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.
| 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 | ITUB | Itau Unibanco Holding S.A. | 5.73 | 6.80 | 4.86 | 17.90% | 7/02 | No | 0.48 | 8.44% | -84.65% | -60.82% | -30.86% | 23.70% | 66.24% | Options Chain | 7.35 | 1.28 | 16 | 73 | None | ||
| 2 | DG | Dollar General Corp | 76.13 | 164.24 | 66.43 | 14.60% | 1/07 | Yes | 2.36 | 3.10% | 0.00% | 0.00% | 9.86% | -3.92% | 38.94% | Options Chain | 5.60 | 7.78 | 0.10 | 12 | 63 | None | |
| 3 | TGT | Target Corp | 124.27 | 176.42 | 119.19 | 4.26% | 2/12 | Yes | 4.46 | 3.59% | 0.90% | 0.45% | 9.12% | 7.37% | 47.30% | Options Chain | 7.58 | 9.18 | 0.07 | 15 | 66 | None | |
| 4 | CNQ | Canadian Natural Resources Ltd | 30.73 | 39.84 | 28.65 | 7.26% | 12/13 | Yes | 2.14 | 6.96% | 15.54% | 17.43% | 25.93% | 23.68% | 86.19% | Options Chain | 1.30 | 2.13 | 0.07 | 12 | 71 | None | |
| 5 | FDX | Fedex Corp | 254.19 | 310.77 | 234.26 | 8.51% | 3/10 | Yes | 5.40 | 2.12% | 2.22% | 1.11% | 17.46% | 10.13% | 34.46% | Options Chain | 12.95 | 17.05 | 0.07 | 14 | 70 | None | |
| 6 | HAL | Halliburton Company | 26.26 | 40.90 | 25.16 | 4.37% | 3/05 | No | 0.68 | 2.59% | 0.00% | 0.00% | 39.41% | -1.45% | 24.03% | Options Chain | 1.07 | 1.75 | 0.07 | 12 | 67 | None | |
| 7 | SCCO | Southern Copper Corporation | 92.91 | 124.88 | 75.84 | 22.51% | 2/11 | No | 2.76 | 2.97% | 35.68% | 16.48% | -2.57% | 3.83% | 64.27% | Options Chain | 5.75 | 6.15 | 0.07 | 12 | 63 | None | |
| 8 | OVV | Ovintiv Inc | 43.31 | 54.76 | 36.64 | 18.20% | 12/13 | Yes | 1.20 | 2.77% | 4.35% | 12.39% | 33.75% | 9.23% | 15.83% | Options Chain | 2.58 | 2.80 | 0.06 | 13 | 75 | None | |
| 9 | BG | Bunge Global SA | 73.06 | 112.16 | 66.75 | 9.45% | 2/18 | No | 2.72 | 3.72% | 0.65% | 0.32% | 7.33% | 8.55% | 34.04% | Options Chain | 2.70 | 4.10 | 0.06 | 18 | 68 | None | |
| 10 | VLO | Valero Energy Corp | 134.74 | 179.47 | 115.89 | 16.27% | 1/30 | No | 4.34 | 3.22% | 5.61% | 2.77% | 3.62% | 12.67% | 50.52% | Options Chain | 7.25 | 7.38 | 0.05 | 12 | 71 | None | |
| 11 | MGA | Magna International Inc | 38.08 | 54.33 | 35.05 | 8.64% | 2/28 | No | 1.90 | 4.99% | 2.11% | 1.05% | 3.05% | 4.49% | 53.98% | Options Chain | 0.90 | 2.08 | 0.05 | 14 | 69 | None | |
| 12 | SWKS | Skyworks Solutions Inc | 67.21 | 119.13 | 62.01 | 8.39% | 2/24 | No | 2.76 | 4.11% | 1.45% | 0.72% | 7.20% | 26.31% | 84.92% | Options Chain | 3.08 | 3.55 | 0.05 | 17 | 63 |
Dividend Stock List |
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| 13 | SLB | SLB | 41.74 | 54.25 | 36.27 | 15.08% | 2/05 | Yes | 1.11 | 2.66% | 3.64% | 1.80% | 22.88% | 3.39% | 35.69% | Options Chain | 1.65 | 2.12 | 0.05 | 14 | 69 | None | |
| 14 | ADM | Archer Daniels Midland Company | 48.19 | 64.19 | 44.42 | 8.49% | 2/18 | Yes | 2.01 | 4.17% | 2.00% | 1.00% | 8.35% | 10.63% | 55.07% | Options Chain | 1.43 | 2.40 | 0.05 | 13 | 55 | None | |
| 15 | QCOM | Qualcomm Inc | 165.43 | 228.25 | 149.43 | 10.71% | 3/06 | No | 3.35 | 2.03% | 1.49% | 0.74% | 6.03% | 9.31% | 36.14% | Options Chain | 8.08 | 7.30 | 0.05 | 16 | 65 | None | |
