AON Dividend Type Payments

Aon Plc dividend

Although AON has no upcoming (meaning, Board-approved and announced) dividends, you can sell covered calls on Aon Plc to create 12 extra dividend type payments per year to boost its yield. Let's look at some recent prices (last updated Mon 10:55 AM ET):

Aon Plc (AON)
Bid Ask Last Change Volume P/E Market Cap
192.86 192.95 192.96 +0.94 191K 39 46B

AON Dividend-Like Income Using Covered Calls

With AON at 192.96, here's a table showing how big the annual "dividend" (ie. 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% 5.79 1.6
5% 9.65 2.6
10% 19.30 5.3

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
Jul 19 200.00 0.70 26 2.7 7.05 (3.7%)
Oct 18 200.00 4.50 117 3.8 7.05 (3.7%)
5% Yield On AON Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 200.00 0.70 26 2.7 7.05 (3.7%)
Oct 18 200.00 4.50 117 3.8 7.05 (3.7%)
10% Yield On AON Using Covered Calls
Expiration Strike Call Bid Days Cents/Day Upside Potential
Jul 19 195.00 2.25 26 8.7 2.05 (1.1%)
Oct 18 195.00 6.70 117 5.7 2.05 (1.1%)

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