When it comes to investing, everyone has their unique strategies, and sometimes they stem from habits or even indulgences. In my case, my McDonald's (MCD) stock accumulation journey has been as much about embracing a system as it has been about personal irony.
Despite actively avoiding McDonald's food to stay fit, I’ve developed the habit of buying 0.1 shares of MCD stock every time we eat out or order food from McDonald's. It’s a way to “own the experience”—both as a consumer and a shareholder.
For a time, this small but steady accumulation paused. Our stock portfolio had run out of extra free cash, and I was determined not to use margin. This meant the modest purchases of 0.1 shares were put on hold. However, a recent adjustment to our NVIDIA (NVDA) trade freed up some extra cash in the brokerage account, which allowed me to resume the McDonald’s stock purchases while still working on recovering from the NVDA trade adjustment.
As of January 28, 2025, our MCD holdings stand at 2.2 shares with an average buy price of $271.23. Despite the small size of the position, we’re already seeing positive results, with a gain of $50.89 to date. The ultimate goal for this investment is ambitious: to accumulate 100 shares, which would enable us to write covered calls and generate consistent income through options premiums.
While we still have a long way to go to reach that milestone, let’s consider the potential if we were already there.
If we owned 100 shares of MCD today, we could sell a covered call expiring on February 28, 2025, with a $300 strike price and collect an options premium of $3.50 per share. That’s $350 in premium income for just one month—a tidy sum for holding a high-quality, dividend-paying stock like McDonald’s. Add in the quarterly dividend yield (currently around 2.2%), and it’s clear why this strategy is so appealing for long-term investors.
For now, I’m focused on the incremental progress. Each 0.1 share purchase might seem inconsequential in isolation, but over time, it builds up. With McDonald’s reliable performance, history of dividend growth, and strong brand, this small but steady approach feels like a prudent path to long-term wealth generation.
It’s also worth noting the psychological aspect of this strategy. Tying the purchases to our occasional McDonald’s meals has turned an everyday action into an opportunity to invest. This reinforces good habits—and might even make indulging in the occasional burger feel a bit more worthwhile. While I’m careful to balance our health goals with these indulgences, it’s nice to know that even a fast-food splurge can contribute to our financial future.
Looking ahead, I expect this journey to take years, but that’s fine. Building wealth through stock ownership isn’t about rushing; it’s about consistency, patience, and sticking to a plan. McDonald’s remains a cornerstone of this strategy, and I’m excited to see how the portfolio grows over time.