| 16 | LMT | Lockheed Martin Corp | 440.72 | 615.09 | 415.62 | 6.04% | 3/03 | No | 12.75 | 2.89% | 3.53% | 1.75% | 5.64% | 6.32% | 57.17% | Options Chain | 17.40 | 20.10 | 0.05 | 12 | 69 | None | |
| 17 | LHX | L3Harris Technologies Inc | 199.02 | 264.49 | 193.09 | 3.07% | 11/18 | No | 4.64 | 2.33% | 1.75% | 1.77% | 8.08% | 7.92% | 59.03% | Options Chain | 7.35 | 9.05 | 0.05 | 14 | 64 | None | |
| 18 | OMC | Omnicom Group Inc | 82.30 | 106.15 | 80.31 | 2.48% | 3/11 | Yes | 2.80 | 3.40% | 0.00% | 0.00% | 0.00% | 10.06% | 37.53% | Options Chain | 3.15 | 3.70 | 0.04 | 13 | 72 | None | |
| 19 | MDLZ | Mondelez International Inc - Class A | 64.67 | 74.98 | 53.95 | 19.87% | 3/31 | No | 1.79 | 2.77% | 5.03% | 2.48% | 9.04% | 2.50% | 52.34% | Options Chain | 1.75 | 2.90 | 0.04 | 12 | 70 | None | |
| 20 | EMN | Eastman Chemical Company | 100.56 | 113.54 | 82.49 | 21.91% | 3/14 | No | 3.26 | 3.24% | 1.84% | 0.92% | 4.07% | 0.12% | 42.50% | Options Chain | 2.95 | 4.45 | 0.04 | 13 | 62 | None | |
| 21 | SU | Suncor Energy Inc | 39.49 | 41.32 | 31.87 | 23.91% | 3/04 | No | 2.21 | 5.58% | 3.40% | 1.69% | 21.39% | 8.28% | 66.22% | Options Chain | 1.69 | 1.74 | 0.04 | 13 | 74 | None | |
| 22 | MRK | Merck & Co Inc | 89.50 | 132.67 | 81.04 | 10.44% | 3/17 | No | 3.12 | 3.49% | 3.85% | 1.90% | 5.25% | 9.08% | 46.29% | Options Chain | 3.58 | 3.93 | 0.04 | 12 | 74 | None | |
| 23 | TTE | TotalEnergies SE | 60.68 | 71.95 | 52.48 | 15.62% | 6/18 | No | 3.33 | 5.49% | 2.08% | 1.03% | 2.58% | 5.87% | 49.79% | Options Chain | 2.55 | 1.78 | 0.04 | 16 | 71 | None | |
| 24 | HRL | Hormel Foods Corp | 29.65 | 35.84 | 28.03 | 5.78% | 1/13 | Yes | 1.14 | 3.84% | 2.65% | 1.32% | 4.31% | 7.37% | 77.38% | Options Chain | 1.08 | 1.23 | 0.04 | 13 | 54 | None | |
| 25 | COP | Conoco Phillips | 102.00 | 131.37 | 93.47 | 9.13% | 2/14 | No | 3.12 | 3.06% | 0.00% | 0.00% | 12.47% | 2.08% | 39.95% | Options Chain | 3.73 | 4.20 | 0.04 | 9 | 77 | None | |
| 26 | MET | Metlife Inc | 81.01 | 88.48 | 65.86 | 23.00% | 2/04 | No | 2.18 | 2.69% | 1.16% | 0.58% | 3.50% | 4.09% | 35.56% | Options Chain | 2.38 | 3.30 | 0.04 | 18 | 72 | None | |
| 27 | EQNR | Equinor ASA | 23.48 | 27.48 | 21.29 | 10.29% | 2/14 | No | 1.40 | 5.96% | 3.70% | 1.84% | 25.74% | 0.26% | 45.02% | Options Chain | 0.65 | 0.93 | 0.04 | 13 | 68 | None | |
| 28 | TROW | T. Rowe Price Group Inc | 106.27 | 124.52 | 98.28 | 8.13% | 3/14 | No | 4.96 | 4.67% | 2.42% | 1.20% | 4.13% | 14.82% | 54.21% | Options Chain | 4.20 | 3.50 | 0.04 | 20 | 62 |
Dividend Stock List |
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| 29 | IPG | Interpublic Group Of Cos. Inc | 27.07 | 34.07 | 26.30 | 2.93% | 3/03 | No | 1.32 | 4.88% | 0.00% | 0.00% | 5.14% | 5.47% | 72.13% | Options Chain | 0.18 | 1.03 | 0.04 | 12 | 61 | None | |
| 30 | CVX | Chevron Corp | 158.79 | 162.87 | 132.53 | 19.81% | 2/14 | No | 6.60 | 4.16% | 4.91% | 2.42% | 6.53% | 2.59% | 67.90% | Options Chain | 4.30 | 5.90 | 0.04 | 13 | 75 | None | |
