Dividend comparison
KO vs PEP: Which Is Better for Income?
Fees, yield, total returns, drawdowns, holdings overlap and dividend history for The Coca-Cola Company and PepsiCo, Inc., side by side. Updated October 21, 2026.
KO vs PEP: key differences
The short answer, from the latest data on this page.
- Income. PEP pays more income, yielding 4.35% over the last twelve months versus 2.25% for KO. That is about $210 more a year on $10,000. Both pay quarterly.
- Performance. Over the last 5 years, KO returned 96.9% versus -6.1% for PEP, with dividends reinvested. $10,000 would have grown to $19,695 in KO and $9,390 in PEP.
- Risk. PEP has been the bumpier ride. Its worst peak-to-trough decline over the last 5 years was -31.5%, against -17.3% for KO.
- Dividend growth. PEP grew its yearly payout 7.3% a year over the last 4 years, versus 5.0% for KO.
Bottom line: KO fits better if you care most about stronger 5-year returns and smaller drawdowns. PEP fits better if you care most about more income today and faster dividend growth.
Side-by-side snapshot
Trailing twelve-month figures where available. Higher yield is highlighted — not a buy recommendation.
| Metric | KO The Coca-Cola Company | PEP PepsiCo, Inc. |
|---|---|---|
| Dividend yield (TTM) | 2.25% | 4.35% |
| Dividend / share (TTM) | $2.10 | $5.80 |
| Payout frequency | Quarterly | Quarterly |
| Last dividend | $0.5300 on Oct 1, 2026 | $1.4800 on Sep 30, 2026 |
| Ex-dividend date | Dec 1, 2026 | Sep 4, 2026 |
| Next payment | $0.5300 on Dec 15, 2026 | — |
| Dividend growth (CAGR) | 5.0% over 4 yrs | 7.3% over 4 yrs |
| Price | $93.49 | $134.02 |
| Payout ratio (TTM) | 77.2% | 72.3% |
| Dividend growth streak | 54 years | 52 years |
| Beta | 0.32 | 0.36 |
| Max drawdown (5Y) | -17.3% | -31.5% |
| Market cap | $404.01B | $179.19B |
| Exchange | NYSE | NASDAQ |
Income on a $10,000 investment
Illustrative only — assumes current TTM yield stays constant. Actual distributions change.
KO
$18.73/mo
$225 /yr at 2.25% yield
PEP
$36.22/mo
$435 /yr at 4.35% yield
Dividend history
Total dividends paid per share in each calendar year. KO pays quarterly; PEP pays quarterly.
| Year | KO | PEP |
|---|---|---|
| 2025 | $2.0400 | $5.5550 |
| 2024 | $1.9400 | $5.2400 |
| 2023 | $1.8400 | $4.8300 |
| 2022 | $1.7600 | $4.4500 |
| 2021 | $1.6800 | $4.1950 |
Strategy: Dividend stocks
Individual companies with long records of paying and raising dividends. Comparing two of them comes down to how safe the payout is, measured by the payout ratio and balance sheet, how fast it has grown, and what the business needs to keep earning it. A single stock carries company-specific risk that a fund spreads out.
A single company can cut or suspend its dividend, and one holding can fall far more than a diversified fund.
Performance
Total returns with dividends reinvested, from the adjusted closing price series. $10,000 invested on Oct 20, 2021 would now be worth $19,695 in KO and $9,390 in PEP.
| Period | KO | PEP |
|---|---|---|
| 1 month | 5.94% | 3.29% |
| 3 months | 14.53% | -2.26% |
| Year to date | 36.32% | -6.62% |
| 1 year | 40.23% | -12.77% |
| 3 years | 85.64% | -10.29% |
| 5 years | 96.95% | -6.10% |
- KO
- PEP
Both series indexed to 100 on 2021-10-20 using the adjusted closing price series. Past performance does not guarantee future results.
Quick verdict
KO fits better if you care most about stronger 5-year returns and smaller drawdowns. PEP fits better if you care most about more income today and faster dividend growth. Model the holding inside your real portfolio before deciding.
Still deciding? Compare them in your portfolio
Forecast dividend income, track payouts, and see how KO vs PEP fits with the rest of your holdings. Free to start — no credit card required for the trial.
Frequently asked questions
Is KO or PEP better for dividend income?
It depends on your goals. KO currently yields 2.25% Trailing Twelve Months (TTM) while PEP yields 4.35%. Higher yield means more current income per dollar invested, but may come with different risk, growth, or NAV characteristics. Compare total return and payout sustainability — not just the headline yield.
What is the difference between KO and PEP?
The Coca-Cola Company (KO) is a stock listed on NYSE. PepsiCo, Inc. (PEP) is a stock listed on NASDAQ. Side-by-side metrics on this page cover yield, fees, returns, drawdowns, holdings overlap and dividend history when available.
Which has performed better, KO or PEP?
Over the last 5 years, KO has the higher total return with dividends reinvested: KO returned 96.9% and PEP returned -6.1%. Past performance does not predict future returns.
Which is riskier, KO or PEP?
Measured by the worst peak-to-trough decline over the last five years, PEP has been riskier: KO fell as much as 17.3% and PEP as much as 31.5%. Their betas are 0.32 and 0.36.
How often do KO and PEP pay dividends?
Both pay quarterly. The most recent payments were $0.5300 for KO and $1.4800 for PEP.
How much income does $10,000 in KO vs PEP generate?
At current TTM yields, $10,000 in KO would generate roughly $18.73 per month ($225 annually). The same amount in PEP would produce about $36.22 per month ($435 annually). Actual payouts vary with distribution changes and reinvestment.
Can I hold both KO and PEP?
Yes. Many income investors hold both to diversify strategy or index exposure. Whether the combination actually diversifies depends on overlapping holdings and factor exposure. Model both inside Dividend Wealth to see combined income, sector mix, and forecast impact.
Where can I compare KO vs PEP with my full portfolio?
Create a free Dividend Wealth account to import or enter holdings, forecast dividend income, and see how KO and PEP fit alongside the rest of your portfolio. A 14-day free trial of Standard is available with no credit card required; a limited Free plan is also available.
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For informational and educational purposes only. Not investment advice. Past performance and current yields do not guarantee future results. Verify figures independently before making investment decisions.