“I buy on the assumption that they could close the market the next day and not reopen it for five years.”
— Warren Buffett
A five-year holding period can provide a more useful measure of investment results than short-term price moves, particularly for established financial services businesses. In that context, Aon plc (NYSE: AON) offers a clear case study in how share price appreciation and dividend reinvestment combine to shape total return over time.
An investor who put $10,000 into Aon shares on 06/15/2021 and reinvested dividends would have seen that position grow to $13,799.22 as of 06/12/2026. That equates to a total return of 38.01% and an average annual return of 6.66%, based on the figures below.
AON 5-Year Return Details
| Start date: | 06/15/2021 |
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| End date: | 06/12/2026 | ||||
| Start price/share: | $251.82 | ||||
| End price/share: | $335.31 | ||||
| Starting shares: | 39.71 | ||||
| Ending shares: | 41.16 | ||||
| Dividends reinvested/share: | $11.24 | ||||
| Total return: | 38.01% | ||||
| Average annual return: | 6.66% | ||||
| Starting investment: | $10,000.00 | ||||
| Ending investment: | $13,799.22 | ||||
[These numbers were computed with the Dividend Channel DRIP Returns Calculator.]
What Drove Aon’s 5-Year Total Return?
Aon’s result over this period came from two sources: capital appreciation and dividends. The share price rose from $251.82 to $335.31, while reinvested dividends increased the share count from 39.71 to 41.16. That distinction matters because total return can differ meaningfully from price return alone, especially over multi-year periods.
In Aon’s case, most of the gain was generated by stock price appreciation, with dividends providing a smaller but still positive contribution. That is consistent with the company’s profile: Aon is generally viewed more as a compounding professional-services business than as a high-yield equity.
How Dividend Reinvestment Changed the Outcome
Over the five-year period shown above, Aon paid $11.24 per share in dividends that were assumed to be reinvested. Reinvestment added incremental shares over time, which in turn allowed future dividends to be earned on a larger base. This is the core mechanism behind compounding in dividend-paying stocks.
The impact is visible in the ending share count. Starting with 39.71 shares, the position grew to 41.16 shares through dividend reinvestment. While that increase is modest relative to higher-yield securities, it still contributed to the ending value of the investment.
Current Yield and Yield on Cost
Based on the most recent annualized dividend rate of $3.28 per share, AON has a current dividend yield of approximately 0.98% using the ending share price of $335.31.
Another useful measure is yield on cost, which compares the current annualized dividend with the original purchase price. Using Aon’s starting price of $251.82 per share, the current annualized dividend of $3.28 implies a yield on cost of about 1.30%.
A Quick Read on the Result
In concise terms:
- $10,000 invested in Aon on 06/15/2021 grew to $13,799.22 by 06/12/2026.
- Total return was 38.01% with dividends reinvested.
- The annualized return was 6.66%.
- Most of the gain came from share price appreciation, with dividends adding a secondary boost.
For a business such as Aon, this type of return profile underscores an important point: even when dividend yield is relatively low, sustained reinvestment and steady price appreciation can still produce meaningful long-term compounding.
“This company looks cheap, that company looks cheap, but the overall economy could completely screw it up. The key is to wait. Sometimes the hardest thing to do is to do nothing.” — David Tepper
