AON Dividend

Although AON has a dividend of 0.75 with an ex-dividend date of May 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 Thu 4:16 PM ET):

Aon plc Class A Ordinary Shares (Ireland) (AON)
Bid	Ask	Last	Change	Volume	P/E	Market Cap
147.81	384.95	367.41	-5.41	1.5M	30	81B

AON Dividend-Like Income Using Covered Calls

With AON at 367.41, 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%	11.02	3.0
5%	18.37	5.0
10%	36.74	10.1

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
May 16	390.00	2.60	30	8.7	5.05 (1.4%)
Oct 17	390.00	14.80	184	8.0	5.05 (1.4%)

5% Yield On AON Using Covered Calls
Expiration	Strike	Call Bid	Days	Cents/Day	Upside Potential
May 16	390.00	2.60	30	8.7	5.05 (1.4%)
Oct 17	390.00	14.80	184	8.0	5.05 (1.4%)

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Want more examples? AOM Dividend | AOR Dividend