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.
| 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 | NKE | Nike Inc - Class B | 41.05 | 78.01 | 38.86 | 5.64% | 9/01 | Yes | 1.63 | 4.00% | 1.86% | 0.93% | 6.92% | 15.27% | 80.69% | Options Chain | 2.46 | 2.83 | 0.07 | 14 | 59 | None | |
| 2 | LEN | Lennar Corp - Class A | 87.30 | 141.39 | 79.83 | 9.36% | 7/10 | Yes | 2.00 | 2.30% | 0.00% | 0.00% | 7.46% | 10.73% | 31.35% | Options Chain | 4.85 | 5.65 | 0.06 | 12 | 61 | None | |
| 3 | IBM | International Business Machines Corp | 237.16 | 330.09 | 197.77 | 19.92% | 8/10 | No | 6.74 | 2.88% | 0.75% | 0.37% | 0.64% | 4.75% | 59.38% | Options Chain | 9.83 | 12.30 | 0.05 | 12 | 73 | None | |
| 4 | HON | Honeywell International Inc | 221.73 | 258.09 | 193.26 | 14.73% | 8/14 | No | 7.84 | 3.35% | -69.43% | -44.71% | -22.94% | 6.13% | 30.15% | Options Chain | 7.20 | 10.20 | 0.05 | 14 | 77 | None | |
| 5 | STZ | Constellation Brands Inc - Class A | 133.52 | 166.17 | 123.82 | 7.83% | 7/30 | No | 4.10 | 2.97% | 1.23% | 0.61% | 6.86% | 11.65% | 39.05% | Options Chain | 5.70 | 5.90 | 0.04 | 9 | 60 | None | |
| 6 | HD | Home Depot Inc | 344.30 | 418.06 | 286.95 | 19.99% | 6/04 | No | 9.26 | 2.73% | 1.30% | 0.65% | 5.23% | 27.51% | 66.10% | Options Chain | 12.08 | 14.33 | 0.04 | 8 | 69 | None | |
| 7 | PGR | Progressive Corp | 217.27 | 239.38 | 187.78 | 15.70% | 10/01 | No | 13.90 | 6.63% | 183.67% | 247.66% | 142.79% | 42.65% | 69.71% | Options Chain | 7.10 | 8.50 | 0.04 | 16 | 77 | None | |
| 8 | MO | Altria Group Inc | 66.25 | 77.06 | 53.01 | 24.98% | 6/15 | No | 4.24 | 6.45% | 1.92% | 0.96% | 3.60% | 8.01% | 89.26% | Options Chain | 2.37 | 2.50 | 0.04 | 9 | 66 | None | |
| 9 | WFC | Wells Fargo & Company | 85.94 | 96.18 | 72.36 | 18.77% | 8/07 | No | 1.85 | 2.09% | 17.65% | 8.47% | 16.12% | 8.33% | 26.89% | Options Chain | 2.79 | 3.15 | 0.04 | 12 | 65 | None | |
| 10 | CL | Colgate-Palmolive Company | 90.87 | 98.15 | 73.22 | 24.11% | 7/20 | No | 2.10 | 2.28% | 2.91% | 1.45% | 3.33% | 8.52% | 82.68% | Options Chain | 2.65 | 2.93 | 0.03 | 8 | 61 | None | |
| 11 | PG | Procter & Gamble Company | 144.49 | 164.77 | 134.62 | 7.33% | 7/24 | No | 4.29 | 2.97% | 4.24% | 2.10% | 4.80% | 8.60% | 64.91% | Options Chain | 4.15 | 4.35 | 0.03 | 9 | 65 | None | |
| 12 | MCD | McDonald`s Corp | 268.00 | 337.56 | 260.96 | 2.70% | 9/01 | No | 7.35 | 2.69% | 3.77% | 1.87% | 7.08% | 17.52% | 59.76% | Options Chain | 7.58 | 7.80 | 0.03 | 12 | 66 | None | |
| 13 | DKS | Dicks Sporting Goods Inc | 191.29 | 244.38 | 184.42 | 3.73% | 6/12 | No | 4.92 | 2.43% | 3.09% | 1.53% | 26.54% | 19.10% | 48.05% | Options Chain | 11 | 63 | None | ||||
