PEP vs WMT: Which Is the Better Dividend Stock?
As of Nov 5, 2026, PEP (PepsiCo, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. PEP offers the higher yield at 4.16%, WMT 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: PEP vs WMT
Data as of · Source: SmarterDividends data
- As of Nov 5, 2026, PepsiCo, Inc. (PEP) has the higher forward dividend yield at 4.16%, versus 0.77% for Walmart Inc. (WMT).
- As of Nov 5, 2026, SmarterDividends grades PEP's dividend safety A (84/100) and WMT's A (91/100).
- By SmarterDividends' count as of Nov 5, 2026, PEP has raised its dividend for 53 consecutive years and WMT for 50.
- As of Nov 5, 2026, PEP pays out 73% of its earnings as dividends and WMT pays out 35%.
- As of Nov 5, 2026, PEP's fair-value estimate is 17% below its share price and WMT's fair-value estimate is 55% below its share price, so PEP looks like the better value of the two on SmarterDividends' blended model.
Cite this page
SmarterDividends, "PEP vs WMT: Dividend Yield, Safety & Value Compared," updated Nov 5, 2026, https://smarterdividends.com/compare/pep-vs-wmt
| Metric | PEP | WMT |
|---|---|---|
| Forward yield | 4.16% | 0.77% |
| Annual dividend | $5.92 | $0.99 |
| Payout ratio | 73% | 35% |
| Years of growth | 53 yr | 50 yr |
| 5-yr dividend growth | 6.9% | 5.5% |
| 5-yr total return | -14% | 163% |
| Dividend safety score | 84 (A) | 91 (A) |
| Fair value estimate | $118.29 | $57.65 |
| Upside to fair value | -17% | -55% |
| Frequency | quarterly | quarterly |
| Market cap | $194.1B | $1.0T |
| P/E ratio | 17.9 | 46.8 |
Higher yield
PEP
4.16%
Safer dividend
WMT
Grade A
Faster growth
PEP
6.9%
Better value
PEP
-17% upside
PEP vs WMT — FAQ
Is PEP or WMT a better dividend stock?
On the data, PEP wins more head-to-head categories (5 vs 3). PEP offers the higher yield (4.16%), while WMT has the stronger dividend-safety score. The right pick depends on whether you prioritise income, safety or value.
Which has a higher dividend yield, PEP or WMT?
PEP has the higher forward dividend yield at 4.16%, versus 0.77% for WMT.
Is PEP or WMT safer?
WMT has the higher dividend-safety score (91/100 vs 84/100), reflecting stronger payout coverage and dividend-growth history.
Is PEP or WMT 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 WMT, its fair-value estimate is 55% below its share price.
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See more dividend stock comparisons · data refreshes daily · for informational purposes only, not investment advice.