Taiwan Semiconductor Manufacturing Company Limited
TSMTechnology · Stock · quarterly payer
Forward Yield
0.95%
Annual Dividend
$3.79
Payout Ratio
26%
5-Yr Growth
12.8%
Ex-Date
Sep 16, 2026
Frequency
Quarterly
Summary
As of July 2026, Taiwan Semiconductor Manufacturing Company Limited (TSM) yields 0.95% ($3.79 per share annually), with a blended fair-value estimate of $471.14 — +18% upside, so it screens as undervalued. Dividend safety grade: B (68/100). 2 years of dividend growth.
Is TSM a good dividend stock?
Yes, with caveatsTaiwan Semiconductor Manufacturing Company Limited (TSM) pays a quarterly dividend yielding 0.95% ($3.79/yr), with 2 years of growth and a dividend-safety grade of B. It's a solid income payer, but check the caveats below before buying.
Advantages
- Comfortable payout ratio (26%)
- Strong 12.8% 5-yr dividend growth
- 235% total price return over 5 years
Risks
- Cut its dividend in 2022
Key Data
- Dividend Yield
- 0.95%
- Payout Ratio
- 26%
- Annual Dividend
- $3.79
- 5-Yr Avg Growth
- 12.8%
- Ex-Dividend Date
- Sep 16, 2026
- Years of Growth
- 2
- Frequency
- quarterly
- Beta
- 1.25
- Market Cap
- $2.1T
- P/E Ratio
- 29.8
- 5-Yr Total Return
- 235%
- 52-Week Range
- $223.70 – $479.00
- Dividend Safety
- B · 68/100
- Ever Cut?
- Yes (2022)
Frequently Asked Questions
TSM Price — Last 12 Months
Daily close
Price Return
1 Year
+73%
3 Years
+326%
5 Years
+235%
52-Week Range
$223.70 – $479.00
Price change over each period (excludes dividends). Past performance doesn't guarantee future results.
What is TSM worth?
Undervaluedlow confidenceOur blended fair-value estimate for Taiwan Semiconductor Manufacturing Company Limited is $471.14 per share, versus a market price of $398.37. That implies 18% of upside — a margin of safety of about 15%.
Fair Value
$471.14
Current Price
$398.37
Upside
+18%
Margin of Safety
15%
How we get there
Earnings multiple (Graham)
Graham's earnings-multiple formula, anchored to bond yields.
At today's price, the market is pricing in about -10.0% annual free-cash-flow growth. We model 20.0% — below our estimate, leaving room for upside if the business executes.
Assumptions: 9.3% discount rate (CAPM), 20.0% stage-1 growth, 2.5% terminal growth, $13.35 EPS, $3.79 annual dividend. Updated weekly.
Fair-value estimates are model output for educational purposes only — not investment advice or a price target.
TSM Dividend Safety Score
Safe
SmarterDividends' proprietary score, backtested against which dividends were actually cut over 15+ years (0.78 AUC). It blends a validated cut-risk model (growth streak, cut history) with current payout, cash-flow and debt. Higher is safer · not investment advice.
Dividend Growth
Total dividends per share by year
Dividend History
| Ex-Date | Pay Date | Amount | Type |
|---|---|---|---|
| Jun 11, 2026 | — | $0.9550 | regular |
| Mar 17, 2026 | — | $0.9560 | regular |
| Dec 11, 2025 | — | $0.8350 | regular |
| Sep 16, 2025 | — | $0.8220 | regular |
| Jun 12, 2025 | — | $0.7800 | regular |
| Mar 18, 2025 | — | $0.6840 | regular |
| Dec 12, 2024 | — | $0.6160 | regular |
| Sep 12, 2024 | — | $0.6260 | regular |
| Jun 13, 2024 | — | $0.5440 | regular |
| Mar 18, 2024 | — | $0.5540 | regular |
| Dec 14, 2023 | — | $0.4790 | regular |
| Sep 14, 2023 | — | $0.4710 | regular |
| Jun 15, 2023 | — | $0.4480 | regular |
| Mar 16, 2023 | — | $0.4490 | regular |
Income Calculator
At $3.79 / yr per share
