TSMC's NT$7 dividend sparks debate: investors split on payouts versus growth

TSMC's board of directors has approved a second-quarter cash dividend of NT$7 per share, continuing the high payout level seen in the previous quarter. This decision has generated significant discussion among investors and the market.

Alongside the dividend approval, TSMC is implementing a new policy allowing eligible foreign shareholders to opt for receiving their cash dividends in U.S. dollars. This change aligns with revised regulations from Taiwan's Financial Supervisory Commission.

The news prompted a lively debate on the PTT online forum. Many netizens expressed approval for TSMC's sustained high dividend payouts, with comments like "Steady growth and a slight dividend increase, great" and "One quarter's dividend equals three years of United Microelectronics Corp.'s profit, amazing!" Some even anticipated further increases, noting "Wonder if next year will see a single increase of over NT$1, it's earning more and more."

However, a contrasting viewpoint emerged, with some investors arguing that TSMC should prioritize reinvesting funds into company growth and expanding production capacity rather than distributing cash dividends. Suggestions included "Hope they don't pay dividends, put all the money into growth" and "Wouldn't it be better to use it all for capacity expansion?" Others proposed that "Buying back shares directly is still better."