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 89.27 155.50 85.44 4.48% 11/12 Yes 4.50 5.06% 1.80% 1.82% 9.36% 11.28% 52.45% Options Chain 5.80 5.93 0.07 13 66 None
2 BAH Booz Allen Hamilton Holding Corp - Class A 104.04 187.12 96.96 7.30% 8/14 Yes 2.16 2.08% 7.84% 3.85% 10.42% 15.55% 26.54% Options Chain 5.55 6.75 0.06 16 61 None
3 SLB SLB 34.41 43.80 30.61 12.41% 9/03 Yes 1.13 3.28% 3.64% 1.80% 22.88% 3.48% 38.70% Options Chain 1.62 2.14 0.06 12 69 None
4 OC Owens Corning 133.38 211.60 122.80 8.62% 10/20 Yes 2.67 2.00% 15.00% 15.19% 27.63% 15.74% 32.68% Options Chain 7.05 8.15 0.06 12 72 None
5 OMC Omnicom Group Inc 79.76 103.30 67.75 17.73% 9/02 Yes 2.80 3.51% 0.00% 0.00% 0.00% 10.60% 40.06% Options Chain 2.88 4.70 0.06 15 71 None
6 KDP Keurig Dr Pepper Inc 25.33 36.17 25.19 0.56% 9/26 Yes 0.92 3.63% 5.14% 6.25% 8.05% 0.16% 81.42% Options Chain 1.10 1.48 0.06 10 61 None
7 CTRA Coterra Energy Inc 24.53 29.29 21.84 12.32% 8/14 Yes 0.87 3.55% 4.76% 2.35% 9.15% 13.36% 41.63% Options Chain 1.30 1.20 0.05 15 70 None
8 YUMC Yum China Holdings Inc 42.57 53.40 40.55 4.98% 9/02 Yes 0.88 2.07% 50.00% 22.47% 18.92% 8.79% 36.36% Options Chain 2.25 2.03 0.05 17 56 None
9 EQNR Equinor ASA 25.39 27.84 20.38 24.58% 11/14 Yes 1.44 5.67% 8.15% 15.21% 27.07% 4.93% 47.68% Options Chain 0.85 1.33 0.05 11 62 None
10 STZ Constellation Brands Inc - Class A 140.14 242.37 131.20 6.81% 10/30 Yes 4.06 2.90% 3.83% 8.30% 7.66% 11.65% 59.10% Options Chain 6.35 7.30 0.05 6 69 None
11 AMGN AMGEN Inc 295.54 330.26 247.06 19.62% 8/22 Yes 9.39 3.18% 5.78% 2.85% 7.84% 16.50% 76.72% Options Chain 11.73 14.98 0.05 12 71 None
12 ACN Accenture plc - Class A 251.23 394.41 229.40 9.52% 10/10 No 5.92 2.36% 13.46% 14.25% 13.87% 13.10% 48.76% Options Chain 12.40 12.60 0.05 16 66 None
13 COP Conoco Phillips 95.23 112.56 78.56 21.22% 8/18 Yes 3.12 3.28% 0.00% 0.00% 12.47% 5.93% 41.82% Options Chain 3.93 4.60 0.05 11 76 None
14 CLX Clorox Company 120.49 166.90 116.17 3.72% 10/22 Yes 4.90 4.07% 1.65% 1.67% 2.03% 8.78% 75.15% Options Chain 4.60 5.75 0.05 15 58 None
15 CMCSA Comcast Corp - Class A 30.60 43.66 30.38 0.72% 10/01 Yes 1.30 4.25% 6.56% 6.79% 7.32% 28.34% 21.56% Options Chain 1.15 1.46 0.05 15 65 None
16 MRK Merck & Co Inc 87.61 107.60 71.87 21.90% 9/15 Yes 3.24 3.70% 3.85% 1.90% 5.25% 9.17% 49.92% Options Chain 3.68 3.85 0.04 14 73 None
17 MKC McCormick & Co. Inc (Non Voting) 65.62 85.22 63.66 3.08% 10/14 Yes 1.77 2.70% 5.26% 2.60% 6.68% 11.16% 61.67% Options Chain 2.78 2.15 0.04 9 62 None
