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 SLB SLB 35.24 44.81 30.61 15.13% 9/03 Yes 1.13 3.25% 3.64% 1.80% 22.88% 3.48% 38.70% Options Chain 1.22 2.31 0.07 12 69 None
2 ACN Accenture plc - Class A 236.81 394.41 235.92 0.38% 7/10 Yes 5.92 2.48% 10.65% 5.19% 13.16% 13.01% 47.10% Options Chain 14.65 15.15 0.06 17 65 None
3 FDX Fedex Corp 227.70 301.45 191.82 18.71% 9/08 Yes 5.66 2.47% 7.41% 3.64% 18.92% 16.72% 33.69% Options Chain 11.45 13.83 0.06 12 63 None
4 TGT Target Corp 89.72 155.50 85.44 5.01% 8/13 No 4.50 5.08% 2.70% 1.34% 9.60% 11.54% 52.45% Options Chain 3.45 5.23 0.06 13 66 None
5 MRK Merck & Co Inc 81.09 115.12 71.87 12.83% 9/15 Yes 3.24 3.91% 3.85% 1.90% 5.25% 9.17% 49.92% Options Chain 3.60 4.25 0.05 14 73 None
6 HAL Halliburton Company 22.42 31.66 18.43 21.65% 9/03 No 0.68 3.06% 0.00% 0.00% 39.41% 2.18% 31.92% Options Chain 1.10 1.16 0.05 12 64 None
7 CMCSA Comcast Corp - Class A 32.29 44.12 31.03 4.06% 10/01 Yes 1.28 3.87% 6.56% 6.79% 7.32% 28.34% 21.23% Options Chain 1.55 1.20 0.05 15 65 None
8 CTRA Coterra Energy Inc 24.55 29.29 21.84 12.41% 8/14 Yes 0.87 3.57% 4.76% 2.35% 9.15% 13.36% 41.63% Options Chain 0.80 1.15 0.05 14 70 None
9 EOG EOG Resources Inc 120.84 135.49 100.76 19.93% 10/17 Yes 3.83 3.25% 8.38% 9.34% 25.07% 15.56% 37.38% Options Chain 4.65 5.25 0.04 15 77 None
10 COP Conoco Phillips 94.54 112.56 78.56 20.34% 8/18 Yes 3.12 3.38% 0.00% 0.00% 12.47% 5.93% 41.82% Options Chain 4.08 3.98 0.04 11 76 None
11 OMC Omnicom Group Inc 76.90 103.30 67.75 13.51% 9/02 No 2.80 3.64% 0.00% 0.00% 0.00% 10.60% 40.06% Options Chain 3.25 2.63 0.04 15 70 None
12 CPB Campbell Soup Company 33.56 50.18 29.39 14.19% 7/03 No 1.54 4.63% 5.41% 2.67% 1.32% 7.09% 76.62% Options Chain 1.20 1.40 0.04 12 55 None
13 AMGN AMGEN Inc 273.08 330.26 247.06 10.53% 8/22 Yes 9.39 3.39% 5.78% 2.85% 7.84% 16.50% 76.84% Options Chain 10.03 11.23 0.04 12 72 None
14 LMT Lockheed Martin Corp 474.32 601.99 407.12 16.51% 9/02 Yes 13.20 2.80% 3.53% 1.75% 5.64% 10.52% 73.78% Options Chain 16.90 18.90 0.04 10 66 None
15 PAYX Paychex Inc 131.62 160.03 128.21 2.66% 7/21 Yes 4.12 3.12% 12.79% 6.20% 13.53% 24.65% 89.96% Options Chain 4.20 5.05 0.04 9 62 None
16 CL Colgate-Palmolive Company 81.48 103.06 81.60 0.15% 10/17 Yes 2.04 2.45% 4.04% 3.85% 3.57% 8.52% 57.30% Options Chain 2.70 3.08 0.04 12 61 None
17 UNP Union Pacific Corp 216.00 252.32 202.16 6.85% 8/29 Yes 5.40 2.50% 4.55% 2.25% 6.51% 8.43% 46.92% Options Chain 6.00 7.90 0.04 13 66 None
18 XOM Exxon Mobil Corp 114.68 121.93 96.01 19.45% 8/15 Yes 3.96 3.52% 3.13% 1.55% 3.21% 5.80% 56.25% Options Chain 3.73 4.18 0.04 11 75 None
19 EQNR Equinor ASA 24.71 27.84 20.38 21.25% 11/14 No 1.44 5.93% 8.15% 15.21% 27.07% 4.93% 47.37% Options Chain 0.65 0.90 0.04 11 62 None
20 HON Honeywell International Inc 210.95 240.47 177.52 18.83% 8/15 Yes 4.52 2.14% 3.43% 1.70% 4.64% 6.16% 51.31% Options Chain 6.85 7.50 0.04 13 68 None
21 CVX Chevron Corp 159.54 165.09 129.01 23.66% 8/19 Yes 6.76 4.30% 4.91% 2.42% 6.53% 6.15% 86.89% Options Chain 5.43 5.55 0.03 10 74 None
