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 TGT Target Corp 103.14 162.93 86.36 19.43% 8/13 Yes 4.48 4.30% 2.70% 1.34% 9.60% 11.54% 49.23% Options Chain 6.15 7.78 0.08 14 65 None
2 SCCO Southern Copper Corporation 90.54 117.14 73.59 23.03% 8/15 No 2.67 2.76% -16.80% -8.79% 22.05% 10.94% 59.41% Options Chain 4.95 6.60 0.07 12 64 None
3 CHRW C.H. Robinson Worldwide Inc 99.79 113.35 84.13 18.61% 6/06 Yes 2.48 2.49% 0.81% 0.41% 4.50% 15.17% 59.19% Options Chain 4.03 5.85 0.06 14 54 None
4 UNH Unitedhealth Group Inc 266.04 621.24 247.13 7.65% 6/16 Yes 8.51 3.26% 8.07% 3.96% 12.09% 23.95% 35.62% Options Chain 11.68 14.95 0.06 14 69 None
5 BDX Becton Dickinson & Company 183.20 249.34 162.35 12.84% 9/08 Yes 4.07 2.23% 6.94% 3.41% 5.48% 10.58% 79.03% Options Chain 9.25 9.80 0.05 12 61 None
6 ARE Alexandria Real Estate Equities Inc 79.83 118.73 66.16 20.66% 6/30 No 5.26 6.62% 1.73% 0.86% 4.19% 3.89% -4,046.15% Options Chain 2.90 4.20 0.05 11 66 None
7 HAL Halliburton Company 22.40 34.06 18.56 20.69% 6/04 No 0.68 2.95% 0.00% 0.00% 39.41% 2.18% 31.92% Options Chain 0.99 1.10 0.05 12 64 None
8 COP Conoco Phillips 97.99 113.49 79.21 23.71% 5/19 Yes 3.12 3.18% 0.00% 0.00% 12.47% 5.93% 39.54% Options Chain 3.80 4.68 0.05 12 76 None
9 OKE Oneok Inc 82.19 115.36 74.38 10.50% 8/01 Yes 4.04 4.84% 4.04% 2.00% 2.45% 7.04% 78.91% Options Chain 3.10 3.90 0.05 13 74 None
10 CMCSA Comcast Corp - Class A 32.83 44.12 31.15 5.39% 7/02 Yes 1.28 3.90% 8.20% 4.02% 7.73% 29.38% 31.53% Options Chain 1.51 1.43 0.05 13 64 None
11 GIS General Mills Inc 49.21 72.85 49.04 0.35% 7/10 Yes 2.41 4.82% 2.52% 1.25% 4.58% 7.59% 58.78% Options Chain 1.78 2.23 0.05 11 62 None
12 SLB SLB 34.17 47.22 30.85 10.76% 9/03 No 1.12 3.14% 3.64% 1.80% 22.88% 3.48% 38.36% Options Chain 1.48 1.18 0.04 11 69 None
13 TSN Tyson Foods Inc - Class A 52.92 65.23 52.71 0.40% 8/29 Yes 1.99 3.71% 1.52% 0.76% 2.74% 17.72% 77.43% Options Chain 2.28 1.98 0.04 13 63 None
14 PCAR Paccar Inc 99.00 115.03 84.36 17.35% 8/14 No 3.96 3.98% 12.82% 6.22% 10.25% 9.67% 67.92% Options Chain 2.60 4.25 0.04 12 70 None
15 MRK Merck & Co Inc 81.75 119.89 72.58 12.63% 9/15 Yes 3.20 3.87% 3.85% 1.90% 5.25% 9.17% 46.51% Options Chain 2.84 3.48 0.04 15 73 None
16 OMC Omnicom Group Inc 72.65 104.25 68.37 6.26% 9/02 No 2.80 3.77% 0.00% 0.00% 0.00% 10.60% 40.06% Options Chain 3.00 3.05 0.04 14 70 None
17 AMGN AMGEN Inc 301.75 332.94 249.07 21.15% 5/16 Yes 9.26 3.05% 5.78% 2.85% 7.84% 16.50% 84.34% Options Chain 11.18 12.28 0.04 11 70 None
18 MET Metlife Inc 74.79 87.83 64.73 15.54% 8/05 Yes 2.20 2.84% 5.34% 2.63% 4.55% 7.13% 35.99% Options Chain 2.70 2.95 0.04 20 73 None
19 OHI Omega Healthcare Investors Inc 38.83 42.14 33.76 15.02% 8/04 Yes 2.68 6.85% 0.00% 0.00% 0.00% 1.02% 166.46% Options Chain 0.93 1.53 0.04 13 72 None
20 UL Unilever plc 59.01 65.11 53.42 10.46% 5/16 Yes 1.94 3.27% 11.45% 5.57% 0.61% 3.75% 71.86% Options Chain 0.15 2.28 0.04 11 64 None
21 SPG Simon Property Group Inc 165.46 185.37 134.57 22.95% 6/09 Yes 8.35 4.97% 3.70% 1.84% 9.47% 5.13% 132.96% Options Chain 6.00 6.00 0.04 9 70 None
22 XOM Exxon Mobil Corp 111.90 123.07 96.91 15.47% 5/15 Yes 3.92 3.47% 3.13% 1.55% 3.21% 5.80% 51.99% Options Chain 3.48 3.95 0.04 12 76 None
