Carbonated beverage behemoths Coca-Cola (KO) and PepsiCo (PEP) have been battling for worldwide soda supremacy for over a century. While much smaller than its mega-cap peers, Keurig Dr. Pepper (KDP) is also a formidable challenger in its own right. All three are solid businesses that enjoy durable, widespread demand for their products. Moreover, they all currently trade at attractive valuations and are dividend stocks offering steady returns. I’m bullish on all three, but which stock offers the most fizz for investor portfolios?
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Founded 133 years ago, Coca-Cola is one of America’s most iconic companies. Its brand and product are instantly recognizable in even the most far-flung parts of the world. In addition to its flagship Coca-Cola product and offshoots like Diet Coke and Coke Zero, Coca-Cola boasts many other well-known brands in its portfolio. A few notable examples include Sprite, Fanta, Fairlife, Minute Maid, Topo Chico, Smartwater, and Vitaminwater.
Coca-Cola stock is perhaps most notable for its illustrious dividend history. The company has paid a dividend to its shareholders for an incredible 62 years in a row, and even more impressively, it has grown its dividend payout in each of these 62 years. This type of longevity and consistency makes Coca-Cola a top dividend growth stock. Indeed, Coca-Cola is a Dividend King, an exclusive group of companies that have increased their dividend payouts for at least 50 years. The company recently increased its quarterly dividend payout from $0.49 to $0.51 per share. Based on current quarterly payouts, KO stock currently yields about 2.9%, far higher than the S&P 500’s 1.3%.
Coca-Cola shares are also slightly cheaper than those of the broader market, though not drastically. They currently trade for 24.1x December 2025 earnings estimates, while the S&P 500 trades for 25.8x earnings. Last but not least, Coca-Cola recently reported strong fourth-quarter results in which its organic revenue growth jumped by an impressive 14%. For 2025, Coca-Cola foresees full-year adjusted organic revenue growth of 5-6%, so the stock should keep ticking for current shareholders.
Is Coca-Cola a Buy, Sell, or Hold?
On Wall Street, KO earns a Strong Buy consensus rating based on 17 Buys, one Hold, and zero Sell ratings assigned in the past three months. The average analyst KO stock price target of $75.24 per share implies a 5.2% upside potential from current levels.
Coca-Cola (KO) stock forecast for the next 12 months including a high, average, and low price target
PepsiCo (NYSE:PEP) | Leading Rival Hopes to Shake Off Headwinds
Like its archrival, PepsiCo was founded in the 1890s and has evolved into one of the world’s most recognizable brands. In addition to its nameplate Pepsi brand, Pepsi’s portfolio includes other popular beverages like Gatorade and Mountain Dew. Pepsi also has other diversifiers, including popular snack foods like Doritos, Cheetos, and Lay’s potato chips and breakfast mainstays like Quaker Oats oatmeal and Cap’n Crunch cereal.
While few stocks can beat Coca-Cola on consistent dividend growth, Pepsi is no slouch in this department either. In fact, like Coca-Cola, Pepsi is also a Dividend King. The company has paid and grown its dividend for an impressive 52 years in a row and counting. Furthermore, the company announced a 5% dividend increase this year, which will take effect in June and mark its 53rd consecutive year of boosting its dividend. While Coca-Cola’s track record is a bit longer, these are both incredibly impressive track records of consistent dividend growth.
Pepsi has an edge in dividend yield, yielding 3.5% on a forward basis, beating out both Coca-Cola and the broader market.
PEP Against the Broader Market
Shares of Pepsi are also cheaper than those of the broader market and Coca-Cola, trading at just 18.5x forward earnings estimates. Meanwhile, Pepsi’s stock has been down 4% over the past year, while Coca-Cola’s stock is up 21%, so there is room for Pepsi to narrow the gap with its larger competitor.
During the most recent quarter, Pepsi reported organic revenue growth of just 2.1%, so it is growing slower than Coca-Cola right now. For the year ahead, Pepsi forecasts organic revenue growth in the low single digits, slightly behind Coca-Cola’s forecasts. This is partly because Pepsi has dealt with challenges to its Frito-Lay business in North America over the past year, as many customers seek healthier alternatives to chips and use GLP-1 drugs, which inhibit appetite. Pepsi also voluntarily recalled Quaker products like granola bars and cereals based on potential salmonella concerns.
