Aon plc (NYSE:AON) to Issue $0.82 Quarterly Dividend

Aon plc (NYSE:AON) announced a quarterly dividend on Friday, July 10th. Investors of record on Monday, August 3rd will be given a dividend of 0.82 per share by the financial services provider on Friday, August 14th. This represents a c) annualized dividend and a yield of 0.9%. The ex-dividend date is Monday, August 3rd.

AON has raised its dividend payment by an average of 0.1%per year over the last three years. AON has a dividend payout ratio of 18.9% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect AON to earn $21.23 per share next year, which means the company should continue to be able to cover its $3.28 annual dividend with an expected future payout ratio of 15.4%.

AON Price Performance

Shares of AON stock opened at $360.71 on Friday. The company has a 50-day simple moving average of $341.22 and a two-hundred day simple moving average of $332.07. AON has a twelve month low of $304.59 and a twelve month high of $382.34. The stock has a market capitalization of $77.04 billion, a price-to-earnings ratio of 19.88, a price-to-earnings-growth ratio of 1.89 and a beta of 0.71. The company has a quick ratio of 1.95, a current ratio of 1.54 and a debt-to-equity ratio of 1.34.

AON (NYSE:AON) last released its earnings results on Wednesday, July 29th. The financial services provider reported $3.81 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.80 by $0.01. The company had revenue of $4.25 billion for the quarter, compared to analyst estimates of $4.28 billion. AON had a return on equity of 42.13% and a net margin of 22.27%.AON’s quarterly revenue was up 2.2% on a year-over-year basis. During the same period in the prior year, the firm posted $3.49 EPS. Analysts forecast that AON will post 19.09 EPS for the current year.

Key Stories Impacting AON

Here are the key news stories impacting AON this week:

• Positive Sentiment: Aon reported second-quarter adjusted earnings of $3.81 per share, narrowly above the $3.80 consensus and up from $3.49 a year earlier. Organic revenue growth reached 5%, while operating margins expanded and management reaffirmed its full-year guidance. Aon Q2 results and guidance
• Positive Sentiment: Growth in reinsurance and property-and-casualty businesses, combined with a record pace of share repurchases, strengthened the company’s capital-return story. Aon also declared a quarterly dividend of $0.82 per share. Aon buyback and Q2 growth
• Positive Sentiment: Citigroup raised its price target to $435 from $420 with a Buy rating, and Wells Fargo increased its target to $419 from $406 with an Overweight rating, signaling continued confidence in Aon’s longer-term earnings outlook.
• Neutral Sentiment: Revenue rose 2.2% year over year to $4.25 billion but missed the $4.28 billion estimate. Higher expenses and lower interest income limited the benefit from organic growth and acquisitions, leaving investors focused on whether revenue growth can accelerate.
• Neutral Sentiment: Aon said severe weather across the U.S. Midwest—including wind, hail and tornadoes—could rank among the top 10 costliest severe-weather events. The company also expects losses from the July Japan earthquake to be below those from the 2016 Kumamoto earthquake; these developments highlight insurance-market activity but have limited direct earnings impact for Aon.
• Negative Sentiment: General Counsel Darren Zeidel sold 1,900 shares for approximately $718,000, following additional sales earlier in July. Although he retains a sizable position, the repeated insider selling may weigh modestly on sentiment. Aon insider sale
• Negative Sentiment: WTW reported faster growth in its broking arm than Aon, Marsh and Gallagher, underscoring competitive pressure in Aon’s core brokerage market. WTW broking growth comparison

AON Company Profile

Aon plc is a global professional services firm that provides a broad suite of risk, retirement and health solutions to corporations, institutions and individuals. The company operates primarily as an insurance broker and risk adviser, helping clients identify, quantify and transfer risk across property, casualty, cyber and other areas. Aon also offers reinsurance brokerage and capital market solutions that connect insurers, reinsurers and corporate buyers.

In addition to traditional brokerage activities, Aon delivers consulting and outsourcing services in areas such as human capital, benefits, and retirement plan design and administration.