On the evening of Wednesday, September 25, the global fast food leader McDonald’s (NYSE: MCD) surprised its investors with an encouraging announcement: a significant increase in dividend yield.
Specifically, the restaurant chain raised its dividend by 6%, resulting in a yield of 2.35%, up from the previous 2.22%.
This marks the 48th consecutive increase, raising quarterly payments from $1.67 per share to $1.77, and bringing the annual total to $7.08, based on the closing price of $300.47 on September 25.
The first disbursement reflecting this latest hike will occur on December 16, 2024, for all investors who acquired shares of the fast-food giant before the market closes on December 2.
Insiders offload millions in McDonald’s stock
Just prior to the positive news for investors, notable insider trading activities may have inadvertently shaken market confidence in MCD stock.
On September 23, three senior insiders at McDonald’s executed significant sales of MCD shares.
Initially, Joseph M Erlinger, the President of McDonald’s USA, sold 1,099 shares at an average price of $298.57, totaling approximately $328,128.
In a larger transaction, Chief Financial Officer Ian Frederick Borden sold 5,939 shares shortly thereafter at an average price of $300.04, bringing in nearly $1.8 million.
The most considerable sale came from CEO Christopher J. Kempczinski, who unloaded 11,727 MCD shares at $300.03 each, netting around $3.5 million.
Further, the CEO sold an additional 6,629 shares on September 24, amounting to approximately $2 million.
Among these transactions, Erlinger’s selling activity appears to be the least unusual, as he routinely divests 1,098 to 1,099 MCD shares on the 23rd day of each month, as seen in his August and July sales, which netted him nearly $317,000 and about $285,000, respectively.
McDonald’s stock price trends
In the meantime, McDonald’s shares seem to have moved past recent challenges, particularly those linked to boycotts related to Israel.
Following a substantial drop from above $297 to around $250 in the early part of the year, MCD stock has been on an upward trajectory since early July.
This change is evident in the year-to-date (YTD) performance, where the fast-food chain is just 0.98% in the green, while it has increased by 7.04% in the past six months and 3.56% over the last 30 days.
As of the latest update, McDonald’s stock is priced at $299.96, just below the recent closing value of $300.47.
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