Coca-Cola vs. PepsiCo: Dividend Comparison and Market Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: Fool
- Shareholder Returns: Coca-Cola's stock has risen over 16% since the end of 2025, significantly outperforming the S&P 500 and Nasdaq Composite, showcasing its appeal as a stable dividend payer amid market uncertainties.
- Production Model Differences: Coca-Cola primarily outsources its production and distribution, while PepsiCo owns most of its bottling operations, allowing Coca-Cola to maintain higher margins under inflationary pressures, highlighting the advantages of its business model.
- Signs of PepsiCo's Recovery: PepsiCo's first-quarter organic revenue improved by 2.6% year-over-year, with operating income rising by 24%, and earnings per share increasing from $1.33 last year to $1.70 this year, indicating positive changes in its market strategy.
- Dividend Appeal: PepsiCo's forward-looking dividend yield stands at 4.2%, surpassing Coca-Cola's 2.6%, and with 54 consecutive years of dividend increases, it solidifies its status as a Dividend King, enhancing its attractiveness to investors.
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Analyst Views on PEP
Wall Street analysts forecast PEP stock price to rise
12 Analyst Rating
6 Buy
6 Hold
0 Sell
Moderate Buy
Current: 143.290
Low
144.00
Averages
161.90
High
172.00
Current: 143.290
Low
144.00
Averages
161.90
High
172.00
About PEP
PepsiCo, Inc. is a global beverage and convenient food company. The Company’s segments include PepsiCo Foods North America (PFNA), PepsiCo Beverages North America (PBNA), International Beverages Franchise (IB Franchise), Europe, Middle East and Africa (EMEA), Latin America Foods (LatAm Foods), and Asia Pacific Foods. PFNA segment includes all of its convenient food businesses in the United States and Canada. PBNA segment includes all of its beverage businesses in the United States and Canada. IB Franchise segment includes its international franchise beverage businesses, as well as its SodaStream business. EMEA segment includes its convenient food businesses and beverage businesses with Company-owned bottlers in Europe, the Middle East and Africa. LatAm Foods segment includes all of its convenient food businesses in Latin America. Asia Pacific Foods segment consists of its convenient food businesses in Asia Pacific, including China, Australia and New Zealand, as well as India.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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