CTSH vs TSM: Which Is the Better Dividend Stock?
As of September 2026, CTSH (Cognizant Technology Solutions Corporation) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. CTSH offers the higher yield at 2.26%, CTSH has the higher dividend-safety score, and CTSH trades at the larger discount to fair value (+42%).
CTSHCognizant Technology Solutions CorporationWinner
TSMTaiwan Semiconductor Manufacturing Company Limited| Metric | CTSH | TSM |
|---|---|---|
| Forward yield | 2.26% | 0.95% |
| Annual dividend | $1.32 | $4.08 |
| Payout ratio | 27% | 26% |
| Years of growth | 6 yr | 2 yr |
| 5-yr dividend growth | 7.1% | 12.8% |
| 5-yr total return | -19% | — |
| Dividend safety score | 84 (A) | 68 (B) |
| Fair value estimate | $88.46 | $475.38 |
| Upside to fair value | +42% | +11% |
| Frequency | quarterly | quarterly |
| Market cap | $27.0B | $2.2T |
| P/E ratio | 12.5 | 31.6 |
Higher yield
CTSH
2.26%
Safer dividend
CTSH
Grade A
Faster growth
TSM
12.8%
Better value
CTSH
+42% upside
CTSH vs TSM — FAQ
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