PEP — Buy · Quality A+
| Metric | KO | PEP | Advantage |
|---|---|---|---|
| Current Yield | 2.58% | 3.40% | PEP |
| Annual Dividend | $2.04 | $5.69 | — |
| Income per $10,000 Invested | $258 / yr | $340 / yr | PEP +32% |
| Yield vs 5Y Average | 2.58% vs 3.73% | 3.40% vs 3.51% | PEP |
| Yield Zone | SELL | BUY | PEP |
| Metric | KO | PEP | Advantage |
|---|---|---|---|
| Quality Rating | D | A+ | PEP |
| Consecutive Dividend Years | 64 years | 54 years | KO |
| Dividend Increases (12Y) | 11 | 11 | Draw |
| EPS Increases (12Y) | 5 of 12 | 6 of 12 | PEP |
| Institutional Holders | 661 | 794 | PEP |
| Dividend Cuts (12Y) | None | None | Draw |
| Metric | KO | PEP | Advantage |
|---|---|---|---|
| P/E Ratio | 26.0x | 27.9x | KO |
| EV/EBITDA | 23.2x | 15.0x | PEP |
| Price-to-Book | 10.56x | 11.20x | KO |
| Price-to-FCF | N/A | 27.8x | PEP |
| Category | KO Wins | PEP Wins | Draw |
|---|---|---|---|
| Income & Yield (5 metrics) | 0 | 4 | 1 |
| Quality & Reliability (6 metrics) | 1 | 3 | 2 |
| Valuation (4 metrics) | 2 | 2 | 0 |
| TOTAL (15 metrics) | 3 | 9 | 3 |
See How This Compounds Over Time
Use our Compare Calculator to project how the yield, growth, and dividend differences between KO and PEP play out over 10, 20, or 30 years.
Bottom Line
PEP wins 9 out of 15 metrics vs KO’s 3. The only areas where KO leads are P/E ratio, price-to-book, and its longer dividend streak — all marginal advantages. PEP dominates on the metrics that matter most to dividend investors: higher current income (+32%), superior quality (A+ vs D), better enterprise valuation (EV/EBITDA 15x vs 23x), and a BUY signal vs SELL.
The primary cost of switching is the potential tax event on any KO capital gains. If KO is held at a loss or in a tax-advantaged account, the switch becomes even more compelling. The only reason to hold KO is a strong conviction that the price will decline ~31% to reach fair value — which would itself mean significant capital loss while waiting.
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