SmarterDividends

CSCO vs TSM: Which Is the Better Dividend Stock?

As of June 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. CSCO offers the higher yield at 1.39%, CSCO has the higher dividend-safety score, and TSM trades at the larger discount to fair value (-3%).

MetricCSCOTSM
Forward yield1.39%0.90%
Annual dividend$1.68$3.80
Payout ratio55%28%
Years of growth14 yr2 yr
5-yr dividend growth2.6%13.6%
5-yr total return128%253%
Dividend safety score86 (A)68 (B)
Fair value estimate$70.28$410.09
Upside to fair value-42%-3%
Frequencyquarterlyquarterly
Market cap$477.3B$2.2T
P/E ratio40.436.5

Higher yield

CSCO

1.39%

Safer dividend

CSCO

Grade A

Faster growth

TSM

13.6%

Better value

TSM

-3% upside

CSCO vs TSM — FAQ

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