McDonald's Secures Dividend King Status Amidst Selloff

McDonald's has solidified its reputation as a Dividend King after announcing its 50th consecutive annual dividend increase. The company's most recent raise brings the yield to 3%, marking a six-year high.

The stock trades at its lowest forward multiple in over a decade following a sharp selloff, despite robust margins and growing loyalty-driven sales.

Technical and seasonal backtests suggest a strong probability of a 7% gap-fill ROI in midterm election years. This analysis led the author to recommend selling Nov 20 at-the-money puts, targeting a 12% annualized return.