TSM vs TXN: Which Is the Better Dividend Stock?
As of Oct 29, 2026, TSM and TXN are closely matched. TXN offers the higher yield at 1.97%, TXN 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: TSM vs TXN
Data as of · Source: SmarterDividends data
- As of Oct 29, 2026, Texas Instruments Incorporated (TXN) has the higher forward dividend yield at 1.97%, versus 0.86% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Oct 29, 2026, SmarterDividends grades TSM's dividend safety B (68/100) and TXN's A (85/100).
- By SmarterDividends' count as of Oct 29, 2026, TSM has raised its dividend for 2 consecutive years and TXN for 22.
- As of Oct 29, 2026, TSM pays out 24% of its earnings as dividends and TXN pays out 74%.
- As of Oct 29, 2026, TSM's fair-value estimate is 8% below its share price and TXN's fair-value estimate is 51% below its share price, so TSM looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "TSM vs TXN: Dividend Yield, Safety & Value Compared," updated Oct 29, 2026, https://smarterdividends.com/compare/tsm-vs-txn
| Metric | TSM | TXN |
|---|---|---|
| Forward yield | 0.86% | 1.97% |
| Annual dividend | $3.77 | $6.08 |
| Payout ratio | 24% | 74% |
| Years of growth | 2 yr | 22 yr |
| 5-yr dividend growth | 12.8% | 8.1% |
| 5-yr total return | 257% | 48% |
| Dividend safety score | 68 (B) | 85 (A) |
| Fair value estimate | $403.11 | $151.39 |
| Upside to fair value | -8% | -51% |
| Frequency | quarterly | quarterly |
| Market cap | $2.3T | $283.3B |
| P/E ratio | 28.5 | 40.2 |
Higher yield
TXN
1.97%
Safer dividend
TXN
Grade A
Faster growth
TSM
12.8%
Better value
TSM
-8% upside
TSM vs TXN — FAQ
Is TSM or TXN a better dividend stock?
TSM and TXN are closely matched. TXN has the higher yield; TXN scores better on safety.
Which has a higher dividend yield, TSM or TXN?
TXN has the higher forward dividend yield at 1.97%, versus 0.86% for TSM.
Is TSM or TXN safer?
TXN has the higher dividend-safety score (85/100 vs 68/100), reflecting stronger payout coverage and dividend-growth history.
Is TSM or TXN 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 TXN, its fair-value estimate is 51% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.