Back to top

Analyst Blog

Recently, the board of Aon plc (AON - Analyst Report) approved an 11% hike in its annual dividend on Class A Ordinary Shares to 70 cents per share from 63 cents paid earlier. This translates into a quarterly cash dividend of 17.5 cents per share, increasing from 15.75 cents paid earlier. The increased dividend will be paid on May 15, 2013, to shareholders of record as of May 1, 2013.

Aon will require $218.1 million every quarter for the dividend payment, based on the outstanding share count of 311.6 million as of Jan 31, 2013. The company has ample liquidity for the payment, with cash and cash equivalents of $291 million as of Dec 31, 2012 and operating cash flow of $1.42 billion in 2012.

The new dividend translates into an annual dividend yield of 1.13%, based on the closing share price of $62.11 as of Apr 16, 2013. However, this is still below the industry yield of 1.91% as well as of other insurance brokers, Willis Group Holdings plc (WSH - Analyst Report), with a dividend yield of 2.87%, Brown & Brown Inc. (BRO - Snapshot Report), with a dividend yield of 1.16%, and Marsh & McLennan Companies Inc. (MMC - Analyst Report), with a dividend yield of 2.41%.

Aon has been regularly paying a quarterly cash dividend since Aug 1999. The company increased its dividend by 5% in April last year.

Aon is expected to announce its first-quarter 2013 financial results before the opening bell on Apr 26, 2013. The Zacks Consensus Estimate for the company’s first-quarter earnings stands at $1.11 per share, up 12.83% from the year-ago quarter.

Aon currently carries a Zacks Rank #3 (Hold).

Please login to or register to post a comment.

New to Zacks?

Start Here

Zacks Investment Research


Are you a new Zacks Member or a visitor to

Top Zacks Features

My Portfolio Tracker

Is it Time to Sell?

One of the most important steps you can take today is to set up your portfolio tracker on Once you do, you'll be notified of major events affecting your stocks and/or funds with daily email alerts.

More Zacks Resources

Zacks Rank Home - Evaluate your stocks and use the Zacks Rank to eliminate the losers and keep the winners.

Mutual Fund Rank Home - Evaluate your funds with the Mutual Fund Rank for both your personal and retirement funds.

Stock/Mutual Fund Screening - Find better stocks and mutual funds. The ones most likely to beat the market and provide a positive return.

My Portfolio - Track your Portfolio and find out where your stocks/mutual funds stack up with the Zacks Rank.

Zacks #1 Rank Top Movers for Zacks #1 Rank Top Movers

Company Symbol Price %Chg
ERBA DIAGNO… ERB 2.99 +2.75%
CTPARTNERS… CTP 16.25 +2.33%
CHINA BIOLO… CBPO 46.93 +1.88%
THE PANTRY… PTRY 20.97 +1.82%
NN INC NNBR 28.43 +1.46%