MSFT vs TSM: Which Is the Better Dividend Stock?
As of July 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TSM offers the higher yield at 0.97%, MSFT has the higher dividend-safety score, and TSM trades at the larger discount to fair value (-1%).
| Metric | MSFT | TSM |
|---|---|---|
| Forward yield | 0.93% | 0.97% |
| Annual dividend | $3.64 | $3.79 |
| Payout ratio | 21% | 28% |
| Years of growth | 20 yr | 2 yr |
| 5-yr dividend growth | 10.2% | 12.8% |
| 5-yr total return | 26% | 239% |
| Dividend safety score | 91 (A) | 68 (B) |
| Fair value estimate | $354.44 | $400.21 |
| Upside to fair value | -7% | -1% |
| Frequency | quarterly | quarterly |
| Market cap | $2.9T | $1.9T |
| P/E ratio | 23.4 | 34.5 |
Higher yield
TSM
0.97%
Safer dividend
MSFT
Grade A
Faster growth
TSM
12.8%
Better value
TSM
-1% upside
MSFT vs TSM — FAQ
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.