MSFT vs TSM: Which Is the Better Dividend Stock?
As of July 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 0.95%, MSFT has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+18%).
| Metric | MSFT | TSM |
|---|---|---|
| Forward yield | 0.92% | 0.95% |
| Annual dividend | $3.64 | $3.79 |
| Payout ratio | 21% | 26% |
| Years of growth | 20 yr | 2 yr |
| 5-yr dividend growth | 10.2% | 12.8% |
| 5-yr total return | 30% | 235% |
| Dividend safety score | 91 (A) | 68 (B) |
| Fair value estimate | $354.91 | $471.14 |
| Upside to fair value | -10% | +18% |
| Frequency | quarterly | quarterly |
| Market cap | $3.0T | $2.1T |
| P/E ratio | 23.5 | 29.8 |
Higher yield
TSM
0.95%
Safer dividend
MSFT
Grade A
Faster growth
TSM
12.8%
Better value
TSM
+18% upside
MSFT vs TSM — FAQ
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