 3.20 5.00 4.10
Profitability Analysis 9.14%
0.03 0.25 0.54 -0.06 112.73 118.60 2/20/2026 Yes 2/11 1.40 0.33 26 5 11 68 None
PCAR Paccar Inc Options Chain 3.20 5.00 4.10
Profitability Analysis 9.14%
0.03 0.25 0.54 -0.06 112.73 118.60 2/20/2026 Yes 2/11 1.40 0.33 26 5 11 68 None
EOG EOG Resources Inc Options Chain 3.70 4.40 4.05
Profitability Analysis 7.43%
0.04 0.29 0.50 -0.05 108.04 111.00 2/27/2026 Yes 1/16 1.02 1.02 29 8 13 69 None
C Citigroup Inc Options Chain 3.50 4.00 3.75
Profitability Analysis 4.39%
0.03 0.27 0.48 -0.04 112.41 113.00 2/27/2026 Yes 2/02 0.60 0.60 20 3 15 78 None
TJX TJX Companies Inc Options Chain 2.87 3.55 3.21
Profitability Analysis 5.48%
0.02 0.24 0.37 -0.06 155.13 160.00 2/27/2026 Yes 2/12 0.42 0.42 21 5 11 56 None
PNR Pentair plc Options Chain 2.70 3.40 3.05
Profitability Analysis 4.92%
0.03 0.26 0.47 -0.05 103.24 105.00 2/20/2026 Yes 1/23 0.25 0.27 21 6 10 59 None
JEF Jefferies Financial Group Inc Options Chain 2.65 2.95 2.80
Profitability Analysis 5.14%
0.04 0.36 0.52 -0.04 62.49 62.50 2/20/2026 Yes 2/17 0.40 0.40 21 2 8 68 None
CL Colgate-Palmolive Company Options Chain 1.35 4.10 2.73
Profitability Analysis 5.17%
0.03 0.21 0.55 -0.03 82.96 84.00 2/27/2026 Yes 1/21 0.52 0.52 21 40 11 67 None
AFL Aflac Inc Options Chain 1.85 3.50 2.68
Profitability Analysis 4.94%
0.02 0.18 0.53 -0.04 107.96 110.00 2/20/2026 Yes 2/18 0.58 0.61 21 40 15 71 None
AFL Aflac Inc Options Chain 1.20 4.10 2.65
Profitability Analysis 5.84%
0.02 0.20 0.45 -0.03 107.96 111.00 2/27/2026 Yes 2/18 0.58 0.61 21 40 15 71 None
RPRX Royalty Pharma plc - Class A Options Chain 0.30 4.90 2.60
Profitability Analysis 6.53%
0.07 0.49 0.54 -0.02 40.21 40.00 2/20/2026 Yes 2/20 0.22 0.23 21 6 8 60 None
CLX Clorox Company Options Chain 2.10 2.95 2.53
Profitability Analysis 6.61%
0.02 0.32 0.36 -0.05 111.41 115.00 2/20/2026 Yes 1/28 1.24 1.24 21 40 13 54 None
BG Bunge Global SA Options Chain 1.85 3.10 2.48
Profitability Analysis 7.32%
0.02 0.32 0.31 -0.04 105.46 110.00 2/20/2026 Yes 2/17 0.70 0.70 21 5 11 73 None
RY Royal Bank Of Canada Options Chain 1.60 2.90 2.25
Profitability Analysis 3.14%
0.01 0.14 0.42 -0.04 168.60 170.00 2/20/2026 No 1/26 1.54 1.64 21 15 12 66 None
CL Colgate-Palmolive Company Options Chain 1.85 2.05 1.95
Profitability Analysis 5.44%
0.02 0.21 0.47 -0.03 82.96 85.00 2/20/2026 Yes 1/21 0.52 0.52 21 40 11 67 None
DUK Duke Energy Corp Options Chain 1.85 2.05 1.95
Profitability Analysis 3.65%
0.02 0.18 0.42 -0.03 118.68 120.00 2/20/2026 Yes 2/13 1.06 1.06 21 18 8 67 None
CARR Carrier Global Corp Options Chain 1.65 2.00 1.83
Profitability Analysis 7.90%
0.03 0.37 0.41 -0.04 55.21 57.50 2/20/2026 Yes 1/20 0.23 0.24 20 0 12 63 None
MET Metlife Inc Options Chain 1.65 1.95 1.80
Profitability Analysis 4.73%
0.02 0.25 0.41 -0.03 78.65 80.00 2/20/2026 Yes 2/03 0.57 0.57 21 13 18 71 None
BMO Bank of Montreal Options Chain 1.65 1.95 1.80
Profitability Analysis 3.91%
0.01 0.17 0.37 -0.03 133.26 135.00 2/20/2026 No 1/30 1.63 1.67 21 4 15 67 None
WEC WEC Energy Group Inc Options Chain 1.05 1.40 1.23
Profitability Analysis 4.77%
0.01 0.16 0.37 -0.04 107.07 110.00 2/20/2026 Yes 2/13 0.89 0.95 21 22 8 64 None
FE Firstenergy Corp Options Chain 1.00 1.25 1.13
Profitability Analysis 3.09%
0.02 0.15 0.50 -0.01 46.15 46.00 2/20/2026 No 2/06 0.45 0.45 21 3 10 69 None
CNP Centerpoint Energy Inc Options Chain 0.50 1.20 0.85
Profitability Analysis 2.61%
0.02 0.18 0.50 -0.01 39.06 39.00 2/20/2026 Yes 2/19 0.22 0.23 21 4 7 57 None
CNP Centerpoint Energy Inc Options Chain 0.50 1.20 0.85
Profitability Analysis 2.61%
0.02 0.18 0.50 -0.01 39.06 39.00 2/20/2026 Yes 2/19 0.22 0.23 21 4 7 57 None
FE Firstenergy Corp Options Chain 0.55 0.85 0.70
Profitability Analysis 4.32%
0.01 0.16 0.34 -0.01 46.15 47.00 2/20/2026 No 2/06 0.45 0.45 21 3 10 69 None