A great comparison of $KO and $PEP. Which food dividend giant to choose?
Coca-Cola and PepsiCo are among the world's largest beverage producers and are both known for their long history of paying stable and gradually increasing dividends. Both companies are considered dividend aristocrats with more than five decades of dividend growth paid out. But can a clear winner be picked?
Despite their many similarities, they differ in several key ways that may affect their ability to generate long-term dividend growth and, therefore, their attractiveness to investors seeking a stable dividend yield. What are these key differences?
Product portfolio - Coca-Cola $KO focuses only on beverages, while PepsiCo $PEP offers a broader mix of beverages and food, which affects their growth opportunities.
Dividend growth rate - Coca-Cola has been increasing its dividend for a longer period of time, signaling the stability of its dividend policy.
Profitability and financial position - Coca-Cola has higher profitability and lower debt,…
I've also dealt with this dilemma in the past. I took both just to be sure. But they were also both at slightly different prices 😉
Investment-wise, I guess I'm as pro-Pepsi as a man is pro-Coke 😀
The simple solution here is that the investor just buys both companies, but I only have $KO. I think it's the leader in the industry and it's the biggest. I don't like $PEP that much and I don't really like it when it comes down to it...
Thanks for the article, these are companies I have been following for a long time and waiting for their stock to drop.
I have both 🤷♂️