TSM vs UMC: Which Is the Better Dividend Stock?
As of Nov 5, 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. UMC offers the higher yield at 2.50%, TSM has the higher dividend-safety score, and UMC looks like the better value (its fair-value estimate is 17% above its share price).
Key facts: TSM vs UMC
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, United Microelectronics Corporation (UMC) has the higher forward dividend yield at 2.50%, versus 0.95% for Taiwan Semiconductor Manufacturing Company Limited (TSM).
- As of Nov 5, 2026, SmarterDividends grades TSM's dividend safety B (68/100) and UMC's C (61/100).
- By SmarterDividends' count as of Nov 5, 2026, TSM has raised its dividend for 2 consecutive years and UMC for 1.
- As of Nov 5, 2026, TSM pays out 24% of its earnings as dividends and UMC pays out 37%.
- As of Nov 5, 2026, TSM's fair-value estimate is 10% above its share price and UMC's fair-value estimate is 17% above its share price, so UMC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "TSM vs UMC: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/tsm-vs-umc
| Metric | TSM | UMC |
|---|---|---|
| Forward yield | 0.95% | 2.50% |
| Annual dividend | $3.77 | $0.40 |
| Payout ratio | 24% | 37% |
| Years of growth | 2 yr | 1 yr |
| 5-yr dividend growth | 12.8% | 28.8% |
| 5-yr total return | 247% | 43% |
| Dividend safety score | 68 (B) | 61 (C) |
| Fair value estimate | $403.11 | $16.08 |
| Upside to fair value | +10% | +17% |
| Frequency | quarterly | annual |
| Market cap | $1.9T | $34.4B |
| P/E ratio | 23.7 | 13.0 |
Higher yield
UMC
2.50%
Safer dividend
TSM
Grade B
Faster growth
UMC
28.8%
Better value
UMC
+17% upside
TSM vs UMC — FAQ
Is TSM or UMC a better dividend stock?
On the data, TSM wins more head-to-head categories (5 vs 3). UMC offers the higher yield (2.50%), while TSM has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, TSM or UMC?
UMC has the higher forward dividend yield at 2.50%, versus 0.95% for TSM.
Is TSM or UMC safer?
TSM has the higher dividend-safety score (68/100 vs 61/100), reflecting stronger payout coverage and dividend-growth history.
Is TSM or UMC better value right now?
As of Nov 5, 2026, UMC looks like the better value: its fair-value estimate is 17% above its share price (undervalued). For TSM, its fair-value estimate is 10% above its share price.
Related comparisons
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.