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. 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 OKE Oneok Inc 69.76 113.92 66.56 4.81% 11/03 Yes 4.08 5.86% 4.04% 3.85% 2.45% 6.96% 79.53% Options Chain 2.45 5.25 0.08 14 75 None
2 TGT Target Corp 94.50 152.54 85.36 10.71% 11/12 Yes 4.50 4.79% 1.80% 1.82% 9.36% 11.28% 52.45% Options Chain 6.00 6.85 0.07 13 66 None
3 ACN Accenture plc - Class A 249.81 391.86 227.92 9.60% 10/10 Yes 6.07 2.43% 13.46% 14.25% 13.87% 13.10% 49.96% Options Chain 13.90 17.40 0.07 16 65 None
4 OC Owens Corning 128.63 210.45 122.13 5.32% 10/20 Yes 2.76 2.17% 15.00% 15.19% 27.63% 15.74% 33.78% Options Chain 7.40 8.50 0.07 12 69 None
5 KDP Keurig Dr Pepper Inc 27.55 35.62 25.03 10.07% 9/26 Yes 0.92 3.32% 5.14% 6.25% 8.05% 0.16% 81.42% Options Chain 1.58 1.73 0.06 10 60 None
6 CMCSA Comcast Corp - Class A 29.30 43.66 29.15 0.51% 10/01 Yes 1.30 4.44% 6.56% 6.79% 7.32% 28.34% 21.56% Options Chain 1.30 1.81 0.06 15 64 None
7 OXY Occidental Petroleum Corp 42.88 52.36 34.41 24.61% 9/10 Yes 0.94 2.25% 9.09% 4.45% 121.34% -0.92% 55.29% Options Chain 2.28 2.10 0.05 7 63 None
8 PCAR Paccar Inc 99.38 114.66 84.08 18.20% 11/12 No 3.99 4.00% 12.82% 12.66% 10.25% 9.75% 68.44% Options Chain 5.15 5.10 0.05 10 70 None
9 STZ Constellation Brands Inc - Class A 139.72 241.11 131.20 6.49% 10/30 No 4.06 2.90% 3.83% 8.30% 7.66% 11.65% 59.10% Options Chain 6.45 6.85 0.05 8 68 None
10 CL Colgate-Palmolive Company 78.44 98.37 76.17 2.98% 10/17 Yes 2.06 2.63% 4.04% 3.85% 3.57% 8.52% 57.87% Options Chain 2.25 3.75 0.05 12 57 None
11 COP Conoco Phillips 90.08 112.56 78.56 14.66% 8/18 Yes 3.12 3.46% 0.00% 0.00% 12.47% 5.93% 41.82% Options Chain 4.30 3.98 0.05 11 76 None
12 MRK Merck & Co Inc 87.18 101.36 71.87 21.30% 9/15 Yes 3.24 3.70% 3.85% 1.90% 5.25% 9.17% 49.92% Options Chain 3.58 4.13 0.05 14 73 None
13 ACI Albertsons Companies Inc - Class A 19.20 22.88 16.64 15.38% 10/24 No 0.60 3.12% 25.00% 11.80% 9.33% 9.33% 35.50% Options Chain 0.68 0.88 0.05 12 52 None
14 EQNR Equinor ASA 24.97 27.84 20.38 22.52% 11/14 Yes 1.44 5.77% 8.15% 15.21% 27.07% 4.93% 47.68% Options Chain 1.13 1.10 0.05 11 62 None
15 OMC Omnicom Group Inc 80.33 103.30 67.75 18.57% 9/02 No 2.80 3.45% 0.00% 0.00% 0.00% 10.60% 40.06% Options Chain 2.95 3.63 0.05 14 71 None
16 BAH Booz Allen Hamilton Holding Corp - Class A 100.75 187.12 95.00 6.05% 8/14 Yes 2.16 2.15% 7.84% 3.85% 10.42% 15.55% 26.54% Options Chain 3.38 4.50 0.04 16 62 None
17 DRI Darden Restaurants Inc 186.46 224.86 153.22 21.69% 10/10 Yes 5.80 3.11% 7.01% 7.28% 13.87% 13.54% 62.23% Options Chain 8.20 7.90 0.04 14 67 None
18 HD Home Depot Inc 385.03 429.19 322.47 19.40% 9/04 Yes 9.15 2.34% 2.22% 1.11% 8.66% 28.30% 62.24% Options Chain 16.48 16.93 0.04 9 65 None
19 SLB SLB 36.01 43.66 30.61 17.64% 12/03 No 1.13 3.24% 3.64% 6.77% 22.88% 3.48% 43.97% Options Chain 1.58 1.55 0.04 12 69 None
20 GIS General Mills Inc 47.93 65.92 47.27 1.40% 10/10 Yes 2.42 4.97% 1.68% 3.48% 4.36% 7.44% 45.75% Options Chain 2.10 1.85 0.04 13 63 None
