PepsiCo (PEP) and Coca-Cola (KO) are both Dividend Kings, companies that have raised dividends for at least 50 consecutive years. As of Oct. 8, PepsiCo's forward dividend yield was about 4.7% versus 2.4% for Coca-Cola, and PepsiCo's dividend grew faster over five years (about 7% a year vs. 4.5%). Coca-Cola trades at about 26 times trailing earnings versus about 16 for PepsiCo, which the article attributes to Coca-Cola's stronger volume growth: 3% in Q1 2026 and 5% in Q2, with its full-year adjusted earnings growth outlook raised to 9%–10%. PepsiCo lowered its Q4 core constant-currency EPS growth guidance to 1%–2% from 4%–6%, citing cost inflation that is hurting margins. Coca-Cola stock is up 26% year to date versus a 12% decline for PepsiCo, and the article argues the valuation gap is justified by Coca-Cola's stronger sales growth in a challenging economy.
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