tsmc dips before dividend: buy the dip?

2025-09-15 tsmc

Taipei, Monday, 15 September 2025.
tsmc’s stock saw a slight decrease to NT$1250 ahead of its ex-dividend date tomorrow, September 16, 2025. Despite the dip, one market analyst, Tsai Ming-han, suggests this could be a prime buying opportunity. tsmc plans to distribute a quarterly dividend of NT$5. Investors are watching closely, as the company aims for its 19th same-day dividend fill. The National Development Fund is expected to receive NT$8.273 billion.

Market reaction and analyst outlook

The Taiwan stock market experienced fluctuations today, with the index initially rising before falling as much as 190 points [1]. As of 11:20 AM, the weighted index was down 82.71 points, a 0.32% decrease [1]. TSMC’s stock specifically saw a decrease of NT$10, reaching NT$1255, which is a 0.4% drop [1]. Despite this, Tsai Ming-han from Cathay Securities Investment Services suggests that any pullback represents a buying opportunity, though he cautions of fluctuations [1].

Dividend details and shareholder impact

TSMC is set to distribute its first quarterly dividend of NT$5 on September 16 [2][6]. Market analysts anticipate that TSMC could potentially achieve a same-day dividend fill for the 19th time [2]. TSMC’s major shareholders are poised to receive substantial dividends, including the National Development Fund, which is estimated to receive NT$8.273 billion [2][6]. Founder Morris Chang could receive NT$625 million, while Chairman C. C. Wei stands to gain NT$34 million [2][6].

Financial strategy and bond investments

TSMC has been actively investing in financial bonds, with its overseas subsidiary, TSMC Global Ltd., increasing its holdings by $186.4 million (NT$5.65 billion) between September 1 and September 10 [7]. These investments target high-credit-rated international financial institutions, including Goldman Sachs and J.P. Morgan Chase [7]. This strategy aims to generate stable interest income, manage funds effectively, and maintain liquidity [7]. TSMC’s CFO, Huang Jen-chao, stated that the company distributes 70% of its cash flow and hopes to increase this rate [6].

Future dividend prospects

Looking ahead, TSMC’s board has approved a Q2 2025 dividend of NT$5 per share, with an ex-dividend date set for December 11, 2025, and payment scheduled for January 8, 2026 [6]. Forecasts suggest that TSMC’s annual cash dividend could increase from NT$20 to NT$24 between 2025 and 2026 [6]. An analyst from a leading investment firm views TSMC’s overall performance as strong, maintaining a positive outlook on the company’s dividend prospects [6].

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