There are many reasons why insiders sell shares of their own companies. One of the major reasons is the anticipation of a price correction, either due to company-specific reasons or because of the industry-wide developments. Due to their access to privileged information about their businesses and industries, insiders are in a better position than the general public to decide when it is optimal to sell shares in their own companies.

Following in the footsteps of insiders enables investors to make better-informed decisions about their holdings. In the month of October, there have been several notable insider sales of stocks that pay dividends. Here is a quick glance at five such insider sales: The Clorox Company (NYSE:CLX), Bristol-Myers Squibb Company (NYSE:BMY), Raytheon Co. (NYSE:RTN), Illinois Tool Works (NYSE:ITW), and Yum! Brands Inc. (NYSE:YUM).

Source: Insider Monkey

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