TSM vs TXN: Which Is the Better Dividend Stock?
As of September 2026, TSM and TXN are closely matched. TXN offers the higher yield at 2.11%, TXN has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+10%).
| Metric | TSM | TXN |
|---|---|---|
| Forward yield | 0.94% | 2.11% |
| Annual dividend | $4.08 | $5.68 |
| Payout ratio | 26% | 85% |
| Years of growth | 2 yr | 22 yr |
| 5-yr dividend growth | 12.8% | 8.1% |
| 5-yr total return | 288% | 40% |
| Dividend safety score | 68 (B) | 85 (A) |
| Fair value estimate | $478.56 | $161.44 |
| Upside to fair value | +10% | -40% |
| Frequency | quarterly | quarterly |
| Market cap | $2.2T | $245.4B |
| P/E ratio | 31.9 | 40.8 |
Higher yield
TXN
2.11%
Safer dividend
TXN
Grade A
Faster growth
TSM
12.8%
Better value
TSM
+10% upside
TSM vs TXN — FAQ
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