Three Soda Giants Pay Dividends. One Has a Much Stronger Income Story

Coca-Cola, PepsiCo and Keurig Dr Pepper may look similar on dividend screens, but the article highlights sharply different income profiles. PepsiCo pays a 4.52% yield, described as consuming nearly all its free cash flow, while Coca-Cola yields 2.38% at about $86.27. Coca-Cola’s model—selling concentrate and licensing brands—shows a gross margin of 61.6% and second-quarter operating margin rising to 34.9% from 34.1%. The piece also details Coca-Cola’s dividend: $0.53 quarterly ($2.12 annualized), about a 64% payout ratio, alongside a raised full-year free cash flow outlook to roughly $12.4 billion. It says Keurig Dr Pepper froze its dividend in 2024 to repay $30.4 billion in debt and plans a 2027 split.