COST vs PEP: Which Is the Better Dividend Stock?
As of July 2026, COST and PEP are closely matched. PEP offers the higher yield at 4.14%, COST has the higher dividend-safety score, and PEP trades at the larger discount to fair value (-3%).
| Metric | COST | PEP |
|---|---|---|
| Forward yield | 0.61% | 4.14% |
| Annual dividend | $5.88 | $5.92 |
| Payout ratio | 27% | 75% |
| Years of growth | 21 yr | 53 yr |
| 5-yr dividend growth | 13.0% | 6.9% |
| 5-yr total return | 105% | -13% |
| Dividend safety score | 95 (A) | 81 (A) |
| Fair value estimate | $423.64 | $131.96 |
| Upside to fair value | -55% | -3% |
| Frequency | quarterly | quarterly |
| Market cap | $432.0B | $196.0B |
| P/E ratio | 48.5 | 18.7 |
Higher yield
PEP
4.14%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
PEP
-3% upside
COST vs PEP — FAQ
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