COST vs PEP: Which Is the Better Dividend Stock?
As of Nov 5, 2026, COST and PEP are closely matched. PEP offers the higher yield at 4.16%, COST has the higher dividend-safety score, and PEP looks like the better value (its fair-value estimate is 17% below its share price).
Key facts: COST vs PEP
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, PepsiCo, Inc. (PEP) has the higher forward dividend yield at 4.16%, versus 0.56% for Costco Wholesale Corporation (COST).
- As of Nov 5, 2026, SmarterDividends grades COST's dividend safety A (97/100) and PEP's A (84/100).
- By SmarterDividends' count as of Nov 5, 2026, COST has raised its dividend for 21 consecutive years and PEP for 53.
- As of Nov 5, 2026, COST pays out 27% of its earnings as dividends and PEP pays out 73%.
- As of Nov 5, 2026, COST's fair-value estimate is 53% below its share price and PEP's fair-value estimate is 17% below its share price, so PEP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "COST vs PEP: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/cost-vs-pep
| Metric | COST | PEP |
|---|---|---|
| Forward yield | 0.56% | 4.16% |
| Annual dividend | $5.88 | $5.92 |
| Payout ratio | 27% | 73% |
| Years of growth | 21 yr | 53 yr |
| 5-yr dividend growth | 13.0% | 6.9% |
| 5-yr total return | 88% | -14% |
| Dividend safety score | 97 (A) | 84 (A) |
| Fair value estimate | $491.02 | $118.29 |
| Upside to fair value | -53% | -17% |
| Frequency | quarterly | quarterly |
| Market cap | $463.7B | $194.1B |
| P/E ratio | 50.4 | 17.9 |
Higher yield
PEP
4.16%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
PEP
-17% upside
COST vs PEP — FAQ
Is COST or PEP a better dividend stock?
COST and PEP are closely matched. PEP has the higher yield; COST scores better on safety.
Which has a higher dividend yield, COST or PEP?
PEP has the higher forward dividend yield at 4.16%, versus 0.56% for COST.
Is COST or PEP safer?
COST has the higher dividend-safety score (97/100 vs 84/100), reflecting stronger payout coverage and dividend-growth history.
Is COST or PEP better value right now?
As of Nov 5, 2026, PEP looks like the better value: its fair-value estimate is 17% below its share price (overvalued). For COST, its fair-value estimate is 53% below its share price.
See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.