Coke vs Pepsi: Which Dividend Is Actually Safer?

2 hours ago 1

Trey Thoelcke

Tue, March 10, 2026 astatine 8:25 AM CDT 4 min read

Coca-Cola (KO) has 64 years of increases, 2.6% yield, and 72% guardant FCF payout ratio. PepsiCo (PEP) has 54 years, 3.5% yield, and 98% FCF payout with $7.67B FCF hardly covering $7.64B successful dividends.
Coca-Cola’s improving FCF guidance rebuilds dividend sum aft distorted 2025 results, portion PepsiCo’s near-zero FCF borderline leaves nary buffer for further net oregon measurement pressure.
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Coca-Cola (NYSE: KO) and PepsiCo (NASDAQ: PEP) are some Dividend Kings, but "reliable" is not the aforesaid arsenic "equally safe." Here is what the numbers show.

Coca-Cola sells beverages successful astir each country, generating $47.9 cardinal successful FY2025 gross from brands similar Coca-Cola Zero Sugar, Sprite, fairlife, and Powerade. The dividend streak stands astatine 64 consecutive yearly increases. The existent quarterly outgo is $0.53 per share, with the ex-dividend day acceptable for March 13, 2026.

Metric

Value

Annual Dividend	$2.06 per share
Dividend Yield	2.6%
Consecutive Increases	64 years
Dividend King	Yes
FY2025 EPS	$3.04
Earnings Payout Ratio	67%

The 67% net payout ratio looks healthy, but currency travel is much complicated. Coca-Cola paid $8.8 cardinal successful dividends successful FY2025 against $7.4 cardinal successful operating currency travel and $5.3 cardinal successful reported escaped currency flow. The reported FCF was depressed by a one-time fairlife contingent information payment. Management guided FY2026 escaped currency travel of astir $12.2 billion, putting the guardant FCF payout ratio astatine astir 72%—manageable, and the 2025 figures are distorted. The equilibrium expanse carries $10.3 cardinal successful currency and $32.2 cardinal successful shareholders' equity against $70.5 cardinal successful full liabilities.

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CEO James Quincey said connected the Q4 2025 net call: "I'm encouraged by our show successful 2025 which showed some the resilience and momentum that specify our business." The 2026 guidance for 7% to 8% comparable EPS maturation disconnected a $3.00 basal suggests the dividend cushion volition rebuild this year.

Multiple executives sold Coca-Cola shares successful precocious February and aboriginal March 2026 astatine prices betwixt $77 and $80.75, though concurrent equity grants suggest regular tax-driven rebalancing alternatively than a nonaccomplishment of confidence.

PepsiCo combines beverages with Frito-Lay snacks and Quaker foods. FY2025 gross came successful astatine $93.9 billion, but it was a hard year: operating income fell 19.6% and nett income dropped 14%, driven by a $1.993 cardinal Rockstar marque impairment and restructuring charges.

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