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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 May 20, 2026

Side-by-side snapshot

MDLZPEP
Full nameMondelez International, Inc.PepsiCo, Inc.
Issuer
Last Close$61.64 as of May 20, 2026$149.06 as of May 20, 2026
Distribution yield3.24%3.82%
Expense ratio
AUM
Distribution frequencyQuarterlyQuarterly
Underlying index
ObjectiveManufactures, 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 classEquityEquity
Inception date
Last dividend$0.50$1.42
Ex-dividend date03/31/202603/06/2026

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Key metrics

Projected income on $10K

Projections assume the current yield and share price remain constant. Actual results will vary.

Quick verdict

MDLZ (Mondelez International, Inc.) and PEP (PepsiCo, Inc.) are both quarterly-pay dividend ETFs, but they take different approaches.

PEP offers the higher yield at 3.82% vs 3.24% 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 $27.00/month, while PEP would produce $31.83/month, at current distribution rates. Both pay quarterly distributions.

MDLZ yield3.24%
PEP yield3.82%
Monthly diff on $10K$4.83

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.

MDLZ ER
PEP ER

Strategy & risk

MDLZ tracks — with a dividend approach, while PEP tracks — using a dividend strategy.

Fund details

MDLZ is managed by — (launched —) with — in assets. PEP is managed by — (launched —) with — in assets.

MDLZ AUM
PEP AUM

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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.) tracks — with a dividend strategy, while PEP (PepsiCo, Inc.) tracks — with a dividend approach. 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 $27.00 per month ($324.00 annually). The same in PEP would produce about $31.83 per month ($382.00 annually).

More comparisons to explore

MDLZ vs PEP — at a glance

Generated April 2026 from current fund data.

Overview

MDLZ and PEP are large-cap consumer staples stocks that both generate steady quarterly dividends from global snack and beverage sales. MDLZ is a pure-play snack food company (Oreo, Ritz, Cadbury), while PEP operates a more diversified model combining beverages (Pepsi, Gatorade) with convenient foods (Lay's, Quaker). The key distinction: PEP's dual-category exposure and larger absolute scale versus MDLZ's narrower but faster-growing snacking focus.

How they differ

PEP trades at a valuation premium, with a share price roughly 2.7× that of MDLZ, reflecting its broader geographic reach and beverage platform. The dividend yields are nearly identical—PEP at 3.68% versus MDLZ at 3.53%—but MDLZ has traded in a tighter range over the past 52 weeks ($51.20–$71.15) compared to PEP's wider swing ($127.60–$171.48), suggesting different volatility profiles. PEP's beverage segment provides exposure to soft drinks and sports hydration, historically more recession-resistant than snacks, while MDLZ tilts toward packaged confectionery and savory snacks, categories that have benefited from premiumization and emerging-market growth. Both pay quarterly dividends with modest yield levels typical of mature dividend growers rather than high-yield plays.

Who each is best for

MDLZ: Investors seeking exposure to emerging-market snacking growth and category tailwinds around premium chocolate and salty snacks; lower absolute dollar outlay per share for dollar-cost averaging; those comfortable with higher business concentration in a single product category.

PEP: Dividend growth investors prioritizing diversification across beverages and foods, larger absolute dividend checks per share, and a longer track record as a Dividend Aristocrat; those seeking a ballast holding in a core portfolio.

Key risks to know

  • Category concentration (MDLZ). Confectionery and savory snacks face cyclical headwinds during economic slowdowns and shifting consumer demand toward healthier options; PEP's beverage mix provides a partial hedge against such swings.
  • Emerging-market exposure (MDLZ). Roughly half of MDLZ revenue comes from developing markets, introducing currency translation risk and political/regulatory uncertainty absent in PEP's more developed-market skew.
  • Margin pressure on both. Rising commodity and labor costs can compress profitability faster than price increases stick with retailers, especially in price-sensitive emerging markets.
  • Valuation gap. PEP's premium share price and lower volatility may reflect limited upside if both companies grow earnings at similar rates; MDLZ offers more potential appreciation if snacking accelerates.

Bottom line

Both are quality dividend payers with stable cash flows and quarterly payouts. If you want geographic diversification into faster-growing emerging-market snacking at a lower entry price, MDLZ stands out; if you prioritize a diversified consumer staples platform with beverage stability and a larger absolute yield dollar amount, PEP fits better. Past performance in either category doesn't predict future returns—your choice hinges on whether snacking-only exposure or beverage-plus-snacks balance aligns better with your portfolio needs.

AI-generated analysis for educational purposes only. Verify important details independently; past performance does not guarantee future results.

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