21 UNP Union Pacific Corp 220.04 252.32 202.16 8.84% 8/29 No 5.40 2.40% 4.55% 2.25% 6.51% 8.43% 46.92% Options Chain 6.35 9.30 0.04 13 64 None
22 CTRA Coterra Energy Inc 23.74 29.29 21.84 8.70% 8/14 Yes 0.87 3.66% 4.76% 2.35% 9.15% 13.36% 41.63% Options Chain 0.93 1.00 0.04 14 70 None
23 TTE TotalEnergies SE 62.58 63.88 50.30 24.41% 9/30 Yes 3.66 5.88% 19.31% 9.23% 6.66% 1.07% 66.29% Options Chain 1.60 2.58 0.04 12 71 None
24 CLX Clorox Company 116.33 165.17 114.96 1.19% 10/22 Yes 4.92 4.23% 1.65% 1.67% 2.03% 8.78% 75.46% Options Chain 4.00 4.75 0.04 15 58 None
25 ALL Allstate Corp (The) 195.65 215.70 173.88 12.52% 8/29 Yes 3.92 2.02% 8.70% 4.26% 5.41% 8.06% 18.45% Options Chain 7.10 7.90 0.04 18 71 None
26 CNI Canadian National Railway Company 95.96 111.36 90.48 6.06% 9/08 Yes 3.51 3.66% 5.03% 2.48% 9.60% 15.33% 67.84% Options Chain 3.85 3.45 0.04 12 68 None
27 MCD McDonald`s Corp 306.97 322.66 271.86 12.91% 12/01 Yes 7.08 2.30% 5.75% 7.28% 8.10% 17.52% 60.62% Options Chain 10.40 11.85 0.04 11 64 None
28 MDT Medtronic Plc 94.21 99.37 76.99 22.37% 9/26 Yes 2.82 2.94% 1.79% 0.89% 3.55% 16.48% 77.90% Options Chain 2.84 3.60 0.04 15 68 None
29 VZ Verizon Communications Inc 38.40 45.09 35.79 7.29% 10/10 Yes 2.72 6.84% 1.87% 1.89% 1.93% 2.96% 63.31% Options Chain 1.40 1.31 0.04 15 65 None
30 CVX Chevron Corp 156.56 165.09 129.01 21.35% 8/19 Yes 6.76 4.32% 4.91% 2.42% 6.53% 6.15% 87.00% Options Chain 5.60 5.65 0.04 11 74 None
31 XOM Exxon Mobil Corp 115.98 119.89 96.01 20.80% 8/15 Yes 3.96 3.45% 3.13% 1.55% 3.21% 5.80% 56.25% Options Chain 4.05 3.98 0.03 11 75 None
32 PG Procter & Gamble Company 152.21 176.39 145.95 4.29% 10/24 Yes 4.13 2.71% 5.47% 5.74% 5.28% 8.60% 63.39% Options Chain 3.78 5.25 0.03 12 71 None
33 SYY Sysco Corp 78.21 83.12 66.22 18.11% 10/03 Yes 2.10 2.67% 3.96% 2.99% 3.36% 15.19% 56.30% Options Chain 2.65 2.30 0.03 10 64 None
34 ITW Illinois Tool Works Inc 257.44 273.07 212.05 21.41% 9/30 Yes 6.11 2.38% 11.03% 5.37% 8.08% 13.63% 53.64% Options Chain 6.10 8.30 0.03 14 65 None
35 MET Metlife Inc 78.17 87.16 64.24 21.68% 11/04 Yes 2.23 2.82% 4.29% 4.45% 4.29% 6.89% 37.78% Options Chain 1.93 2.48 0.03 18 71 None
36 T AT&T Inc 24.62 29.47 20.72 18.82% 10/10 No 1.11 4.34% 0.00% 0.00% -14.53% 1.94% 63.43% Options Chain 0.62 0.77 0.03 14 67 None
37 UL Unilever plc 62.32 65.01 52.97 17.65% 11/07 No 1.99 3.19% 11.97% 5.82% 0.73% 3.75% 76.07% Options Chain 1.90 1.68 0.03 9 64 None
38 HON Honeywell International Inc 220.67 240.47 177.52 24.31% 11/14 No 4.52 2.16% 4.81% 4.80% 4.99% 6.13% 51.48% Options Chain 6.55 4.10 0.03 14 69 None
39 MKC McCormick & Co. Inc (Non Voting) 67.37 84.64 63.23 6.55% 10/14 No 1.80 2.69% 5.26% 2.60% 6.68% 11.16% 62.50% Options Chain 1.18 1.50 0.02 10 61 None
40 VICI VICI Properties Inc 31.42 33.54 26.86 16.98% 9/18 Yes 1.75 5.59% 6.19% 3.05% 6.87% 9.24% 66.95% Options Chain 0.40 0.45 0.01 12 79 None
41 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 48 None