Taiwan Semiconductor Raises Quarterly Dividend 15.92%

Taiwan Semiconductor Manufacturing Company Limited increased its quarterly dividend to $1.107 per share from $0.955, a 15.92% rise. The technology company’s shares traded ex-dividend on Sept. 16, 2026.

The indicated annual dividend is $4.08 per share, representing a forward annual yield of 0.99% at a share price of $417.72. TSMC has now recorded two consecutive years of dividend growth, though its longer-term record includes a reduction in 2022.

TSMC’s dividend archive shows that the company distributes cash to shareholders quarterly. Its annual report says the board is authorized to approve cash dividends after each quarter and that the company intends to maintain a sustainable, steadily increasing dividend on both an annual and quarterly basis. TSMC’s dividend history and 2025 annual report provide additional detail on that policy.

Business context

The increase comes against a strong operating backdrop for the world’s largest contract chip manufacturer. TSMC produces semiconductors for customers including Nvidia and Apple and has been expanding manufacturing capacity in Taiwan, Japan and the United States as demand for artificial-intelligence computing rises. In July, the company raised its annual revenue outlook after reporting record profit and outlined additional U.S. expansion plans, according to the Associated Press.

That growth also requires substantial spending on fabrication plants and advanced manufacturing equipment. The resulting balance between cash generation, capital expenditures and shareholder distributions remains central to TSMC’s dividend capacity. The latest increase is consistent with management’s stated dividend policy, although the company has not established an uninterrupted long-term growth record.

What it means for income investors

The higher quarterly rate raises the cash income attached to each share, but the 0.99% forward yield remains modest. That means the dividend represents a relatively small income component compared with higher-yielding equities.

TSMC carries a dividend-safety score of 68 out of 100, corresponding to a B grade. Combined with the two-year growth streak and the 2022 cut, those measures describe a payout with recent upward momentum but a limited record of uninterrupted growth. They do not guarantee future distributions, which remain subject to board approval and business conditions.