IBM vs TSM: Which Is the Better Dividend Stock?
As of July 2026, IBM (International Business Machines Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. IBM offers the higher yield at 2.97%, IBM has the higher dividend-safety score, and IBM trades at the larger discount to fair value (+13%).
IBMInternational Business Machines CorporationWinner
TSMTaiwan Semiconductor Manufacturing Company Limited| Metric | IBM | TSM |
|---|---|---|
| Forward yield | 2.97% | 0.97% |
| Annual dividend | $6.76 | $3.79 |
| Payout ratio | 60% | 28% |
| Years of growth | 30 yr | 2 yr |
| 5-yr dividend growth | 1.5% | 12.8% |
| 5-yr total return | 60% | 239% |
| Dividend safety score | 91 (A) | 68 (B) |
| Fair value estimate | $241.83 | $400.21 |
| Upside to fair value | +13% | -1% |
| Frequency | quarterly | quarterly |
| Market cap | $213.3B | $1.9T |
| P/E ratio | 20.2 | 34.5 |
Higher yield
IBM
2.97%
Safer dividend
IBM
Grade A
Faster growth
TSM
12.8%
Better value
IBM
+13% upside
IBM vs TSM — FAQ
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