Thirsty for Dividend Income? 2 Beverage Companies That Qualify as Dividend Kings

Coca-Cola and PepsiCo are both Dividend Kings that have raised their payouts annually for at least 50 consecutive years, in today's financial world

The evidence shows y're also the only two beverage makers in that elite, amid market uncertainty

Furthermore, Image source: Getty Images, in today's market environment

Additionally, Those consistent dividend hikes reflect their ability to grow their earnings through economic downturns, in light of current trends

However, Coca-Cola and PepsiCo are still good stocks to buy, hold, and forget (this bears monitoring)

On the other hand, But let's take a closer look and see which beverage-making Dividend King has more upside potential

The differences between Coca-Cola and PepsiCo Coca-Cola and PepsiCo both sell a broad range of beverages beyond their flagship brands, in light of current trends

On the other hand, To offset slower soda consumption rates, both companies expanded their portfolios with healthier and non-carbonated drinks, in this volatile climate

They also refreshed their flagship sodas with new flavors, smaller serving sizes, and sugar-free versions (something worth watching)

Both companies only duce concentrates and syrups, then rely on their bottling partners to duce and distribute the drinks, in today's financial world

That capital-light apach keeps their costs under control and helps them generate stable cash flows and fits, in today's market environment

However, PepsiCo also sells packaged foods through its Frito-Lay, Quaker Foods, and Pioneer Foods divisions

Coca-Cola doesn't sell any packaged foods

That difference exposes PepsiCo to more inflationary headwinds than Coca-Cola, since it needs to deal with a broader mix of commodities that aren't used in its beverages

PepsiCo's Quaker Foods also dealt with several major recalls related to salmonella outbreaks over the past two years

Coca-Cola hasn't dealt with as many major recalls as PepsiCo

Nevertheless, Which company has been growing faster (something worth watching) (this bears monitoring), given current economic conditions

That slowdown was caused by Quaker Foods' recalls, sluggish spending in China and Latin America, and the diminishing returns of its "shrinkflation" strategy of shrinking its packages while raising its prices, in today's market environment

For 2025, PepsiCo expects a "low single-digit" increase in its organic sales as its core comparable EPS stays flat on a constant currency basis

Moreover, So for now, it will ly face more near-term headwinds than Coca-Cola as it tries to stabilize Quaker Foods and imve its pricing power

Coca-Cola still looks reasonably valued at 22 times next year's earnings, but PepsiCo looks cheaper with a forward multiple of 18 (an important development)

Which dividend looks more sustainable, in light of current trends

Additionally, That said, both companies should continue to raise their dividends annually for the foreseeable future to appease their income investors and keep their Dividend King crowns, in light of current trends

Additionally, Which Dividend King is a better buy today

PepsiCo generated bigger gains than Coca-Cola over the past three decades, but past performance isn't a reliable indicator of future gains

A lot of PepsiCo's previous returns were driven by its packaged foods, but that growth engine could sputter out over the next few years if it struggles with more recalls, high commodity costs, and competitive threats (an important development)

So while Coca-Cola trades at a higher multiple and pays a lower dividend, I think it's a better overall investment than PepsiCo right now

This leads to the conclusion that s capital-light model, stronger growth rates, and lack of exposure to the saturated packaged foods market should impress more investors (fascinating analysis).