BTI vs KO: Which Is the Better Dividend Stock?
As of Oct 27, 2026, BTI and KO are closely matched. BTI offers the higher yield at 5.56%, KO has the higher dividend-safety score, and BTI looks like the better value (its fair-value estimate is 45% above its share price).
Key facts: BTI vs KO
Data as of · Source: SmarterDividends data
- As of Oct 27, 2026, British American Tobacco p.l.c. (BTI) has the higher forward dividend yield at 5.56%, versus 2.29% for The Coca-Cola Company (KO).
- As of Oct 27, 2026, SmarterDividends grades BTI's dividend safety C (62/100) and KO's A (92/100).
- By SmarterDividends' count as of Oct 27, 2026, BTI has raised its dividend for 2 consecutive years and KO for 55.
- As of Oct 27, 2026, BTI pays out 84% of its earnings as dividends and KO pays out 62%.
- As of Oct 27, 2026, BTI's fair-value estimate is 45% above its share price and KO's fair-value estimate is 49% below its share price, so BTI looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "BTI vs KO: Dividend Yield, Safety & Value Compared," updated Oct 27, 2026, https://smarterdividends.com/compare/bti-vs-ko
| Metric | BTI | KO |
|---|---|---|
| Forward yield | 5.56% | 2.29% |
| Annual dividend | $3.34 | $2.12 |
| Payout ratio | 84% | 62% |
| Years of growth | 2 yr | 55 yr |
| 5-yr dividend growth | 2.0% | 4.5% |
| 5-yr total return | 77% | 77% |
| Dividend safety score | 62 (C) | 92 (A) |
| Fair value estimate | $87.36 | $47.17 |
| Upside to fair value | +45% | -49% |
| Frequency | quarterly | quarterly |
| Market cap | $129.2B | $398.8B |
| P/E ratio | 15.3 | 27.8 |
Higher yield
BTI
5.56%
Safer dividend
KO
Grade A
Faster growth
KO
4.5%
Better value
BTI
+45% upside
BTI vs KO — FAQ
Is BTI or KO a better dividend stock?
BTI and KO are closely matched. BTI has the higher yield; KO scores better on safety.
Which has a higher dividend yield, BTI or KO?
BTI has the higher forward dividend yield at 5.56%, versus 2.29% for KO.
Is BTI or KO safer?
KO has the higher dividend-safety score (92/100 vs 62/100), reflecting stronger payout coverage and dividend-growth history.
Is BTI or KO better value right now?
As of Oct 27, 2026, BTI looks like the better value: its fair-value estimate is 45% above its share price (undervalued). For KO, its fair-value estimate is 49% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.
