PEP vs PG: 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 4.34%, PG has the higher dividend-safety score, and PEP trades at the larger discount to fair value (-3%).
| Metric | PEP | PG |
|---|---|---|
| Forward yield | 4.34% | 3.05% |
| Annual dividend | $5.92 | $4.35 |
| Payout ratio | 75% | 64% |
| Years of growth | 53 yr | 42 yr |
| 5-yr dividend growth | 6.9% | 6.0% |
| 5-yr total return | -9% | 4% |
| Dividend safety score | 81 (A) | 90 (A) |
| Fair value estimate | $132.34 | $137.56 |
| Upside to fair value | -3% | -5% |
| Frequency | quarterly | quarterly |
| Market cap | $186.2B | $337.4B |
| P/E ratio | 17.9 | 21.9 |
Higher yield
PEP
4.34%
Safer dividend
PG
Grade A
Faster growth
PEP
6.9%
Better value
PEP
-3% upside
PEP vs PG — FAQ
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