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 FDX Fedex Corp 225.75 301.45 191.82 17.69% 9/08 Yes 5.59 2.48% 7.41% 3.64% 18.92% 16.72% 33.25% Options Chain 14.25 14.63 0.06 12 63 None
2 ACN Accenture plc - Class A 251.99 394.41 236.67 6.47% 7/10 Yes 5.92 2.32% 10.65% 5.19% 13.16% 13.01% 47.28% Options Chain 14.10 14.50 0.06 17 65 None
3 HAL Halliburton Company 21.75 31.66 18.43 18.01% 9/03 No 0.68 3.03% 0.00% 0.00% 39.41% 2.18% 30.63% Options Chain 1.11 1.15 0.05 12 64 None
4 TGT Target Corp 90.91 155.50 85.44 6.40% 8/13 No 4.50 4.85% 2.70% 1.34% 9.60% 11.54% 52.45% Options Chain 4.08 4.70 0.05 13 66 None
5 BAH Booz Allen Hamilton Holding Corp - Class A 103.12 187.12 98.46 4.73% 8/14 No 2.16 2.11% 7.84% 3.85% 10.42% 15.55% 27.45% Options Chain 3.65 5.10 0.05 16 61 None
6 SLB SLB 35.78 44.81 30.61 16.89% 9/03 Yes 1.13 3.14% 3.64% 1.80% 22.88% 3.48% 38.70% Options Chain 1.76 0.05 12 69 None
7 PCAR Paccar Inc 97.53 114.66 84.08 16.00% 8/14 No 3.99 4.06% 12.82% 6.22% 10.25% 9.67% 68.44% Options Chain 2.85 4.65 0.05 12 69 None
8 CPB Campbell Soup Company 33.74 50.77 29.39 14.80% 7/03 No 1.54 4.72% 5.41% 2.67% 1.32% 7.09% 78.97% Options Chain 1.15 1.55 0.05 12 55 None
9 CMCSA Comcast Corp - Class A 33.67 44.12 31.03 8.51% 10/01 No 1.28 3.78% 6.56% 6.79% 7.32% 28.34% 21.23% Options Chain 1.02 1.54 0.05 14 64 None
10 EOG EOG Resources Inc 117.31 135.49 100.76 16.43% 10/17 No 3.83 3.15% 8.38% 9.34% 25.07% 15.56% 37.20% Options Chain 4.55 5.20 0.04 15 77 None
11 MRK Merck & Co Inc 84.61 116.25 72.58 16.57% 9/15 No 3.20 3.81% 3.85% 1.90% 5.25% 9.17% 49.38% Options Chain 3.22 3.65 0.04 14 73 None
12 COP Conoco Phillips 91.86 112.56 78.56 16.93% 8/18 No 3.12 3.26% 0.00% 0.00% 12.47% 5.93% 41.32% Options Chain 3.75 3.90 0.04 11 76 None
13 OMC Omnicom Group Inc 77.73 103.30 67.75 14.73% 9/02 No 2.80 3.57% 0.00% 0.00% 0.00% 10.60% 40.06% Options Chain 3.25 2.63 0.04 15 70 None
14 CTRA Coterra Energy Inc 23.85 29.29 21.55 10.67% 8/14 No 0.87 3.57% 4.76% 2.35% 9.15% 13.36% 41.04% Options Chain 0.95 0.98 0.04 15 70 None
15 GIS General Mills Inc 50.35 72.85 48.29 4.27% 7/10 Yes 2.41 4.86% 2.52% 1.25% 4.58% 7.59% 58.78% Options Chain 2.05 1.90 0.04 9 63 None
16 UNP Union Pacific Corp 216.05 252.32 202.16 6.87% 8/29 Yes 5.40 2.42% 4.55% 2.25% 6.51% 8.43% 46.92% Options Chain 6.10 8.70 0.04 13 64 None
17 LMT Lockheed Martin Corp 457.06 601.99 407.12 12.27% 9/02 Yes 13.20 2.89% 3.53% 1.75% 5.64% 10.52% 74.07% Options Chain 15.50 17.95 0.04 10 65 None
18 MKC McCormick & Co. Inc (Non Voting) 69.63 85.22 68.23 2.05% 7/07 Yes 1.77 2.52% 5.26% 2.60% 6.68% 11.16% 61.46% Options Chain 2.40 2.70 0.04 9 60 None
19 AMGN AMGEN Inc 279.97 330.26 247.06 13.32% 8/22 No 9.39 3.31% 5.78% 2.85% 7.84% 16.50% 77.80% Options Chain 9.60 10.63 0.04 12 71 None
20 PAYX Paychex Inc 134.41 160.03 125.65 6.97% 7/21 Yes 4.12 3.00% 12.79% 6.20% 13.53% 24.65% 89.76% Options Chain 5.10 4.90 0.04 9 61 None
21 CVX Chevron Corp 154.85 165.09 129.01 20.03% 8/19 No 6.76 4.29% 4.91% 2.42% 6.53% 6.15% 87.11% Options Chain 4.95 5.55 0.04 10 74 None
