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Top Taiwanese (TAIEX) Semiconductors Dividend Stocks
UPDATED Sep 26, 2023
What are the best Taiwanese (TAIEX) Semiconductors Dividend Stocks?
According to our Simply Wall St analysis these are the best Taiwanese Semiconductors dividend companies. We look for companies with high quality dividends and healthy balance sheets to find the top Dividend Stocks.
Our criteria to find Top Dividend Companies
High Yield
- Companies with a high dividend yield are more attractive due to the higher expected income for each dollar invested.
- Yields vary between markets, so we focus on the top dividend payers in each market.
What do we look for?
- Is the yield in the top 25% of the market's dividend payers.
Consistent Dividends
- Companies with a strong track record of paying a consistent and growing dividend are the most attractive.
- If the dividend has been cut substantially in the past, then it's difficult to be confident about future payments.
What do we look for?
- Has the dividend been stable over the last 10 years.
- Has the dividend grown over the last 10 years.
Dividend Cover
- Ideally the company doesn't pay out all of its earnings, neglecting future growth.
- If a company is unable to afford its dividend, then it will probably lead to a dividend cut and share price erosion.
What do we look for?
- Are dividends covered by earnings.
- Are dividends forecast to be covered by earnings in the future.
Healthy Balance Sheet
- Investors want to make sure the company is positioned to cover its debts. Repayments on debt typically take priority over shareholder return initiatives.
What do we look for?
- Does the company have a manageable level of debt.
- Is the company able to cover its interest repayments.
4 companies meet this criteria in the Taiwanese market
Vanguard International Semiconductor Corporation, together with its subsidiaries, engages in manufacturing, selling, packaging, testing, and computer-aided design of integrated circuits and other semiconductor devices in Taiwan and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: 5347's dividend (6.66%) is in the top 25% of dividend payers in the TW market (5.53%)
Notable Dividend
Rewards
Trading at 20.1% below our estimate of its fair value
Earnings are forecast to grow 4.61% per year
Risks
High level of non-cash earnings
King Yuan Electronics Co., Ltd. engages in the designing, manufacturing, selling, testing, and assembly service of integrated circuits in Taiwan, Asia, North America, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: 2449's dividend (4.51%) is low compared to the top 25% of dividend payers in the TW market (5.53%).
Rewards
Trading at 4% below our estimate of its fair value
Earnings are forecast to grow 18.02% per year
Risks
Volatile share price over the past 3 months
Sino-American Silicon Products Inc. engages in the design, production, and sale of semi-conductor silicon materials and components, rheostat, and optical and communications wafer materials.
Dividend Criteria
Earnings Coverage
Growing Dividend
Future Dividend Coverage
High Dividend: 5483's dividend (5.73%) is in the top 25% of dividend payers in the TW market (5.53%)
Notable Dividend
Stable Dividend
Rewards
Price-To-Earnings ratio (8.7x) is below the TW market (19.4x)
Earnings are forecast to grow 6.05% per year
Earnings grew by 66.7% over the past year
Risks
Large one-off items impacting financial results
Taiwan Semiconductor Manufacturing Company Limited, together with its subsidiaries, manufactures, packages, tests, and sells integrated circuits and other semiconductor devices in Taiwan, China, Europe, the Middle East, Africa, Japan, the United States, and internationally.
Dividend Criteria
Stable Dividend
Earnings Coverage
Growing Dividend
Future Dividend Coverage
Notable Dividend
High Dividend: 2330's dividend (2.3%) is low compared to the top 25% of dividend payers in the TW market (5.53%).
Rewards
Price-To-Earnings ratio (14x) is below the TW market (19.4x)
Earnings are forecast to grow 8.26% per year
Earnings grew by 26.7% over the past year
Risks
High level of non-cash earnings