These headwinds have played a large part in Pepsi’s lackluster revenue growth. However, the Quaker recall is in the rearview mirror, and the company will soon be lapping easy comps from last year when the recall takes effect. Furthermore, I have faith in Pepsi’s ability to overcome the challenges at Frito-Lay; the company already says it is seeking to add healthier snacks and protein drinks to its product mix.
Is PepsiCo a Buy, Hold, or Sell?
On Wall Street, PEP stock has a consensus rating of Moderate Buy based on ten Buy, six Hold, and zero Sell ratings over the past three months. PEP’s average price target of $166 per share implies approximately 6% upside potential over the next twelve months.
PepsiCo (PEP) stock forecast for the next 12 months including a high, average, and low price target
Keurig Dr. Pepper (NASDAQ:KDP) | An Up-and-Comer Worth Tracking
With a market cap of $46.2 billion, Keurig Dr. Pepper is smaller than its two mega-cap rivals, but it’s a mainstay in the consumer staples space nonetheless. The drink has been around since 1885, but the current corporate entity started in 2018, replacing its predecessor, Dr. Pepper Snapple Group, first founded in 2008.
As the company’s current name suggests, it is the parent company of K-cup maker Keurig and the popular Dr. Pepper soft drink and all of its varieties. Other well-known brands under Keurig Dr. Pepper’s umbrella include Snapple, Sunkist and 7-Up.
Keurig Dr. Pepper is a dividend stock that currently yields 2.7% on a forward basis. While this is a decent yield, Keurig Dr. Pepper is the lowest-yielding stock in this comparison. Furthermore, Keurig Dr. Pepper’s dividend does not have the same longevity or growth history as its rivals; the stock has paid a dividend for five years and increased its payout for four years in a row.
From a valuation perspective, Keurig Dr. Pepper trades at 16.8x forward earnings estimates, making it significantly cheaper than Coca-Cola and the broader market and slightly more affordable than Pepsi.
Keurig Dr. Pepper recently reported Q4 earnings, posting solid results, including 5.2% year-over-year revenue growth. KNG’s U.S. net sales increased by an impressive 10.3%, while net sales for its coffee brand fell by 2.4%. The company expects net sales growth to grow in the mid-single-digit range for the year ahead.
Is Keurig Dr. Pepper (KDP) Stock a Buy?
KDP earns a Moderate Buy consensus rating based on nine Buys, seven Holds, and zero Sell ratings assigned in the past three months. The average analyst KDP stock price target of $37.38 implies almost 7% upside potential from current levels.
Keurig Dr Pepper (KDP) stock forecast for the next 12 months including a high, average, and low price target
PepsiCo Takes Center Stage in Resilient Market Sector
In truth, all the firms in this comparison offer something interesting for investors. They have stood the test of time and grown into well-recognized, blue-chip global brands. Moreover, they’re all strong dividend stocks with decades of consistent dividend growth between them. Also, all three are fairly recession-resistant businesses that enjoy durable, habitual demand for their products. These stocks can be a valuable safe haven during market selloffs and help investors weather recessionary environments.
For these reasons, I’m bullish on all three stocks and think they are all strong choices for investors. However, if I had to pick one winner, PepsiCo is the best investment opportunity. Pepsi is growing slower than Coca-Cola and Keurig Dr. Pepper –but — if the company can navigate through its recent issues, there is strong potential for a bullish rally to unwind all the pessimism still lurking among market participants. Year-to-date, Coca-Cola and Keurig Dr. Pepper are up 15% and 10%, respectively, while Pepsi is up just 3%.
Stock price comparison between Coca-Cola (KO), PepsiCo (PEP) and Keurig Dr. Pepper (KDP)
Both Pepsi and Keurig Dr. Pepper are significantly cheaper than Coca-Cola, yet Pepsi yields considerably more than Coca-Cola and Keurig Dr. Pepper as a dividend stock. Meanwhile, Keurig Dr. Pepper is slightly more affordable than Pepsi, but not by a significant margin. Pepsi, with its higher yield and more extended history of dividend growth, is the better pick. I don’t think investors can go wrong with any of these beverage stocks, but Pepsi has the edge based on the confluence of its valuation, yield, and dividend track record.
