KO vs PEP: Which Is the Better Dividend Stock?
As of June 2026, KO and PEP are closely matched. PEP offers the higher yield at 4.10%, KO has the higher dividend-safety score, and PEP trades at the larger discount to fair value (-8%).
| Metric | KO | PEP |
|---|---|---|
| Forward yield | 2.57% | 4.10% |
| Annual dividend | $2.12 | $5.92 |
| Payout ratio | 65% | 89% |
| Years of growth | 55 yr | 53 yr |
| 5-yr dividend growth | 4.5% | 6.8% |
| 5-yr total return | 53% | -3% |
| Dividend safety score | 92 (A) | 81 (A) |
| Fair value estimate | $49.24 | $133.05 |
| Upside to fair value | -40% | -8% |
| Frequency | quarterly | quarterly |
| Market cap | $355.5B | $197.2B |
| P/E ratio | 26.0 | 22.6 |
Higher yield
PEP
4.10%
Safer dividend
KO
Grade A
Faster growth
PEP
6.8%
Better value
PEP
-8% upside
KO vs PEP — FAQ
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