Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM) Declares $1.09 Quarterly Dividend

Key Points

• TSMC declared a quarterly dividend of $1.0854 per share, payable January 7 to shareholders of record on December 10. The dividend yields approximately 1% and is well covered by earnings, with a current payout ratio of 32.5%.
• TSMC’s growth outlook remains strong: July revenue rose 44.7% year over year, driven by demand for AI accelerators, high-performance computing and advanced chips. The company also announced a $4.69 billion joint venture with Sony to manufacture image sensors in Japan.
• Analyst sentiment is bullish, including Bernstein’s price-target increase to $554, but investors face valuation and execution risks as the stock trades near 31 times earnings amid geopolitical concerns and questions about long-term AI infrastructure returns.

Taiwan Semiconductor Manufacturing Company Ltd. (NYSE:TSM - Get Free Report) announced a quarterly dividend on Tuesday, August 11th. Investors of record on Thursday, December 10th will be given a dividend of 1.0854 per share by the semiconductor company on Thursday, January 7th. This represents a c) annualized dividend and a dividend yield of 1.0%. The ex-dividend date of this dividend is Thursday, December 10th.

Taiwan Semiconductor Manufacturing has increased its dividend payment by an average of 0.1%annually over the last three years. Taiwan Semiconductor Manufacturing has a dividend payout ratio of 32.5% meaning its dividend is sufficiently covered by earnings. Equities analysts expect Taiwan Semiconductor Manufacturing to earn $20.87 per share next year, which means the company should continue to be able to cover its $3.51 annual dividend with an expected future payout ratio of 16.8%.

Taiwan Semiconductor Manufacturing Price Performance

NYSE TSM traded up $8.49 during trading hours on Wednesday, reaching $430.55. The company's stock had a trading volume of 3,621,410 shares, compared to its average volume of 13,953,268. Taiwan Semiconductor Manufacturing has a 1 year low of $223.70 and a 1 year high of $479.00. The company has a quick ratio of 2.25, a current ratio of 2.46 and a debt-to-equity ratio of 0.13. The company has a market capitalization of $2.23 trillion, a price-to-earnings ratio of 31.06, a PEG ratio of 0.96 and a beta of 1.38. The firm's 50-day moving average price is $426.20 and its 200-day moving average price is $388.73.

Taiwan Semiconductor Manufacturing (NYSE:TSM - Get Free Report) last released its quarterly earnings data on Tuesday, June 30th. The semiconductor company reported $4.28 earnings per share (EPS) for the quarter. Taiwan Semiconductor Manufacturing had a net margin of 50.31% and a return on equity of 39.37%. The firm had revenue of $39.89 billion for the quarter. On average, equities research analysts predict that Taiwan Semiconductor Manufacturing will post 16.44 EPS for the current fiscal year.

More Taiwan Semiconductor Manufacturing News

Here are the key news stories impacting Taiwan Semiconductor Manufacturing this week:

• Positive Sentiment: Record July revenue reinforced the AI growth story. TSMC reported NT$467.58 billion in July revenue, up 44.7% year over year and 5.6% from June. Management expects 2026 revenue growth to exceed 40% in U.S.-dollar terms, supporting expectations for strong demand from AI accelerators, high-performance computing and advanced process nodes. Taiwan Semiconductor's July Revenue Rose 45%
• Positive Sentiment: TSMC and Sony announced a $4.69 billion Japanese joint venture. Sony will control Advanced Vision Semiconductor Manufacturing, while TSMC plans to invest approximately $1.77 billion. The venture will develop and manufacture next-generation smartphone image sensors, with volume production targeted for 2029. The project diversifies TSMC’s business into imaging and strengthens its manufacturing footprint outside Taiwan. TSMC to invest in joint venture with Sony
• Positive Sentiment: Analyst sentiment remains bullish. Bernstein raised its TSMC price target from $430 to $554 and cited a potentially significant CPU opportunity as agentic AI drives higher processor demand. Erste Group also increased its FY2027 EPS forecast to $21.57 from $21.25.
• Positive Sentiment: Microsoft’s planned expansion of its Maia AI-chip program could generate additional future orders for TSMC, although packaging and component constraints remain possible bottlenecks. Microsoft plans Maia 300 chip reveal
• Neutral Sentiment: TSMC declared a quarterly dividend of 1.0854 per share, payable January 7 to investors of record December 10. The approximately 1% yield provides income support but is unlikely to be a major short-term catalyst.
• Negative Sentiment: Investors may be pricing in much of TSMC’s exceptional AI growth already, with the stock trading near 31 times earnings. Analysts also cite uncertainty over whether massive AI infrastructure investments will generate sufficient returns in 2028–2029, alongside continuing geopolitical and potential China-export risks.

About Taiwan Semiconductor Manufacturing

Taiwan Semiconductor Manufacturing Company (TSMC) is a leading pure-play semiconductor foundry that provides wafer fabrication and related services to the global semiconductor industry. Founded in 1987 by Morris Chang and headquartered in Hsinchu, Taiwan, TSMC manufactures integrated circuits on behalf of fabless and integrated device manufacturers, offering contract chip production across a broad set of technologies and products.

TSMC's service offering covers logic and mixed-signal process technologies, specialty processes for radio-frequency, power management and embedded memory, and advanced nodes used in mobile, high-performance computing and AI applications.

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