TSM - What Is the Dividend Payout for Taiwan Semiconductor Manufacturing?
2024-06-27 04:20:00 ET
There aren't many high-powered artificial intelligence (AI) stocks that pay out a meaningful and growing dividend, and Taiwan Semiconductor Manufacturing (NYSE: TSM) is one of them. After retaking the chip manufacturing process lead about a decade ago, Taiwan Semi has been the go-to for leading-edge chipmaking. Tech titans Apple and Nvidia depend on TSMC's manufacturing chops to produce their in-demand chips.
Taiwan Semi has a capital-intensive business, but because it's the only foundry as of today that can produce leading-edge AI chips, it's been able to raise wafer prices and garner high margins. Its dividend comes out of these profits and has grown over the past few years.
In 2023, Taiwan Semi paid $9.35 billion in dividends to shareholders after making $26.6 billion in net income, good for a payout ratio of about 35%. The 2023 payout equals about a 1.1% dividend yield at today's market cap of $895 billion.
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What Is the Dividend Payout for Taiwan Semiconductor Manufacturing?