A portfolio of stocks I've been building since September 3, 2019, named Volio, will eventually hold 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

Today I'm reviewing the fourth of four technology sector stocks poised to join my Volio folio this week. One could be my forty-fourth pick for Volio!

That technology sector includes nineteen industries ranging from communication equipment, computers, consumer electronics, and contract manufacturing, to health, information technology and services, to internet, scientific instruments, software, solar, and all such techno-marvels.

My subject today is a large-cap semiconductor maker named, Taiwan Semiconductor Manufacturing Co Ltd. Its trading ticker is TSM. This is my first report on Taiwan Semiconductor Manufacturing for this portfolio.

Taiwan Semiconductor Manufacturing is the world's largest dedicated chip foundry, with over 50% market share in 2018 (according to IC Insights). TSMC was founded in 1987 as a joint venture of Philips, the government of Taiwan, and private investors. It went public as an ADR in the U.S. in 1997.

The company manufactures masks and electronic spare parts; researches, develops, designs, manufactures, sells, packages, and tests color filters; and offers customer and engineering support services. It is also involved in investing activities.

TSMC's scale and high-quality technology allow the firm to generate solid operating margins, even in the highly competitive foundry business. Furthermore, the shift to the fabless business model has created tailwinds for TSMC.

The company serves customers in the computer, communications, consumer, and industrial/standard segments in North America, Europe, Japan, China, South Korea, Asia Pacific, the Middle East, and Africa.

The foundry leader has an illustrious customer base, including Apple and Nvidia, that looks to apply cutting-edge process technologies to its semiconductor designs.

As mentioned, Taiwan Semiconductor Manufacturing Company Limited was founded in 1987 and is headquartered in Hsinchu, Taiwan.

I use three key data points to gauge dividend equities or funds like Taiwan Semiconductor Manufacturing:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether a company has made, is making, and will make money.

TSM Price

Taiwan Semi's price per share closed at $56.85 yesterday. A year ago their price was $40.80. Price grew $16.05 or over 39.33% last year.

Assuming Taiwan Semis stock trades in the range of $45 to $65 this next year, its recent $56.85 price might rise by $3.15 to reach $60.00 by July 2, 2021.

TSM Dividends

Taiwan Semi's most recent declared quarterly dividend was $0.42, payable July 16th. That $0.42 Q dividend equates to $1.68 annually for an annual yield of 2.96% at yesterday's $56.85 share price.

TSM Gains?

Adding the $1.68 annual estimated dividend to my $3.15 optimistic estimate of Taiwan Semiconductor Manufacturing's price upside shows a $4.83 potential gross gain, per share, to be reduced by any costs to trade the shares.

If we put little over $1,000.00 today in Taiwan Semiconductor Manufacturing we would buy 18 shares of TSM stock.

A $10 broker fee paid half at purchase and half at sale could cost us about $0.56 per share.

Subtract that $0.56 brokerage cost from my estimated $4.83 gross gain per share results in a net gain of $4.27 X 18 shares = $76.86 for a 7.65% net gain on a $1,023.30 investment.

Taiwan Semiconductor Manufacturing Co Ltd shows a possible 7.65% net gain including a 2.96% dividend yield. It could be more, it could be less.   

The above speculation is based on past performance and supposition. Only time and money invested will tell if Taiwan Semiconductor Manufacturing Co Ltd is worth it.