TSM vs WDC: Which Is the Better Dividend Stock?
As of Oct 22, 2026, TSM (Taiwan Semiconductor Manufacturing Company Limited) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. TSM offers the higher yield at 0.87%, TSM has the higher dividend-safety score, and WDC looks like the better value (its fair-value estimate is 86% above its share price).
Key facts: TSM vs WDC
Data as of · Source: SmarterDividends data
- As of Oct 22, 2026, Taiwan Semiconductor Manufacturing Company Limited (TSM) has the higher forward dividend yield at 0.87%, versus 0.16% for Western Digital Corporation (WDC).
- As of Oct 22, 2026, SmarterDividends grades TSM's dividend safety B (68/100) and WDC's C (60/100).
- By SmarterDividends' count as of Oct 22, 2026, TSM has raised its dividend for 2 consecutive years and WDC for 0.
- As of Oct 22, 2026, TSM pays out 24% of its earnings as dividends and WDC pays out 2%.
- As of Oct 22, 2026, TSM's fair-value estimate is 7% below its share price and WDC's fair-value estimate is 86% above its share price, so WDC looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "TSM vs WDC: Dividend Yield, Safety & Value Compared," updated Oct 22, 2026, https://smarterdividends.com/compare/tsm-vs-wdc
| Metric | TSM | WDC |
|---|---|---|
| Forward yield | 0.87% | 0.16% |
| Annual dividend | $3.77 | $0.60 |
| Payout ratio | 24% | 2% |
| Years of growth | 2 yr | 0 yr |
| 5-yr dividend growth | 12.8% | -22.1% |
| 5-yr total return | 252% | 659% |
| Dividend safety score | 68 (B) | 60 (C) |
| Fair value estimate | $403.11 | $703.29 |
| Upside to fair value | -7% | +86% |
| Frequency | quarterly | quarterly |
| Market cap | $2.2T | $141.7B |
| P/E ratio | 28.0 | 14.1 |
Higher yield
TSM
0.87%
Safer dividend
TSM
Grade B
Faster growth
TSM
12.8%
Better value
WDC
+86% upside
TSM vs WDC — FAQ
Is TSM or WDC a better dividend stock?
On the data, TSM wins more head-to-head categories (5 vs 3). TSM offers the higher yield (0.87%), 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 WDC?
TSM has the higher forward dividend yield at 0.87%, versus 0.16% for WDC.
Is TSM or WDC safer?
TSM has the higher dividend-safety score (68/100 vs 60/100), reflecting stronger payout coverage and dividend-growth history.
Is TSM or WDC better value right now?
As of Oct 22, 2026, WDC looks like the better value: its fair-value estimate is 86% above its share price (undervalued). For TSM, its fair-value estimate is 7% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.