T dividend yield: 6.24%. PEP dividend yield: 3.69%. AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion. 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.
AT&T is one of the largest telecom companies in the US. After spinning off WarnerMedia in 2022 and cutting its dividend, AT&T has stabilized its payout at $1.11/year. High yield makes it attractive for pure income investors, though dividend growth has been absent. The company is focused on debt reduction and fiber network expansion.
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.
T currently offers a 6.24% yield (1.11/share/year) while PEP offers 3.69% (5.42/share/year). T 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 T vs PEP earn per year?
With $10,000 invested today: T pays approximately $624/year. PEP pays approximately $369/year. With DRIP reinvestment over 10 years, these grow to $432/year (T) and $1,035/year (PEP).
Does T or PEP pay monthly dividends?
T 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.
📬
Get this T vs PEP comparison by email
Save your analysis + get weekly dividend insights. Free forever.