| 14 | DPZ | Dominos Pizza Inc | 336.52 | 460.13 | 282.00 | 19.33% | 9/15 | No | 7.46 | 2.15% | 14.37% | 6.94% | 15.98% | 22.63% | 42.31% | Options Chain | 12 | 58 | None | ||||
| 15 | BBD | Banco Bradesco S.A. | 3.05 | 4.20 | 2.61 | 16.86% | 9/03 | No | 0.34 | 10.92% | -86.27% | -62.95% | -13.33% | 20.24% | 79.49% | Options Chain | 13 | 48 | None | ||||
| 16 | BTI | British American Tobacco Plc | 55.98 | 66.38 | 47.85 | 16.99% | 10/02 | No | 3.28 | 5.74% | 3.81% | 5.74% | 6.00% | 11.33% | 81.08% | Options Chain | 11 | 70 | None | ||||
| 17 | CINF | Cincinnati Financial Corp | 168.49 | 194.81 | 147.54 | 14.20% | 6/23 | No | 3.62 | 2.09% | 8.05% | 3.95% | 8.04% | 8.94% | 17.08% | Options Chain | 18 | 65 | None | ||||
| 18 | FNF | Fidelity National Financial Inc | 48.42 | 57.15 | 42.32 | 14.41% | 9/16 | No | 2.06 | 4.18% | 2.97% | 1.47% | 4.12% | 2.92% | 74.91% | Options Chain | 15 | 64 | None | ||||
| 19 | ITUB | Itau Unibanco Holding S.A. | 7.37 | 9.47 | 5.91 | 24.70% | 9/02 | No | 0.17 | 2.35% | -95.32% | -78.36% | -30.51% | 2.44% | 21.25% | Options Chain | 16 | 47 | None | ||||
| 20 | ITW | Illinois Tool Works Inc | 284.25 | 301.92 | 234.38 | 21.28% | 9/30 | No | 6.44 | 2.21% | 10.61% | 5.17% | 7.98% | 13.46% | 58.28% | Options Chain | 11 | 62 | None | ||||
| 21 | NTES | NetEase Inc | 127.25 | 156.41 | 105.44 | 20.68% | 6/05 | No | 3.02 | 2.41% | -5.11% | -2.59% | 17.29% | 17.99% | 38.52% | Options Chain | 20 | 29 |
Dividend Stock List |
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| 22 | OTIS | Otis Worldwide Corp | 71.95 | 93.43 | 68.74 | 4.67% | 8/14 | No | 1.72 | 2.37% | 6.67% | 3.28% | 12.21% | 15.72% | 44.79% | Options Chain | 12 | 54 | None | ||||
| 23 | RCI | Rogers Communications Inc - Class B | 36.53 | 40.38 | 31.38 | 16.41% | 9/08 | No | 2.00 | 5.54% | 0.00% | 0.00% | 0.00% | 28.19% | 24.48% | Options Chain | 12 | 52 | None | ||||
| 24 | SBAC | SBA Communications Corp - Class A | 182.43 | 221.58 | 160.33 | 13.78% | 8/20 | No | 4.72 | 2.59% | 12.61% | 6.12% | 15.19% | 19.01% | 51.70% | Options Chain | 12 | 59 | None | ||||
| 25 | YUMC | Yum China Holdings Inc | 46.86 | 57.69 | 40.15 | 16.71% | 8/27 | No | 1.06 | 2.25% | 20.83% | 9.92% | 24.68% | 14.77% | 38.83% | Options Chain | 17 | 17 | None | ||||
| 26 | ZTS | Zoetis Inc - Class A | 76.68 | 155.32 | 70.98 | 8.03% | 7/20 | No | 2.09 | 2.82% | 6.00% | 2.96% | 13.01% | 19.26% | 34.89% | Options Chain | 15 | 65 | None | ||||
| 27 | SYY | Sysco Corp | 82.89 | 90.56 | 67.23 | 23.29% | 7/02 | No | 2.17 | 2.65% | 4.76% | 2.35% | 3.46% | 15.19% | 59.78% | Options Chain | 12 | 63 | None | ||||
| 28 | VICI | VICI Properties Inc | 26.37 | 31.85 | 25.81 | 2.17% | 6/18 | No | 1.80 | 6.82% | 1.98% | 0.99% | 4.66% | 8.49% | 69.50% | Options Chain | 11 | 67 | None |