10 Best Foreign Stocks With Dividends For Passive Income

1. Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM)

Dividend Yield as of February 3: 1.34%

Number of Hedge Fund Holders: 158

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) tops our list of the best foreign stocks for dividend investors. TSM is the largest chipmaker in the world. This semiconductor giant remains unaffected by President Trump’s tariff threats, with Taiwan’s economy ministry noting the interdependence between the US tech industries and Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM), calling it a “win-win business model”.

In Q4 2024, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) reported that the consolidated revenue of NT$868.46 billion increased 14.3% year-over-year, net income of NT$374.68 billion rose 15.2% compared to the prior year quarter, and diluted earnings per share came in at NT$14.45. TSM commenced cash dividends in 2004, and it has never engaged in dividend cuts over the years. In 2024, the company forked over US$11.3 billion in dividends.

Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) is a Wall Street favorite. In Q3 2024, 158 hedge funds reported owning stakes in TSM, compared to 156 funds in Q2. Ken Fisher’s Fisher Asset Management is the largest shareholder of the company, with a position worth nearly $5 billion.

Overall, Taiwan Semiconductor Manufacturing Company Limited (NYSE:TSM) ranks first on our list of the best foreign stocks. While we acknowledge the potential of TSM to grow, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than TSM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stock To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap

Disclosure. None. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and investors. Please subscribe to our daily free newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.