KO vs PEP: Which Is the Better Dividend Stock?
As of Oct 24, 2026, KO and PEP are closely matched. PEP offers the higher yield at 4.36%, KO has the higher dividend-safety score, and PEP looks like the better value (its fair-value estimate is 15% below its share price).
Key facts: KO vs PEP
Data as of · Source: SmarterDividends data
- As of Oct 24, 2026, PepsiCo, Inc. (PEP) has the higher forward dividend yield at 4.36%, versus 2.29% for The Coca-Cola Company (KO).
- As of Oct 24, 2026, SmarterDividends grades KO's dividend safety A (92/100) and PEP's A (84/100).
- By SmarterDividends' count as of Oct 24, 2026, KO has raised its dividend for 55 consecutive years and PEP for 53.
- As of Oct 24, 2026, KO pays out 62% of its earnings as dividends and PEP pays out 73%.
- As of Oct 24, 2026, KO's fair-value estimate is 49% below its share price and PEP's fair-value estimate is 15% below its share price, so PEP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "KO vs PEP: Dividend Yield, Safety & Value Compared," updated Oct 24, 2026, https://smarterdividends.com/compare/ko-vs-pep
| Metric | KO | PEP |
|---|---|---|
| Forward yield | 2.29% | 4.36% |
| Annual dividend | $2.12 | $5.92 |
| Payout ratio | 62% | 73% |
| Years of growth | 55 yr | 53 yr |
| 5-yr dividend growth | 4.5% | 6.9% |
| 5-yr total return | 77% | -15% |
| Dividend safety score | 92 (A) | 84 (A) |
| Fair value estimate | $47.18 | $115.89 |
| Upside to fair value | -49% | -15% |
| Frequency | quarterly | quarterly |
| Market cap | $398.9B | $185.0B |
| P/E ratio | 27.8 | 17.1 |
Higher yield
PEP
4.36%
Safer dividend
KO
Grade A
Faster growth
PEP
6.9%
Better value
PEP
-15% upside
KO vs PEP — FAQ
Is KO or PEP a better dividend stock?
KO and PEP are closely matched. PEP has the higher yield; KO scores better on safety.
Which has a higher dividend yield, KO or PEP?
PEP has the higher forward dividend yield at 4.36%, versus 2.29% for KO.
Is KO or PEP safer?
KO has the higher dividend-safety score (92/100 vs 84/100), reflecting stronger payout coverage and dividend-growth history.
Is KO or PEP better value right now?
As of Oct 24, 2026, PEP looks like the better value: its fair-value estimate is 15% below its share price (fairly valued). 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.