18 CVX Chevron Corp 154.91 165.09 129.01 20.08% 8/19 Yes 6.76 4.36% 4.91% 2.42% 6.53% 6.15% 86.89% Options Chain 4.20 6.35 0.04 11 74 None
19 EOG EOG Resources Inc 110.45 135.49 100.76 9.62% 10/17 Yes 3.83 3.47% 8.38% 9.34% 25.07% 15.56% 37.20% Options Chain 4.50 4.40 0.04 15 77 None
20 HD Home Depot Inc 386.81 429.19 322.47 19.95% 9/04 Yes 9.15 2.37% 2.22% 1.11% 8.66% 28.30% 62.29% Options Chain 13.75 15.58 0.04 8 65 None
21 PCAR Paccar Inc 96.68 114.66 84.08 14.99% 11/12 Yes 3.99 4.13% 12.82% 12.66% 10.25% 9.75% 68.44% Options Chain 3.15 3.80 0.04 12 69 None
22 XOM Exxon Mobil Corp 114.26 119.92 96.01 19.01% 8/15 Yes 3.96 3.47% 3.13% 1.55% 3.21% 5.80% 56.25% Options Chain 3.93 4.43 0.04 11 75 None
23 CL Colgate-Palmolive Company 79.11 100.36 77.31 2.33% 10/17 Yes 2.04 2.58% 4.04% 3.85% 3.57% 8.52% 57.30% Options Chain 2.60 3.00 0.04 12 57 None
24 GIS General Mills Inc 50.93 70.22 48.29 5.47% 10/10 No 2.41 4.73% 1.68% 3.48% 4.36% 7.44% 45.56% Options Chain 1.68 1.93 0.04 13 64 None
25 HON Honeywell International Inc 208.98 240.47 177.52 17.72% 11/14 Yes 4.52 2.16% 4.81% 4.80% 4.99% 6.13% 51.48% Options Chain 7.20 7.50 0.04 13 68 None
26 TTE TotalEnergies SE 59.38 64.74 50.30 18.05% 9/30 Yes 3.67 6.18% 20.91% 9.96% 7.01% 1.07% 66.53% Options Chain 1.50 2.10 0.04 12 72 None
27 OKE Oneok Inc 72.45 113.92 70.63 2.58% 8/01 Yes 4.08 5.63% 4.04% 2.00% 2.45% 7.04% 79.53% Options Chain 1.80 2.48 0.03 14 75 None
28 VZ Verizon Communications Inc 41.40 45.87 36.41 13.71% 10/10 Yes 2.71 6.55% 1.87% 1.89% 1.93% 2.96% 63.02% Options Chain 1.14 1.40 0.03 14 65 None
29 UNP Union Pacific Corp 231.86 252.32 202.16 14.69% 8/29 Yes 5.40 2.33% 4.55% 2.25% 6.51% 8.43% 46.92% Options Chain 7.35 7.80 0.03 13 63 None
30 PG Procter & Gamble Company 152.54 177.63 149.91 1.75% 7/18 Yes 4.13 2.71% 6.74% 3.32% 5.59% 8.68% 63.29% Options Chain 4.98 4.10 0.03 11 71 None
31 MCD McDonald`s Corp 296.32 322.66 271.86 9.00% 9/02 Yes 7.08 2.39% 4.42% 2.19% 7.76% 17.86% 60.62% Options Chain 8.95 8.15 0.03 11 66 None
32 SYY Sysco Corp 79.95 83.13 66.22 20.73% 10/03 Yes 2.10 2.63% 3.96% 2.99% 3.36% 15.19% 56.30% Options Chain 2.23 1.88 0.03 10 64 None
33 CNI Canadian National Railway Company 96.94 113.95 90.48 7.14% 9/08 Yes 3.51 3.62% 5.03% 2.48% 9.60% 15.33% 67.32% Options Chain 2.00 2.40 0.02 12 68 None
34 UL Unilever plc 58.61 65.01 52.97 10.65% 8/15 Yes 1.99 3.39% 11.97% 5.82% 0.73% 3.75% 75.49% Options Chain 1.00 1.25 0.02 10 64 None
35 VICI VICI Properties Inc 31.99 33.54 26.86 19.10% 9/18 Yes 1.75 5.46% 6.19% 3.05% 6.87% 9.24% 66.95% Options Chain 0.55 0.33 0.02 12 79 None
36 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