Stock Comparison
PEP vs PG: Which Is the Better Pick in 2026?
A head-to-head comparison of PepsiCo, Inc. and The Procter & Gamble Company covering yield, cost, risk, and income potential.
Data updated July 21, 2026
Side-by-side snapshot
| PEP | PG | |
|---|---|---|
| Full name | PepsiCo, Inc. | The Procter & Gamble Company |
| Issuer | — | — |
| Last Close | $135.46 as of July 21, 2026 | $148.10 as of July 21, 2026 |
| Distribution yield | 4.15% | 2.82% |
| Distribution Safety Score™ | 100 | 99 |
| Expense ratio | — | — |
| AUM | — | — |
| Distribution frequency | Quarterly | Quarterly |
| Underlying index | — | — |
| Objective | Manufactures, markets, distributes, and sells beverages and convenient foods worldwide under brands including Pepsi, Lay's, Gatorade, and Quaker. | Provides branded consumer packaged goods including beauty, grooming, health care, fabric care, and home care products worldwide. |
| Asset class | Equity | Equity |
| Inception date | N/A | N/A |
| Beta | 0.368 | 0.38 |
| Last dividend | $1.4800 | $1.0890 |
| Ex-dividend date | 06/05/2026 | 07/24/2026 |
Bottom lineChoose PEP if you want higher current income (4.15% vs 2.82% for PG). Choose PG if you want direct ownership of the underlying business, with no fund wrapper or management fee.
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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
PEP has outpaced PG over the trailing twelve months, posting a -1.65% total return against -2.39%. The picture flips over 10 years, though — PG has compounded at 8.51% a year, ahead of PEP at 5.21%. Figures are total returns: price change plus every distribution reinvested.
| Symbol | YTD | 1Y | 3Y | 5Y | 10Y | Since Jun 1972 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| PEP | -3.91% | -1.65% | -7.70% | 0.16% | 5.21% | 11.50% | 19.9% | -0.63 | -0.87 | -29.2% |
| PG | 5.98% | -2.39% | 1.33% | 3.79% | 8.51% | 10.47% | 17.8% | -0.18 | -0.24 | -21.1% |
Total return with all distributions reinvested on the ex-dividend date, split-adjusted, as of July 21, 2026. YTD and 1Y are cumulative; longer windows are annualized. “Since Jun 1972” measures every fund from June 1, 1972 — 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
PEP (PepsiCo, Inc.) and PG (The Procter & Gamble Company) are both quarterly-pay dividend-paying stocks, but they take different approaches.
PEP offers the higher yield at 4.15% vs 2.82% for PG. 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, PEP would generate roughly $34.58/month, while PG would produce $23.50/month, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
PEP is a stock, while PG is a stock. Beta is 0.368 for PEP and 0.38 for PG, indicating PEP is less volatile relative to the market.
Security details
PEP (PepsiCo, Inc.) is a stock. PG (The Procter & Gamble Company) is a stock.
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Frequently asked questions
Is PEP or PG 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 PEP and PG?
PEP (PepsiCo, Inc.) is a stock, while PG (The Procter & Gamble Company) is a stock. They are issued by — and — respectively.
Can I hold both PEP and PG?
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.
How much income does $10,000 in PEP vs PG generate?
At current rates, $10,000 in PEP would generate roughly $34.58 per month ($415.00 annually). The same in PG would produce about $23.50 per month ($282.00 annually).
Which has performed better historically, PEP or PG?
PEP has outpaced PG over the trailing twelve months, posting a -1.65% total return against -2.39%. The picture flips over 10 years, though — PG has compounded at 8.51% a year, ahead of PEP at 5.21%. Figures are total returns: price change plus every distribution reinvested. Past performance does not guarantee future results.
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PEP vs PG — at a glance
Generated July 2026 from current fund data.
Overview
PepsiCo and Procter & Gamble are both mature consumer staples businesses with long dividend-paying histories and defensive characteristics. PEP generates revenue from beverages and convenient snacks (Pepsi, Lay's, Gatorade, Quaker), while PG derives its from beauty, grooming, health care, and home care products. The key distinction is income yield: PEP offers a 3.99% distribution rate versus PG's 2.85%, reflecting different capital allocation philosophies and payout policies within the same defensive sector.
How they differ
The most obvious gap is PEP's higher yield. At a 3.99% distribution rate compared to PG's 2.85%, PEP returns roughly 40% more to shareholders annually on a per-dollar basis—a meaningful spread for income-focused portfolios. Both stocks have low betas (PEP at 0.368, PG at 0.38), confirming their defensive positioning, though PEP's slightly lower beta suggests it historically moves less with broad market swings. PG has the longer public history, having commenced operations in 1962 versus PEP's 1972, and that longevity is reflected in its broader diversification across beauty, grooming, health care, and home care; PEP leans more heavily on beverage and snack categories, giving it a narrower but arguably more focused product portfolio.
Who each is best for
- PEP: Fits investors seeking a higher current income stream from a consumer staples name with lower market sensitivity. The 3.99% yield appeals to those building a dividend portfolio without accepting high volatility or structural decline risk.
- PG: Designed for investors prioritizing product and geographic diversification within the defensive equity space, even at the cost of a lower yield. The broader portfolio of household and personal care franchises suits those comfortable with a more modest payout in exchange for wider economic resilience.
Key risks to know
- Category concentration (PEP): Beverages and snacks, while resilient, narrow the company's exposure relative to PG's multi-category spread. Shifts in consumer taste—away from sugared drinks, toward premium snacking—pose segment-specific headwinds that PG's more diversified mix helps mitigate.
- Yield sustainability and payout policy: PEP's higher distribution rate leaves less room for organic reinvestment or balance-sheet flexibility if earnings growth slows. A dividend cut, though unlikely in a staple, would hit income portfolios harder at the higher payout level.
- Currency and emerging-market exposure: Both firms derive significant international revenue; PEP's beverage dominance in developing markets means foreign-exchange volatility and EM economic weakness can depress reported earnings more directly than at PG.
- Consumer staples sector rotation: In rising-rate or high-inflation environments, staple dividend stocks often underperform growth or higher-yielding fixed income. Low betas and modest earnings growth rates mean capital appreciation potential is limited if dividend reinvestment falters.
Bottom line
If you prioritize income yield from a defensive equity holding, PEP's 3.99% payout stands out; if you value diversification across product categories and don't need maximum yield, PG's broader portfolio and lower payout offer different risk-return tradeoffs within the same sector. Neither is a growth stock—both are income vehicles in a mature industry—so the choice hinges on whether concentrated exposure to beverages and snacks justifies the extra 114 basis points of yield. Past performance doesn't 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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