Taiwan Semiconductor Manufacturing CoTSM -1.32%93 Dividend Payout Ratio is 0.27 as of Mar. 2026, which is 43% below its 10-year median of 0.47. GuruFocus rates TSM with a GF Score™ of 93/100 and a GF Value™ of $298.33 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 453 Semiconductors companies, Taiwan Semiconductor Manufacturing Co ranks better than 62.69% on this metric.
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period. Taiwan Semiconductor Manufacturing Co's Dividend Payout Ratio for the
months ended in Mar. 2026 was 0.27.
TSM'
s Dividend Payout Ratio Range Over the Past 10 Years
Min: 0.28 Med: 0.47 Max: 0.92
Current: 0.28
During the past 13 years, the highest Dividend Payout Ratio of Taiwan Semiconductor Manufacturing Co was 0.92. The lowest was 0.28. And the median was 0.47.
TSM's Dividend Payout Ratio is ranked better than 62.69% of 453
companies
in the Semiconductors industry
Industry Median: 0.39
vs TSM: 0.28
During the past 13 years, the highest Trailing Annual Dividend Yield of Taiwan Semiconductor Manufacturing Co was 5.52%. The lowest was 0.77%. And the median was 2.15%.
During the past 12 months, Taiwan Semiconductor Manufacturing Co's average Dividends Per Share Growth Rate was 28.10% per year.
During the past 3 years, the average Dividends Per Share Growth Rate was 20.00% per year.
During the past 5 years, the average Dividends Per Share Growth Rate was 13.20% per year.
During the past 10 years, the average Dividends Per Share Growth Rate was 12.40% per year.
During the past 13 years, the highest 3-Year average Dividends Per Share Growth Rate of Taiwan Semiconductor Manufacturing Co was 83.00% per year. The lowest was -4.20% per year. And the median was 12.60% per year.
The growth rate is calculated with least square regression.
For more information regarding to dividend, please check our Dividend Page.
* Please note that "special dividend" is not included in the calculation of dividend per share and related fields.
Taiwan Semiconductor Manufacturing Co (NYSE:TSM) Dividend Payout Ratio Explanation
In dividends investing, Dividend Payout Ratio and Dividend Growth Rate are the two most important variables for consideration. A lower payout ratio may indicate that the company has more room to increase its dividends.
Taiwan Semiconductor Manufacturing Co Dividend Payout Ratio Related Terms
Taiwan Semiconductor Manufacturing Co Dividend Payout Ratio Historical Data
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Taiwan Semiconductor Manufacturing Co Dividend Payout Ratio Chart
TSM vs NVDA, AVGO, MU: Dividend Payout Ratio Comparison
For the Semiconductors subindustry, Taiwan Semiconductor Manufacturing Co's Dividend Payout Ratio, along with its competitors' market caps and Dividend Payout Ratio data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Taiwan Semiconductor Manufacturing Co Dividend Payout Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Taiwan Semiconductor Manufacturing Co's Dividend Payout Ratio distribution charts can be found below:
* The bar in red indicates where Taiwan Semiconductor Manufacturing Co's Dividend Payout Ratio falls into.
Taiwan Semiconductor Manufacturing Co Dividend Payout Ratio Calculation
The Dividend Payout Ratio is the measure of dividends paid out to shareholders relative to the company's net income. It is calculated as the Dividends per Share divided by the Earnings per Share (Diluted) during the same time period.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Taiwan Semiconductor Manufacturing Co (TSM) has a Dividend Payout Ratio of 0.27 as of Mar. 2026. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. This is 43% below median its historical median of 0.47. Over the past decade, Taiwan Semiconductor Manufacturing Co's Dividend Payout Ratio has ranged from 0.28 to 0.92. According to the industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #169 out of 453 companies in the Semiconductors industry, placing it in the top 37.3%.
Is Taiwan Semiconductor Manufacturing Co's Dividend Payout Ratio too high?
