MSFT vs TSM: Which Is the Better Dividend Stock?
As of Oct 29, 2026, MSFT and TSM are closely matched. TSM offers the higher yield at 0.86%, MSFT has the higher dividend-safety score, and TSM looks like the better value (its fair-value estimate is 8% below its share price).
Key facts: MSFT vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 29, 2026, Taiwan Semiconductor Manufacturing Company Limited (TSM) has the higher forward dividend yield at 0.86%, versus 0.74% for Microsoft Corporation (MSFT).
- As of Oct 29, 2026, SmarterDividends grades MSFT's dividend safety A (97/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 29, 2026, MSFT has raised its dividend for 20 consecutive years and TSM for 2.
- As of Oct 29, 2026, MSFT pays out 20% of its earnings as dividends and TSM pays out 24%.
- As of Oct 29, 2026, MSFT's fair-value estimate is 42% below its share price and TSM's fair-value estimate is 8% below its share price, so TSM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "MSFT vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 29, 2026, https://smarterdividends.com/compare/msft-vs-tsm
| Metric | MSFT | TSM |
|---|---|---|
| Forward yield | 0.74% | 0.86% |
| Annual dividend | $3.92 | $3.77 |
| Payout ratio | 20% | 24% |
| Years of growth | 20 yr | 2 yr |
| 5-yr dividend growth | 10.2% | 12.8% |
| 5-yr total return | 59% | 257% |
| Dividend safety score | 97 (A) | 68 (B) |
| Fair value estimate | $308.36 | $403.11 |
| Upside to fair value | -42% | -8% |
| Frequency | quarterly | quarterly |
| Market cap | $3.9T | $2.3T |
| P/E ratio | 29.6 | 28.5 |
Higher yield
TSM
0.86%
Safer dividend
MSFT
Grade A
Faster growth
TSM
12.8%
Better value
TSM
-8% upside
MSFT vs TSM — FAQ
Is MSFT or TSM a better dividend stock?
MSFT and TSM are closely matched. TSM has the higher yield; MSFT scores better on safety.
Which has a higher dividend yield, MSFT or TSM?
TSM has the higher forward dividend yield at 0.86%, versus 0.74% for MSFT.
Is MSFT or TSM safer?
MSFT has the higher dividend-safety score (97/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is MSFT or TSM better value right now?
As of Oct 29, 2026, TSM looks like the better value: its fair-value estimate is 8% below its share price (fairly valued). For MSFT, its fair-value estimate is 42% below its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.