MSFT vs TSM: Which Is the Better Dividend Stock?
As of June 2026, MSFT and TSM are closely matched. MSFT offers the higher yield at 0.93%, MSFT has the higher dividend-safety score, and TSM trades at the larger discount to fair value (-3%).
| Metric | MSFT | TSM |
|---|---|---|
| Forward yield | 0.93% | 0.90% |
| Annual dividend | $3.64 | $3.80 |
| Payout ratio | 21% | 28% |
| Years of growth | 20 yr | 2 yr |
| 5-yr dividend growth | 10.2% | 13.6% |
| 5-yr total return | 44% | 253% |
| Dividend safety score | 91 (A) | 68 (B) |
| Fair value estimate | $360.52 | $410.09 |
| Upside to fair value | -8% | -3% |
| Frequency | quarterly | quarterly |
| Market cap | $2.9T | $2.2T |
| P/E ratio | 23.3 | 36.5 |
Higher yield
MSFT
0.93%
Safer dividend
MSFT
Grade A
Faster growth
TSM
13.6%
Better value
TSM
-3% upside
MSFT vs TSM — FAQ
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