Aon PLC (NYSE:AON) Declares Quarterly Cash Dividend
Aon Stock Declares Quarterly Dividend
As we always say here at Income Investors, boring businesses can produce some very exciting returns.
Case in point, Aon PLC (NYSE:AON) is a global professional services company that provides a wide range of risk, retirement, and health solutions. It is not in the business of making “the next big thing,” but its share price still soared 139% over the last five years.
Moreover, the company also rewards shareholders with a rising stream of dividends.
In a press release on Monday, January 15, Aon announced that its Board of Directors has declared a quarterly cash dividend of $0.36 per share. The dividend will be paid on February 15, 2018 to shareholders of record on February 1, 2018. (Source: “Aon Declares Quarterly Dividend,” Aon PLC, January 15, 2018.)
At the current price, Aon stock offers an annual yield of 1.1%.
The yield itself may not look that impressive, but note that Aon’s payout has been consistently increasing. At the beginning of 2013, the company was paying quarterly dividends of $0.1575 apiece. So in just five years, Aon PLC’s per-share payout has grown by a whopping 129%.
Those impressive dividend hikes are backed by a solid business. According to the company’s most recent earnings report, Aon’s revenue grew six percent year-over-year to $2.3 billion in the third quarter of 2017. Adjusted operating margin expanded 170 basis points to 20.3%. Excluding one-time items, the company generated adjusted earnings of $1.29 per share, representing an 18% increase from the year-ago period. (Source: “Aon Reports Third Quarter 2017 Results,” Aon PLC, October 27, 2017.)
For a company whose management is willing to return cash to investors, a growing business will likely translate to bigger payouts. So for investors of Aon PLC, more good news could be on the way.