KARO vs TSM: Which Is the Better Dividend Stock?
As of Oct 27, 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 4 of 7 head-to-head metrics. KARO offers the higher yield at 2.31%, KARO has the higher dividend-safety score, and TSM looks like the better value (its fair-value estimate is 5% below its share price).
Key facts: KARO vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Karooooo Ltd. (KARO) has the higher forward dividend yield at 2.31%, versus 0.89% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 27, 2026, SmarterDividends grades KARO's dividend safety B (75/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 27, 2026, KARO has raised its dividend for 3 consecutive years and TSM for 2.
- As of Oct 27, 2026, KARO pays out 73% of its earnings as dividends and TSM pays out 24%.
- As of Oct 27, 2026, KARO's fair-value estimate is 30% below its share price and TSM's fair-value estimate is 5% below its share price, so TSM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "KARO vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/karo-vs-tsm
| Metric | KARO | TSM |
|---|---|---|
| Forward yield | 2.31% | 0.89% |
| Annual dividend | $1.50 | $3.77 |
| Payout ratio | 73% | 24% |
| Years of growth | 3 yr | 2 yr |
| 5-yr dividend growth | — | 12.8% |
| 5-yr total return | 94% | 257% |
| Dividend safety score | 75 (B) | 68 (B) |
| Fair value estimate | $45.05 | $403.11 |
| Upside to fair value | -30% | -5% |
| Frequency | annual | quarterly |
| Market cap | $2.0B | $2.2T |
| P/E ratio | 31.3 | 27.5 |
Higher yield
KARO
2.31%
Safer dividend
KARO
Grade B
Faster growth
TSM
12.8%
Better value
TSM
-5% upside
KARO vs TSM — FAQ
Is KARO or TSM a better dividend stock?
On the data, TSM wins more head-to-head categories (4 vs 3). KARO offers the higher yield (2.31%), while KARO has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, KARO or TSM?
KARO has the higher forward dividend yield at 2.31%, versus 0.89% for TSM.
Is KARO or TSM safer?
KARO has the higher dividend-safety score (75/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is KARO or TSM better value right now?
As of Oct 27, 2026, TSM looks like the better value: its fair-value estimate is 5% below its share price (fairly valued). For KARO, its fair-value estimate is 30% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.