Taipei: Shares of Taiwan Semiconductor Manufacturing Co. (TSMC) quickly regained their prior ex-dividend level shortly after the market opened on Tuesday, coinciding with the stock's ex-dividend date and contributing to a broader market rebound. TSMC shares initially climbed to NT$976.00 (US$29.58), surpassing the opening reference price of NT$965.00, which had been reduced by NT$4.50-the dividend distributed to shareholders from the third quarter of 2024 earnings. The stock further escalated to a peak of NT$978.00 early in the session.
According to Focus Taiwan, the rise in TSMC shares followed a 1.24 percent increase in its American depositary receipts in the United States. This uptick was fueled by anticipation that the Federal Reserve might cut interest rates after a lower-than-expected rise in February retail sales, as observed by market dealers. In Taiwan, the ex-dividend date marks the commencement of trading after the deduction of the cash dividend from the previous year's earnings. TSMC shifted to quarterly cash dividend issuance in 2019, replacing the former annual approach.
When stocks such as TSMC recover to their pre-ex-dividend levels, it reflects investor confidence in the company's core strengths and a willingness to maintain their holdings. Despite TSMC's initial rebound to its prior ex-dividend level, the shares slightly retreated due to persistent concerns regarding the Trump administration's tariff policies, as noted by analysts.
By 11:56 a.m., TSMC shares had experienced a 0.41 percent increase to NT$969.00, while the weighted index on the Taiwan Stock Exchange rose by 0.53 percent to NT$22,236.07. TSMC plans to distribute around NT$116.70 billion in cash dividends on April 10, following the ex-dividend date. Notably, TSMC Chairman C.C. Wei, holding 6.39 million shares, is anticipated to earn NT$28.76 million. Additionally, the National Development Fund under the Executive Yuan, the largest shareholder with 1.65 billion shares, is projected to receive NT$7.44 billion.