Stock 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 August 24, 2026
Best for
- KOInvestors who want direct ownership of the underlying business, with no fund wrapper or management fee.
- PMInvestors who want higher current income (3.07% 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 PM over the trailing twelve months, posting a 32.50% total return against 12.84%. The picture flips over 10 years, though — PM has compounded at 11.91% a year, ahead of KO at 11.03%. KO has been the steadier holding, though — annualized volatility of 16.5% against 24.3% for PM. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | 10Y | Since Mar 2008 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| KO | 33.56% | 32.50% | 18.08% | 13.27% | 11.03% | 9.73% | 16.5% | 0.74 | 1.12 | -15.5% |
| PM | 19.45% | 12.84% | 31.40% | 18.57% | 11.91% | 12.60% | 24.3% | 0.94 | 1.38 | -20.6% |
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 Mar 2008” measures every fund from March 17, 2008 — 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 |  PM |
|---|---|---|
| Full name | The Coca-Cola Company | Philip Morris International Inc. |
| Issuer | — | — |
| Last Close | $91.10 as of August 24, 2026 | $188.23 as of August 24, 2026 |
| Distribution yield | 2.30% | 3.07% |
| 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 and sells cigarettes, smoke-free products, and related electronic devices and accessories worldwide. |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.342 | 0.4 |
| Last dividend | $0.5300 | $1.4700 |
| Ex-dividend date | 09/15/2026 | 06/25/2026 |
Bottom lineChoose KO if you want direct ownership of the underlying business, with no fund wrapper or management fee. Choose PM if you want higher current income (3.07% vs 2.30% for KO).
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Quick verdict
KO (The Coca-Cola Company) and PM (Philip Morris International Inc.) are both quarterly-pay dividend-paying stocks, but they take different approaches.
PM offers the higher yield at 3.07% 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 PM would produce $25.58/month, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
KO is a stock built around beverages exposure, while PM is a stock built around tobacco exposure. Beta is 0.342 for KO and 0.4 for PM, making KO the less volatile of the two by this measure.
Security details
KO (The Coca-Cola Company) is a stock. PM (Philip Morris International Inc.) is a stock.
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Frequently asked questions
What is the current distribution yield for KO and PM?
KO currently distributes 2.30% and PM 3.07%, 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 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) is a stock built around beverages exposure, while PM (Philip Morris International Inc.) is a stock built around tobacco exposure. They are issued by — and — respectively.
Can I hold both KO and PM?
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 PM 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, PM 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 PM generate?
At current rates, $10,000 in KO would generate roughly $19.17 per month ($230.00 annually). The same in PM would produce about $25.58 per month ($307.00 annually).
Which has performed better historically, KO or PM?
KO has outpaced PM over the trailing twelve months, posting a 32.50% total return against 12.84%. The picture flips over 10 years, though — PM has compounded at 11.91% a year, ahead of KO at 11.03%. KO has been the steadier holding, though — annualized volatility of 16.5% against 24.3% for PM. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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KO vs PM — 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 PM are both mature, high-dividend stocks in consumer staples—Coca-Cola in non-alcoholic beverages and Philip Morris in tobacco and smoke-free nicotine products. They're often held side by side in income portfolios, but they differ sharply in yield, business exposure, and regulatory environment. Both pay quarterly dividends and trade with below-market beta, making them defensive plays.
How they differ
PM's distribution rate of 3.16% is 76 basis points higher than KO's 2.40%, reflecting tobacco's more mature, cash-generative profile and a deliberate shift toward returning capital to shareholders. The two stocks have structurally different end-market dynamics: beverages face volume headwinds from changing consumption patterns and health scrutiny, while tobacco faces regulatory risk (excise taxes, packaging rules, advertising bans) offset by pricing power in markets where nicotine demand remains inelastic. PM's beta of 0.4 is slightly higher than KO's 0.342, suggesting modest additional market sensitivity despite tobacco's defensive label. KO has a much longer public history (inception 1962 vs. PM's 2008 spin-off), though both are mature, free-cash-flow-focused businesses.
Who each is best for
KO: Fits investors seeking a lower-yielding but globally diversified consumer staples holding with minimal portfolio volatility and pricing-power optionality as inflation hedges.
PM: Fits investors prioritizing maximum income from a single position within staples, comfortable with regulatory and litigation risk in exchange for higher capital returns and less exposure to volume-driven beverage trends.
Key risks to know
- Regulatory and litigation headwinds on tobacco. PM faces ongoing excise-tax increases, plain-packaging mandates, and litigation costs in jurisdictions worldwide. These can compress margins faster than pricing can offset, particularly if smoke-free product adoption lags guidance. KO's beverage portfolio carries regulatory risk too (sugar taxes, environmental restrictions), but it's less structurally threatened.
- Beverage volume decline and category shift. KO's top-line growth increasingly depends on premium and non-carbonated product mix, as traditional soft-drink volumes decline in developed markets. PM's transition to smoke-free products (heated tobacco, oral nicotine) is underway but not yet proven to offset traditional cigarette margin loss at scale.
- Currency and geopolitical exposure. Both stocks derive substantial revenue internationally, making them sensitive to foreign-exchange headwinds and geopolitical disruption. PM's emerging-market exposure is particularly concentrated in regions with higher political risk.
- Dividend sustainability under margin pressure. Both stocks have used share buybacks and cost discipline to support yields, but sustained operating pressure could eventually force a yield reset downward—a headwind for income investors.
Bottom line
KO offers lower volatility and less regulatory baggage at a modest yield premium to the market; PM offers notably higher income but bundles in tobacco's regulatory and litigation drag. If your priority is ballast with steady, dependable growth, KO's lower yield reflects a simpler risk profile. If you're comfortable with tobacco's regulatory environment in exchange for 76 basis points more yield, PM's capital-return intensity is the trade-off. Past performance doesn't 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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