Stock Comparison
MDLZ vs PEP: Which Is the Better Pick in 2026?
A head-to-head comparison of Mondelez International, Inc. and PepsiCo, Inc. covering yield, cost, risk, and income potential.
Updated October 16, 2026
How these figures are calculated: methodology.
Best for
- MDLZInvestors who want direct ownership of the underlying business, with no fund wrapper or management fee.
- PEPInvestors who want higher current income (4.50% vs 3.25% for MDLZ).
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.
MDLZ has outpaced PEP over the trailing twelve months, posting a 7.44% total return against -10.38%. The lead holds up over 10 years too: MDLZ has compounded at 6.82% 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 2001 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| MDLZ | 21.83% | 7.44% | 3.73% | 4.00% | 6.82% | 5.48% | 20.8% | -0.02 | -0.03 | -29.0% |
| PEP | -5.59% | -10.38% | -3.11% | -0.53% | 5.31% | 7.20% | 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 2001” measures every fund from June 13, 2001 — 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 |  MDLZ |  PEP |
|---|---|---|
| Full name | Mondelez International, Inc. | PepsiCo, Inc. |
| Issuer | — | — |
| Last Close | $63.91 as of October 16, 2026 | $131.49 as of October 16, 2026 |
| Distribution rate | 3.25% | 4.50% |
| Trailing 12-month yield | 3.16% | 4.42% |
| Distribution Safety Score™ | 97 | 98 |
| Safety-Adjusted Yield | 3.15% | 4.41% |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | Manufactures, markets, and sells snack food and beverage products worldwide including Oreo, Ritz, Cadbury, and Toblerone brands. | 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 | 0.391 | 0.364 |
| Last dividend | $0.52 | $1.48 |
| Ex-dividend date | 09/30/2026 | 09/04/2026 |
Bottom lineChoose MDLZ 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 3.25% for MDLZ).
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Quick verdict
MDLZ (Mondelez International, Inc.) 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 3.25% for MDLZ. 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, MDLZ would generate roughly $81.25 cash per distribution, while PEP would produce $112.50 cash per distribution, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
MDLZ is a stock built around snack foods exposure, while PEP is a stock built around beverages & snacks exposure. Beta is 0.391 for MDLZ and 0.364 for PEP — effectively similar market sensitivity.
Security details
MDLZ (Mondelez International, Inc.) is a stock. PEP (PepsiCo, Inc.) is a stock.
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Frequently asked questions
What is the current distribution rate for MDLZ and PEP?
MDLZ currently distributes 3.25% 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 MDLZ 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.
What is the difference between MDLZ and PEP?
MDLZ (Mondelez International, Inc.) is a stock built around snack foods exposure, while PEP (PepsiCo, Inc.) is a stock built around beverages & snacks exposure. They are issued by — and — respectively.
Can I hold both MDLZ 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 MDLZ 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, MDLZ 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 MDLZ vs PEP generate?
At current rates, $10,000 in MDLZ would generate roughly $81.25 cash per distribution ($325.00 annually). The same in PEP would produce about $112.50 cash per distribution ($450.00 annually).
Which has performed better historically, MDLZ or PEP?
MDLZ has outpaced PEP over the trailing twelve months, posting a 7.44% total return against -10.38%. The lead holds up over 10 years too: MDLZ has compounded at 6.82% 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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MDLZ vs PEP — at a glance
Generated October 17, 2026.
Overview
Mondelez (MDLZ) and PepsiCo (PEP) are both large-cap consumer staples stocks with global snack and beverage exposure, but they differ in scale, dividend yield, and strategic focus. Mondelez concentrates primarily on packaged snacks—chocolate, crackers, and confectionery—while PepsiCo operates a more diversified portfolio spanning both beverages (Pepsi, Gatorade) and convenient foods (Lay's, Quaker). The key financial distinction: PEP yields 4.50% versus MDLZ at 3.25%, a spread rooted in different capital allocation strategies and business maturity.
How they differ
PepsiCo carries roughly double the share price of Mondelez ($131.49 vs. $63.91) and has been publicly traded far longer—06/01/1972 versus 06/13/2001—reflecting a larger market footprint and older institutional history. On yield, PEP's 4.50% significantly exceeds MDLZ's 3.25%, a gap that points to PepsiCo's longer track record of dividend growth and higher payout discipline. Operationally, Mondelez derives its earnings almost entirely from snacks, whereas PepsiCo splits revenue between beverages and snacking, giving it different exposure to commodity cycles and distribution channels. Both stocks exhibit defensive characteristics: MDLZ carries a beta of 0.391 and PEP a beta of 0.364, placing both well below the broad market's 1.0 and suggesting lower volatility in downturns.
Who each is best for
- MDLZ: Fits investors seeking pure-play snacking exposure with a lower dividend yield and a smaller entry price point; appeals to those building positions in chocolate and crackers without beverage-sector leverage.
- PEP: Designed for income-focused dividend investors who value a higher current yield, broader product diversification across beverages and snacks, and a multi-decade history of sequential dividend increases.
Key risks to know
- Commodity and input-cost volatility: Both companies face exposure to cocoa, sugar, grain, and packaging costs; inflation in these inputs can compress margins faster than pricing can adjust, and pass-through to consumers risks volume loss.
- Currency headwinds: Mondelez and PepsiCo earn substantial revenue overseas; a stronger dollar reduces the reported value of foreign earnings, a risk that intensified in recent years and may persist.
- Consumer preference shift: Plant-based foods, functional beverages, and reduced-sugar/reduced-sodium trends pose long-term share-loss risks if either company misjudges category migration or stumbles in innovation.
- Dividend sustainability in a recession: While both stocks have defensive beta, a sharp earnings decline could pressure management's ability to sustain or grow dividends without drawing down reserves or cutting investment.
Bottom line
If you prioritize income and broader diversification across beverages and snacks, PEP's 4.50% yield and longer dividend history stand out. If you want snack-only exposure at a lower price with more modest yield, MDLZ fits. Both stocks carry low volatility and commodity/currency risks that warrant monitoring; past performance does not 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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These comparisons follow the Dividend Vision methodology.