KLAC vs TSM: Which Is the Better Dividend Stock?
As of Oct 24, 2026, KLAC and TSM are closely matched. TSM offers the higher yield at 0.90%, KLAC has the higher dividend-safety score, and TSM looks like the better value (its fair-value estimate is 4% below its share price).
Key facts: KLAC vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 24, 2026, Taiwan Semiconductor Manufacturing Company Limited (TSM) has the higher forward dividend yield at 0.90%, versus 0.63% for KLA Corporation (KLAC).
- As of Oct 24, 2026, SmarterDividends grades KLAC's dividend safety A (93/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 24, 2026, KLAC has raised its dividend for 16 consecutive years and TSM for 2.
- As of Oct 24, 2026, KLAC pays out 22% of its earnings as dividends and TSM pays out 24%.
- As of Oct 24, 2026, KLAC's fair-value estimate is 55% below its share price and TSM's fair-value estimate is 4% below its share price, so TSM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "KLAC vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 24, 2026, https://smarterdividends.com/compare/klac-vs-tsm
| Metric | KLAC | TSM |
|---|---|---|
| Forward yield | 0.63% | 0.90% |
| Annual dividend | $0.92 | $3.77 |
| Payout ratio | 22% | 24% |
| Years of growth | 16 yr | 2 yr |
| 5-yr dividend growth | 16.2% | 12.8% |
| 5-yr total return | 257% | 257% |
| Dividend safety score | 93 (A) | 68 (B) |
| Fair value estimate | $65.98 | $403.11 |
| Upside to fair value | -55% | -4% |
| Frequency | quarterly | quarterly |
| Market cap | $190.0B | $2.2T |
| P/E ratio | 39.8 | 27.1 |
Higher yield
TSM
0.90%
Safer dividend
KLAC
Grade A
Faster growth
KLAC
16.2%
Better value
TSM
-4% upside
KLAC vs TSM — FAQ
Is KLAC or TSM a better dividend stock?
KLAC and TSM are closely matched. TSM has the higher yield; KLAC scores better on safety.
Which has a higher dividend yield, KLAC or TSM?
TSM has the higher forward dividend yield at 0.90%, versus 0.63% for KLAC.
Is KLAC or TSM safer?
KLAC has the higher dividend-safety score (93/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is KLAC or TSM better value right now?
As of Oct 24, 2026, TSM looks like the better value: its fair-value estimate is 4% below its share price (fairly valued). For KLAC, its fair-value estimate is 55% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.