PepsiCo vs. Keurig Dr Pepper: Dividend Safety May Matter More Than Recent Stock Performance

Keurig Dr Pepper shares gained 28.22% over the past year while PepsiCo fell 4.34%, but PepsiCo offers a higher yield and stronger payout coverage. PepsiCo yields 4.49% with 54 straight years of dividend increases, whereas Keurig Dr Pepper's dividend has stayed at $0.23 since 2024. Keurig Dr Pepper also carries about $30 billion in debt and faces a planned 2027 split that could affect dividend continuity.

PepsiCo yields 4.49%, versus 2.98% for Keurig Dr Pepper. PepsiCo has raised its payout for 54 straight years; the latest increase was 4%, lifting the annualized amount from $5.69 to $5.92. Its quarterly payment rose from $0.13 in 1999 to $1.48. Keurig Dr Pepper’s quarterly dividend has stayed $0.23 since 2024, including the October 9, 2026 payout.

PepsiCo’s 2025 operating cash flow was $12.087 billion, capital spending $4.415 billion, and dividends $7.638 billion. Its free cash flow yield of 4.37% slightly exceeds its 4.35% dividend yield. Keurig Dr Pepper has about $30 billion in debt and 4.4x leverage, plus a planned 2027 split. Its trailing EPS of $0.99 barely covers $0.92 in dividends per share.