ETF 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.
Data updated July 4, 2026
Side-by-side snapshot
| MDLZ | PEP | |
|---|---|---|
| Full name | Mondelez International, Inc. | PepsiCo, Inc. |
| Issuer | — | — |
| Last Close | $60.91 as of July 4, 2026 | $144.22 as of July 4, 2026 |
| Distribution yield | 3.37% | 4.03% |
| Distribution Safety Score | 100 | 100 |
| 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 | 0.4 | 0.359 |
| Last dividend | $0.5000 | $1.4800 |
| Ex-dividend date | 06/30/2026 | 06/05/2026 |
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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
MDLZ has lagged PEP over the trailing twelve months, posting a -9.36% total return against 9.69%. The lead holds up over 10 years too: PEP has compounded at 6.26% a year, against 5.43% for MDLZ. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | 10Y | Since Jun 2001 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| MDLZ | 14.52% | -9.36% | -3.59% | 2.00% | 5.43% | 5.31% | 20.6% | -0.40 | -0.54 | -29.0% |
| PEP | 2.31% | 9.69% | -5.14% | 2.44% | 6.26% | 7.59% | 19.8% | -0.50 | -0.69 | -29.2% |
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 Jun 2001” measures every fund from June 13, 2001 — 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
MDLZ (Mondelez International, Inc.) and PEP (PepsiCo, Inc.) are both quarterly-pay stocks, but they take different approaches.
PEP offers the higher yield at 4.03% vs 3.37% for MDLZ. 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, MDLZ would generate roughly $28.08/month, while PEP would produce $33.58/month, at current distribution rates. Both pay quarterly distributions.
Cost & efficiency
Over 10 years on $10,000, MDLZ would cost approximately $0 in fees vs $0 for PEP (simplified, not compounded). Both charge the same expense ratio.
Strategy & risk
MDLZ is a stock, while PEP is a stock. Beta is 0.4 for MDLZ and 0.359 for PEP, indicating PEP is less volatile relative to the market.
Fund details
MDLZ is managed by — (launched 06/13/2001) with — in assets. PEP is managed by — (launched 06/01/1972) with — in assets.
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Frequently asked questions
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, while PEP (PepsiCo, Inc.) is a stock. They are issued by — and — respectively.
Can I hold both MDLZ and PEP?
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, MDLZ or PEP?
MDLZ has an expense ratio of — while PEP charges —. Lower fees mean more of your investment returns stay in your pocket over time.
How much income does $10,000 in MDLZ vs PEP generate?
At current rates, $10,000 in MDLZ would generate roughly $28.08 per month ($337.00 annually). The same in PEP would produce about $33.58 per month ($403.00 annually).
Which has performed better historically, MDLZ or PEP?
MDLZ has lagged PEP over the trailing twelve months, posting a -9.36% total return against 9.69%. The lead holds up over 10 years too: PEP has compounded at 6.26% a year, against 5.43% for MDLZ. 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 June 2026 from current fund data.
Overview
MDLZ and PEP are both large-cap consumer staples stocks with quarterly dividends, but they serve different parts of the global snacking ecosystem. Mondelez focuses primarily on packaged snacks and confectionery (Oreo, Ritz, Cadbury), while PepsiCo operates a more diversified portfolio spanning beverages, salty snacks, and convenient foods. The key distinction is breadth: PepsiCo's dual exposure to beverages and snacks versus Mondelez's concentrated bet on the snacking category alone.
How they differ
PepsiCo yields 76 basis points more at 4.00% versus MDLZ's 3.24%, reflecting the market's valuation of PepsiCo's larger scale and more defensive beverage segment. MDLZ trades at a lower price point ($61.20 vs. $139.52) and carries a slightly higher beta of 0.4 versus PEP's 0.359, suggesting marginally more price sensitivity to broader market moves—though both are defensive relative to the broader market. The biggest strategic difference is category mix: PepsiCo derives meaningful revenue from beverages (Pepsi, Gatorade) which historically show different margin and volume dynamics than pure snacking, while Mondelez is almost entirely snack-focused and therefore more exposed to shifts in candy and savory-snack demand. Both have been established dividend payers for decades (PEP since 1972, MDLZ since 2001), though PepsiCo's longer public history and larger overall footprint have translated into a premium yield spread.
Who each is best for
MDLZ: Fits investors seeking concentrated exposure to the global packaged-snacking sector with a lower entry price and willingness to accept slightly higher volatility in exchange for a modest yield.
PEP: Fits income-focused investors who value broader diversification within consumer staples (beverages plus snacks) and can justify a higher absolute share price for the defensive characteristics of a beverage-anchored portfolio.
Key risks to know
- Category concentration in MDLZ. Mondelez's reliance on the packaged-snacking market leaves it more exposed to structural shifts in consumer eating habits, sugar-reduction legislation, or category-specific margin pressure than PepsiCo's more balanced beverage-snacks mix.
- Commodity cost exposure. Both firms face fluctuating costs for cocoa, sugar, grains, and oils, but MDLZ's higher proportion of chocolate and confectionery products creates greater exposure to cocoa and sugar price swings.
- Currency headwinds. PepsiCo and Mondelez both operate globally with significant emerging-market revenue; currency devaluation can compress reported earnings and dividend-paying capacity, though MDLZ's outsized international focus may amplify this risk.
- Beverage category transition risk in PEP. While diversification is a strength, PepsiCo's exposure to the contested sugar-sweetened beverage market subjects it to regulatory scrutiny, sugar taxes, and shifting consumer demand toward low-calorie alternatives.
Bottom line
If you prioritize yield and lower price per share, MDLZ offers a tighter entry point with category-specific upside in global snacking; if you value defensive diversification and are willing to pay more for beverage revenue alongside snacks, PEP's 76-basis-point yield advantage and lower beta reflect its broader business stability. Both are low-volatility dividend stocks suitable for patient income strategies, though 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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