In today’s post, I will not show you where to get the tastiest, most value-for-money Chowder in Singapore. That is…….the responsibility of food bloggers. ….Not today’s subject
Instead, I will introduce you to the Chowder Rule, so named after Chowder, a Seeking Alpha contributor. I will be lifting several paragraphs from an article by Sure Dividend on the same topic:
The Chowder Rule is a rule-based system used to identify dividend growth stocks with strong total return potential by combining dividend yield and dividend growth. The Chowder Rule is applied in a differentiated manner depending on the type of stock in question. The criteria can be found below:
Rule 1: If a stock has a dividend yield greater than 3%, its 5-year dividend growth rate plus its dividend yield must be greater than 12%.
Rule 2: If a stock has a dividend yield less than 3%, its 5-year dividend growth rate plus its