ERIC vs TSM: Which Is the Better Dividend Stock?
As of Oct 27, 2026, ERIC and TSM are closely matched. ERIC offers the higher yield at 2.93%, ERIC has the higher dividend-safety score, and ERIC looks like the better value (its fair-value estimate is 7% above its share price).
Key facts: ERIC vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Telefonaktiebolaget LM Ericsson (publ) (ERIC) has the higher forward dividend yield at 2.93%, versus 0.89% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 27, 2026, SmarterDividends grades ERIC's dividend safety B (72/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 27, 2026, ERIC has raised its dividend for 5 consecutive years and TSM for 2.
- As of Oct 27, 2026, ERIC pays out 52% of its earnings as dividends and TSM pays out 24%.
- As of Oct 27, 2026, ERIC's fair-value estimate is 7% above its share price and TSM's fair-value estimate is 5% below its share price, so ERIC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "ERIC vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/eric-vs-tsm
| Metric | ERIC | TSM |
|---|---|---|
| Forward yield | 2.93% | 0.89% |
| Annual dividend | $0.32 | $3.77 |
| Payout ratio | 52% | 24% |
| Years of growth | 5 yr | 2 yr |
| 5-yr dividend growth | 11.3% | 12.8% |
| 5-yr total return | 7% | 257% |
| Dividend safety score | 72 (B) | 68 (B) |
| Fair value estimate | $11.69 | $403.11 |
| Upside to fair value | +7% | -5% |
| Frequency | semiannual | quarterly |
| Market cap | $35.3B | $2.2T |
| P/E ratio | 17.6 | 27.5 |
Higher yield
ERIC
2.93%
Safer dividend
ERIC
Grade B
Faster growth
TSM
12.8%
Better value
ERIC
+7% upside
ERIC vs TSM — FAQ
Is ERIC or TSM a better dividend stock?
ERIC and TSM are closely matched. ERIC has the higher yield; ERIC scores better on safety.
Which has a higher dividend yield, ERIC or TSM?
ERIC has the higher forward dividend yield at 2.93%, versus 0.89% for TSM.
Is ERIC or TSM safer?
ERIC has the higher dividend-safety score (72/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is ERIC or TSM better value right now?
As of Oct 27, 2026, ERIC looks like the better value: its fair-value estimate is 7% above its share price (fairly valued). For TSM, its fair-value estimate is 5% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.