IBM vs TSM: Which Is the Better Dividend Stock?
As of June 2026, IBM and TSM are closely matched. IBM offers the higher yield at 2.48%, IBM has the higher dividend-safety score, and TSM trades at the larger discount to fair value (-3%).
| Metric | IBM | TSM |
|---|---|---|
| Forward yield | 2.48% | 0.90% |
| Annual dividend | $6.76 | $3.80 |
| Payout ratio | 59% | 28% |
| Years of growth | 30 yr | 2 yr |
| 5-yr dividend growth | 1.5% | 13.6% |
| 5-yr total return | 94% | 253% |
| Dividend safety score | 90 (A) | 68 (B) |
| Fair value estimate | $256.40 | $410.09 |
| Upside to fair value | -6% | -3% |
| Frequency | quarterly | quarterly |
| Market cap | $255.9B | $2.2T |
| P/E ratio | 24.1 | 36.5 |
Higher yield
IBM
2.48%
Safer dividend
IBM
Grade A
Faster growth
TSM
13.6%
Better value
TSM
-3% upside
IBM vs TSM — FAQ
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