AMAT vs TSM: Which Is the Better Dividend Stock?
As of July 2026, AMAT (Applied Materials, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TSM offers the higher yield at 0.95%, AMAT has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+18%).
| Metric | AMAT | TSM |
|---|---|---|
| Forward yield | 0.40% | 0.95% |
| Annual dividend | $2.12 | $3.79 |
| Payout ratio | 17% | 26% |
| Years of growth | 8 yr | 2 yr |
| 5-yr dividend growth | 15.4% | 12.8% |
| 5-yr total return | 292% | 235% |
| Dividend safety score | 94 (A) | 68 (B) |
| Fair value estimate | $255.11 | $471.14 |
| Upside to fair value | -52% | +18% |
| Frequency | quarterly | quarterly |
| Market cap | $417.4B | $2.1T |
| P/E ratio | 49.7 | 29.8 |
Higher yield
TSM
0.95%
Safer dividend
AMAT
Grade A
Faster growth
AMAT
15.4%
Better value
TSM
+18% upside
AMAT vs TSM — FAQ
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