POWI vs TSM: Which Is the Better Dividend Stock?
As of Oct 18, 2026, POWI and TSM are closely matched. POWI offers the higher yield at 1.93%, POWI has the higher dividend-safety score, and TSM looks like the better value (its fair-value estimate is 2% below its share price).
Key facts: POWI vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 18, 2026, Power Integrations, Inc. (POWI) has the higher forward dividend yield at 1.93%, versus 0.91% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 18, 2026, SmarterDividends grades POWI's dividend safety A (81/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 18, 2026, POWI has raised its dividend for 13 consecutive years and TSM for 2.
- As of Oct 18, 2026, POWI pays out 193% of its earnings as dividends and TSM pays out 24%.
- As of Oct 18, 2026, POWI's fair-value estimate is 53% below its share price and TSM's fair-value estimate is 2% below its share price, so TSM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "POWI vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 18, 2026, https://smarterdividends.com/compare/powi-vs-tsm
| Metric | POWI | TSM |
|---|---|---|
| Forward yield | 1.93% | 0.91% |
| Annual dividend | $0.86 | $3.77 |
| Payout ratio | 193% | 24% |
| Years of growth | 13 yr | 2 yr |
| 5-yr dividend growth | 14.9% | 12.8% |
| 5-yr total return | -56% | 252% |
| Dividend safety score | 81 (A) | 68 (B) |
| Fair value estimate | $20.84 | $403.11 |
| Upside to fair value | -53% | -2% |
| Frequency | quarterly | quarterly |
| Market cap | $2.5B | $2.1T |
| P/E ratio | 101.1 | 26.7 |
Higher yield
POWI
1.93%
Safer dividend
POWI
Grade A
Faster growth
POWI
14.9%
Better value
TSM
-2% upside
POWI vs TSM — FAQ
Is POWI or TSM a better dividend stock?
POWI and TSM are closely matched. POWI has the higher yield; POWI scores better on safety.
Which has a higher dividend yield, POWI or TSM?
POWI has the higher forward dividend yield at 1.93%, versus 0.91% for TSM.
Is POWI or TSM safer?
POWI has the higher dividend-safety score (81/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is POWI or TSM better value right now?
As of Oct 18, 2026, TSM looks like the better value: its fair-value estimate is 2% below its share price (fairly valued). For POWI, its fair-value estimate is 53% below its share price.
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