AON Dividend
Although AON has a dividend of 0.68 with an ex-dividend date of Nov 1, 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 Mon 4:16 PM ET):
Aon plc Class A Ordinary Shares (Ireland) (AON) | ||||||
---|---|---|---|---|---|---|
Bid | Ask | Last | Change | Volume | P/E | Market Cap |
359.00 | 360.00 | 358.58 | +3.43 | 723K | 28 | 77B |
AON Dividend-Like Income Using Covered Calls
With AON at 358.58, 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% | 10.76 | 2.9 |
5% | 17.93 | 4.9 |
10% | 35.86 | 9.8 |
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 | |
Nov 15 | 360.00 | 9.20 | 33 | 27.9 | 0.00 (0.0%) | |
Oct 18 | 360.00 | 1.75 | 5 | 35.0 | 0.00 (0.0%) |
5% Yield On AON Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 360.00 | 9.20 | 33 | 27.9 | 0.00 (0.0%) | |
Oct 18 | 360.00 | 1.75 | 5 | 35.0 | 0.00 (0.0%) |
10% Yield On AON Using Covered Calls | ||||||
---|---|---|---|---|---|---|
Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
Nov 15 | 360.00 | 9.20 | 33 | 27.9 | 0.00 (0.0%) | |
Oct 18 | 360.00 | 1.75 | 5 | 35.0 | 0.00 (0.0%) |
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Top 10 Open Interest For Oct 18 Expiration | Top 5 High Yield | |||||
---|---|---|---|---|---|---|
1. | NVDA dividend | 6. | QQQ dividend | 1. | ANRO dividend | |
2. | FXI dividend | 7. | EEM dividend | 2. | CAPR dividend | |
3. | IWM dividend | 8. | SLV dividend | 3. | DJT dividend | |
4. | SPY dividend | 9. | KWEB dividend | 4. | SGH dividend | |
5. | TSLA dividend | 10. | SMCI dividend | 5. | ULCC dividend |
Want more examples? AOM Dividend | AOR Dividend