STM 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 6 of 7 head-to-head metrics. TSM offers the higher yield at 0.94%, TSM has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+9%).
| Metric | STM | TSM |
|---|---|---|
| Forward yield | 0.72% | 0.94% |
| Annual dividend | $0.36 | $4.07 |
| Payout ratio | 71% | 26% |
| Years of growth | 2 yr | 2 yr |
| 5-yr dividend growth | 14.1% | 12.8% |
| 5-yr total return | 5% | 282% |
| Dividend safety score | 64 (C) | 68 (B) |
| Fair value estimate | $35.70 | $472.56 |
| Upside to fair value | -29% | +9% |
| Frequency | quarterly | quarterly |
| Market cap | $44.8B | $2.3T |
| P/E ratio | — | 32.5 |
Higher yield
TSM
0.94%
Safer dividend
TSM
Grade B
Faster growth
STM
14.1%
Better value
TSM
+9% upside
STM vs TSM — FAQ
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