Pepsi vs Coca-Cola Stock: Cramer Declares A Winner As Pepsi’s Dividend Hits 4%

Pepsi vs Coca-Cola Stock: Cramer Declares A Winner As Pepsi’s Dividend Hits 4% AJ Tiarsmith Wed, September 9, 2026 at 3:40 PM GMT+2 4 min read PEP KO Quick Read Cramer picks PEP over KO, citing its 4% yield and cheaper P/E of 23 versus Coca-Cola's 29 after five years of stark underperformance. PepsiCo extended its dividend growth streak to 54 consecutive annual increases, backed by a $10 billion buyback authorization through 2030. Just released.

Our analysts combed the entire stock market and named the ten best stocks to buy right now, and Coca-Cola made the cut. Enter your email to see the other nine names and why KO earned its spot. The report is free.

Enter your email and see the full list. PepsiCo kicked off its 26th NFL season campaign, "Tailgating Deserves Pepsi," featuring Pro Football Hall of Famer Jerome Bettis as the "Pepsi gameday ref" alongside Justin Jefferson, complete with a free Pepsi Zero Sugar 12-pack offer running September 9 through September 14, or until 5,000 redemptions are reached. The gameday marketing machine is humming.

The stock, less so. Popartic / iStock Editorial via Images Cramer's Accidentally High Yield Thesis PepsiCo ( NASDAQ:PEP ) trades at $138. 44, down 0.

6% year to date and up just 4. 51% over five years. Over that same five-year stretch, Coca-Cola ( NYSE:KO ) is up 83.

42%, with a 28. 09% year-to-date gain and a 34. 77% one-year advance to $88.

40. PEP Price Target — 24/7 Wall St. KO Price Target — 24/7 Wall St.

Jim Cramer's pitch for Pepsi rests on the very math that underperformance creates. On a July episode of Mad Money , he noted that "PepsiCo dropped nearly a buck sinking to a level where it sports a dividend yield north of 4%. " He has since framed the setup around a lower valuation, cheaper oil, and that accidental income.

When Cramer earlier compared the two names, he reminded viewers that "the share price tells you nothing about a stock's valuation vis a vis another stock. To make any kind of apples to apples comparison, you take a step back. " Free Report, Just Released Why KO Made Our Top 10 List 24/7 Wall St has helped investors make money for over two decades, and our top analysts just finished ranking the definitive Top 10 Stocks To Buy Now .

Not the ten biggest companies. Not the ten everyone is arguing about. The ten best stocks to buy right now.

And KO made the cut. See who else did. The report is free, and you can see why we think each stock is a top investment today.

Enter Your Email and See the Ten → Dividend Machine Keeps Grinding Pepsi raised its quarterly payout to $1. 48 per share, up from $1. 4225, with the latest ex-dividend date September 4 and payment date September 30.

That marks the 54th consecutive annual increase, backed by a $10 billion buyback authorization through February 28, 2030. The yield sits at 4. 04%, versus 2.

32% at Coca-Cola. Story Continues Two Different Growth Stories Pepsi's Q2 2026 revenue rose 6. 4% year over year to $24.

181B, with core EPS of $2. 20. CEO Ramon Laguarta told analysts that "a category that was negative in volume now is positive in volume.

We were losing share in volume. Now we're gaining share in volume. " Still, the company signaled results could land at the low end of its EPS range, hampered by softer U.

S. impulse channels. PEP Earnings Explorer — 24/7 Wall St.

Coca-Cola, by contrast, is compounding. Q2 delivered adjusted EPS of $0. 97 and revenue of $13.

380B, up 6. 74% YoY, with 5% unit case volume growth and raised full-year guidance calling for comparable EPS growth of 9 to 10%. CEO Henrique Braun said, "We delivered a strong quarter with broad-based momentum across our business.

" KO Earnings Explorer — 24/7 Wall St. Scoreboard Investors Actually Watch Pepsi trades at a P/E of 23 against Coke at 29, and Cramer's view is that the discount plus the 4% yield offers protection. But the yield is elevated because the shares have stalled.

Got $1,000? KO Made Our Top 10 List. Here's Who Else Did If you have cash sitting in your account right now, give this two minutes.

After more than two decades of helping investors beat the market, our top analysts at 24/7 Wall St. put together a definitive report on the Top 10 Stocks To Buy Today. And KO was one of them.

They combed the entire market. It's not 10 ideas, not 10 stocks everyone is talking about, it's what their research points to as the 10 best stocks to buy right now, and it's free. Read more here and see which stocks made the list -->> Contact editorial@247wallst.

com for any questions or corrections.