KO and PEP are the two big soft-drink rivals and both are Dividend Kings. Compare the businesses, snacks vs drinks, and the dividend facts side by side.
Coca-Cola and PepsiCo are the best-known rivals in soft drinks, and both have raised their dividends every year for more than five decades. They look alike from the outside, but the businesses are built differently.
Coca-Cola is almost entirely a beverage company, and mostly sells concentrates and syrups to bottlers. PepsiCo sells drinks too, but a large part of its business is snacks, through Frito-Lay.
Coca-Cola focuses on beverages. PepsiCo combines beverages with snacks (Lay's, Doritos, Cheetos) and foods such as Quaker.
Model
Coca-Cola mainly makes concentrates and syrups and leaves bottling to partners. PepsiCo is more involved in manufacturing and distribution, especially for snacks.
Listing
Coca-Cola trades on the NYSE. PepsiCo trades on the Nasdaq.
History
Coca-Cola was founded in 1892 in Atlanta. PepsiCo's roots date to 1902 and it is headquartered in Harrison, New York.
In common
Both are defensive consumer companies with very long dividend records, global reach and exposure to the same risks: health trends, currencies and input costs.
What to check before choosing
Do you want a pure beverage business, or a mix of drinks and snacks?
How do the current yields, payout ratios and dividend growth compare?
How much consumer staples exposure do you already have?
This is general education, not a recommendation. Fees, yields and prices change, so check current figures with the issuer or your broker.
Frequently asked questions
Which pays a higher dividend, Coca-Cola or PepsiCo?
Both pay moderate yields that change with the share price. Compare the current yield and payout ratio on a quote page.
Are KO and PEP Dividend Kings?
Both have raised their dividends for more than 50 consecutive years, which is the usual Dividend King test.
Should I own both?
They are very similar defensive companies, so owning both adds little diversification.
Learn what dividend payout ratio is, how to calculate it, and how to evaluate if a dividend is safe or risky.
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