PAYX vs TSM: Which Is the Better Dividend Stock?
As of Oct 24, 2026, PAYX (Paychex, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. PAYX offers the higher yield at 4.03%, PAYX has the higher dividend-safety score, and PAYX looks like the better value (its fair-value estimate is 0% below its share price).
Key facts: PAYX vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 24, 2026, Paychex, Inc. (PAYX) has the higher forward dividend yield at 4.03%, versus 0.90% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 24, 2026, SmarterDividends grades PAYX's dividend safety A (81/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 24, 2026, PAYX has raised its dividend for 15 consecutive years and TSM for 2.
- As of Oct 24, 2026, PAYX pays out 90% of its earnings as dividends and TSM pays out 24%.
- As of Oct 24, 2026, PAYX's fair-value estimate is 0% below its share price and TSM's fair-value estimate is 4% below its share price, so PAYX looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "PAYX vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 24, 2026, https://smarterdividends.com/compare/payx-vs-tsm
| Metric | PAYX | TSM |
|---|---|---|
| Forward yield | 4.03% | 0.90% |
| Annual dividend | $4.76 | $3.77 |
| Payout ratio | 90% | 24% |
| Years of growth | 15 yr | 2 yr |
| 5-yr dividend growth | 11.2% | 12.8% |
| 5-yr total return | -1% | 257% |
| Dividend safety score | 81 (A) | 68 (B) |
| Fair value estimate | $117.51 | $403.11 |
| Upside to fair value | -0% | -4% |
| Frequency | quarterly | quarterly |
| Market cap | $42.0B | $2.2T |
| P/E ratio | 23.4 | 27.1 |
Higher yield
PAYX
4.03%
Safer dividend
PAYX
Grade A
Faster growth
TSM
12.8%
Better value
PAYX
-0% upside
PAYX vs TSM — FAQ
Is PAYX or TSM a better dividend stock?
On the data, PAYX wins more head-to-head categories (5 vs 3). PAYX offers the higher yield (4.03%), while PAYX has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, PAYX or TSM?
PAYX has the higher forward dividend yield at 4.03%, versus 0.90% for TSM.
Is PAYX or TSM safer?
PAYX has the higher dividend-safety score (81/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is PAYX or TSM better value right now?
As of Oct 24, 2026, PAYX looks like the better value: its fair-value estimate is 0% below its share price (fairly valued). For TSM, its fair-value estimate is 4% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.