ETF Comparison
KO vs PEP: Which Is the Better Pick in 2026?
A head-to-head comparison of The Coca-Cola Company and PepsiCo, Inc. covering yield, cost, risk, and income potential.
Data updated May 20, 2026
Side-by-side snapshot
| KO | PEP | |
|---|---|---|
| Full name | The Coca-Cola Company | PepsiCo, Inc. |
| Issuer | — | — |
| Last Close | $81.20 as of May 20, 2026 | $149.06 as of May 20, 2026 |
| Distribution yield | 2.51% | 3.82% |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | Manufactures, distributes, and markets nonalcoholic beverage concentrates, syrups, and finished beverages worldwide. | Manufactures, markets, distributes, and sells beverages and convenient foods worldwide under brands including Pepsi, Lay's, Gatorade, and Quaker. |
| Asset class | Equity | Equity |
| Inception date | — | — |
| Last dividend | $0.53 | $1.42 |
| Ex-dividend date | 03/13/2026 | 03/06/2026 |
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Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Quick verdict
KO (The Coca-Cola Company) and PEP (PepsiCo, Inc.) are both quarterly-pay dividend ETFs, but they take different approaches.
PEP offers the higher yield at 3.82% vs 2.51% for KO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
Deep dive
Yield & income
On a $10,000 investment, KO would generate roughly $20.92/month, while PEP would produce $31.83/month, at current distribution rates. Both pay quarterly distributions.
Cost & efficiency
Over 10 years on $10,000, KO would cost approximately $0 in fees vs $0 for PEP (simplified, not compounded). Both charge the same expense ratio.
Strategy & risk
KO tracks — with a dividend approach, while PEP tracks — using a dividend strategy.
Fund details
KO is managed by — (launched —) with — in assets. PEP is managed by — (launched —) with — in assets.
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Frequently asked questions
Is KO or PEP better for dividend income?
It depends on your goals. PEP currently offers the higher distribution yield, which means more income per dollar invested. However, a lower-yield fund may offer better total return or lower volatility. Consider your time horizon and risk tolerance.
What is the difference between KO and PEP?
KO (The Coca-Cola Company) tracks — with a dividend strategy, while PEP (PepsiCo, Inc.) tracks — with a dividend approach. They are issued by — and — respectively.
Can I hold both KO and PEP?
Yes. Many income investors hold both to diversify across different strategies and underlying indexes. This can reduce concentration risk while maintaining a strong income stream.
Which has lower fees, KO or PEP?
KO has an expense ratio of — while PEP charges —. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in KO vs PEP generate?
At current rates, $10,000 in KO would generate roughly $20.92 per month ($251.00 annually). The same in PEP would produce about $31.83 per month ($382.00 annually).
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KO vs PEP — at a glance
Generated April 2026 from current fund data.
Overview
Both KO and PEP are blue-chip dividend payers in the beverages sector, but they compete in different markets. Coca-Cola focuses exclusively on nonalcoholic beverages—sodas, juices, water, and energy drinks. PepsiCo operates a diversified portfolio spanning beverages (Pepsi, Gatorade) and salty snacks (Lay's, Doritos, Cheetos), making it a broader consumer staples play. The key distinction: KO is a pure-play beverage compounder; PEP trades on snacking diversification and higher absolute yield.
How they differ
PEP yields 3.68% versus KO's 2.71%—a spread of 97 basis points. Both pay quarterly dividends, but PEP's larger absolute payout ($1.42 per share) reflects higher earnings and a more defensive snacking business embedded in its revenue mix. KO trades at $75.31 and sits near the middle of its 52-week range ($65–$82), while PEP at $154.85 has moved significantly higher from its 52-week low of $127.60, suggesting stronger momentum or valuation expansion. The snacks exposure in PEP adds a structural advantage during economic downturns—people still buy chips and crackers even when soda consumption softens—whereas KO depends more heavily on discretionary beverage demand and international pricing power.
Who each is best for
KO: Investors seeking pure-play beverage exposure with a lower yield, willing to accept slower but steadier total returns; suitable for buy-and-hold equity positions in any account type, especially attractive to those betting on international growth and pricing leverage in emerging markets.
PEP: Income-focused investors who want a higher current yield (nearly 100 bps more) paired with snacking diversification; works well in taxable accounts where the quarterly dividend can be reinvested, or for those prioritizing downside resilience during consumer spending slowdowns.
Key risks to know
- Sector headwinds. Sugar-linked beverages face regulatory pressure and changing consumer preferences toward zero-sugar and plant-based options. KO faces this more directly than PEP, which can lean on salty snacks for stability.
- Currency and commodity exposure. Both have significant international operations, but KO derives a larger share of revenue abroad, making it more sensitive to USD strength and foreign exchange translation.
- Valuation and momentum. PEP's 52-week move from $127 to $154 reflects valuation expansion; if growth slows or rates rise, multiple compression could outweigh the yield advantage.
- Debt and capital structure. Both maintain investment-grade ratings, but higher leverage at either company could limit dividend growth or flexibility during downturns.
Bottom line
If you want higher current income and some protection from beverage-sector weakness, PEP's 3.68% yield and snacking portfolio stand out. If you prefer lower valuation risk and believe in long-term international beverage growth, KO's lower yield comes with a simpler, more focused business. Neither is a "yield trap"—both are mature, profitable, and have raised dividends consistently—but past performance doesn't predict future results, and sector trends around sugar and ultra-processed snacks will shape outcomes over the next decade.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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