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PEP vs MO: Dividend Comparison 2026

PEP yields 3.69% · MO yields 9.11% · See full DRIP projection below

vsEnter any two US tickers
After 10 years · $10,000 invested · DRIP enabled
🏆 MO wins by $6.2K in total portfolio value
10 years
PEP
PepsiCo Inc.
3.69%
Share price
$146.80
Annual div
$5.42
5Y div CAGR
6.7%
Payout ratio
72%
After 10 yrs · $10,000 · DRIP
Portfolio value
$21.5K
Annual income
$1,034.52
Full PEP calculator →
MO
Altria Group Inc.
9.11%
Share price
$44.80
Annual div
$4.08
5Y div CAGR
4.3%
Payout ratio
78%
After 10 yrs · $10,000 · DRIP
Portfolio value
$27.7K
Annual income
$4,052.72
Full MO calculator →

Portfolio growth — PEP vs MO

Annual dividend income

MetricPEPMO
Forward yield3.69%9.11%
Annual dividend / share$5.42$4.08
Payout ratio72%78%
1-year div growth7.1%4.1%
5-year div CAGR6.7%4.3%
Portfolio after 10y$21.5K$27.7K
Annual income after 10y$1,034.52$4,052.72
Total dividends collected$6.6K$20.9K
Payment frequencyquarterlyquarterly
SectorConsumer StaplesConsumer Staples

Year-by-year: PEP vs MO ($10,000, DRIP)

YearPEP PortfolioPEP Income/yrMO PortfolioMO Income/yrGap
1$10,734$393.95$10,740$949.88$6.00MO
2$11,535$436.36$11,601$1,086.84$66.00MO
3$12,411$483.90$12,608$1,250.75$197.00MO
4$13,371$537.26$13,792$1,448.20$421.00MO
5$14,422$597.26$15,190$1,687.69$768.00MO
6$15,578$664.81$16,851$1,980.28$1.3KMO
7$16,848$740.97$18,838$2,340.48$2.0KMO
8$18,248$826.99$21,230$2,787.44$3.0KMO
9$19,793$924.28$24,130$3,346.72$4.3KMO
10$21,500$1,034.52$27,676$4,052.72$6.2KMO

PEP vs MO: Complete Analysis 2026

PEPConsumer Staples

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.

Full PEP Calculator →

MOConsumer Staples

Altria is a Dividend King with 54+ consecutive years of dividend increases — one of the longest streaks in American corporate history. While cigarette volumes decline, pricing power and new product categories (oral nicotine pouches via NJOY) support cash flows. The near-9% yield is among the highest in the S&P 500.

Full MO Calculator →

Frequently Asked Questions

Is PEP or MO better for dividend income in 2026?
PEP currently offers a 3.69% yield (5.42/share/year) while MO offers 9.11% (4.08/share/year). MO 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 MO earn per year?
With $10,000 invested today: PEP pays approximately $369/year. MO pays approximately $911/year. With DRIP reinvestment over 10 years, these grow to $1,035/year (PEP) and $4,053/year (MO).
Does PEP or MO pay monthly dividends?
PEP pays quarterly dividends. MO 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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⚠️ Educational purposes only. Not financial advice. All projections use historical data; actual results will vary.