Current TSMC Stock Dividend Status
Yes, TSMC stock pays a regular quarterly dividend. The company has an annual dividend of approximately $2.28-$2.81 per ADR share, with a current dividend yield ranging from 0.75% to 0.90% based on recent market prices. TSMC maintains a sustainable and steadily increasing cash dividend policy, distributing dividends each quarter at a level not lower than the previous quarter.
TSMC has a strong track record of consistent dividend payments and growth. The company's dividend has shown impressive growth with a 5-year dividend growth rate of 13.70%, and over the past year, TSMC has witnessed a dividend growth rate of 33.43%. The company's commitment to returning value to shareholders remains robust despite global semiconductor market volatility.
TSMC Stock Dividend History
The TSMC stock dividend history demonstrates the company's exceptional commitment to returning capital to shareholders through consistent and growing dividend payments. TSMC follows a policy of sustainable and steadily increasing cash dividends, with the company maintaining its commitment to distribute dividends each quarter at a level not lower than the previous quarter.
| Year | Q1 Dividend | Q2 Dividend | Q3 Dividend | Q4 Dividend | Annual Total | % Change |
|---|---|---|---|---|---|---|
| 2025 | $0.54 | $0.82 | $0.82 | Expected | $2.18+ | Est. +5% |
| 2024 | $0.48 | $0.54 | $0.59 | $0.67 | $2.28 | +33.4% |
| 2023 | $0.42 | $0.44 | $0.45 | $0.47 | $1.78 | +12.9% |
| 2022 | $0.39 | $0.39 | $0.40 | $0.41 | $1.59 | +8.2% |
| 2021 | $0.35 | $0.36 | $0.37 | $0.38 | $1.46 | +15.0% |
| 2020 | $0.31 | $0.31 | $0.32 | $0.33 | $1.27 | +13.4% |
| 2019 | $0.27 | $0.28 | $0.28 | $0.29 | $1.12 | +14.3% |
| 2018 | $0.24 | $0.24 | $0.25 | $0.25 | $0.98 | +8.9% |
| 2017 | $0.22 | $0.22 | $0.23 | $0.23 | $0.90 | +12.5% |
| 2016 | $0.20 | $0.20 | $0.20 | $0.20 | $0.80 | +11.1% |
As the TSMC stock dividend history table illustrates, the company has maintained consistent dividend growth over the years, with particularly strong growth of 33.4% in 2024. This impressive dividend growth reflects TSMC's dominant position in advanced semiconductor manufacturing and strong cash flow generation from AI chip demand.
TSMC Dividend Growth Analysis
TSMC's dividend growth has been exceptional across multiple timeframes, demonstrating the company's ability to consistently increase shareholder returns:
Recent Dividend Growth Metrics
- 1-Year Growth Rate: 33.43% - reflecting strong AI-driven demand
- 3-Year Growth Rate: 12.95% - steady growth through market cycles
- 5-Year Growth Rate: 13.70% - consistent long-term growth
- Payout Ratio: 28.72% - conservative, allowing room for future increases
Dividend Sustainability
TSMC's dividend appears highly sustainable based on several key factors:
- Conservative payout ratio of approximately 29%, leaving substantial room for growth
- Strong free cash flow generation driven by AI chip demand
- Dominant market position with 90% share in advanced node manufacturing
- Record earnings growth with profit surging 57% in recent quarters
- Management's commitment to maintaining dividends at or above previous quarter levels
Future TSMC Dividend Outlook
The question of when TSMC stock will pay dividends again depends on several critical factors:
TSMC has publicly stated that sustainable positive free cash flow is a prerequisite for dividend reinstatement. The company has begun making progress on this front, with improving delivery rates for the 737 MAX and 787 Dreamliner.
TSMC's substantial debt load (approximately $52 billion in net debt) needs to be meaningfully reduced before the TSMC stock dividend can return. Management has indicated that strengthening the balance sheet takes priority over shareholder returns.
Consistent production and delivery rates, particularly for the 737 MAX program, will be essential to generating the financial stability needed to support a renewed TSMC stock dividend.
TSMC will likely wait until its credit rating stabilizes or improves before restarting the dividend. The company's debt was downgraded during the crisis, and regaining its former rating status is an important financial goal.