Taiwan Semiconductor Manufacturing Co's current Dividend Payout Ratio of 0.27 is 43% below median its 10-year median of 0.47. Over the past 10 years, this metric has ranged from a low of 0.28 to a high of 0.92. The Semiconductors industry median Dividend Payout Ratio is 0.39. Taiwan Semiconductor Manufacturing Co's value of 0.27 is 30.8% below this industry median. Based on the distribution chart, Taiwan Semiconductor Manufacturing Co ranks #169 out of 453 companies in the Semiconductors industry, which is above the industry midpoint. Overall, Taiwan Semiconductor Manufacturing Co has a GF Score™ of 93/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Taiwan Semiconductor Manufacturing Co's Dividend Payout Ratio compare to NVDA and AVGO?
According to the Semiconductors industry distribution chart, Taiwan Semiconductor Manufacturing Co ranks #169 out of 453 companies for Dividend Payout Ratio. This puts Taiwan Semiconductor Manufacturing Co in the upper half of its industry. The industry median Dividend Payout Ratio is 0.39. Taiwan Semiconductor Manufacturing Co's value of 0.27 is 30.8% below this benchmark. Historically, Taiwan Semiconductor Manufacturing Co's own Dividend Payout Ratio has ranged from 0.28 to 0.92 over the past decade. While the company's 10-year median is 0.47 vs. the industry median of 0.39, Taiwan Semiconductor Manufacturing Co has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Dividend Payout Ratio for a Semiconductors company?
The median Dividend Payout Ratio among Semiconductors companies is 0.39, based on 453 companies in the industry. Companies in the top quartile (top 25%) have a Dividend Payout Ratio significantly above this median, while those in the bottom quartile fall well below. However, Dividend Payout Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Taiwan Semiconductor Manufacturing Co's current Dividend Payout Ratio of 0.27 is 30.8% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Dividend Payout Ratio mean?
A high Dividend Payout Ratio can signal that a stock is expensive relative to its fundamentals. Dividend payout ratio is the percent of company earnings paid out as dividends. View historical data on Taiwan Semiconductor Manufacturing Co and its competitors. For the Semiconductors industry, the median Dividend Payout Ratio is 0.39 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Taiwan Semiconductor Manufacturing Co's current Dividend Payout Ratio is 0.27, which is 43% below median its own 10-year median of 0.47. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Taiwan Semiconductor Manufacturing Co stock overvalued right now?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co (TSM) is currently considered Significantly Overvalued. The stock's GF Value™ is $298.33, compared to a current price of $434.99 — trading 45.8% above its estimated fair value. The current Dividend Payout Ratio is 0.27, which is 43% below median its 10-year median of 0.47 and 30.8% below the Semiconductors industry median of 0.39. Taiwan Semiconductor Manufacturing Co's overall GF Score™ is 93/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Dividend Payout Ratio calculated?
Dividend Payout Ratio is calculated from a company's financial statements. For Taiwan Semiconductor Manufacturing Co (TSM), the current Dividend Payout Ratio is 0.27 as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Taiwan Semiconductor Manufacturing Co (TSM) Overvalued in 2026?
Based on GuruFocus' analysis, Taiwan Semiconductor Manufacturing Co stock appears to be overvalued.
The current stock price of $434.99 is trading 45.8% above its estimated GF Value™ of $298.33.
GuruFocus considers Taiwan Semiconductor Manufacturing Co to be Significantly Overvalued.
Key valuation signals for TSM:
Dividend Payout Ratio: 0.27 (43% below median its 10-year median of 0.47)
GF Value™: $298.33 vs. price of $434.99 (45.8% above fair value)
Industry Position: 30.8% below the Semiconductors median (#169 of 453)
No single metric tells the full story. See the TSM stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Taiwan Semiconductor Manufacturing Co Business Description
Taiwan Semiconductor Manufacturing Co. is the world's largest dedicated chip foundry, with about 70% market share in 2025. TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public in Taiwan in 1994 and as an ADR in the US in 1997. TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC. The foundry leader has an illustrious base of customers, including Apple, AMD, and Nvidia, that look to apply its cutting-edge process technologies to their semiconductor designs. TSMC employs more than 83,000 people.
93GF Score
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