Stock Comparison
PEP vs PG: Two Consumer Companies, Not Two Funds
A head-to-head of PepsiCo and Procter & Gamble covering the businesses, payout schedule, and why they are not interchangeable.
Updated October 16, 2026
How these figures are calculated: methodology.
Best for
- PEPInvestors who want higher current income (4.50% vs 2.73% for PG).
- PGInvestors who want direct ownership of the underlying business, with no fund wrapper or management fee.
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.
PEP has lagged PG over the trailing twelve months, posting a -10.38% total return against 9.65%. The lead holds up over 10 years too: PG has compounded at 8.99% 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 1972 | Volatility | Sharpe | Sortino | Max drawdown |
|---|---|---|---|---|---|---|---|---|---|---|
| PEP | -5.59% | -10.38% | -3.11% | -0.53% | 5.31% | 11.42% | 19.9% | -0.37 | -0.52 | -27.5% |
| PG | 13.67% | 9.65% | 5.69% | 4.64% | 8.99% | 10.59% | 18.0% | 0.08 | 0.10 | -21.1% |
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 1972” measures every fund from June 1, 1972 — 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 |  PEP |  PG |
|---|---|---|
| Full name | PepsiCo, Inc. | The Procter & Gamble Company |
| Issuer | — | — |
| Last Close | $131.49 as of October 16, 2026 | $159.35 as of October 16, 2026 |
| Distribution rate | 4.50% | 2.73% |
| Trailing 12-month yield | 4.42% | 2.69% |
| Distribution Safety Score™ | 98 | 97 |
| Safety-Adjusted Yield | 4.41% | 2.65% |
| 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 | 0.364 | 0.377 |
| Last dividend | $1.48 | $1.0885 declared, pays 11/16/2026 |
| Ex-dividend date | 09/04/2026 | 10/23/2026 upcoming |
Bottom lineChoose PEP if you want higher current income (4.50% vs 2.73% for PG). Choose PG if you want direct ownership of the underlying business, with no fund wrapper or management fee.
PEP vs PG: two consumer companies
Common stocks, not funds. Product mix and payout history matter more than a one-date yield gap.
| PEP | PG | |
|---|---|---|
| What it is | PepsiCo common stock | Procter & Gamble common stock |
| Business | Beverages and snacks | Household and consumer products |
| Distribution rate | 4.50% | 2.73% |
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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 4.50% vs 2.73% 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 $112.50 cash per distribution, while PG would produce $68.25 cash per distribution, at current distribution rates. Both pay quarterly distributions.
Strategy & risk
PEP is a stock built around beverages & snacks exposure, while PG is a stock built around consumer products exposure. Beta is 0.364 for PEP and 0.377 for PG — effectively similar market sensitivity.
Security details
PEP (PepsiCo, Inc.) is a stock. PG (The Procter & Gamble Company) is a stock.
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Frequently asked questions
What is the difference between PEP and PG?
Both are common stocks, not funds. PEP (PepsiCo, Inc.) is a beverages and snacks company. PG (The Procter & Gamble Company) is a household and consumer-products company. Each pays a quarterly dividend — 4.50% versus 2.73% as of October 2026. Neither has a fund expense ratio. A yield gap is not the same as a better business. Compare the product mix and payout history, not two wrappers.
What is the current distribution rate for PEP and PG?
PEP currently distributes 4.50% and PG 2.73%, 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 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.
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.
Is PEP or PG 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, PG 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 PEP vs PG generate?
At current rates, $10,000 in PEP would generate roughly $112.50 cash per distribution ($450.00 annually). The same in PG would produce about $68.25 cash per distribution ($273.00 annually).
Which has performed better historically, PEP or PG?
PEP has lagged PG over the trailing twelve months, posting a -10.38% total return against 9.65%. The lead holds up over 10 years too: PG has compounded at 8.99% 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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PEP vs PG — at a glance
Generated October 17, 2026.
Overview
PepsiCo and Procter & Gamble are two of the largest consumer staples stocks globally, both with decades of dividend-paying history. PEP is centered on beverages and snacks—Pepsi, Lay's, Gatorade, Quaker—while PG spans personal care, home care, and health products across brands like Gillette, Pampers, and Tide. The most obvious distinction is PEP's significantly higher yield paired with lower beta, versus PG's lower yield and nearly identical market sensitivity.
How they differ
PEP offers a 4.50% distribution rate compared to PG's 2.73%, a gap of 177 basis points—the single largest difference between them. The yield gap likely reflects PEP's shorter track record as a public company (inception 06/01/1972 versus 01/02/1962) and potential market perception of growth or capital allocation differences. PEP has a lower beta of 0.364 versus PG's 0.377, suggesting PEP moves slightly less with broad market swings, though both are defensive. At current prices, PEP trades at $131.49 and PG at $159.35, reflecting different valuations within the consumer staples space.
Who each is best for
PEP: Fits investors seeking higher current income from a diversified beverages-and-snacks producer with modest market sensitivity and quarterly payouts.
PG: Fits investors prioritizing lower yield but exposure to a broader portfolio of essential consumer products, with a longer history of dividend stability and similar defensive characteristics.
Key risks to know
- Commodity exposure. Both companies face volatility in input costs (oils, sweeteners, plastics, agricultural materials) that can pressure margins if pricing power lags. PEP's exposure to beverage input costs (sweeteners, carbon dioxide) and snack ingredients adds a specific pricing headwind.
- Consumer demand and currency. Global consumer staples companies are sensitive to shifts in spending patterns and foreign exchange fluctuations. Both generate significant international revenue, so currency depreciation can drag reported earnings.
- Valuation and yield compression risk. At lower yields, PG offers less cushion if interest rates rise or investor demand for dividend stocks cools. PEP's higher yield, while attractive, could erode if the stock reprices downward or dividend growth slows.
- Portfolio concentration. Both stocks occupy the same staples sector and may underperform during periods when investors rotate into cyclicals or growth; their beta figures suggest they are unlikely to provide offsetting volatility across a portfolio.
Bottom line
If you prioritize higher current income and accept similar market sensitivity, PEP stands out with its 4.50% yield. If you value the longest-established dividend history and broader product diversification across personal and home care, PG's lower yield reflects a different valuation and investor preference. Both are defensive names with similar beta profiles; 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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These comparisons follow the Dividend Vision methodology.