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PepsiCo's Higher Yield vs. Coca-Cola's Stronger Momentum

Guavy AI Editorial Team Published October 1, 2026

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Coca-Cola and PepsiCo are two of the longest-running Dividend Kings, having increased their payouts for over half a century. Coca-Cola has raised its dividend for 64 consecutive years, with a yield of 2.5%, while PepsiCo has done so for 54 years, offering a 4.6% forward dividend yield.

PepsiCo currently offers substantially more income today, but Coca-Cola has stronger dividend coverage and better operating momentum. The beverage giant's volume and margins are growing, with a 6% increase in organic revenue in the latest quarter. In contrast, PepsiCo's North American business has struggled, with a decline of 0.5% in international organic revenue.

The two companies' financials also differ significantly. Coca-Cola has a lower cash dividend payout ratio of 77%, compared to PepsiCo's 84%. However, the IRS dispute that Coca-Cola is facing could create a significant future cash obligation, estimated at around $14 billion.

PepsiCo's Higher Yield vs. Coca-Cola's Stronger Momentum

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