CSCO dividend yield: 2.85%. PEP dividend yield: 3.69%. Cisco has grown its dividend 12+ consecutive years since initiating payments in 2011. The network equipment leader is transitioning to software and subscription models via its security and observability platforms. Cisco returns 50%+ of free cash flow to shareholders via dividends and buybacks annually. PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
Cisco has grown its dividend 12+ consecutive years since initiating payments in 2011. The network equipment leader is transitioning to software and subscription models via its security and observability platforms. Cisco returns 50%+ of free cash flow to shareholders via dividends and buybacks annually.
PepsiCo is a Dividend King with 52+ consecutive years of increases. Its diversified portfolio spans beverages and snacks via brands including Pepsi, Gatorade, Lay's, and Quaker. Snack food exposure provides more stable volumes than pure beverages. International expansion in emerging markets drives long-term growth.
Is CSCO or PEP better for dividend income in 2026?
CSCO currently offers a 2.85% yield (1.60/share/year) while PEP offers 3.69% (5.42/share/year). PEP provides higher current income. However, PEP has grown its dividend faster (6.7% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in CSCO vs PEP earn per year?
With $10,000 invested today: CSCO pays approximately $285/year. PEP pays approximately $369/year. With DRIP reinvestment over 10 years, these grow to $544/year (CSCO) and $1,035/year (PEP).
Does CSCO or PEP pay monthly dividends?
CSCO pays quarterly dividends. PEP pays quarterly dividends. Neither pay monthly — both use a quarterly schedule, which is preferred by investors who need regular cash flow.
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