23 WPC W. P. Carey Inc 63.67 64.90 51.06 24.70% 6/30 Yes 3.54 5.48% 3.15% 1.56% -3.81% 2.92% 182.73% Options Chain 1.25 2.15 0.03 8 61 None
24 LMT Lockheed Martin Corp 418.68 606.41 410.11 2.09% 9/02 No 13.05 3.11% 3.53% 1.75% 5.64% 10.52% 73.23% Options Chain 12.80 14.10 0.03 10 68 None
25 CNI Canadian National Railway Company 95.20 118.95 91.08 4.52% 9/08 No 3.46 3.64% 5.03% 2.48% 9.60% 15.33% 65.01% Options Chain 2.60 3.20 0.03 12 69 None
26 MCD McDonald`s Corp 303.61 324.48 254.32 19.38% 9/02 Yes 6.98 2.31% 4.42% 2.19% 7.76% 17.86% 61.55% Options Chain 9.15 10.13 0.03 8 66 None
27 KHC Kraft Heinz Company 28.49 35.08 25.44 11.99% 5/30 Yes 1.60 5.60% 0.00% 0.00% 0.00% -4.69% 73.06% Options Chain 0.59 0.93 0.03 10 69 None
28 TTE TotalEnergies SE 59.76 66.80 51.01 17.15% 9/30 No 3.54 5.76% 2.08% 1.03% 2.58% 1.07% 64.14% Options Chain 0.83 1.88 0.03 12 62 None
29 MDT Medtronic Plc 91.64 94.71 76.43 19.90% 6/27 Yes 2.81 3.04% 1.79% 0.89% 3.55% 16.48% 77.84% Options Chain 2.56 2.88 0.03 12 62 None
30 VICI VICI Properties Inc 32.53 33.80 27.24 19.42% 6/18 Yes 1.73 5.26% 2.06% 1.03% 5.81% 9.24% 69.20% Options Chain 1.00 0.95 0.03 11 78 None
31 CINF Cincinnati Financial Corp 152.42 158.91 122.10 24.83% 6/23 No 3.36 2.20% 7.41% 3.64% 8.40% 8.98% 36.64% Options Chain 4.65 4.65 0.03 18 66
Dividend Stock List
32 PG Procter & Gamble Company 152.88 177.63 150.87 1.33% 7/18 Yes 4.13 2.63% 6.74% 3.32% 5.59% 8.68% 65.50% Options Chain 3.38 4.60 0.03 11 72 None
33 MDLZ Mondelez International Inc - Class A 65.10 73.94 53.20 22.37% 9/30 Yes 1.88 2.70% 11.73% 5.70% 10.74% 5.42% 69.89% Options Chain 1.40 1.93 0.03 9 65 None
34 WY Weyerhaeuser Company 25.54 33.31 23.91 6.82% 5/30 No 0.82 3.16% 5.00% 2.47% -8.15% 2.22% 215.79% Options Chain 0.75 0.75 0.03 6 52 None
35 CVX Chevron Corp 157.03 166.93 130.45 20.38% 5/19 Yes 6.68 4.25% 4.91% 2.42% 6.53% 6.15% 76.34% Options Chain 4.53 3.63 0.03 12 75 None
36 VZ Verizon Communications Inc 42.60 45.87 36.41 17.00% 7/10 No 2.71 6.35% 1.40% 0.70% 1.81% 2.99% 63.02% Options Chain 1.03 1.15 0.03 13 72 None
37 CL Colgate-Palmolive Company 86.86 106.90 84.34 2.99% 7/18 No 2.04 2.35% 5.05% 2.49% 3.83% 8.64% 57.79% Options Chain 1.35 2.28 0.03 13 64 None
38 SYY Sysco Corp 80.11 81.44 66.65 20.20% 7/03 Yes 2.07 2.64% 6.93% 3.41% 4.09% 15.53% 53.49% Options Chain 1.15 1.83 0.02 14 63 None
39 PFG Principal Financial Group Inc 76.59 89.50 67.72 13.10% 9/04 No 2.96 3.69% 9.47% 4.63% 6.34% 11.40% 63.38% Options Chain 1.13 1.65 0.02 14 66 None
40 HON Honeywell International Inc 222.16 241.72 178.45 24.49% 8/15 No 4.47 2.02% 3.43% 1.70% 4.64% 6.16% 50.85% Options Chain 3.28 4.45 0.02 13 70 None
41 O Realty Income Corp 56.79 62.20 50.00 13.58% 8/01 Yes 3.19 5.56% 5.52% 2.73% 3.61% 3.03% 289.73% Options Chain 1.00 0.80 0.02 10 61 None
42 JNJ Johnson & Johnson 167.26 169.99 138.38 20.87% 8/26 No 5.02 2.99% 5.91% 2.91% 5.55% 13.03% 53.75% Options Chain 2.40 2.92 0.02 12 73 None
43 DOC Healthpeak OP LLC 17.37 22.19 16.45 5.59% 8/18 No 2.81 16.19% 0.00% 0.00% 0.00% 0.00% 1,171.53% Options Chain 9 47 None
44 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 14 52 None