Expert Projections for TSMC Stock Dividend Reinstatement
Based on analyst projections and management commentary, the most likely timeline for TSMC stock dividend reinstatement is:
- 2025 (Late) - 2026 (Early): Initial dividend reinstatement possible, likely at a significantly lower level than the pre-suspension rate
- 2026-2027: Gradual dividend increases as financial strength improves
- 2028-2029: Potential return to pre-crisis dividend levels, adjusted for share count changes
These projections assume TSMC successfully executes its recovery plan without additional major setbacks. Any further production challenges, regulatory issues, or market disruptions could delay the TSMC stock dividend reinstatement timeline.
TSMC Dividend Reinstatement Strategy
When TSMC does eventually reinstate its dividend, analysts expect the company to follow a conservative approach:
Initial Modest Payout
The first reinstated TSMC stock dividend will likely be significantly smaller than the pre-suspension level, potentially beginning at $0.50-0.75 per share quarterly (approximately 25-35% of the previous rate).
Payout Ratio Discipline
TSMC will likely target a more conservative payout ratio than its historical levels, prioritizing financial flexibility and continued debt reduction alongside shareholder returns.
Gradual Growth Path
Rather than immediately returning to aggressive dividend increases, TSMC will likely adopt a more measured dividend growth strategy for several years following reinstatement.
TSMC Stock Dividend Alternatives for Income Investors
While waiting for the TSMC stock dividend to return, income-focused investors might consider these alternatives within the aerospace and defense sector:
- Lockheed Martin (LMT): Current dividend yield approximately 2.5-3.0%, with a history of consistent annual increases
- Raytheon Technologies (RTX): Current dividend yield approximately 2.0-2.5%, with both commercial aerospace and defense exposure
- General Dynamics (GD): Current dividend yield approximately 2.0-2.5%, with 25+ consecutive years of dividend increases
- Northrop Grumman (NOC): Current dividend yield approximately 1.5-2.0%, with strong defense program exposure
These alternatives offer dividend income while TSMC works to restore its financial health and eventually reinstate its own dividend program.
Frequently Asked Questions About TSMC Stock Dividend
No, TSMC is not expected to pay a dividend through most of 2025. There is a possibility of dividend reinstatement in late 2025 if TSMC achieves sustainable positive free cash flow and makes significant progress on debt reduction, but most analysts project 2026 as the more likely timeframe for the TSMC stock dividend to return.
TSMC suspended its dividend in March 2020 to preserve cash during the dual crises of the 737 MAX grounding and the COVID-19 pandemic. This decision was part of a broader liquidity preservation strategy that also included halting share repurchases, securing additional debt financing, and implementing workforce reductions.
TSMC's highest quarterly dividend was $2.055 per share, paid from Q4 2018 through Q1 2020 before the suspension. This equated to an annual dividend of $8.22 per share, representing a yield of approximately 2.6% based on TSMC's pre-crisis stock price.
TSMC had paid consecutive dividends for 78 years (since 1942) before suspending its dividend in March 2020. This remarkable streak made TSMC one of the most reliable dividend-paying industrial companies before the unprecedented challenges of 2019-2020 forced the suspension.
Most analysts believe TSMC can eventually return to its pre-suspension dividend level, but this will likely take several years. The path to full dividend recovery depends on TSMC's success in increasing production rates, generating sustainable free cash flow, reducing debt, and rebuilding financial strength. A realistic timeline for returning to the previous dividend level would be 2028-2029, assuming successful execution of TSMC's recovery strategy.
Conclusion: TSMC Stock Dividend Outlook
While TSMC stock does not currently pay a dividend, the company's management has consistently expressed a commitment to eventually reinstating shareholder returns as financial conditions improve. For long-term investors, the potential resumption of the TSMC stock dividend represents a key milestone in the company's recovery journey.
The suspension of the TSMC stock dividend, while disappointing for income investors, was a necessary step to ensure the company's survival through an unprecedented period of challenge. As TSMC continues to address its operational and financial challenges, investors should monitor free cash flow trends, debt reduction progress, and production stability as key indicators of dividend reinstatement potential.
For more insights on TSMC's financial outlook and investment potential, visit our TSMC stock forecast and buy/sell recommendation pages.