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 70 or better, and have made at least 20 dividend payments over the last 5 years. Finally, the stock's current price must be within 25% or lower of its 52-week low. 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 DG Dollar General Corp 72.49 164.24 66.43 9.12% 1/07 Yes 2.36 3.26% 0.00% 0.00% 9.86% -3.92% 38.94% Options Chain 5.55 7.30 0.10 12 64 None
2 CNQ Canadian Natural Resources Ltd 30.38 39.84 28.12 8.04% 12/13 Yes 2.14 6.96% 15.54% 17.43% 25.93% 23.68% 87.24% Options Chain 2.48 1.38 0.08 12 71 None
3 HAL Halliburton Company 25.24 40.90 25.21 0.12% 12/04 No 0.68 2.70% 6.25% 19.02% 21.21% 2.18% 24.03% Options Chain 1.90 0.93 0.08 16 67 None
4 TGT Target Corp 131.35 177.93 120.21 9.27% 2/12 Yes 4.44 3.38% 0.90% 0.45% 9.12% 7.37% 47.13% Options Chain 8.28 9.18 0.07 17 65 None
5 NKE Nike Inc - Class B 68.68 105.61 70.07 1.98% 12/02 Yes 1.51 2.20% 8.63% 9.69% 10.58% 15.51% 46.60% Options Chain 4.45 3.70 0.06 14 58 None
6 FDX Fedex Corp 256.07 310.77 229.73 11.47% 12/09 Yes 5.40 2.11% 9.53% 13.39% 20.05% 17.69% 34.50% Options Chain 12.55 15.23 0.06 14 69 None
7 GPC Genuine Parts Company 117.74 160.82 111.84 5.28% 12/06 Yes 4.00 3.40% 5.26% 5.70% 6.07% 10.30% 51.55% Options Chain 4.15 6.85 0.06 13 61 None
8 VLO Valero Energy Corp 133.08 179.47 115.89 14.83% 1/30 No 4.34 3.26% 5.61% 2.77% 3.62% 12.67% 50.52% Options Chain 7.63 7.23 0.06 12 72 None
9 OVV Ovintiv Inc 42.52 54.76 36.64 16.05% 12/13 Yes 1.20 2.82% 4.35% 12.39% 33.75% 9.23% 15.83% Options Chain 2.43 1.85 0.06 13 74 None
10 CF CF Industries Holdings Inc 84.05 98.25 68.30 23.06% 2/14 Yes 2.00 2.38% 0.00% 0.00% 13.62% 27.31% 31.70% Options Chain 4.25 4.70 0.06 12 70 None
11 STX Seagate Technology Holdings Plc 96.15 114.47 80.60 19.29% 3/19 No 2.82 2.93% 2.13% 1.06% 1.53% 6.82% 51.27% Options Chain 4.95 4.95 0.05 14 55 None
12 SWKS Skyworks Solutions Inc 65.69 119.13 62.01 5.93% 2/24 No 2.76 4.20% 1.45% 0.72% 7.20% 26.31% 84.92% Options Chain 2.93 2.60 0.04 18 64
Dividend Stock List
13 QSR Restaurant Brands International Inc 64.14 80.60 59.67 7.49% 12/20 Yes 2.32 3.62% 5.45% 3.64% 2.77% 20.29% 58.15% Options Chain 2.75 2.45 0.04 11 71 None
14 LMT Lockheed Martin Corp 444.39 615.09 403.36 10.17% 3/03 No 12.75 2.87% 3.53% 1.75% 5.64% 6.32% 57.15% Options Chain 16.05 18.80 0.04 13 72 None
15 SLB SLB 40.16 54.25 36.27 10.73% 2/05 No 1.11 2.76% 3.64% 1.80% 22.88% 3.39% 35.69% Options Chain 1.63 1.57 0.04 14 69 None
16 MGA Magna International Inc 38.62 54.38 35.05 10.19% 11/15 Yes 1.90 4.92% 3.26% 2.74% 4.39% 8.44% 50.67% Options Chain 1.50 1.55 0.04 17 69 None
17 COP Conoco Phillips 98.36 132.44 94.23 4.38% 2/14 No 3.12 3.12% 0.00% 0.00% 12.47% 2.08% 37.01% Options Chain 3.53 3.93 0.04 9 75 None
18 MRK Merck & Co Inc 87.28 132.67 87.33 0.06% 3/17 No 3.12 3.57% 3.85% 1.90% 5.25% 9.08% 46.29% Options Chain 2.98 3.45 0.04 12 73 None
19 CMCSA Comcast Corp - Class A 34.37 44.93 32.50 5.75% 4/02 No 1.24 3.60% 8.20% 4.02% 7.73% 18.57% 29.95% Options Chain 0.83 1.27 0.04 12 64 None
20 XOM Exxon Mobil Corp 108.89 125.31 98.01 11.10% 2/12 No 3.84 3.53% 3.13% 1.55% 3.21% 2.04% 48.92% Options Chain 3.28 3.85 0.04 12 75 None
