MCHP vs TSM: Which Is the Better Dividend Stock?
As of Oct 27, 2026, MCHP and TSM are closely matched. MCHP offers the higher yield at 2.40%, MCHP 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: MCHP vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, Microchip Technology Incorporated (MCHP) has the higher forward dividend yield at 2.40%, versus 0.89% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 27, 2026, SmarterDividends grades MCHP's dividend safety A (85/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 27, 2026, MCHP has raised its dividend for 23 consecutive years and TSM for 2.
- As of Oct 27, 2026, MCHP pays out 268% of its earnings as dividends and TSM pays out 24%.
- As of Oct 27, 2026, MCHP's fair-value estimate is 56% 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, "MCHP vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/mchp-vs-tsm
| Metric | MCHP | TSM |
|---|---|---|
| Forward yield | 2.40% | 0.89% |
| Annual dividend | $1.82 | $3.77 |
| Payout ratio | 268% | 24% |
| Years of growth | 23 yr | 2 yr |
| 5-yr dividend growth | 19.9% | 12.8% |
| 5-yr total return | -11% | 257% |
| Dividend safety score | 85 (A) | 68 (B) |
| Fair value estimate | $33.75 | $403.11 |
| Upside to fair value | -56% | -5% |
| Frequency | quarterly | quarterly |
| Market cap | $41.2B | $2.2T |
| P/E ratio | 108.4 | 27.5 |
Higher yield
MCHP
2.40%
Safer dividend
MCHP
Grade A
Faster growth
MCHP
19.9%
Better value
TSM
-5% upside
MCHP vs TSM — FAQ
Is MCHP or TSM a better dividend stock?
MCHP and TSM are closely matched. MCHP has the higher yield; MCHP scores better on safety.
Which has a higher dividend yield, MCHP or TSM?
MCHP has the higher forward dividend yield at 2.40%, versus 0.89% for TSM.
Is MCHP or TSM safer?
MCHP has the higher dividend-safety score (85/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is MCHP 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 MCHP, its fair-value estimate is 56% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.