SmarterDividends

ERIC vs TSM: Which Is the Better Dividend Stock?

As of September 2026, ERIC (Telefonaktiebolaget LM Ericsson (publ)) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. ERIC offers the higher yield at 3.19%, ERIC has the higher dividend-safety score, and ERIC trades at the larger discount to fair value (+48%).

MetricERICTSM
Forward yield3.19%0.95%
Annual dividend$0.32$4.08
Payout ratio40%26%
Years of growth5 yr2 yr
5-yr dividend growth11.3%12.8%
5-yr total return-8%
Dividend safety score72 (B)68 (B)
Fair value estimate$14.95$475.38
Upside to fair value+48%+11%
Frequencysemiannualquarterly
Market cap$33.7B$2.2T
P/E ratio13.131.6

Higher yield

ERIC

3.19%

Safer dividend

ERIC

Grade B

Faster growth

TSM

12.8%

Better value

ERIC

+48% upside

ERIC vs TSM — FAQ

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