SmarterDividends

STMEF 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%).

MetricSTMEFTSM
Forward yield0.72%0.94%
Annual dividend$0.36$4.07
Payout ratio71%26%
Years of growth2 yr2 yr
5-yr dividend growth14.1%12.8%
5-yr total return8%282%
Dividend safety score63 (C)68 (B)
Fair value estimate$27.21$472.56
Upside to fair value-47%+9%
Frequencyquarterlyquarterly
Market cap$46.0B$2.3T
P/E ratio32.5

Higher yield

TSM

0.94%

Safer dividend

TSM

Grade B

Faster growth

STMEF

14.1%

Better value

TSM

+9% upside

STMEF vs TSM — FAQ

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