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 July 4, 2026
Side-by-side snapshot
| KO | PM | |
|---|---|---|
| Full name | The Coca-Cola Company | Philip Morris International Inc. |
| Issuer | — | — |
| Last Close | $84.14 as of July 4, 2026 | $182.27 as of July 4, 2026 |
| Distribution yield | 2.56% | 3.31% |
| Distribution Safety Score | 100 | 100 |
| 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 | 0.354 | 0.408 |
| Last dividend | $0.5300 | $1.4700 |
| Ex-dividend date | 06/15/2026 | 06/25/2026 |
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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.
Total returns
KO has outpaced PM over the trailing twelve months, posting a 20.72% total return against 5.51%. The picture flips over 10 years, though — PM has compounded at 11.32% a year, ahead of KO at 9.80%. KO has been the steadier holding, though — annualized volatility of 15.9% against 23.6% 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 | 23.36% | 20.72% | 14.92% | 12.57% | 9.80% | 9.33% | 15.9% | 0.60 | 0.90 | -16.3% |
| PM | 14.72% | 5.51% | 27.82% | 17.97% | 11.32% | 12.45% | 23.6% | 0.85 | 1.25 | -20.6% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 2, 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.
Quick verdict
KO (The Coca-Cola Company) and PM (Philip Morris International Inc.) are both quarterly-pay stocks, but they take different approaches.
PM offers the higher yield at 3.31% vs 2.56% 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 $21.33/month, while PM would produce $27.58/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 is a stock, while PM is a stock. Beta is 0.354 for KO and 0.408 for PM, indicating KO is less volatile relative to the market.
Fund details
KO is managed by — (launched 01/02/1962) with — in assets. PM is managed by — (launched 03/17/2008) 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) is a stock, while PM (Philip Morris International Inc.) is a stock. 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 $21.33 per month ($256.00 annually). The same in PM would produce about $27.58 per month ($331.00 annually).
Which has performed better historically, KO or PM?
KO has outpaced PM over the trailing twelve months, posting a 20.72% total return against 5.51%. The picture flips over 10 years, though — PM has compounded at 11.32% a year, ahead of KO at 9.80%. KO has been the steadier holding, though — annualized volatility of 15.9% against 23.6% 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 June 2026 from current fund data.
Overview
KO and PM are both mature, dividend-paying industrial stocks—Coca-Cola in beverages and Philip Morris in tobacco. They're often compared as defensive dividend plays because both generate steady cash flow and operate with established brand moats, but they differ fundamentally in their underlying business exposure, regulatory environment, and yield profile. KO distributes at 2.58% while PM yields 3.32%, reflecting both higher cash returns and tighter long-term growth prospects in the tobacco sector.
How they differ
The biggest distinction is business model and regulatory trajectory. KO operates in a growth-adjacent category (nonalcoholic beverages) with minimal existential regulatory threat, while PM operates in a structurally declining market—cigarette volumes fall in developed economies—and faces escalating regulatory pressure including proposed menthol bans and tax increases. That difference shows up in yield: PM's 3.32% distribution rate compensates for slower organic growth, whereas KO's 2.58% reflects confidence in volume expansion and pricing power in emerging markets.
Second, capital allocation philosophy differs. KO has room to reinvest earnings into brand innovation, expansion, and acquisitions while maintaining its dividend; PM's higher payout ratio suggests more cash is returned to shareholders rather than deployed to offset structural volume decline. KO trades at $80.42 with a beta of 0.354; PM at $178.93 with a beta of 0.408—both are defensive, but KO is slightly less volatile to broad market moves.
Third, time horizon and regulatory risk. KO's business model is substantially insulated from the major policy shifts reshaping tobacco—excise taxes, menthol restrictions, and smoking-rate declines are PM's permanent headwind. PM's shift toward smoke-free products (heated tobacco and oral nicotine) is real but unproven at scale and faces ongoing regulatory uncertainty in key markets.
Who each is best for
KO: Investors seeking steady dividend income from a globally diversified beverage platform with pricing power and exposure to emerging-market growth, where regulatory and market headwinds are modest.
PM: Investors comfortable accepting structural revenue decline in exchange for above-average current yield and a business pivoting toward reduced-risk nicotine products, prioritizing cash return over growth.
Key risks to know
- Tobacco regulatory risk (PM): Proposed menthol cigarette bans in the U.S. and other developed markets could eliminate a significant revenue stream. PM has exposure to smoke-free products, but their scale and profitability remain unproven and face their own regulatory uncertainty.
- Emerging-market currency and political exposure (KO): KO derives meaningful revenue from Latin America, Africa, and Asia, where currency devaluation and political instability can erode reported earnings and cash returns without warning.
- Volume decline in core markets (PM): Cigarette consumption in developed economies continues to fall structurally. PM's ability to offset this through smoke-free products and price increases has limits; acceleration of adoption would be required to stabilize revenues.
- Execution risk on product transition (PM): PM's pivot away from cigarettes depends on consumer adoption of heated tobacco and oral nicotine products. If these categories grow more slowly than internal targets or face unexpected regulatory barriers, earnings and dividend coverage could compress.
- Valuation and duration risk (both): Both stocks are valued partly on their dividend yield and relative stability. Rising interest rates or a sustained rotation away from defensive dividend payers could pressure valuations regardless of underlying fundamentals.
Bottom line
KO offers lower yield but stronger long-term growth and minimal regulatory risk; PM offers higher current income but faces structural headwinds and execution risk on its product pivot. If you prioritize stability and global growth, KO's dividend sits on firmer ground; if you can tolerate regulatory and volume risk in exchange for above-average current cash return, PM compensates accordingly. 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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