COST vs PEP: Which Is the Better Dividend Stock?
As of September 2026, COST and PEP are closely matched. PEP offers the higher yield at 4.34%, COST has the higher dividend-safety score, and PEP trades at the larger discount to fair value (-3%).
| Metric | COST | PEP |
|---|---|---|
| Forward yield | 0.65% | 4.34% |
| 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 | 101% | -9% |
| Dividend safety score | 95 (A) | 81 (A) |
| Fair value estimate | $426.55 | $132.34 |
| Upside to fair value | -53% | -3% |
| Frequency | quarterly | quarterly |
| Market cap | $401.2B | $186.2B |
| P/E ratio | 45.5 | 17.9 |
Higher yield
PEP
4.34%
Safer dividend
COST
Grade A
Faster growth
COST
13.0%
Better value
PEP
-3% upside
COST vs PEP — FAQ
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