Stock 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 August 21, 2026
Best for
- KOInvestors who want direct ownership of the underlying business, with no fund wrapper or management fee.
- PEPInvestors who want higher current income (3.99% vs 2.30% for KO).
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 32.50% total return against -2.07%. The lead holds up over 10 years too: KO has compounded at 11.03% a year, against 5.98% 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 | 33.56% | 32.50% | 18.08% | 13.27% | 11.03% | 11.19% | 16.5% | 0.74 | 1.12 | -15.5% |
| PEP | 1.78% | -2.07% | -3.79% | 0.99% | 5.98% | 11.59% | 20.0% | -0.42 | -0.59 | -27.5% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of August 21, 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.
Side-by-side snapshot
| Metric |  KO |  PEP |
|---|---|---|
| Full name | The Coca-Cola Company | PepsiCo, Inc. |
| Issuer | — | — |
| Last Close | $91.10 as of August 21, 2026 | $143.48 as of August 21, 2026 |
| Distribution yield | 2.30% | 3.99% |
| Distribution Safety Score™ | 99 | 99 |
| 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 | 0.342 | 0.361 |
| Last dividend | $0.5300 | $1.4800 |
| Ex-dividend date | 09/15/2026 | 09/04/2026 |
Bottom lineChoose KO if you want direct ownership of the underlying business, with no fund wrapper or management fee. Choose PEP if you want higher current income (3.99% vs 2.30% for KO).
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Quick verdict
KO (The Coca-Cola Company) and PEP (PepsiCo, Inc.) are both quarterly-pay dividend-paying stocks, but they take different approaches.
PEP offers the higher yield at 3.99% vs 2.30% for KO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
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Deep dive
Yield & income
On a $10,000 investment, KO would generate roughly $19.17/month, while PEP would produce $33.25/month, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
KO is a stock built around beverages exposure, while PEP is a stock built around beverages & snacks exposure. Beta is 0.342 for KO and 0.361 for PEP — effectively similar market sensitivity.
Security details
KO (The Coca-Cola Company) is a stock. PEP (PepsiCo, Inc.) is a stock.
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Frequently asked questions
What is the current distribution yield for KO and PEP?
KO currently distributes 2.30% and PEP 3.99%, based on fund data updated August 2026. Distribution yield moves with both the payout and the share price, so check the as-of date before relying on either figure.
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 built around beverages exposure, while PEP (PepsiCo, Inc.) is a stock built around beverages & snacks exposure. They are issued by — and — respectively.
Can I hold both KO and PEP?
Yes — nothing prevents holding both. Whether the combination actually diversifies depends on how much the underlying exposures overlap, which isn't fully measurable from the data on this page; review each security's holdings, sector, and strategy before treating them as complementary.
Is KO or PEP safer?
By Dividend Vision's Distribution Safety Score — a rules-based 0–100 estimate of how resilient a distribution looks, where higher is safer — they are effectively tied: KO scores 99, PEP scores 99. Neither has a clear safety edge on that measure. No score makes an investment risk-free — treat this as a screening signal, not a guarantee.
How much income does $10,000 in KO vs PEP generate?
At current rates, $10,000 in KO would generate roughly $19.17 per month ($230.00 annually). The same in PEP would produce about $33.25 per month ($399.00 annually).
Which has performed better historically, KO or PEP?
KO has outpaced PEP over the trailing twelve months, posting a 32.50% total return against -2.07%. The lead holds up over 10 years too: KO has compounded at 11.03% a year, against 5.98% 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 August 15, 2026.
Figures quoted in this analysis are from its generation date and may lag the live snapshot table above, which always shows the latest data.
Overview
KO and PEP are both dividend-paying stocks in the beverage industry, but PEP operates a more diversified business model. Coca-Cola is a pure-play nonalcoholic beverage company focused on concentrates, syrups, and finished drinks. PepsiCo combines beverages with a substantial snack and convenience-food division (Lay's, Quaker, Gatorade), creating exposure to two consumer sectors rather than one. The critical distinction is portfolio breadth: PEP's dual revenue streams contrast sharply with KO's beverage-only concentration.
How they differ
PEP yields 1.70 percentage points more than KO—4.10% versus 2.40%—despite both paying quarterly dividends. That yield gap reflects PEP's higher absolute dividend per share relative to its stock price, not a difference in payout frequency or tax treatment. Both stocks trade at similar beta levels (KO at 0.342, PEP at 0.361), indicating comparable defensiveness in market downturns, though KO carries slightly lower systematic risk. The second major difference is business scope: KO derives all revenue from beverages, while PEP splits earnings between beverages and snacks, reducing reliance on any single product category or consumer occasion. PEP's larger product portfolio—Pepsi, Gatorade, Tropicana, Lay's, Doritos, Quaker—gives it more pricing power across different retail channels and consumer preferences.
Who each is best for
KO: Fits investors seeking a pure-play beverage exposure with a lower yield and who prefer simplicity in business model—a single, globally scaled operating segment with minimal complexity.
PEP: Fits investors who want higher current income paired with diversification across beverages and snacks, reducing single-industry concentration while maintaining defensive dividend characteristics.
Key risks to know
- Beverage-only concentration (KO): Coca-Cola's business depends entirely on the nonalcoholic beverage category. Sustained shifts in consumer preference toward water, kombucha, or health-focused alternatives could pressure margins and pricing power without offsetting business lines.
- Consumer staple defensiveness is relative: Both stocks carry low beta, but that does not insulate them from simultaneous weakness in food and beverage. Rising commodity costs (sugar, packaging, transportation) or wage inflation can compress margins across the entire sector.
- Dividend sustainability at higher yields (PEP): PEP's 4.10% yield is materially higher than KO's. Over extended periods, if earnings growth lags distribution growth, PEP's payout ratio could drift upward, constraining future dividend growth or raising cut risk—a dynamic to monitor relative to reported earnings growth and free cash flow trends.
- Exposure overlap: Both derive significant revenue from global beverages and may experience correlated headwinds from currency movements, commodity inflation, or changes in consumer spending patterns, limiting diversification benefits if held together.
Bottom line
KO offers a lower yield and a tighter focus on beverages alone; PEP delivers a higher current distribution alongside exposure to snacks and convenience foods. If you prioritize simplicity and lower yield expectations, KO's beverage purity and modest beta appeal. If you want higher income alongside business diversification, PEP's dual segments stand out. Past performance does not predict future results, and both stocks' dividend safety depends on their ability to grow earnings faster than distributions.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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