PEP dividend yield: 3.69%. MRK dividend yield: 3.25%. 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. Merck is a Dividend Aristocrat with 14+ consecutive years of increases. Keytruda (pembrolizumab) is the world's best-selling cancer drug and drives exceptional cash generation. The company's oncology and vaccines pipeline provides long-term growth visibility beyond the Keytruda patent cliff in the 2030s.
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.
Merck is a Dividend Aristocrat with 14+ consecutive years of increases. Keytruda (pembrolizumab) is the world's best-selling cancer drug and drives exceptional cash generation. The company's oncology and vaccines pipeline provides long-term growth visibility beyond the Keytruda patent cliff in the 2030s.
PEP currently offers a 3.69% yield (5.42/share/year) while MRK offers 3.25% (3.08/share/year). PEP provides higher current income. However, MRK has grown its dividend faster (8.2% 5Y CAGR), which may lead to better long-term income through compounding.
How much would $10,000 in PEP vs MRK earn per year?
With $10,000 invested today: PEP pays approximately $369/year. MRK pays approximately $325/year. With DRIP reinvestment over 10 years, these grow to $1,035/year (PEP) and $950/year (MRK).
Does PEP or MRK pay monthly dividends?
PEP pays quarterly dividends. MRK 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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