SmarterDividends

STMEF 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 6 of 7 head-to-head metrics. TSM offers the higher yield at 0.95%, TSM has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+18%).

MetricSTMEFTSM
Forward yield0.58%0.95%
Annual dividend$0.36$3.79
Payout ratio225%26%
Years of growth2 yr2 yr
5-yr dividend growth14.1%12.8%
5-yr total return39%235%
Dividend safety score59 (C)68 (B)
Fair value estimate$26.80$471.14
Upside to fair value-57%+18%
Frequencyquarterlyquarterly
Market cap$55.9B$2.1T
P/E ratio391.729.8

Higher yield

TSM

0.95%

Safer dividend

TSM

Grade B

Faster growth

STMEF

14.1%

Better value

TSM

+18% upside

STMEF vs TSM — FAQ

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