PepsiCo Passes Coke in Dividend Yield

Coca-Cola's stock price has risen to $88 per share, but investors should exercise caution before buying in. The beverage giant's high P/E ratio of 27 is significantly higher than that of its archrival PepsiCo, which has a multiple of 18.

One key reason to consider PepsiCo over Coca-Cola is the former's higher dividend yield, coming in at almost 4.2% compared to Coca-Cola's near 2.4%. Both companies have a long history of annual dividend increases, earning them Dividend King status.

A major factor that may be contributing to Berkshire Hathaway's decision not to buy more Coca-Cola shares is the fact that its purchases stopped in 1994. Despite this, Berkshire will collect $848 million in dividend income from an original $1.3 billion investment made decades ago.