ADP vs TSM: Which Is the Better Dividend Stock?
As of Oct 27, 2026, ADP and TSM are closely matched. ADP offers the higher yield at 2.26%, ADP has the higher dividend-safety score, and TSM looks like the better value (its fair-value estimate is 5% below its share price).
Key facts: ADP vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Automatic Data Processing, Inc. (ADP) has the higher forward dividend yield at 2.26%, versus 0.89% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 27, 2026, SmarterDividends grades ADP's dividend safety A (94/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 27, 2026, ADP has raised its dividend for 42 consecutive years and TSM for 2.
- As of Oct 27, 2026, ADP pays out 61% of its earnings as dividends and TSM pays out 24%.
- As of Oct 27, 2026, ADP's fair-value estimate is 12% below its share price and TSM's fair-value estimate is 5% below its share price, so TSM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ADP vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/adp-vs-tsm
| Metric | ADP | TSM |
|---|---|---|
| Forward yield | 2.26% | 0.89% |
| Annual dividend | $6.80 | $3.77 |
| Payout ratio | 61% | 24% |
| Years of growth | 42 yr | 2 yr |
| 5-yr dividend growth | 11.5% | 12.8% |
| 5-yr total return | 32% | 257% |
| Dividend safety score | 94 (A) | 68 (B) |
| Fair value estimate | $263.79 | $403.11 |
| Upside to fair value | -12% | -5% |
| Frequency | quarterly | quarterly |
| Market cap | $119.3B | $2.2T |
| P/E ratio | 27.5 | 27.5 |
Higher yield
ADP
2.26%
Safer dividend
ADP
Grade A
Faster growth
TSM
12.8%
Better value
TSM
-5% upside
ADP vs TSM — FAQ
Is ADP or TSM a better dividend stock?
ADP and TSM are closely matched. ADP has the higher yield; ADP scores better on safety.
Which has a higher dividend yield, ADP or TSM?
ADP has the higher forward dividend yield at 2.26%, versus 0.89% for TSM.
Is ADP or TSM safer?
ADP has the higher dividend-safety score (94/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is ADP or TSM better value right now?
As of Oct 27, 2026, TSM looks like the better value: its fair-value estimate is 5% below its share price (fairly valued). For ADP, its fair-value estimate is 12% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.