Computed head-to-head · 6 dimensions
BTI vs PEP
British American Tobacco plc ADR versus PepsiCo, Inc. — yield, safety, growth trend, cost, scale, and tax treatment.
BTI wins 4–0 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
BTI or PEP — which is better?
BTI wins this comparison 4–0 across 6 dimensions. BTI yields 5.94% — higher than PEP's 4.43% — and carries a 7.3/10 dividend safety score (Solid) vs 5.6/10 for PEP (Mixed). BTI wins 4–0 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
On yield alone, BTI generates 5.94% vs 4.43% — a 1.51% difference that translates to $1,510 more per year on a $100,000 investment. On dividend safety, BTI scores 7.3/10 (Solid) vs 5.6/10 (Mixed) for PEP — investors prioritizing income reliability should weight that gap alongside the yield difference.
Scorecard at a glance
| Dimension | BTI | PEP | Winner |
|---|---|---|---|
| Yield | 5.94% | 4.43% | BTI wins |
| Dividend safety | 7.3/10 | 5.6/10 | BTI wins |
| Growth trend | -1.46% vs 5y | +1.39% vs 5y | BTI wins |
| Volatility (beta) | 0.13 | 0.36 | BTI wins |
| Scale | $121.1B | $180.7B | Tie |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 4 wins | 0 wins | BTI wins |
Dimension by dimension
BTI wins on yield (5.94% vs 4.43%)
On a $10,000 investment that's about $151 more in annual dividend income before taxes — though higher yield often comes with higher risk.
BTI's higher yield (5.94%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus PEP's 4.43% — especially if the higher yield is driven by covered calls or a falling share price.
BTI wins on safety (7.3/10 vs 5.6/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. BTI scores better on the weighted average of those factors.
BTI (7.3/10) scores 1.7 points higher than PEP (5.6/10). A higher safety score means lower historical indicators of dividend cut risk — payout ratio, yield zone, and trend all factor in.
BTI shows healthier dividend-vs-price trend
BTI's yield is 1.46% below its 5y average, versus 1.39% for PEP. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
BTI is less volatile (beta 0.13 vs 0.36)
Lower beta means smaller swings vs the S&P 500 — generally a steadier hold for income investors.
Comparable scale ($121.1B vs $180.7B)
Within 1.5x of each other on market cap / AUM — similar institutional footprint.
Both pay qualified-dividend-eligible distributions
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
Full breakdown per ticker: are BTI dividends qualified and are PEP dividends qualified — each with the after-tax income at every federal bracket.
How we compare these
Every comparison on this page is computed from current public data, not written by hand. Yield comes from the most recent dividend distribution annualized over current price. Safety scores combine yield zone, payout ratio, trend vs 5-year average, instrument type, and size — see our methodology for the exact formula. Tax-efficiency flags identify covered-call ETFs, REITs, and mREITs which distribute primarily as ordinary income.
This is educational, not investment advice. Scores reflect a snapshot of public data on the "as of" dates shown on each ticker's safety page. Verify on the issuer's investor relations page or your brokerage before making decisions.
Frequently asked
BTI or PEP — which is better?
BTI is better on our scoring, winning 4–0 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. BTI wins 4–0 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
Which is better for income, BTI or PEP?
BTI wins 4–0 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
BTI vs PEP: which has a higher dividend yield?
BTI yields 5.94% and PEP yields 4.43%. On a $10,000 investment that's about $151 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is BTI or PEP a safer dividend in 2026?
BTI scores 7.3/10 (Solid) on the Infnits dividend safety scale. PEP scores 5.6/10 (Mixed). BTI is the safer pick on our scoring model.
Which has better dividend growth, BTI or PEP?
BTI's yield is 1.46% below its 5y average, versus 1.39% for PEP. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
BTI vs PEP: which is more tax-efficient?
Neither is structurally flagged for ordinary-income tax treatment. Most distributions should qualify for the lower long-term capital gains rate if holding-period requirements are met.
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Compare both against your actual holdings
Put BTI and PEP into the free analyzer with the rest of your portfolio. You'll see what each one contributes to your annual income, your weighted safety score, and whether adding BTI diversifies you or just duplicates what you hold. No account, no download.