PEP vs WMT: Which Is the Better Dividend Stock?
As of September 2026, PEP (PepsiCo, Inc.) screens as the stronger dividend stock, winning 5 of 8 head-to-head metrics. PEP offers the higher yield at 4.56%, WMT has the higher dividend-safety score, and PEP trades at the larger discount to fair value (+2%).
| Metric | PEP | WMT |
|---|---|---|
| Forward yield | 4.56% | 0.93% |
| Annual dividend | $5.92 | $0.99 |
| Payout ratio | 75% | 35% |
| Years of growth | 53 yr | 50 yr |
| 5-yr dividend growth | 6.9% | 5.5% |
| 5-yr total return | -20% | 114% |
| Dividend safety score | 81 (A) | 91 (A) |
| Fair value estimate | $132.34 | $62.79 |
| Upside to fair value | +2% | -41% |
| Frequency | quarterly | quarterly |
| Market cap | $177.2B | $846.8B |
| P/E ratio | 17.0 | 38.7 |
Higher yield
PEP
4.56%
Safer dividend
WMT
Grade A
Faster growth
PEP
6.9%
Better value
PEP
+2% upside
PEP vs WMT — FAQ
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