TSM vs WDC: Which Is the Better Dividend Stock?
As of September 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 0.95%, TSM has the higher dividend-safety score, and WDC trades at the larger discount to fair value (+103%).
| Metric | TSM | WDC |
|---|---|---|
| Forward yield | 0.95% | 0.13% |
| Annual dividend | $4.08 | $0.60 |
| Payout ratio | 26% | 2% |
| Years of growth | 2 yr | 0 yr |
| 5-yr dividend growth | 12.8% | -22.1% |
| 5-yr total return | 284% | 996% |
| Dividend safety score | 68 (B) | 58 (C) |
| Fair value estimate | $475.38 | $950.40 |
| Upside to fair value | +11% | +103% |
| Frequency | quarterly | quarterly |
| Market cap | $2.2T | $168.5B |
| P/E ratio | 31.8 | 17.4 |
Higher yield
TSM
0.95%
Safer dividend
TSM
Grade B
Faster growth
TSM
12.8%
Better value
WDC
+103% upside
TSM vs WDC — FAQ
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