SmarterDividends

TSM vs TXN: Which Is the Better Dividend Stock?

As of June 2026, TSM and TXN are closely matched. TXN offers the higher yield at 1.89%, TXN has the higher dividend-safety score, and TSM trades at the larger discount to fair value (-3%).

MetricTSMTXN
Forward yield0.90%1.89%
Annual dividend$3.80$5.68
Payout ratio28%95%
Years of growth2 yr22 yr
5-yr dividend growth13.6%8.6%
5-yr total return253%57%
Dividend safety score68 (B)89 (A)
Fair value estimate$410.09$132.53
Upside to fair value-3%-56%
Frequencyquarterlyquarterly
Market cap$2.2T$274.0B
P/E ratio36.551.6

Higher yield

TXN

1.89%

Safer dividend

TXN

Grade A

Faster growth

TSM

13.6%

Better value

TSM

-3% upside

TSM vs TXN — FAQ

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