22 VZ Verizon Communications Inc 43.74 45.87 36.41 20.13% 10/10 Yes 2.71 6.18% 1.87% 1.89% 1.93% 2.96% 63.02% Options Chain 1.17 1.39 0.03 14 72 None
23 PG Procter & Gamble Company 158.05 177.63 149.91 5.43% 7/18 Yes 4.13 2.63% 6.74% 3.32% 5.59% 8.68% 63.49% Options Chain 4.95 3.78 0.03 11 71 None
24 MDLZ Mondelez International Inc - Class A 62.70 73.83 53.20 17.86% 9/30 No 1.88 3.03% 11.73% 5.70% 10.74% 5.42% 68.86% Options Chain 1.75 1.93 0.03 10 68 None
25 MCD McDonald`s Corp 303.29 322.66 271.86 11.56% 9/02 Yes 7.08 2.32% 4.42% 2.19% 7.76% 17.86% 61.35% Options Chain 6.93 9.28 0.03 11 65 None
26 BDX Becton Dickinson & Company 186.21 248.00 161.47 15.32% 9/08 No 4.16 2.23% 6.94% 3.41% 5.48% 10.58% 76.05% Options Chain 4.15 5.50 0.03 13 60 None
27 BAH Booz Allen Hamilton Holding Corp - Class A 101.83 187.12 98.46 3.42% 8/14 No 2.16 2.06% 7.84% 3.85% 10.42% 15.55% 26.54% Options Chain 2.55 3.00 0.03 16 61 None
28 MET Metlife Inc 78.73 87.16 64.24 22.56% 8/05 No 2.23 2.75% 5.34% 2.63% 4.55% 7.13% 37.78% Options Chain 2.05 2.20 0.03 18 72 None
29 MDT Medtronic Plc 94.19 95.29 77.57 21.43% 9/26 No 2.81 2.99% 1.79% 0.89% 3.55% 16.48% 77.62% Options Chain 2.55 2.39 0.03 15 68 None
30 KDP Keurig Dr Pepper Inc 26.96 37.26 26.69 1.01% 6/27 No 0.92 3.38% 5.14% 2.54% 8.05% -0.22% 81.42% Options Chain 0.55 0.70 0.03 10 62 None
31 CNI Canadian National Railway Company 95.64 118.18 90.48 5.70% 9/08 No 3.51 3.75% 5.03% 2.48% 9.60% 15.33% 67.07% Options Chain 2.40 2.23 0.03 12 68 None
32 SYY Sysco Corp 81.53 83.17 66.65 22.33% 10/03 No 2.07 2.59% 3.96% 2.99% 3.36% 15.19% 55.50% Options Chain 1.63 2.00 0.02 11 64 None
33 GIS General Mills Inc 49.56 72.62 48.29 2.63% 7/10 Yes 2.41 4.83% 2.52% 1.25% 4.58% 7.59% 59.95% Options Chain 1.18 0.93 0.02 10 62 None
34 PCAR Paccar Inc 102.86 114.66 84.08 22.34% 11/12 No 3.99 3.91% 12.82% 12.66% 10.25% 9.75% 68.44% Options Chain 1.98 2.40 0.02 12 72 None
35 CLX Clorox Company 124.85 166.90 116.17 7.47% 8/13 No 4.90 3.97% 2.48% 1.23% 2.24% 8.97% 75.15% Options Chain 1.63 2.90 0.02 15 58 None
36 MKC McCormick & Co. Inc (Non Voting) 67.11 85.22 65.95 1.76% 7/07 Yes 1.77 2.57% 5.26% 2.60% 6.68% 11.16% 61.67% Options Chain 1.10 1.48 0.02 9 62 None
37 OKE Oneok Inc 72.58 113.92 70.63 2.76% 8/01 No 4.08 5.62% 4.04% 2.00% 2.45% 7.04% 79.53% Options Chain 1.60 0.88 0.02 14 75 None
38 VICI VICI Properties Inc 32.64 34.01 27.24 19.82% 9/18 No 1.73 5.23% 6.19% 3.05% 6.87% 9.24% 66.28% Options Chain 0.08 0.68 0.02 12 79 None
39 TTE TotalEnergies SE 62.10 66.80 51.01 21.74% 9/30 No 3.54 5.72% 2.08% 1.03% 2.58% 1.07% 64.14% Options Chain 0.63 1.28 0.02 12 62 None
40 UL Unilever plc 61.86 65.01 52.97 16.78% 8/15 No 1.99 3.19% 11.97% 5.82% 0.73% 3.75% 75.78% Options Chain 1.23 1.10 0.02 9 64 None
41 MFC Manulife Financial Corp 31.49 32.35 25.39 24.03% 8/20 No 1.72 5.39% 10.00% 4.88% 10.75% 10.90% 76.79% Options Chain 0.45 0.55 0.02 17 71 None
42 ITW Illinois Tool Works Inc 261.84 274.76 213.36 22.72% 9/30 No 6.00 2.28% 11.03% 5.37% 8.08% 13.63% 52.72% Options Chain 3.85 3.60 0.01 14 63 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