CSCO vs TSM: Which Is the Better Dividend Stock?
As of Nov 2, 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. CSCO offers the higher yield at 1.61%, CSCO has the higher dividend-safety score, and TSM looks like the better value (its fair-value estimate is 1% below its share price).
Key facts: CSCO vs TSM
Data as of · Source: SmarterDividends data
- As of Nov 2, 2026, Cisco Systems, Inc. (CSCO) has the higher forward dividend yield at 1.61%, versus 0.93% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Nov 2, 2026, SmarterDividends grades CSCO's dividend safety A (89/100) and TSM's B (68/100).
- By SmarterDividends' count as of Nov 2, 2026, CSCO has raised its dividend for 14 consecutive years and TSM for 2.
- As of Nov 2, 2026, CSCO pays out 50% of its earnings as dividends and TSM pays out 24%.
- As of Nov 2, 2026, CSCO's fair-value estimate is 41% below its share price and TSM's fair-value estimate is 1% below its share price, so TSM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CSCO vs TSM: Dividend Yield, Safety & Value Compared," updated Nov 2, 2026, https://smarterdividends.com/compare/csco-vs-tsm
| Metric | CSCO | TSM |
|---|---|---|
| Forward yield | 1.61% | 0.93% |
| Annual dividend | $1.68 | $3.77 |
| Payout ratio | 50% | 24% |
| Years of growth | 14 yr | 2 yr |
| 5-yr dividend growth | 2.7% | 12.8% |
| 5-yr total return | 91% | 247% |
| Dividend safety score | 89 (A) | 68 (B) |
| Fair value estimate | $61.70 | $403.11 |
| Upside to fair value | -41% | -1% |
| Frequency | quarterly | quarterly |
| Market cap | $412.0B | $2.1T |
| P/E ratio | 31.4 | 26.3 |
Higher yield
CSCO
1.61%
Safer dividend
CSCO
Grade A
Faster growth
TSM
12.8%
Better value
TSM
-1% upside
CSCO vs TSM — FAQ
Is CSCO or TSM a better dividend stock?
On the data, TSM wins more head-to-head categories (5 vs 3). CSCO offers the higher yield (1.61%), while CSCO has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, CSCO or TSM?
CSCO has the higher forward dividend yield at 1.61%, versus 0.93% for TSM.
Is CSCO or TSM safer?
CSCO has the higher dividend-safety score (89/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is CSCO or TSM better value right now?
As of Nov 2, 2026, TSM looks like the better value: its fair-value estimate is 1% below its share price (fairly valued). For CSCO, its fair-value estimate is 41% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.