Coca-Cola has returned 35% year to date, versus 14% for the S&P 500, its best year since 1996, but the article argues PepsiCo, with a total return of around -3% so far in 2026, has become more attractive on valuation and income. Coca-Cola trades at 29 times earnings compared with PepsiCo's 17, while PepsiCo's dividend yield of 4.2% is higher than Coca-Cola's 2.2%. PepsiCo's revenue growth of 6% in its latest quarter was close to Coca-Cola's 7%, after it cut prices on some items and added healthier ingredients. Both companies hold Dividend King status, with 64 and 54 years of dividend increases respectively, and analysts forecast 4% revenue growth for Coca-Cola in 2026. The author suggests Coca-Cola could struggle to attract additional buyer interest, though its growth is likely enough to keep income-oriented shareholders.
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