On the evening of Wednesday, September 25, the renowned global fast food giant McDonald’s (NYSE: MCD) surprised its investors with an uplifting announcement: a notable increase in its dividend yield.
The fast food chain increased its dividend by 6%, elevating the yield to 2.35%, up from the prior 2.22%.
This increase marks the 48th consecutive rise, with quarterly payments rising from $1.67 per share to $1.77, leading to an annual total of $7.08 based on the closing price of $300.47 on September 25.
The first payment reflecting this new hike is set to be made on December 16, 2024, for investors who purchased shares of the fast-food leader before the market closes on December 2.
Insiders sell millions in McDonald’s stock
Just before this positive news for shareholders, significant insider trading activity may have unwittingly affected investor confidence in MCD stock.
On September 23, three high-level insiders at McDonald’s executed substantial sales of MCD shares.
First, Joseph M. Erlinger, the President of McDonald’s USA, sold 1,099 shares at an average price of $298.57, amounting to around $328,128.
In a larger move, Chief Financial Officer Ian Frederick Borden sold 5,939 shares shortly thereafter at an average price of $300.04, resulting in nearly $1.8 million.
The largest transaction was executed by CEO Christopher J. Kempczinski, who divested 11,727 MCD shares at $300.03 each, yielding approximately $3.5 million.
Additionally, the CEO sold another 6,629 shares on September 24, totaling around $2 million.
Among these transactions, Erlinger’s selling activity appears to be the most typical, as he regularly sells between 1,098 to 1,099 MCD shares on the 23rd of each month, as demonstrated by his August and July sales, which brought him nearly $317,000 and about $285,000, respectively.
McDonald’s stock price trends
Meanwhile, McDonald’s shares appear to have moved beyond recent struggles, especially those associated with boycotts related to Israel.
After a significant decline from above $297 to approximately $250 earlier this year, MCD stock has been on an upward trend since early July.
This shift is reflected in the year-to-date (YTD) performance, where the fast-food chain is just 0.98% in the green, while it has risen by 7.04% in the past six months and 3.56% over the last 30 days.
As of the most recent update, McDonald’s stock is priced at $299.96, just below the latest closing figure of $300.47.
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