Quick wins for a faster PC:
Fix the driver behind crashes, sound loss and screen glitchesFind Drivers →Clear out junk files and repair common Windows errorsFree Scan →Scan for outdated or missing drivers - takes under a minuteDriver Scan →PepsiCo (PEP) offered the higher indicated dividend yield and lower quoted P/E ratios at the October 2, 2026 market close; Coca-Cola (KO) reported faster Q2 organic revenue and comparable EPS growth. Those figures describe different things, not a decisive winner. Coca-Cola is principally a beverage business, while PepsiCo combines beverages with convenient foods, so their growth drivers and risks differ as well.
For income investors, the choice depends on more than the dividend streak or headline yield: consider each company’s business mix, operating results, cash generation, valuation basis, and the risks that could affect future earnings and distributions.
As an Amazon Associate I earn from qualifying purchases.
How the businesses differ
Coca-Cola is beverage-led
The Coca-Cola Company is principally a beverage business, with products sold internationally. Its performance is therefore closely tied to beverage demand, pricing and mix, distribution, and the costs and currency effects associated with a global business.
PepsiCo combines food and beverages
PepsiCo sells beverages as well as convenient foods. Its earnings drivers include snack and food categories that are not part of Coca-Cola’s core business. That broader mix can diversify sources of sales, but it also means the companies are not interchangeable soft-drink producers and should not be assessed as if their operating exposures were identical.
#1 Best Overall
- Coca-Cola Zero Sugar Cherry Float sodas blend bold cherry and creamy vanilla flavors for a new twist on your favorite soft drink
- A zero sugar, zero calorie soda inspired by retro soda fountains, delivering fizzy, flavorful cherry and vanilla goodness
- Decadent yet refreshing, Coca-Cola Zero Sugar Cherry Float is a unique soda experience for fans of cherry cola
- Perfect for creating memorable moments, this zero sugar flavored soda pairs bold, new flavor with the unmistakable Coca-Cola Zero Sugar taste
- 12 pack, 12 fl oz cans of Coca-Cola Zero Sugar Cherry Float soda pop, made to turn ordinary sips into something unforgettable
What their latest reported quarters show
The latest reported periods in the companies’ 2026 releases are not calendar-aligned: Coca-Cola reported the quarter ended July 3, while PepsiCo reported 12 weeks ended June 13. Their organic revenue and EPS measures are company-defined non-GAAP measures, and definitions can differ. The figures below are useful context, not a perfectly like-for-like comparison.
| Measure | Coca-Cola (KO) | PepsiCo (PEP) |
| Period and release | Quarter ended July 3, 2026; released July 28, 2026 | 12 weeks ended June 13, 2026; released July 9, 2026 |
| Revenue | Net revenue grew 7% to $13.4 billion; organic revenue grew 6% (company-defined non-GAAP measure) | Net revenue increased 6.4%; organic revenue increased 2.4% (company-defined non-GAAP measure) |
| Volume | Global unit case volume grew 5% | Not stated in the cited Q2 results on a directly comparable basis |
| EPS | Reported EPS rose 16% to $1.03; comparable EPS rose 11% to $0.97 (non-GAAP) | Reported EPS rose 137%; core EPS rose 4%, or 1% on a core constant-currency basis |
| Other operating detail | Operating income grew 9%; operating margin was 34.9%, versus 34.1% a year earlier | Affirmed fiscal 2026 guidance |
On the cited company releases, Coca-Cola had the faster organic revenue growth and comparable EPS growth. PepsiCo’s 137% reported EPS increase should not be read as a comparable measure of underlying growth: its core EPS rose 4%, and core constant-currency EPS rose 1%. PepsiCo CEO Ramon Laguarta said organic volume had increased year-to-date at the highest rate since 2022; that is management commentary, not an independently measured comparison between the companies.
Rank #2
- Diet Coke is the soda that makes taking a break better
- Cold and crispy with bold flavor that's never boring, Diet Coke soft drinks know how to keep things interesting
- Find some me time with a refreshing Diet Coke
- Reliable, timeless, and always ready when you want it, Diet Coke is a carbonated soft drink with 46mg of caffeine per 12 fl oz serving
- 6 pack, 16.9 fl oz bottles of Diet Coke, a diet soda pop with no calories for all your go-to moments
Cash generation and margin context
Coca-Cola reported year-to-date operating cash flow of $7.5 billion and free cash flow of $6.9 billion, the latter a non-GAAP measure. Its Q2 release attributed comparable margin improvement to organic revenue growth, lower operating expenses, and currency tailwinds, partly offset by higher input costs and increased marketing investment. These details help explain the reported quarter, but do not establish full-year 2026 results or a directly comparable cash-flow advantage over PepsiCo.
Dividends: streaks, amounts, and indicated yields
| Dividend measure | Coca-Cola | PepsiCo |
| Annualized dividend per share | $2.12 for 2026, up from $2.04 for 2025; the board approved a $0.53 quarterly rate in February 2026 | $5.92, up 4% from $5.69; announced February 3, 2026, effective with the dividend expected in June 2026 |
| Increase history stated by company | 64 consecutive annual increases, as reported in its FY2025 Form 10-K | 54 consecutive annual increases, as reported in its 2025 annual report |
| Indicated annual yield at October 2, 2026 close | 2.48% | 4.70% |
The yield figures are StockAnalysis market snapshots calculated against share prices at the October 2, 2026 close: KO was $85.65 and PEP was $125.89. They are price-sensitive indications, not guaranteed returns. The per-share dividend alone cannot tell you which stock offers more income relative to its purchase price.
