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 July 4, 2026
Side-by-side snapshot
| KO | PEP | |
|---|---|---|
| Full name | The Coca-Cola Company | PepsiCo, Inc. |
| Issuer | — | — |
| Last Close | $84.14 as of July 4, 2026 | $144.22 as of July 4, 2026 |
| Distribution yield | 2.56% | 4.03% |
| Distribution Safety Score | 100 | 100 |
| 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 | N/A | N/A |
| Beta | 0.354 | 0.359 |
| Last dividend | $0.5300 | $1.4800 |
| Ex-dividend date | 06/15/2026 | 06/05/2026 |
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Visual comparison
Key metrics
Projected income on $10K
Projections assume the current yield and share price remain constant. Actual results will vary.
Total returns
KO has outpaced PEP over the trailing twelve months, posting a 20.72% total return against 9.69%. The lead holds up over 10 years too: KO has compounded at 9.80% a year, against 6.26% for PEP. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | 10Y | Since Jun 1972 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| KO | 23.36% | 20.72% | 14.92% | 12.57% | 9.80% | 11.06% | 15.9% | 0.60 | 0.90 | -16.3% |
| PEP | 2.31% | 9.69% | -5.14% | 2.44% | 6.26% | 11.64% | 19.8% | -0.50 | -0.69 | -29.2% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 1972” measures every fund from June 1, 1972 — the youngest fund's first trading day — so all funds share one comparison window. Volatility is the annualized standard deviation of daily total returns over the trailing 3 years. Sharpe and Sortino divide the annualized return in excess of the risk-free rate by, respectively, that volatility and the downside deviation (both over the trailing 3 years) — higher is better. Max drawdown is the largest peak-to-trough total-return decline over the same window — shallower is better.
Quick verdict
KO (The Coca-Cola Company) and PEP (PepsiCo, Inc.) are both quarterly-pay stocks, but they take different approaches.
PEP offers the higher yield at 4.03% vs 2.56% 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 $21.33/month, while PEP would produce $33.58/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 is a stock, while PEP is a stock. Beta is 0.354 for KO and 0.359 for PEP, indicating KO is less volatile relative to the market.
Fund details
KO is managed by — (launched 01/02/1962) with — in assets. PEP is managed by — (launched 06/01/1972) 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) is a stock, while PEP (PepsiCo, Inc.) is a stock. 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 $21.33 per month ($256.00 annually). The same in PEP would produce about $33.58 per month ($403.00 annually).
Which has performed better historically, KO or PEP?
KO has outpaced PEP over the trailing twelve months, posting a 20.72% total return against 9.69%. The lead holds up over 10 years too: KO has compounded at 9.80% a year, against 6.26% for PEP. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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KO vs PEP — at a glance
Generated June 2026 from current fund data.
Overview
KO and PEP are both mature, publicly traded beverage companies with decades of dividend history. The key difference: KO is a pure beverage play focused on nonalcoholic drinks worldwide, while PEP operates a diversified portfolio spanning beverages and convenient foods (snacks, grains), which broadens its revenue streams and dampens volatility. PEP's yield is roughly 55% higher despite similar business maturity and beta.
How they differ
PEP yields 4.00% versus KO's 2.58%—a meaningful 142-basis-point spread for a similar risk profile (both trade with betas near 0.36). That yield gap reflects PEP's larger scale, steadier cash conversion from snacks (which carry higher margins than beverages alone), and a business model less exposed to sugar-tax headwinds and commodity input costs that weigh on pure beverage makers. KO's lower yield comes partly from its narrower product mix: concentrated syrup and finished drinks, with less insulation from volatile ingredient and packaging costs. Both pay quarterly dividends and have traded for roughly 60 years, but PEP's revenue diversification and pricing power in snacks have historically supported higher payout ratios without sacrificing capital allocation flexibility.
Who each is best for
KO: Fits investors seeking a classic, low-volatility dividend stock with a smaller yield but exposure to the global nonalcoholic beverage market, including emerging-market growth potential tied to Coca-Cola's unmatched brand reach and distribution network.
PEP: Designed for income-focused investors who value higher current yield paired with defensive characteristics across food and beverage categories—the snacks franchise provides stability and pricing power that pure-beverage exposure lacks.
Key risks to know
- Commodity and input-cost exposure. Both companies face volatile costs for sugar, corn syrup, packaging, and logistics. KO, lacking PEP's snacks revenue buffer, may see earnings compressed more sharply if commodity costs spike without corresponding price increases.
- Sugar-tax and regulatory risk. Governments worldwide continue to levy taxes on sugary beverages and restrict marketing to children. KO, dependent on traditional soft drinks, carries higher regulatory tail risk than PEP, whose snacks and non-sugar beverage segments (Gatorade, Quaker) diversify away that exposure.
- Yield sustainability at scale. PEP's 4.00% yield is high for a mature, low-beta stock; sustained payout at that level depends on modest earnings growth and capital discipline. Any deceleration in snacks pricing or volume could pressure the distribution.
- Currency and emerging-market headwinds. Both companies earn significant revenue internationally. KO's exposure is more concentrated in beverages; currency depreciation or macro slowdowns in emerging markets can reduce reported earnings and pressure the dollar-denominated dividend.
Bottom line
If you prioritize higher current income and want exposure to snacks alongside beverages, PEP's 4.00% yield and diversified revenue base stand out; if you prefer a narrower, more classic beverage exposure with lower payout expectations, KO's 2.58% yield and smaller price point fit a different investor profile. Both have similar low volatility, but PEP's business mix offers more downside cushion during commodity spikes or regulatory tightening. Past performance does not guarantee future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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