Taiwan Semiconductor Manufacturing Company (TSMC) announced a 17% increase in its quarterly dividend to approximately $1.11 per share, effective October 8, 2026. This increase reflects confidence in the company’s growth, with analysts projecting a nearly 36% revenue rise for TSMC in 2026, marking the highest growth rate since 2022.
U.S. investors holding American Depositary Receipts (ADRs) will face a 21% withholding tax on the dividend, resulting in an after-tax payout of about 88 cents, equating to an approximate yield of 0.85%. TSMC has a solid track record, having not decreased its dividend in over 20 years, and its dividend payout ratio stands comfortably at around 37% based on recent earnings of $12.02 per ADR.
In addition, TSMC’s stock has performed well, with total returns exceeding 100% since 2025, and a growth of more than 30% in 2026 alone. Analysts have set a market target price near $404, suggesting over 10% upside potential as the market shifts awareness towards TSMC’s growth trajectory.
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