Rank #3
- Enjoy the crisp and refreshing taste of Coca-Cola Cherry soft drink, the iconic soda that refreshes taste buds
- Crisp, bubbly, and endlessly refreshing, this sparkling soda pop delivers bold cherry cola flavor that's always just right
- Perfect for BBQs, pizza nights, or kicking back with friends, Cherry Coke is the fizzy drink that fits every occasion
- A carbonated caffeine drink to enjoy chilled for maximum refreshment
- 12 fl oz cans of Coca-Cola Cherry soda, a soft drink crafted for celebrations, family dinners, and any moment you want to bring people together
At its July 2026 board meeting, Coca-Cola approved another $0.53 quarterly payment, payable October 1 to holders of record September 15. PepsiCo’s February announcement also outlined a then-current plan for approximately $7.9 billion in 2026 dividends and approximately $1.0 billion in repurchases, about $8.9 billion in total shareholder returns. That was a company plan, not a guarantee of final distributions.
A long record of annual increases is relevant to an income investor, but it does not guarantee future increases or show by itself whether a dividend is covered comfortably. The cited figures do not provide a consistent payout-ratio comparison. To assess coverage, compare dividends with earnings and cash flow using the same period and accounting basis, and account for the businesses’ future investment needs.
Rank #4
- Enjoy the crisp and refreshing taste of Coca-Cola Vanilla soft drink, the iconic soda that refreshes taste buds
- Crisp, bubbly, and endlessly refreshing, this sparkling soda pop delivers bold vanilla cola flavor that's always just right
- Perfect for summer hangouts, snack and meal pairings, or sharing with friends, Coke Vanilla is the fizzy drink that fits every occasion
- A carbonated caffeine drink to enjoy chilled for maximum refreshment
- 12 pack, 12 fl oz cans of Coca-Cola Vanilla soda, a soft drink crafted for celebrations, family dinners, and any moment you want to bring people together
Valuation: what the October 2 snapshot does and does not say
| StockAnalysis measure at October 2, 2026 close | KO | PEP |
| Trailing P/E | 25.74 | 16.50 |
| Forward P/E | 25.20 | 14.51 |
At that snapshot, PepsiCo had lower quoted trailing and forward earnings multiples as well as the higher indicated yield. Coca-Cola, meanwhile, had the faster organic revenue and comparable EPS growth in the cited Q2 releases. These observations do not establish which stock is undervalued: P/E compares share price with earnings, not business quality or future returns, and forward P/E depends on estimates that can change.
A lower multiple can reflect different expectations, risks, or business characteristics; it is not proof of a bargain. Likewise, a higher yield can result from a lower share price and does not establish that the dividend is safer. An intrinsic-value judgment would require explicit assumptions about future earnings or cash flows, growth, and risk. No personalized fair value follows from these snapshot ratios.
Best Value
- Coca-Cola Cherry Float sodas blend bold cherry and creamy vanilla flavors for a new twist on your favorite soft drink
- A soda inspired by retro soda fountains, delivering fizzy, flavorful cherry and vanilla goodness
- Delicious yet refreshing, Coca-Cola Cherry Float is a unique soda experience for fans of cherry cola
- Perfect for creating memorable moments, this flavored soda pairs bold, new flavor with unmistakable Coca-Cola taste
- 12 pack of 12 fl oz cans of Coca-Cola Cherry Float soda pop, made to turn ordinary sips into something unforgettable
Risks that can affect dividends and valuation
Both companies identify exposure to economic conditions, inflation and input costs, foreign-exchange movements, competition, regulation, and geopolitical or country-level developments in their company disclosures. A consumer-staples label does not remove these risks or guarantee stable demand, margins, or share prices.
Coca-Cola-specific exposures
Coca-Cola’s disclosures include health-related concerns about obesity and chronic disease, currency and political risks across international markets, trade and tariff effects, and its ongoing U.S. tax dispute. These are risks the company identifies, not predictions that any one event will occur.
PepsiCo-specific exposures
PepsiCo emphasizes economic and geopolitical instability in markets where it operates, alongside risks across its food-and-beverage operations. Its broader product mix means investors should consider food-category exposures as well as beverage risks when evaluating the business.
Recommended Free Tools
A practical way to compare KO and PEP
- Decide what business exposure you want. Compare a beverage-led company with a food-and-beverage company; do not assume the portfolios will respond identically to changes in demand or costs.
- Compare dividend income on the same date. Use the annualized dividend per share and share price together, and treat yield as a moving snapshot rather than a promised return.
- Check the dividend against financial capacity. Look at earnings and cash generation over consistent periods and on clearly stated measures. A dividend-growth streak is useful history, not proof of future coverage.
- Separate reported results from adjusted results. For the cited Q2 releases, keep reported EPS distinct from comparable or core EPS, and note that company-defined non-GAAP measures may not match across issuers.
- Read valuation ratios as dated estimates. Record the date and whether a P/E is trailing or forward; forward figures depend on forecasts. Do not use a lower P/E or higher yield as a standalone buy signal.
- Review company disclosures and update the numbers. Prices and valuation ratios move, dividend declarations can change, and the Q2 2026 reports do not establish full-year 2026 performance.
Coca-Cola CEO Henrique Braun said in the company’s July 28, 2026 Q2 release: “We delivered another strong quarter by staying close to the changing needs of our consumers and customers.” This is management’s characterization of the quarter, not an independent assessment.
Quick Recap
Product prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on Amazon at the time of purchase will apply.
