IBM vs TSM: Which Is the Better Dividend Stock?
As of August 2026, IBM and TSM are closely matched. IBM offers the higher yield at 2.87%, IBM has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+13%).
| Metric | IBM | TSM |
|---|---|---|
| Forward yield | 2.87% | 1.04% |
| Annual dividend | $6.76 | $4.34 |
| Payout ratio | 60% | 26% |
| Years of growth | 30 yr | 2 yr |
| 5-yr dividend growth | 1.5% | 12.8% |
| 5-yr total return | 77% | 275% |
| Dividend safety score | 91 (A) | 68 (B) |
| Fair value estimate | $214.28 | $473.26 |
| Upside to fair value | -9% | +13% |
| Frequency | quarterly | quarterly |
| Market cap | $217.7B | $2.1T |
| P/E ratio | 20.9 | 31.3 |
Higher yield
IBM
2.87%
Safer dividend
IBM
Grade A
Faster growth
TSM
12.8%
Better value
TSM
+13% upside
IBM vs TSM — FAQ
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