ADP vs TSM: Which Is the Better Dividend Stock?
As of September 2026, ADP (Automatic Data Processing, Inc.) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. ADP offers the higher yield at 2.54%, ADP has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+12%).
| Metric | ADP | TSM |
|---|---|---|
| Forward yield | 2.54% | 0.95% |
| Annual dividend | $6.80 | $4.08 |
| Payout ratio | 61% | 26% |
| Years of growth | 42 yr | 2 yr |
| 5-yr dividend growth | 11.5% | 12.8% |
| 5-yr total return | 34% | — |
| Dividend safety score | 93 (A) | 68 (B) |
| Fair value estimate | $248.63 | $484.55 |
| Upside to fair value | -7% | +12% |
| Frequency | quarterly | quarterly |
| Market cap | $106.6B | $2.2T |
| P/E ratio | 24.5 | 31.6 |
Higher yield
ADP
2.54%
Safer dividend
ADP
Grade A
Faster growth
TSM
12.8%
Better value
TSM
+12% upside
ADP vs TSM — FAQ
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