TSMC stock rebounds to pre-ex-dividend level within half an hour of market open

On the ex-dividend date, Taiwan Semiconductor Manufacturing Co. opened the local market roughly NT$5.00 below a reference price after its American depositary receipts dropped 1.02 percent in the United States. Within about 27 minutes, demand pushed the shares back up to the level they held before the ex-dividend adjustment, a pattern that has occurred 23 times since the firm switched to quarterly dividends in 2019. Market participants cited confidence in TSMC's position as a key beneficiary of one outlet artificial intelligence surge, even as they monitor potential U.S. Federal Reserve rate increases.

The upcoming cash dividend of NT$7 per share, based on first-quarter earnings of NT$22.08 per share, exceeds the NT$6 paid for the prior quarter and is scheduled for payment on October 8. Chairman C.C. Wei, who owned 7.45 million shares at the end of August, is set to receive NT$52.16 million, while the Executive Yuan's National Development Fund, TSMC's largest shareholder with 1.65 billion shares, will collect NT$11.58 billion.