IBM vs TSM: Which Is the Better Dividend Stock?
As of September 2026, IBM and TSM are closely matched. IBM offers the higher yield at 2.89%, IBM has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+10%).
| Metric | IBM | TSM |
|---|---|---|
| Forward yield | 2.89% | 0.94% |
| Annual dividend | $6.76 | $4.08 |
| Payout ratio | 60% | 26% |
| Years of growth | 30 yr | 2 yr |
| 5-yr dividend growth | 1.5% | 12.8% |
| 5-yr total return | 83% | 288% |
| Dividend safety score | 91 (A) | 68 (B) |
| Fair value estimate | $240.11 | $478.56 |
| Upside to fair value | -1% | +10% |
| Frequency | quarterly | quarterly |
| Market cap | $229.2B | $2.2T |
| P/E ratio | 21.6 | 31.9 |
Higher yield
IBM
2.89%
Safer dividend
IBM
Grade A
Faster growth
TSM
12.8%
Better value
TSM
+10% upside
IBM vs TSM — FAQ
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.