TSM vs UMC: Which Is the Better Dividend Stock?
As of July 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 6 of 8 head-to-head metrics. UMC offers the higher yield at 1.94%, TSM has the higher dividend-safety score, and TSM trades at the larger discount to fair value (+18%).
| Metric | TSM | UMC |
|---|---|---|
| Forward yield | 0.95% | 1.94% |
| Annual dividend | $3.79 | $0.41 |
| Payout ratio | 26% | 71% |
| Years of growth | 2 yr | 1 yr |
| 5-yr dividend growth | 12.8% | 28.8% |
| 5-yr total return | 235% | 87% |
| Dividend safety score | 68 (B) | 57 (C) |
| Fair value estimate | $471.14 | $13.48 |
| Upside to fair value | +18% | -37% |
| Frequency | quarterly | annual |
| Market cap | $2.1T | $50.9B |
| P/E ratio | 29.8 | 34.4 |
Higher yield
UMC
1.94%
Safer dividend
TSM
Grade B
Faster growth
UMC
28.8%
Better value
TSM
+18% upside
TSM vs UMC — FAQ
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