Aon (AON) DIvidends Date & History

Key Takeaways

• Aon plc (AON) pays a quarterly dividend of $0.82 per share, translating to an annualized dividend of approximately $3.06 and a forward dividend yield of roughly 0.88%.
• The company has raised its dividend for 14 consecutive years, positioning it as a reliable dividend grower within the financial services sector.
• Aon's dividend payout ratio stands at a conservative 17% to 23% of earnings, indicating strong coverage and ample room for future increases.
• Free cash flow coverage remains robust, with the cash-flow-based payout ratio near 20%, reinforcing the sustainability of the dividend.
• The dividend yield is below the sector average but is paired with a double-digit annual growth rate, making it appealing primarily to dividend growth investors rather than income-focused investors.

Dividend Overview

Aon plc, a leading global provider of insurance and reinsurance brokerage, risk management, and human capital consulting services, maintains a disciplined and shareholder-friendly dividend policy. The company distributes dividends on a quarterly basis, with its most recent quarterly payment set at $0.82 per share following a raise declared in early 2026. The previous ex-dividend date was May 1, 2026, with the corresponding payment date on May 15, 2026. At current share price levels, the forward annual dividend of approximately $3.06 per share produces a dividend yield near 0.88%. While this yield is modest compared to higher-yielding segments of the market, Aon is not positioned as a high-yield stock. Instead, it falls squarely into the dividend growth category — a company that prioritizes consistent, meaningful annual increases over an elevated starting yield. For investors seeking steadily rising income streams rather than immediate high payouts, Aon's dividend profile merits attention.

Dividend History and Growth

Aon has demonstrated a long-standing commitment to returning capital to shareholders through steadily rising dividends. The company has increased its annual dividend for 14 consecutive years, a track record that places it among a select group of consistent dividend growers. Over the past five years, the compound annual growth rate (CAGR) of Aon's dividend has averaged approximately 10%, and the 10-year CAGR stands near 9.5%. Looking at the actual payment progression, Aon's quarterly dividend has grown from $0.15 per share in 2010 to $0.82 per share in 2026 — a more than fivefold increase over roughly 16 years. The annual dividend has climbed from $2.04 per share in fiscal 2021 to $2.98 per share by fiscal 2025, with the forward rate now exceeding $3.00. There have been no dividend cuts during this period, and the payment history reflects a pattern of annual increases typically announced in the first half of each year. This consistency underpins Aon's reputation as a dependable dividend growth stock.

Dividend Sustainability and Payout Ratio

Aon's dividend sustainability is supported by a conservative payout structure. Based on trailing earnings, the dividend payout ratio hovers between 17% and 23%, well below levels that would raise concern. On a free cash flow basis, the payout ratio is similarly restrained at approximately 20%, meaning the company retains the vast majority of its operating cash flow for reinvestment, debt management, and share repurchases. In the first half of 2025, Aon generated $732 million in free cash flow during the second quarter alone — a 59% year-over-year increase — demonstrating ample liquidity to cover its dividend obligations. The company's operating margins consistently exceed 28%, among the highest in the insurance brokerage industry, which provides a reliable earnings base for the dividend. Additionally, Aon's debt levels are manageable relative to its earnings before interest, taxes, depreciation, and amortization (EBITDA), and its business model generates recurring commission and fee-based revenue, reducing cash flow volatility. These factors collectively suggest that the dividend is well-protected and that the company has significant capacity to continue its growth streak.

Dividend Compared to Industry Peers

Within the insurance brokerage industry, Aon's dividend yield of approximately 0.88% sits at the lower end of the peer group. By comparison, MMC (Marsh & McLennan) offers a yield near 1.97%, while WTW (Willis Towers Watson) yields approximately 1.33%, and AJG (Arthur J. Gallagher) hovers around 1.0%. BRO (Brown & Brown) yields roughly 0.7%. However, Aon's lower yield is partially offset by a more conservative payout ratio. Marsh & McLennan, for instance, carries a payout ratio near 38% to 44% of earnings — roughly double Aon's — while Arthur J. Gallagher's payout ratio sits around 27%. Aon's 10% dividend growth rate also compares favorably against Willis Towers Watson's 4% to 5% growth rate, though it trails Marsh & McLennan's 14% dividend growth rate over the past five years. For investors who prioritize dividend safety and growth potential over current yield, Aon's profile stands out in a competitive peer landscape.

AI Screener

For investors seeking to identify dividend-paying stocks like Aon alongside other opportunities across the broader market, Tickeron's AI Screener offers a powerful solution. This AI-driven stock and ETF discovery tool allows users to filter thousands of securities based on customizable criteria, including technical patterns, fundamental metrics, market capitalization, industry classification, volatility levels, and AI-generated trading signals. The screener is designed to surface income-focused investments, dividend growth candidates, breakout opportunities, and trending stocks far more efficiently than manual research. Whether you are screening for consistent dividend payers, high-momentum names, or undervalued stocks using technical and fundamental overlays, the AI Screener helps streamline the discovery process. Explore the platform to see how AI-powered filtering can sharpen your investment research.

Is This Stock Attractive for Dividend Investors?

Aon is best suited for dividend growth investors and long-term, total-return-oriented investors rather than those seeking high current income. With a sub-1% dividend yield, the stock will not satisfy investors who depend on portfolio income to meet near-term cash flow needs. However, the combination of a low payout ratio, double-digit annual dividend growth, and a 14-year streak of consecutive increases makes Aon a compelling candidate for investors focused on compounding dividend income over time. The company's entrenched position in the global insurance brokerage market, coupled with its recurring revenue model and strong free cash flow generation, provides a durable foundation for continued dividend expansion. Conservative investors may also appreciate the margin of safety inherent in Aon's low payout ratio and robust cash flow coverage. While the stock does not offer the highest yield in its peer group, its dividend growth trajectory and financial strength make it a worthy consideration for investors building a diversified, long-term dividend growth portfolio.

Disclaimer

The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.

Disclaimers and Limitations