PEP dividend yield: 3.69%. CSCO dividend yield: 2.85%. 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.
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.
Is PEP or CSCO better for dividend income in 2026?
PEP currently offers a 3.69% yield (5.42/share/year) while CSCO offers 2.85% (1.60/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 PEP vs CSCO earn per year?
With $10,000 invested today: PEP pays approximately $369/year. CSCO pays approximately $285/year. With DRIP reinvestment over 10 years, these grow to $1,035/year (PEP) and $544/year (CSCO).
Does PEP or CSCO pay monthly dividends?
PEP pays quarterly dividends. CSCO 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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