Stock Comparison
KO vs PEP: PepsiCo, or Coca-Cola?
A head-to-head of PepsiCo and The Coca-Cola Company covering payout, mix, and what each stock is for.
Updated October 16, 2026
How these figures are calculated: methodology.
Best for
- KOInvestors who want direct ownership of the underlying business, with no fund wrapper or management fee.
- PEPInvestors who want higher current income (4.50% vs 2.26% 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
100% reinvested · ex-date convention. Period returns use this fixed assumption, independent of chart settings. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year.
KO has outpaced PEP over the trailing twelve months, posting a 42.62% total return against -10.38%. The lead holds up over 10 years too: KO has compounded at 11.87% a year, against 5.31% for PEP. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD cumulative | 1Y cumulative | 3Y annualized | 5Y annualized | 10Y annualized | Since Jun 1972 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| KO | 36.92% | 42.62% | 24.19% | 14.81% | 11.87% | 11.23% | 16.3% | 1.08 | 1.69 | -15.5% |
| PEP | -5.59% | -10.38% | -3.11% | -0.53% | 5.31% | 11.42% | 19.9% | -0.37 | -0.52 | -27.5% |
Total return with all distributions reinvested on the ex-dividend date (a modeling convention, not the cash-settlement date), split-adjusted, as of October 16, 2026. YTD and 1Y are cumulative period returns; 3Y, 5Y, and 10Y are annualized. The shared Since-start window is annualized only when it covers at least one year. “Since Jun 1972” measures every fund from June 1, 1972 — the start of shared available history — 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 | $93.90 as of October 16, 2026 | $131.49 as of October 16, 2026 |
| Distribution rate | 2.26% | 4.50% |
| Trailing 12-month yield | 2.24% | 4.42% |
| Distribution Safety Score™ | 97 | 98 |
| Safety-Adjusted Yield | 2.19% | 4.41% |
| 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 | 0.318 | 0.364 |
| Last dividend | $0.53 | $1.48 |
| 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 (4.50% vs 2.26% for KO).
Coca-Cola versus PepsiCo
KO is Coca-Cola. PEP is PepsiCo, with a larger snacks mix. Mix is the split.
| KO | PEP | |
|---|---|---|
| Business | Beverages | Snacks and beverages |
| Distribution rate | 2.26% | 4.50% |
| Fund size | — | — |
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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 4.50% vs 2.26% 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 $56.50 cash per distribution, while PEP would produce $112.50 cash per distribution, 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 0.318 for KO and 0.364 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 difference between KO and PEP?
PEP (PepsiCo, Inc.) is a snacks-and-beverages company. KO (The Coca-Cola Company) is a beverage company. Both pay quarterly dividends. Distributions are 2.26% and 4.50% as of October 2026. Mix, not a one-date yield, is the split.
What is the current distribution rate for KO and PEP?
KO currently distributes 2.26% and PEP 4.50%, based on fund data updated October 2026. Distribution rate 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.
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: PEP scores 98, KO scores 97. 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 $56.50 cash per distribution ($226.00 annually). The same in PEP would produce about $112.50 cash per distribution ($450.00 annually).
Which has performed better historically, KO or PEP?
KO has outpaced PEP over the trailing twelve months, posting a 42.62% total return against -10.38%. The lead holds up over 10 years too: KO has compounded at 11.87% a year, against 5.31% 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 October 17, 2026.
Overview
KO and PEP are both dividend-paying stocks in the beverages sector, but with meaningfully different business scopes and income profiles. Coca-Cola focuses exclusively on nonalcoholic beverages, while PepsiCo operates a diversified model spanning beverages and snack foods—a structural difference that flows through to their yields and volatility. Both trade with low betas, but PEP's higher distribution rate and broader product portfolio create distinct risk-and-income tradeoffs.
How they differ
The biggest difference is scope: PEP derives roughly 55% of revenue from food and snacks (Lay's, Quaker, Tropicana juice brands), whereas KO is purely beverage-focused. That diversification gives PEP a less cyclical earnings base and partly explains its higher 4.50% yield versus KO's 2.26%. Second, PEP's beta of 0.364 is modestly higher than KO's 0.318, reflecting slightly more sensitivity to economic cycles, though both sit well below 1.0—a hallmark of defensive consumer staples. Third, KO trades at $93.90 per share while PEP sits at $131.49, with the price-per-share difference reflecting PEP's mixed portfolio and historically stronger earnings growth. Both pay quarterly dividends, and neither has a published expense ratio because they are individual stocks, not funds.
Who each is best for
KO: Fits investors seeking maximum defensive characteristics and lower dividend growth expectations, drawn to a pure-play beverage business with minimal portfolio complexity.
PEP: Fits investors willing to accept modestly higher volatility in exchange for a materially higher current yield, plus exposure to the more stable snacking category alongside beverages.
Key risks to know
- Single-category concentration: KO's exclusive focus on beverages exposes it to category-specific headwinds—shifting consumer preferences away from sugary drinks, regulatory threats, or category pricing pressure—without diversification into other food or snack segments.
- Yield sustainability: PEP's 4.50% yield is materially higher than KO's; verify that earnings growth and free cash flow support this payout level over time, rather than relying on capital reallocation or slower reinvestment.
- Currency and commodity exposure: Both companies derive significant international revenue and face margin pressure from commodity cost fluctuations (sugar, corn, aluminum, plastics); KO may be more exposed given its geographic and product diversification, while PEP's snacking revenue provides some natural hedge.
- Beta and market sensitivity: Although both betas are low, PEP's 0.364 is higher than KO's 0.318, meaning PEP will likely experience slightly larger moves during market downturns or rallies.
Bottom line
If you prioritize defensive stability and lower yield expectations, KO offers a simpler, less volatile holding. If you want higher current income and accept modest additional volatility in exchange for snacking diversification, PEP's broader business model and 4.50% yield may justify the tradeoff. Both have proven dividend histories, but past performance doesn't predict future results—earnings quality and payout coverage remain essential to monitor.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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The metrics behind this comparison, explained in the Academy.
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These comparisons follow the Dividend Vision methodology.