
TSMC has a long history of paying dividends to its shareholders, with the first dividend payment made in 2006.
TSMC's dividend payout ratio has been consistently high, with an average payout ratio of around 50% over the past decade.
TSMC's dividend yield has also been relatively stable, with an average yield of around 2% over the past five years.
TSMC's dividend payments have been increasing over time, with a compound annual growth rate (CAGR) of around 10% since 2006.
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TSM History and Performance
Taiwan Semiconductor Manufacturing (TSM) has been paying dividends for an impressive 21 years.
TSM has issued four quarterly dividends in the last 12 months, showing a consistent dividend payout history.
The annualized dividend per share (DPS) has increased by 4.9% over the last year, indicating a growing dividend payment.
However, the stock price has gone up by 54% from a year ago, resulting in a decreased dividend yield of 32%.
Here's a breakdown of TSM's dividend history for the last few years:
TSM has a history of increasing its dividend rate, with two notable increases in 2025: a 3% increase from $1.83 to $1.94 in April, and another 3% increase from $1.94 to $2.13 in July.
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Dividend Information
Taiwan Semiconductor Manufacturing Company Limited has a long history of paying dividends, with 22 years of consecutive dividend payments. The company's average dividend frequency is 4 times a year.
The dividend yield is a key metric for investors, and TSM's current dividend yield is 1.17%. This means that for every dollar invested in TSM, you can expect to earn 1.17 cents in dividend payments.
TSM's payout ratio is 43.91%, which means that the company pays out 43.91% of its earnings as dividends. This is a relatively high payout ratio, indicating that the company is committed to returning value to its shareholders.
Here's a breakdown of TSM's dividend payments over the past few years:
Note: The dividend per share amounts are subject to change and may not reflect the current dividend payment.
Company Limited
The Taiwan Semiconductor Manufacturing Company Limited has a long history of paying dividends to its shareholders. This company has been consistently paying dividends for 22 years.
Their dividend frequency is quite high, with an average of 4 dividend payments per year. This means that shareholders can expect to receive a dividend payment every quarter.
One notable trend is the increase in dividend amount over the years. For example, in 2015, the dividend amount was 0.7228 USD, but by 2025, it had increased to 0.8348 USD.
Here's a breakdown of the dividend payment schedule:
The company's earnings per share (EPS) is 9.11 USD, which indicates a strong financial performance. This, combined with their consistent dividend payments, makes Taiwan Semiconductor Manufacturing Company Limited an attractive investment opportunity for those seeking dividend income.
Payout Ratio
The payout ratio is a crucial metric for investors looking to understand a company's dividend policy. It represents the percentage of earnings paid out as dividends to shareholders.
A payout ratio of 43.91% indicates that TSM is distributing a significant portion of its earnings to shareholders, as seen in the example. This ratio is calculated by dividing the dividend per share by the earnings per share.
To put this into perspective, a payout ratio above 50% may indicate that a company is struggling to generate earnings or is experiencing a decline in profitability.
Here are some historical payout ratios for TSM to give you a better idea of its dividend policy:
Keep in mind that a higher payout ratio doesn't always mean a company is less attractive to investors. It's essential to consider other factors, such as the company's growth prospects and financial health, when evaluating a dividend stock.
Investment Analysis
TSM has been paying dividends for the last 21 years, which is a testament to its commitment to returning value to shareholders.
The company has issued four quarterly dividends in the last twelve months, which is a consistent track record of paying out dividends to its investors.
TSM's annualized dividend per share (DPS) has increased by 4.9% over the last year, which is a positive trend for investors.
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However, the stock price has gone up by 54% from a year ago, resulting in a decrease of 32% in the dividend yield.
Here's a comparison of TSM's dividend yield with its peers:
TSM's payout ratio of 30.2% is relatively low compared to its peers, indicating that the company is conserving a significant portion of its earnings for future investments.
Share Price and ADR
The share price of TSMC stock can fluctuate, but it's essential to understand the company's dividend history to make informed investment decisions.
TSMC's ADR (American Depositary Receipt) is listed on the NYSE under the ticker symbol TSM. This allows international investors to buy and sell shares of the company.
The dividend rate of TSMC has increased over the years. In April 2025, the dividend rate increased by 6.56% from $1.83 to $1.94. Again, in July 2025, the dividend rate increased by 12.81% from $1.94 to $2.13.
Here's a summary of the dividend rate increases:
Frequently Asked Questions
What is the 5 year dividend growth rate for TSMC?
The 5-year dividend growth rate for TSMC is 4.00% as of June 2025. This indicates a steady increase in dividend payments over the past five years.
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