IBM vs TSM: Which Is the Better Dividend Stock?
As of Oct 25, 2026, IBM (International Business Machines Corporation) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. IBM offers the higher yield at 2.67%, IBM has the higher dividend-safety score, and IBM looks like the better value (its fair-value estimate is 3% above its share price).
Key facts: IBM vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 25, 2026, International Business Machines Corporation (IBM) has the higher forward dividend yield at 2.67%, versus 0.90% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 25, 2026, SmarterDividends grades IBM's dividend safety A (91/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 25, 2026, IBM has raised its dividend for 30 consecutive years and TSM for 2.
- As of Oct 25, 2026, IBM pays out 58% of its earnings as dividends and TSM pays out 24%.
- As of Oct 25, 2026, IBM's fair-value estimate is 3% above its share price and TSM's fair-value estimate is 4% below its share price, so IBM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "IBM vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 25, 2026, https://smarterdividends.com/compare/ibm-vs-tsm
IBMInternational Business Machines CorporationWinner
TSMTaiwan Semiconductor Manufacturing Company Limited| Metric | IBM | TSM |
|---|---|---|
| Forward yield | 2.67% | 0.90% |
| Annual dividend | $6.76 | $3.77 |
| Payout ratio | 58% | 24% |
| Years of growth | 30 yr | 2 yr |
| 5-yr dividend growth | 1.5% | 12.8% |
| 5-yr total return | 117% | 257% |
| Dividend safety score | 91 (A) | 68 (B) |
| Fair value estimate | $261.74 | $403.11 |
| Upside to fair value | +3% | -4% |
| Frequency | quarterly | quarterly |
| Market cap | $239.6B | $2.2T |
| P/E ratio | 21.6 | 27.1 |
Higher yield
IBM
2.67%
Safer dividend
IBM
Grade A
Faster growth
TSM
12.8%
Better value
IBM
+3% upside
IBM vs TSM — FAQ
Is IBM or TSM a better dividend stock?
On the data, IBM wins more head-to-head categories (5 vs 3). IBM offers the higher yield (2.67%), while IBM has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, IBM or TSM?
IBM has the higher forward dividend yield at 2.67%, versus 0.90% for TSM.
Is IBM or TSM safer?
IBM has the higher dividend-safety score (91/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is IBM or TSM better value right now?
As of Oct 25, 2026, IBM looks like the better value: its fair-value estimate is 3% above its share price (fairly valued). For TSM, its fair-value estimate is 4% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.