22 CNI Canadian National Railway Company 93.24 118.17 90.47 3.06% 9/08 No 3.46 3.58% 5.03% 2.48% 9.60% 15.33% 65.62% Options Chain 2.03 3.25 0.03 11 68 None
23 FNF Fidelity National Financial Inc 59.97 66.12 50.61 18.49% 9/16 No 1.98 3.28% 3.09% 1.53% 6.41% 2.85% 49.75% Options Chain 1.60 2.05 0.03 16 66 None
24 MDLZ Mondelez International Inc - Class A 62.57 73.94 53.20 17.61% 9/30 No 1.88 3.09% 11.73% 5.70% 10.74% 5.42% 69.37% Options Chain 1.65 2.10 0.03 10 68 None
25 XOM Exxon Mobil Corp 110.65 121.93 96.01 15.25% 8/15 No 3.96 3.52% 3.13% 1.55% 3.21% 5.80% 56.25% Options Chain 3.40 3.70 0.03 11 75 None
26 MDT Medtronic Plc 94.07 94.71 77.57 21.27% 9/26 No 2.81 3.03% 1.79% 0.89% 3.55% 16.48% 77.20% Options Chain 2.15 3.07 0.03 15 68 None
27 CL Colgate-Palmolive Company 84.28 105.39 82.40 2.28% 7/18 No 2.04 2.44% 5.05% 2.49% 3.83% 8.64% 57.30% Options Chain 2.63 2.43 0.03 12 61 None
28 PG Procter & Gamble Company 159.46 177.63 149.91 6.37% 7/18 Yes 4.13 2.59% 6.74% 3.32% 5.59% 8.68% 63.39% Options Chain 4.88 4.73 0.03 11 71 None
29 MET Metlife Inc 79.29 87.16 64.24 23.43% 8/05 No 2.23 2.72% 5.34% 2.63% 4.55% 7.13% 37.78% Options Chain 2.10 2.40 0.03 18 72 None
30 HON Honeywell International Inc 214.20 240.47 177.52 20.66% 8/15 Yes 4.52 2.10% 3.43% 1.70% 4.64% 6.16% 51.60% Options Chain 5.75 6.30 0.03 13 70 None
31 ITW Illinois Tool Works Inc 262.18 274.76 213.36 22.88% 9/30 No 6.00 2.26% 11.03% 5.37% 8.08% 13.63% 51.81% Options Chain 7.55 5.55 0.03 14 61 None
32 VZ Verizon Communications Inc 43.57 45.87 36.41 19.66% 10/10 Yes 2.71 6.13% 1.87% 1.89% 1.93% 2.96% 63.02% Options Chain 0.95 1.24 0.03 14 72 None
33 EQNR Equinor ASA 24.23 27.84 20.38 18.89% 11/14 No 1.44 5.99% 8.15% 15.21% 27.07% 4.93% 47.68% Options Chain 0.55 0.68 0.03 11 62 None
34 MFC Manulife Financial Corp 30.86 32.17 25.39 21.54% 8/20 No 1.72 5.56% 10.00% 4.88% 10.75% 10.90% 75.11% Options Chain 0.80 0.75 0.03 17 70 None
35 KDP Keurig Dr Pepper Inc 27.61 37.26 27.23 1.40% 6/27 No 0.92 3.15% 5.14% 2.54% 8.05% -0.22% 81.42% Options Chain 0.70 0.63 0.03 10 61 None
36 CLX Clorox Company 125.68 166.90 116.17 8.19% 8/13 No 4.90 3.93% 2.48% 1.23% 2.24% 8.97% 74.13% Options Chain 2.25 3.15 0.03 15 58 None
37 BDX Becton Dickinson & Company 190.49 248.00 161.47 17.97% 9/08 No 4.07 2.12% 6.94% 3.41% 5.48% 10.58% 73.87% Options Chain 3.95 4.50 0.02 13 60 None
38 OKE Oneok Inc 71.84 113.92 70.63 1.71% 8/01 No 4.08 5.49% 4.04% 2.00% 2.45% 7.04% 79.53% Options Chain 1.40 1.63 0.02 14 75 None
39 TTE TotalEnergies SE 61.56 66.80 51.01 20.68% 9/30 No 3.54 5.75% 2.08% 1.03% 2.58% 1.07% 64.14% Options Chain 1.00 1.23 0.02 12 61 None
40 SYY Sysco Corp 80.85 83.17 66.65 21.31% 10/03 No 2.07 2.51% 3.96% 2.99% 3.36% 15.19% 55.50% Options Chain 1.08 1.53 0.02 11 63 None
41 VICI VICI Properties Inc 33.12 34.01 27.24 21.59% 9/18 No 1.73 5.16% 6.19% 3.05% 6.87% 9.24% 66.03% Options Chain 0.10 0.50 0.02 12 79 None
42 UL Unilever plc 63.08 65.01 52.97 19.09% 8/15 No 1.99 3.05% 11.97% 5.82% 0.73% 3.75% 76.96% Options Chain 0.63 0.93 0.01 9 64 None
43 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