COST vs PEP: Which Is the Better Dividend Stock?
As of June 2026, COST and PEP are closely matched. PEP offers the higher yield at 4.10%, COST has the higher dividend-safety score, and PEP trades at the larger discount to fair value (-8%).
| Metric | COST | PEP |
|---|---|---|
| Forward yield | 0.60% | 4.10% |
| Annual dividend | $5.88 | $5.92 |
| Payout ratio | 27% | 89% |
| Years of growth | 21 yr | 53 yr |
| 5-yr dividend growth | 13.2% | 6.8% |
| 5-yr total return | 148% | -3% |
| Dividend safety score | 95 (A) | 81 (A) |
| Fair value estimate | $425.48 | $133.05 |
| Upside to fair value | -57% | -8% |
| Frequency | quarterly | quarterly |
| Market cap | $435.7B | $197.2B |
| P/E ratio | 49.5 | 22.6 |
Higher yield
PEP
4.10%
Safer dividend
COST
Grade A
Faster growth
COST
13.2%
Better value
PEP
-8% upside
COST vs PEP — FAQ
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