03-10-2014, 09:55 AM
If you reinvest dividends, the chowder rule is essentially the compounded dividend growth rate for your dividends. So quick use of rule of 72 says with a chowder # of 14.5 you can expect your dividends to double every 5 years.
Its a quick and easy way to figure your expected dividend income growth.
I wrote an article on it last year talking about the chowder number over varying initial yields and the theoretical returns.
http://seekingalpha.com/article/1546322-...-Portfolio
As time allows later this year I'm hoping to write another updated article with more real-world examples.
Its a quick and easy way to figure your expected dividend income growth.
I wrote an article on it last year talking about the chowder number over varying initial yields and the theoretical returns.
http://seekingalpha.com/article/1546322-...-Portfolio
As time allows later this year I'm hoping to write another updated article with more real-world examples.