| 31 | CMCSA | Comcast Corp - Class A | 36.41 | 44.93 | 32.50 | 12.03% | 4/02 | No | 1.24 | 3.41% | 8.20% | 4.02% | 7.73% | 18.57% | 29.95% | Options Chain | 1.30 | 1.35 | 0.04 | 14 | 64 | None | |
| 32 | PRU | Prudential Financial Inc | 109.50 | 128.97 | 100.99 | 8.43% | 2/18 | No | 5.25 | 4.79% | 3.85% | 1.90% | 4.09% | 5.43% | 70.00% | Options Chain | 4.00 | 3.80 | 0.04 | 16 | 67 | None | |
| 33 | GIS | General Mills Inc | 61.00 | 74.50 | 55.15 | 10.61% | 4/10 | Yes | 2.39 | 3.92% | 0.84% | 0.42% | 4.15% | 5.52% | 51.96% | Options Chain | 1.63 | 2.13 | 0.03 | 16 | 61 | None | |
| 34 | GPC | Genuine Parts Company | 121.63 | 160.82 | 111.84 | 8.75% | 3/07 | Yes | 4.00 | 3.29% | 3.00% | 1.49% | 6.03% | 6.36% | 61.82% | Options Chain | 3.60 | 4.20 | 0.03 | 12 | 60 | None | |
| 35 | TSN | Tyson Foods Inc - Class A | 60.45 | 66.36 | 50.88 | 18.81% | 5/30 | No | 1.97 | 3.26% | 1.52% | 0.76% | 2.74% | 14.80% | 66.55% | Options Chain | 2.03 | 1.65 | 0.03 | 20 | 63 | None | |
| 36 | CVE | Cenovus Energy Inc | 15.29 | 21.28 | 13.76 | 11.12% | 3/14 | No | 0.68 | 4.41% | -11.66% | -6.01% | 69.37% | -0.66% | 48.21% | Options Chain | 0.50 | 0.45 | 0.03 | 14 | 69 | None | |
| 37 | XOM | Exxon Mobil Corp | 110.69 | 124.20 | 99.69 | 11.03% | 2/12 | Yes | 3.88 | 3.51% | 3.13% | 1.55% | 3.21% | 2.04% | 49.49% | Options Chain | 3.30 | 3.58 | 0.03 | 13 | 76 | None | |
| 38 | KHC | Kraft Heinz Company | 31.13 | 37.60 | 27.25 | 14.24% | 3/07 | No | 1.60 | 5.14% | 0.00% | 0.00% | 0.00% | -13.47% | 70.80% | Options Chain | 0.84 | 0.97 | 0.03 | 12 | 72 | None | |
| 39 | VZ | Verizon Communications Inc | 42.76 | 43.93 | 36.64 | 16.70% | 1/10 | No | 2.69 | 6.28% | 1.40% | 0.70% | 1.81% | 2.94% | 64.86% | Options Chain | 1.15 | 1.29 | 0.03 | 12 | 65 | None | |
| 40 | MDT | Medtronic Plc | 89.94 | 93.08 | 74.72 | 20.37% | 12/27 | No | 2.79 | 3.10% | 1.45% | 2.22% | 5.18% | 15.08% | 85.06% | Options Chain | 2.42 | 2.68 | 0.03 | 12 | 62 | None | |
| 41 | PG | Procter & Gamble Company | 170.23 | 179.34 | 150.79 | 12.89% | 1/24 | No | 4.03 | 2.37% | 1.66% | 0.83% | 4.31% | 4.71% | 64.11% | Options Chain | 4.75 | 3.23 | 0.03 | 13 | 70 | None | |
| 42 | SYY | Sysco Corp | 73.22 | 81.68 | 68.04 | 7.61% | 1/03 | No | 2.03 | 2.77% | 0.99% | 0.49% | 2.61% | 9.48% | 52.05% | Options Chain | 1.30 | 1.85 | 0.03 | 14 | 62 | None | |
| 43 | ITW | Illinois Tool Works Inc | 264.28 | 277.49 | 228.93 | 15.44% | 3/31 | No | 5.80 | 2.19% | 3.45% | 1.71% | 6.18% | 9.40% | 49.57% | Options Chain | 5.00 | 5.70 | 0.02 | 12 | 64 | None | |
| 44 | VICI | VICI Properties Inc | 31.28 | 33.38 | 25.97 | 20.45% | 12/17 | Yes | 1.70 | 5.42% | 5.28% | 6.30% | 7.80% | 9.24% | 62.78% | Options Chain | 0.35 | 0.50 | 0.02 | 13 | 79 | None | |
| 45 | BBD | Banco Bradesco S.A. | 2.09 | 2.83 | 1.79 | 16.76% | 1/03 | No | 0.18 | 8.68% | 297.98% | 99.49% | 68.06% | 15.29% | 78.90% | Options Chain | 17 | 64 | None |