MSFT vs TSM: Which Is the Better Dividend Stock?
As of September 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TSM offers the higher yield at 0.94%, MSFT has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+10%).
| Metric | MSFT | TSM |
|---|---|---|
| Forward yield | 0.73% | 0.94% |
| Annual dividend | $3.64 | $4.08 |
| Payout ratio | 20% | 26% |
| Years of growth | 20 yr | 2 yr |
| 5-yr dividend growth | 10.2% | 12.8% |
| 5-yr total return | 76% | 288% |
| Dividend safety score | 97 (A) | 68 (B) |
| Fair value estimate | $395.33 | $478.56 |
| Upside to fair value | -20% | +10% |
| Frequency | quarterly | quarterly |
| Market cap | $3.7T | $2.2T |
| P/E ratio | 27.6 | 31.9 |
Higher yield
TSM
0.94%
Safer dividend
MSFT
Grade A
Faster growth
TSM
12.8%
Better value
TSM
+10% upside
MSFT vs TSM — FAQ
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