CTSH vs TSM: Which Is the Better Dividend Stock?
As of Nov 5, 2026, CTSH (Cognizant Technology Solutions Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. CTSH offers the higher yield at 2.01%, CTSH has the higher dividend-safety score, and CTSH looks like the better value (its fair-value estimate is 40% above its share price).
Key facts: CTSH vs TSM
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, Cognizant Technology Solutions Corporation (CTSH) has the higher forward dividend yield at 2.01%, versus 0.95% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Nov 5, 2026, SmarterDividends grades CTSH's dividend safety A (84/100) and TSM's B (68/100).
- By SmarterDividends' count as of Nov 5, 2026, CTSH has raised its dividend for 6 consecutive years and TSM for 2.
- As of Nov 5, 2026, CTSH pays out 24% of its earnings as dividends and TSM pays out 24%.
- As of Nov 5, 2026, CTSH's fair-value estimate is 40% above its share price and TSM's fair-value estimate is 10% above its share price, so CTSH looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "CTSH vs TSM: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/ctsh-vs-tsm
CTSHCognizant Technology Solutions CorporationWinner
TSMTaiwan Semiconductor Manufacturing Company Limited| Metric | CTSH | TSM |
|---|---|---|
| Forward yield | 2.01% | 0.95% |
| Annual dividend | $1.32 | $3.77 |
| Payout ratio | 24% | 24% |
| Years of growth | 6 yr | 2 yr |
| 5-yr dividend growth | 7.1% | 12.8% |
| 5-yr total return | -17% | 247% |
| Dividend safety score | 84 (A) | 68 (B) |
| Fair value estimate | $93.68 | $403.11 |
| Upside to fair value | +40% | +10% |
| Frequency | quarterly | quarterly |
| Market cap | $29.9B | $1.9T |
| P/E ratio | 12.2 | 23.7 |
Higher yield
CTSH
2.01%
Safer dividend
CTSH
Grade A
Faster growth
TSM
12.8%
Better value
CTSH
+40% upside
CTSH vs TSM — FAQ
Is CTSH or TSM a better dividend stock?
On the data, CTSH wins more head-to-head categories (5 vs 3). CTSH offers the higher yield (2.01%), while CTSH has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, CTSH or TSM?
CTSH has the higher forward dividend yield at 2.01%, versus 0.95% for TSM.
Is CTSH or TSM safer?
CTSH has the higher dividend-safety score (84/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is CTSH or TSM better value right now?
As of Nov 5, 2026, CTSH looks like the better value: its fair-value estimate is 40% above its share price (undervalued). For TSM, its fair-value estimate is 10% above its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.