KO and PepsiCo, Inc.
PEP are legendary dividend stocks. You can see the full Dividend Aristocrats List here. It has increased its dividend for years in a row. In fact, Coca-Cola has reached an even more exclusive club. You can see the entire list of Dividend Kings here. Coca-Cola and PepsiCo might seem like identical companies since they dominate the global soda industry.
But they are more different than it seems. This article will discuss which of the two soda giants is the better dividend stock to buy today. PepsiCo PepsiCo and Coca-Cola have amassed enormous product portfolios that are loaded with popular brands. The current environment is more difficult for Coca-Cola than for PepsiCo because soda consumption is dropping.
Soda sales have fallen every year in the U. Soda consumption is at a year low. Consumers are taking a negative attitude towards soda because of its calorie and sugar content.
Its organic revenue and adjusted earnings-per-share rose 3. Like Coca-Cola, PepsiCo is also focusing on water, juice, and tea - but it is building up its snacks business as well. PepsiCo considers new product development to be its biggest growth priority moving forward.
Investor Overview Presentationpage 32 Coca-Cola has seen strong results from its stills portfolio. To be sure, Coca-Cola has an iron-clad grip on the soda industry.
Its dominance in soda is indisputable. This made Coca-Cola one of the most rewarding stocks of all time. But it is less of an advantage in The decline in overall soda consumption will probably continue, particularly in developed markets.
Consumers simply are not drinking as much soda as they used to. Changing consumer habits could continue to disproportionately impact Coca-Cola versus PepsiCo.
Analysts expect Coca-Cola to grow earnings-per-share by 2. Meanwhile, PepsiCo is expected to increase earnings-per-share by 8. To be sure, both Coca-Cola and PepsiCo have reached legendary status when it comes to dividends.
Coca-Cola happens to be the most owned dividend growth stock among dividend growth bloggers. And PepsiCo is certainly a worthwhile investment on its own. Whether that persists, however, remains to be seen. Nevertheless, in terms of dividend yield, Coca-Cola has the edge right now.
Final Thoughts Pitting two companies that dominate their industry is no easy task.
Both Coca-Cola and PepsiCo are highly profitable, hold strong brands, and global scale thanks to their world-class distribution. While Coca-Cola has a longer history of dividend increases, PepsiCo could have better dividend growth potential moving forward. Investors who desire higher rates of current income - such as retirees - should pick Coca-Cola, for its significantly higher yield.
That being said, investors with a longer time horizon - such as dividend growth investors - should pick PepsiCo for its stronger growth outlook.
Follow Sure Dividend and get email alerts Your feedback matters to us! Want to share your opinion on this article? Disagree with this article? To report a factual error in this article, click here.Source: CAGNY Presentation, page 15 Pepsi's product portfolio is nearly between food and beverages.
The current environment is more difficult for Coca-Cola than for PepsiCo because soda. We are pleased to introduce the first in a new Brandwatch blog series, pitting brand against brand in a social presence showdown. For our inaugural post, what more appropriate place to begin than with the two most heated rivals in the beverage business: Coca-Cola and PepsiCo.
The comparison chart mocks the ever-changing personality of the Pepsi logo in contrast to Coca-Cola’s stoic script logo, unaffected by the effects of time. The philosophical point it makes is indeed funny and, for the most part, accurate: Coca-Cola has long been the steady brand that triumphs over Pepsi as the latter attempts to gain ground.
Branding is a potent element for a product and between the two brands; Pepsi Cola and Coca Cola; the latter is seen as a more valuable brand (Lubin, ).
It can be deducted that brand knowledge is important for the health of the company. The cola wars are a series of mutually-targeted television advertisements and marketing campaigns since the s between two long-time rival soft drink producers, The Coca-Cola Company and PepsiCo.
The battle between the two dominant brands in the United States intensified to such an extent that the term “Cola wars” was used to describe. Equally, Pepsi bears in mind that Coca Cola tries to be “timeless” so Pepsi goes to be “timely” meaning they would be in the now, being a modern and edgy cola brand (Colom, ).
Therefore, consumers perceive the brand as .