ETF Comparison
KO vs PM: Which Is the Better Pick in 2026?
A head-to-head comparison of The Coca-Cola Company and Philip Morris International Inc. covering yield, cost, risk, and income potential.
Data updated May 20, 2026
Side-by-side snapshot
| KO | PM | |
|---|---|---|
| Full name | The Coca-Cola Company | Philip Morris International Inc. |
| Issuer | — | — |
| Last Close | $81.20 as of May 20, 2026 | $191.50 as of May 20, 2026 |
| Distribution yield | 2.51% | 3.07% |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | Manufactures, distributes, and markets nonalcoholic beverage concentrates, syrups, and finished beverages worldwide. | Manufactures and sells cigarettes, smoke-free products, and related electronic devices and accessories worldwide. |
| Asset class | Equity | Equity |
| Inception date | — | — |
| Last dividend | $0.53 | $1.47 |
| Ex-dividend date | 03/13/2026 | 03/19/2026 |
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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.
Quick verdict
KO (The Coca-Cola Company) and PM (Philip Morris International Inc.) are both quarterly-pay dividend ETFs, but they take different approaches.
PM offers the higher yield at 3.07% 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 PM would produce $25.58/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 PM (simplified, not compounded). Both charge the same expense ratio.
Strategy & risk
KO tracks — with a dividend approach, while PM tracks — using a dividend strategy.
Fund details
KO is managed by — (launched —) with — in assets. PM is managed by — (launched —) with — in assets.
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Frequently asked questions
Is KO or PM better for dividend income?
It depends on your goals. PM 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 PM?
KO (The Coca-Cola Company) tracks — with a dividend strategy, while PM (Philip Morris International Inc.) tracks — with a dividend approach. They are issued by — and — respectively.
Can I hold both KO and PM?
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 PM?
KO has an expense ratio of — while PM charges —. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in KO vs PM generate?
At current rates, $10,000 in KO would generate roughly $20.92 per month ($251.00 annually). The same in PM would produce about $25.58 per month ($307.00 annually).
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KO vs PM — at a glance
Generated April 2026 from current fund data.
Overview
KO and PM are both mature, multinational consumer staple stocks with strong dividend histories. Coca-Cola manufactures and distributes nonalcoholic beverages globally, while Philip Morris makes cigarettes and smoke-free nicotine products. The key distinction is their yield profiles and business exposure: PM offers a 3.74% distribution rate versus KO's 2.71%, but each operates in a fundamentally different regulatory and demand environment.
How they differ
PM yields 103 basis points more than KO (3.74% versus 2.71%), reflecting both higher absolute dividends per share ($1.47 versus $0.53 quarterly) and a lower stock price relative to its payout. The biggest structural difference is regulatory risk: tobacco faces ongoing pricing pressure, litigation exposure, and declining smoking rates in developed markets, while beverage companies contend with sugar taxes and health-conscious consumer shifts. KO trades near its 52-week high ($75.31 versus $82 high), while PM sits well below its range ($157.19 versus $191.30 high), suggesting PM has faced sharper recent headwinds. Both pay quarterly, so distribution frequency is identical.
Who each is best for
KO: Investors seeking steady, modest dividend growth with lower regulatory tail risk and exposure to global consumer staples; suitable for long-term accounts where capital stability matters as much as yield.
PM: Income-focused investors with higher yield targets who accept tobacco sector volatility and regulatory uncertainty; better suited for taxable accounts where the higher current yield may justify the position despite ESG concerns.
Key risks to know
- Tobacco regulation and demand. PM operates in a secular decline industry; plain-packaging laws, advertising bans, and smoking prevalence losses in developed markets create structural headwinds to volume and pricing power.
- Valuation reset. PM's 52-week pulldown (down 18% from highs) may reflect market repricing of yield sustainability if underlying business deteriorates faster than expected.
- Sugar and health scrutiny. KO faces ongoing pressure from sugar taxes, obesity concerns, and category-level volume declines in developed regions, though diversification into juices and water offers some offset.
- Currency exposure. Both derive significant revenue overseas; strengthening US dollar erodes reported earnings and can pressure dividends if not hedged.
- Dividend cut risk (PM elevated). If tobacco's volume declines accelerate, PM's higher payout ratio leaves less cushion to sustain the dividend; KO's lower yield offers more buffer.
Bottom line
If you prioritize stability and lower regulatory risk, KO's modest 2.71% yield comes with a business model less structurally threatened. If you're hunting current income and can tolerate tobacco sector volatility, PM's 3.74% yield compensates—though the recent 18% pullback suggests the market has already priced in meaningful headwinds. Neither is suitable as a set-and-forget holding; both require periodic reassessment of their underlying earnings durability. Past performance does not predict future results.
AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.
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