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 Fri 4:16 PM ET):
| Aon plc Class A Ordinary Shares (Ireland) (AON) | ||||||
|---|---|---|---|---|---|---|
| Bid | Ask | Last | Change | Volume | P/E | Market Cap |
| 390.02 | 398.79 | 398.79 | +4.59 | 731K | 32 | 85B |
AON Dividend-Like Income Using Covered Calls
With AON at 398.79, 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% | 11.96 | 3.3 |
| 5% | 19.94 | 5.5 |
| 10% | 39.88 | 10.9 |
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 | 400.00 | 15.20 | 64 | 23.8 | 1.21 (0.3%) | |
| Apr 17 | 400.00 | 9.20 | 35 | 26.3 | 1.21 (0.3%) | |
| 5% Yield On AON Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 400.00 | 15.20 | 64 | 23.8 | 1.21 (0.3%) | |
| Apr 17 | 400.00 | 9.20 | 35 | 26.3 | 1.21 (0.3%) | |
| 10% Yield On AON Using Covered Calls | ||||||
|---|---|---|---|---|---|---|
| Expiration | Strike | Call Bid | Days | Cents/Day | Upside Potential | |
| May 16 | 400.00 | 15.20 | 64 | 23.8 | 1.21 (0.3%) | |
| Apr 17 | 400.00 | 9.20 | 35 | 26.3 | 1.21 (0.3%) | |
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| Top 10 Open Interest For Mar 21 Expiration | Top 5 High Yield | |||||
|---|---|---|---|---|---|---|
| 1. | NVDA dividend | 6. | EEM dividend | 1. | QBTS dividend | |
| 2. | SPY dividend | 7. | KWEB dividend | 2. | ZIM dividend | |
| 3. | IWM dividend | 8. | TSLA dividend | 3. | RGTI dividend | |
| 4. | FXI dividend | 9. | INTC dividend | 4. | SLNO dividend | |
| 5. | QQQ dividend | 10. | TLT dividend | 5. | SOUN dividend | |
Want more examples? AOM Dividend | AOR Dividend
