The Chowder Number

The Chowder Number is a simple but powerful metric that combines current yield with dividend growth rate. Named after Seeking Alpha contributor "Chowder," it helps identify stocks offering both income now and growth for the future.

The Formula

Chowder Number = Current Dividend Yield + 5-Year Dividend CAGR

Example

A stock with 3% yield and 9% growth:

Chowder Number = 3% + 9% = 12

What Is a Good Score?

• <8: Below average - limited total return potential
• 8-12: Average - decent combination of yield and growth
• 12-15: Good - strong total return potential
• 15+: Excellent - exceptional combination

How Dividend.Direct Uses It

Chowder Number contributes to Opportunity Rank bonuses. Our "Chowder Winners" model portfolio specifically targets stocks with Chowder Numbers of 12+.