Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Increases Dividend to $1.37 Per Share

Key Points

• TSMC raised its quarterly dividend 25.9% to $1.3663 per share, equivalent to an annualized $5.47 and a 1.3% yield. The dividend is payable April 8 to shareholders of record March 11.
• The company reported quarterly EPS of $4.60, beating estimates of $4.45, while revenue rose 41.2% year over year to $46.72 billion.
• Analyst sentiment is broadly positive: the stock has a consensus “Buy” rating and an average price target of $533.89.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) announced a quarterly dividend on Tuesday, November 10th. Shareholders of record on Thursday, March 11th will be given a dividend of $1.3663 per share by the semiconductor company on Thursday, April 8th. This represents a $5.47 annualized dividend and a yield of 1.3%. The ex-dividend date of this dividend is Thursday, March 11th. This is a 25.9% increase from Taiwan Semiconductor Manufacturing's previous quarterly dividend of $1.0854.

Taiwan Semiconductor Manufacturing has raised its dividend by an average of 0.1% per year over the last three years. Taiwan Semiconductor Manufacturing has a payout ratio of 31.7% indicating that its dividend is sufficiently covered by earnings. Equities analysts expect Taiwan Semiconductor Manufacturing to earn $23.02 per share next year, which means the company should continue to be able to cover its $3.43 annual dividend with an expected future payout ratio of 14.9%.

Taiwan Semiconductor Manufacturing Stock Performance

Shares of TSM traded up $14.91 during mid-day trading on Wednesday, reaching $411.39. The company's stock had a trading volume of 5,719,387 shares, compared to its average volume of 13,201,304. Taiwan Semiconductor Manufacturing has a 1-year low of $266.82 and a 1-year high of $487.47. The stock has a market cap of $2.13 trillion, a P/E ratio of 26.48, a PEG ratio of 0.77 and a beta of 1.44. The business has a 50-day simple moving average of $430.71 and a two-hundred day simple moving average of $401.43. The company has a current ratio of 2.46, a quick ratio of 2.25 and a debt-to-equity ratio of 0.14.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last issued its earnings results on Thursday, October 15th. The semiconductor company reported $4.60 EPS for the quarter, topping the consensus estimate of $4.45 by $0.15. Taiwan Semiconductor Manufacturing had a return on equity of 42.84% and a net margin of 51.51%. The company had revenue of $46.72 billion during the quarter, compared to the consensus estimate of $45.67 billion. During the same period in the previous year, the company posted $2.92 EPS. The firm's revenue for the quarter was up 41.2% compared to the same quarter last year. As a group, equities research analysts anticipate that Taiwan Semiconductor Manufacturing will post 17.46 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

Several research firms have commented on TSM. Susquehanna upped their price objective on shares of Taiwan Semiconductor Manufacturing from $575.00 to $600.00 and gave the company a "positive" rating in a report on Thursday, July 16th. Needham & Company LLC increased their price objective on shares of Taiwan Semiconductor Manufacturing from $530.00 to $560.00 and gave the company a "buy" rating in a research report on Thursday, October 15th. Citigroup restated a "buy" rating on shares of Taiwan Semiconductor Manufacturing in a research note on Wednesday, October 7th. Stifel Nicolaus began coverage on shares of Taiwan Semiconductor Manufacturing in a report on Tuesday, September 1st. They set a "buy" rating and a $515.00 target price for the company. Finally, Zacks Research upgraded shares of Taiwan Semiconductor Manufacturing from a "hold" rating to a "strong-buy" rating in a research note on Thursday, July 16th. Three equities research analysts have rated the stock with a Strong Buy rating, eleven have assigned a Buy rating and two have issued a Hold rating to the company. Based on data from MarketBeat.com, the company presently has an average rating of "Buy" and a consensus price target of $533.89.

Taiwan Semiconductor Manufacturing Company Profile

Taiwan Semiconductor Manufacturing Company (TSMC) is a semiconductor foundry that manufactures chips designed by other companies. It provides wafer fabrication and related services, including advanced packaging, serving customers across industries such as computing, communications, automotive and consumer electronics. Founded in 1987 and headquartered in Hsinchu, Taiwan, TSMC helped establish the dedicated foundry model, in which a manufacturer focuses on producing semiconductors for customers rather than selling its own chip designs.

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