AON Dividend Type Payments

Although AON has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Aon plc Class A Ordinary Shares (Ireland) to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Tue 4:16 PM ET):

Aon plc Class A Ordinary Shares (Ireland) (AON)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
284.32	388.00	379.15	-1.36	688K	32	82B

AON Dividend-Like Income Using Covered Calls

With AON at 379.15, here's a table showing how big the annual "dividend" (i.e. total annual call premium received) would need to be to attain 3%, 5%, and 10% annual yields. Also shown is the equivalent number of cents/day necessary to achieve each yield:

Annual Yield	Annual Premium	Cents/Day
3%	11.37	3.1
5%	18.96	5.2
10%	37.92	10.4

So now we need to find out of the money covered calls that pay at least the prescribed cents/day amount of time premium. That will generate income and, because they are out of the money, leave room for some upside potential on the stock. Here are some examples:

3% Yield On AON Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	390.00	3.10	32	9.7	2.00 (0.5%)
Jan 17	390.00	6.30	60	10.5	2.00 (0.5%)

5% Yield On AON Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Dec 20	390.00	3.10	32	9.7	2.00 (0.5%)
Jan 17	390.00	6.30	60	10.5	2.00 (0.5%)

10% Yield On AON Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
Jan 17	390.00	6.30	60	10.5	2.00 (0.5%)
Feb 21	390.00	11.10	95	11.7	2.00 (0.5%)

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Want more examples? AOM Dividend | AOR Dividend