TEL vs TSM: Which Is the Better Dividend Stock?
As of Oct 29, 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TEL offers the higher yield at 1.38%, TEL 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: TEL vs TSM
Data as of · Source: SmarterDividends data
- As of Oct 29, 2026, TE Connectivity plc (TEL) has the higher forward dividend yield at 1.38%, versus 0.86% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 29, 2026, SmarterDividends grades TEL's dividend safety A (94/100) and TSM's B (68/100).
- By SmarterDividends' count as of Oct 29, 2026, TEL has raised its dividend for 15 consecutive years and TSM for 2.
- As of Oct 29, 2026, TEL pays out 28% of its earnings as dividends and TSM pays out 24%.
- As of Oct 29, 2026, TEL's fair-value estimate is 22% 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, "TEL vs TSM: Dividend Yield, Safety & Value Compared," updated Oct 29, 2026, https://smarterdividends.com/compare/tel-vs-tsm
| Metric | TEL | TSM |
|---|---|---|
| Forward yield | 1.38% | 0.86% |
| Annual dividend | $3.12 | $3.77 |
| Payout ratio | 28% | 24% |
| Years of growth | 15 yr | 2 yr |
| 5-yr dividend growth | 7.8% | 12.8% |
| 5-yr total return | 35% | 257% |
| Dividend safety score | 94 (A) | 68 (B) |
| Fair value estimate | $172.75 | $403.11 |
| Upside to fair value | -22% | -8% |
| Frequency | quarterly | quarterly |
| Market cap | $64.1B | $2.3T |
| P/E ratio | 22.1 | 28.5 |
Higher yield
TEL
1.38%
Safer dividend
TEL
Grade A
Faster growth
TSM
12.8%
Better value
TSM
-8% upside
TEL vs TSM — FAQ
Is TEL or TSM a better dividend stock?
On the data, TSM wins more head-to-head categories (5 vs 3). TEL offers the higher yield (1.38%), while TEL has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, TEL or TSM?
TEL has the higher forward dividend yield at 1.38%, versus 0.86% for TSM.
Is TEL or TSM safer?
TEL has the higher dividend-safety score (94/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is TEL 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 TEL, its fair-value estimate is 22% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.