CTSH vs TSM: Which Is the Better Dividend Stock?
As of July 2026, CTSH and TSM are closely matched. CTSH offers the higher yield at 2.95%, CTSH has the higher dividend-safety score, and CTSH trades at the larger discount to fair value (+78%).
| Metric | CTSH | TSM |
|---|---|---|
| Forward yield | 2.95% | 0.95% |
| Annual dividend | $1.32 | $3.79 |
| Payout ratio | 27% | 26% |
| Years of growth | 6 yr | 2 yr |
| 5-yr dividend growth | 7.1% | 12.8% |
| 5-yr total return | -41% | 235% |
| Dividend safety score | 81 (A) | 68 (B) |
| Fair value estimate | $79.83 | $471.14 |
| Upside to fair value | +78% | +18% |
| Frequency | quarterly | quarterly |
| Market cap | $21.1B | $2.1T |
| P/E ratio | 9.7 | 29.8 |
Higher yield
CTSH
2.95%
Safer dividend
CTSH
Grade A
Faster growth
TSM
12.8%
Better value
CTSH
+78% upside
CTSH vs TSM — FAQ
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