Understanding the Yield vs History Indicator
The Yield vs History indicator compares a stock's current yield to its own 5-year history. When yield is high relative to history, it often signals an attractive entry point.
What It Measures
- Yield Percentile: Where current yield ranks vs. 5-year history (0-100)
- Chowder Number: Yield + dividend growth rate combined
How to Read the Status
| Status | Yield Percentile | Meaning |
|---|---|---|
| 🟢 Good | ≥ 75th percentile | Yield above historical average — potentially undervalued |
| 🟡 Neutral | 25-75th percentile | Yield around historical median — fairly valued |
| 🔴 Bad | < 25th percentile | Yield near historical lows — potentially overvalued |
Why It Matters
Since Yield = Dividend ÷ Price, a high yield often means a low price relative to the dividend. If the dividend is sustainable, high yield percentile signals value.
What to Do
- Good: Historically attractive yield. Confirm dividend safety before buying.
- Neutral: Fair value. Focus on dividend quality and growth potential.
- Bad: Price is elevated relative to dividend. Consider waiting for better entry.