04-03-2014, 03:55 PM
I think the Chowder Rule is pretty fair when dealing with the dividend growth rates. If I'm talking utilities, tobacco or REIT's yielding 4 or 5%, I'm pretty happy with a growth rate of 5-7%. Large cap blue chips yielding 3-4% I'd be looking for 8-10% and for higher growth stocks yielding 1-2% I'd be looking for 15%+.