21 FAST Fastenal Company 73.45 84.39 60.35 21.71% 1/31 No 1.60 2.17% 10.26% 5.00% 11.32% 20.31% 80.00% Options Chain 1.93 2.48 0.03 13 57 None
22 CVX Chevron Corp 152.78 164.68 134.00 14.01% 2/14 No 6.52 4.29% 4.91% 2.42% 6.53% 2.59% 67.15% Options Chain 5.05 3.75 0.03 11 75 None
23 HRL Hormel Foods Corp 29.28 35.84 27.50 6.47% 1/13 Yes 1.14 3.90% 2.65% 1.32% 4.31% 7.37% 77.38% Options Chain 0.83 0.93 0.03 13 53 None
24 OMC Omnicom Group Inc 83.80 106.15 81.42 2.92% 12/20 No 2.80 3.34% 0.00% 0.00% 1.87% 14.21% 37.53% Options Chain 1.90 2.63 0.03 13 72 None
25 TROW T. Rowe Price Group Inc 110.14 124.52 98.28 12.07% 12/13 No 4.96 4.50% 1.64% 1.65% 8.34% 19.44% 54.21% Options Chain 3.25 3.45 0.03 21 62
Dividend Stock List
26 SHEL Shell Plc ADR (Representing - ) 65.89 72.99 60.15 9.54% 2/14 No 2.75 4.18% 4.07% 2.01% 14.96% 5.40% 54.39% Options Chain 1.63 2.00 0.03 14 72 None
27 VICI VICI Properties Inc 30.11 33.38 25.97 15.94% 12/17 Yes 1.70 5.63% 5.28% 6.30% 7.80% 9.24% 62.78% Options Chain 0.85 0.83 0.03 13 79 None
28 TSN Tyson Foods Inc - Class A 57.94 66.36 49.49 17.07% 5/30 No 1.97 3.40% 1.52% 0.76% 2.74% 14.80% 66.55% Options Chain 1.30 1.63 0.03 18 61 None
29 CL Colgate-Palmolive Company 86.76 108.14 80.92 7.22% 1/21 No 2.00 2.33% 1.01% 0.50% 2.81% 4.65% 56.98% Options Chain 2.33 1.83 0.03 12 62 None
30 PG Procter & Gamble Company 167.97 179.34 150.79 11.39% 1/24 No 4.03 2.40% 1.66% 0.83% 4.31% 4.71% 64.01% Options Chain 2.93 4.33 0.03 12 70 None
31 GIS General Mills Inc 59.60 74.50 57.94 2.87% 4/10 Yes 2.39 4.06% 0.84% 0.42% 4.15% 5.52% 51.96% Options Chain 1.23 1.53 0.03 14 60 None
32 CNI Canadian National Railway Company 101.58 131.90 98.69 2.93% 3/10 No 3.38 3.28% 5.03% 2.48% 9.60% 9.60% 69.12% Options Chain 1.60 2.43 0.02 12 68 None
33 PCAR Paccar Inc 106.02 120.95 87.02 21.83% 2/12 No 3.90 3.68% 12.82% 6.22% 10.25% 6.66% 49.37% Options Chain 1.98 2.53 0.02 15 73 None
34 PRU Prudential Financial Inc 112.82 130.55 99.52 13.36% 2/18 No 5.20 4.61% 3.85% 1.90% 4.09% 5.43% 69.24% Options Chain 1.70 2.63 0.02 18 68 None
35 LHX L3Harris Technologies Inc 206.13 264.49 197.23 4.51% 11/18 No 4.64 2.25% 1.75% 1.77% 8.08% 7.92% 59.03% Options Chain 4.60 3.43 0.02 12 68 None
36 UNP Union Pacific Corp 242.08 256.84 216.15 12.00% 2/28 No 5.28 2.18% 1.52% 0.75% 5.72% 8.04% 47.57% Options Chain 4.85 5.15 0.02 10 70 None
37 TTE TotalEnergies SE 60.78 71.95 52.48 15.82% 6/18 No 3.33 5.48% 2.08% 1.03% 2.58% 5.87% 49.79% Options Chain 0.95 1.25 0.02 16 72 None
38 JNJ Johnson & Johnson 153.12 167.51 139.79 9.54% 2/18 No 4.91 3.21% 1.02% 0.51% 4.31% 9.88% 84.80% Options Chain 2.98 2.99 0.02 13 63 None
39 SYY Sysco Corp 71.12 81.68 68.04 4.53% 1/03 No 2.03 2.85% 0.99% 0.49% 2.61% 9.48% 52.05% Options Chain 0.90 1.35 0.02 14 55 None
40 ITUB Itau Unibanco Holding S.A. 5.85 6.80 4.86 20.37% 7/02 No 0.21 3.61% -84.65% -60.82% -30.86% 8.81% 30.58% Options Chain 0.10 0.02 16 72 None
41 BBD Banco Bradesco S.A. 2.12 2.83 1.79 18.44% 1/03 No 0.18 8.56% 297.98% 99.49% 68.06% 15.01% 82.49% Options Chain 17 65 None