Aon Raises Share Buyback Authority to $9.2B, Hikes Dividend

Aon plc (NYSE: AON) revealed that its board of directors has increased the company’s common stock repurchase authorization by an additional $7.5 billion. This comes above the $1.7 billion remaining authorization as of December 31, 2021.

Aon is a global professional services firm that provides financial risk-mitigation products, including insurance, pension administration, and health insurance plans to its clients. Shares of AON gained 1.6% in Friday’s extended trading session.

The buyback plan will be carried out from time to time depending on factors such as market conditions. Repurchases will be made from time to time and using methods not limited to the open market or private transactions.

Meanwhile, Aon announced plans to increase its quarterly cash dividend on outstanding Class A Ordinary Shares by 10% to $0.56 per share.

Aon’s CEO Greg Case said, “Today’s announcement reinforces our conviction in our Aon United strategy, strong free cash flow generation outlook, and continued focus on maximizing total return for shareholders. We continue to build momentum and believe our disciplined approach to return on invested capital will result in substantial long-term shareholder value creation.”

Price Target

J.P. Morgan analyst Jimmy Bhullar reiterated a Hold rating on Aon with a price target of $294 (upside potential of 3.6% from current levels).

Consensus among analysts is a Hold based on 5 Holds and 1 Sell. The Aon stock price prediction stands at $306.50 and implies upside potential of 8% to current levels.

Positive Sentiment

TipRanks’ Stock Investors tool shows that investors currently have a Very Positive stance on Aon, with 14.7% of investors on TipRanks increasing their exposure to AON stock over the past 30 days.

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