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 July 21, 2026
Side-by-side snapshot
| KO | PEP | |
|---|---|---|
| Full name | The Coca-Cola Company | PepsiCo, Inc. |
| Issuer | — | — |
| Last Close | $82.12 as of July 21, 2026 | $135.46 as of July 21, 2026 |
| Distribution yield | 2.55% | 4.15% |
| Distribution Safety Score™ | 99 | 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 | 0.349 | 0.368 |
| Last dividend | $0.5300 | $1.4800 |
| Ex-dividend date | 09/15/2026 | 06/05/2026 |
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 (4.15% vs 2.55% for KO).
Income calculator
See how much monthly income a hypothetical investment would generate in each stock at current yields.
Want to go deeper?
Add these stocks to a sample portfolio and forecast your dividend income over 5+ years — no signup required.
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 20.52% total return against -1.65%. The lead holds up over 10 years too: KO has compounded at 9.41% a year, against 5.21% 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 | 20.40% | 20.52% | 12.86% | 11.30% | 9.41% | 11.00% | 16.2% | 0.48 | 0.71 | -16.3% |
| PEP | -3.91% | -1.65% | -7.70% | 0.16% | 5.21% | 11.50% | 19.9% | -0.63 | -0.87 | -29.2% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 20, 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 dividend-paying stocks, but they take different approaches.
PEP offers the higher yield at 4.15% vs 2.55% for KO. A higher yield means more current income per dollar invested, though it may come with different risk characteristics.
Still deciding? Track KO & PEP for free
Create a free Dividend Vision account to keep them on a watchlist, get notified when they declare dividends, and see how much income they would add to your portfolio.
Deep dive
Yield & income
On a $10,000 investment, KO would generate roughly $21.25/month, while PEP would produce $34.58/month, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
KO is a stock, while PEP is a stock. Beta is 0.349 for KO and 0.368 for PEP, indicating KO is less volatile relative to the market.
Security details
KO (The Coca-Cola Company) is a stock. PEP (PepsiCo, Inc.) is a stock.
Enjoyed this page?
Do us a favor — if you found this comparison useful, please share it with a friend researching dividend investments.
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 — 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.
How much income does $10,000 in KO vs PEP generate?
At current rates, $10,000 in KO would generate roughly $21.25 per month ($255.00 annually). The same in PEP would produce about $34.58 per month ($415.00 annually).
Which has performed better historically, KO or PEP?
KO has outpaced PEP over the trailing twelve months, posting a 20.52% total return against -1.65%. The lead holds up over 10 years too: KO has compounded at 9.41% a year, against 5.21% for PEP. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
More comparisons to explore
People also compare KO with
People also compare PEP with
Popular comparisons
KO vs PEP — at a glance
Generated July 2026 from current fund data.
Overview
Coca-Cola (KO) and PepsiCo (PEP) are both dividend-paying beverage giants, but they operate in distinctly different product spaces. KO manufactures and distributes nonalcoholic beverages globally—essentially a pure-play drink company. PEP operates a broader portfolio spanning beverages (Pepsi, Gatorade) and salty snacks (Lay's, Doritos, Cheetos), making it a diversified food-and-beverage hybrid. This structural difference shapes their cash flows, growth profiles, and income generation.
How they differ
The most obvious split: PEP yields 3.99% versus KO's 2.49%, a 150-basis-point gap that reflects PEP's stronger cash generation from its snacks division. KO trades at a lower absolute price ($83.49) and carries a noticeably lower beta (0.349 vs. PEP's 0.368), signaling less sensitivity to broad market swings—though both are defensive. The second key difference is product mix. KO is a pure-beverage play; PEP's snacks business (Frito-Lay and Quaker) provides a structural hedge against beverage volume declines and adds pricing power in a resilient category. Third, PEP's higher yield comes paired with a higher price point, reflecting the market's willingness to pay for broader revenue diversification and snack-category exposure.
Who each is best for
KO: Investors seeking maximum stability and downside protection in their equity holding. The lower beta and leaner beverage-only focus appeal to those prioritizing lower volatility over higher income.
PEP: Investors who want both meaningful dividend income and exposure to the more resilient snacks category. The higher yield and diversified revenue streams fit portfolios where income generation and product-category breadth matter equally.
Key risks to know
- Beverage volume pressure: Both face structural headwinds from shifting consumer preferences away from sugared drinks and toward healthier beverages. KO, as a pure-play beverage company, carries greater exposure to this secular trend.
- Commodity and freight cost inflation: Input costs (sugar, corn syrup, packaging, logistics) can compress margins faster than either company can pass through price increases. PEP's snacks segment offers some insulation, but neither is immune.
- Currency and emerging-market exposure: Both derive substantial revenue internationally, creating foreign-exchange translation risk and geopolitical sensitivity. A stronger dollar can pressure reported earnings.
- Pricing power limits: While both brands are iconic, aggressive price increases risk volume loss, especially in price-sensitive markets. PEP's snacks may hold pricing better than KO's beverages in a recessionary environment.
Bottom line
If you value maximum stability and lower volatility, KO's defensive characteristics stand out; if you prioritize yield and want buffering from beverage-volume risk through snacks diversification, PEP's higher income and broader product base fit that profile. Both are mature, cash-generative dividend stocks—the choice hinges on whether you're optimizing for defensive equity exposure or higher income with product-category hedge. 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.
Still deciding? Compare them against your own portfolio
See how each stock fits alongside your real holdings — forecast future income, analyze overlap, and gauge risk. Start a free 7-day Dividend Vision trial and make the call with your full portfolio in view.