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.
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.
- PMInvestors who want higher current income (3.12% 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 PM over the trailing twelve months, posting a 42.62% total return against 36.21%. The picture flips over 10 years, though — PM has compounded at 13.34% a year, ahead of KO at 11.87%. KO has been the steadier holding, though — annualized volatility of 16.3% against 24.6% for PM. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD cumulative | 1Y cumulative | 3Y annualized | 5Y annualized | 10Y annualized | Since Mar 2008 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| KO | 36.92% | 42.62% | 24.19% | 14.81% | 11.87% | 9.86% | 16.3% | 1.08 | 1.69 | -15.5% |
| PM | 31.26% | 36.21% | 35.57% | 21.28% | 13.34% | 13.06% | 24.6% | 1.07 | 1.58 | -20.6% |
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 Mar 2008” measures every fund from March 17, 2008 — 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 |  PM |
|---|---|---|
| Full name | The Coca-Cola Company | Philip Morris International Inc. |
| Issuer | — | — |
| Last Close | $93.90 as of October 16, 2026 | $205.20 as of October 16, 2026 |
| Distribution rate | 2.26% | 3.12% |
| Trailing 12-month yield | 2.24% | 2.93% |
| Distribution Safety Score™ | 97 | 97 |
| Safety-Adjusted Yield | 2.19% | 3.03% |
| 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 | 0.318 | 0.36 |
| Last dividend | $0.53 | $1.60 declared, pays 10/26/2026 |
| Ex-dividend date | 09/15/2026 | 10/02/2026 |
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 (3.12% vs 2.26% 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 3.12% 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 PM would produce $78.00 cash per distribution, 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 0.318 for KO and 0.36 for PM — effectively similar market sensitivity.
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 rate for KO and PM?
KO currently distributes 2.26% and PM 3.12%, 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 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 97, PM 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 PM generate?
At current rates, $10,000 in KO would generate roughly $56.50 cash per distribution ($226.00 annually). The same in PM would produce about $78.00 cash per distribution ($312.00 annually).
Which has performed better historically, KO or PM?
KO has outpaced PM over the trailing twelve months, posting a 42.62% total return against 36.21%. The picture flips over 10 years, though — PM has compounded at 13.34% a year, ahead of KO at 11.87%. KO has been the steadier holding, though — annualized volatility of 16.3% against 24.6% 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 October 17, 2026.
Overview
KO and PM are both established dividend-paying stocks in the consumer staples sector, but they serve fundamentally different product categories and investor risk profiles. Coca-Cola manufactures nonalcoholic beverages with global reach and a 60-year trading history, while Philip Morris International produces tobacco and emerging smoke-free products and has traded publicly since 2008. The key distinction is yield and volatility: PM offers a meaningfully higher distribution rate, while KO demonstrates lower systematic risk and longer operational tenure.
How they differ
PM yields 3.12% versus 2.26% for KO—a difference of nearly 90 basis points that reflects PM's capital return strategy and the tobacco industry's cash-generation profile. KO carries a beta of 0.318, indicating lower sensitivity to broad market swings, while PM's beta of 0.36 suggests slightly more volatility relative to the overall market, though both remain defensive relative to equities broadly. The companies operate in structurally different industries: Coca-Cola's beverage franchise faces secular pressures from health-conscious consumers and shifting drinking habits, whereas Philip Morris is navigating cigarette volume declines offset by pricing power and a transition toward reduced-risk products. Both pay dividends quarterly and trade at liquid prices; KO closed at $93.90 and PM at $205.20.
Who each is best for
KO: Fits investors seeking stable, long-term capital appreciation paired with modest current income, and who value exposure to a globally recognized brand with pricing power and a deep operational history across economic cycles.
PM: Fits income-focused investors willing to accept exposure to regulatory and litigation risk in exchange for a higher distribution yield and the cash returns characteristic of mature tobacco businesses.
Key risks to know
- Regulatory and litigation exposure (PM): Tobacco faces ongoing regulatory restrictions, excise tax increases, and litigation risk that could pressure pricing power and market access. Coca-Cola faces no comparable regulatory overhang, though it navigates sugar taxes and health-conscious consumer trends.
- Secular demand headwinds: PM's core cigarette business faces structural volume declines as smoking rates fall globally and regulation tightens, despite pricing offsets. KO encounters shifting consumer preferences toward healthier beverages, though its portfolio diversity (juices, water, coffee, tea) provides broader hedges.
- Valuation and yield sustainability: PM's higher yield (3.12%) leaves less margin for earnings disappointment or balance-sheet pressure. KO's lower yield (2.26%) offers greater cushion but implies slower current income growth.
- Market sensitivity: Although both betas are low, PM's 0.36 beta reflects greater sensitivity to equity market swings and sector rotation than KO's 0.318, which may matter during risk-off environments.
Bottom line
If you prioritize capital stability and low volatility within dividend stocks, KO's defensive characteristics and lower beta stand out. If you're chasing current income and can tolerate regulatory and structural industry headwinds, PM's yield premium may appeal. Both are mature, cash-generative businesses; the choice hinges on whether you weight stability or income more heavily. 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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The metrics behind this comparison, explained in the Academy.
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These comparisons follow the Dividend Vision methodology.