Computed head-to-head · 6 dimensions
MO vs PEP
Altria Group, Inc. versus PepsiCo, Inc. — yield, safety, growth trend, cost, scale, and tax treatment.
MO wins 3–0 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
MO or PEP — which is better?
MO wins this comparison 3–0 across 6 dimensions. MO yields 5.69% — higher than PEP's 4.31% — and carries a 6.7/10 dividend safety score (Solid) vs 5.6/10 for PEP (Mixed). MO wins 3–0 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
On yield alone, MO generates 5.69% vs 4.31% — a 1.38% difference that translates to $1,380 more per year on a $100,000 investment. On dividend safety, MO scores 6.7/10 (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 | MO | PEP | Winner |
|---|---|---|---|
| Yield | 5.69% | 4.31% | MO wins |
| Dividend safety | 6.7/10 | 5.6/10 | MO wins |
| Growth trend | -1.71% vs 5y | +1.26% vs 5y | MO wins |
| Volatility (beta) | — | — | Tie |
| Scale | $129.8B | $187.2B | Tie |
| Tax efficiency | Qualified-eligible | Qualified-eligible | Tie |
| Overall | 3 wins | 0 wins | MO wins |
Dimension by dimension
MO wins on yield (5.69% vs 4.31%)
On a $10,000 investment that's about $138 more in annual dividend income before taxes — though higher yield often comes with higher risk.
MO's higher yield (5.69%) looks attractive but investors should weigh whether the extra income compensates for any additional risk versus PEP's 4.31% — especially if the higher yield is driven by covered calls or a falling share price.
MO wins on safety (6.7/10 vs 5.6/10)
Our score combines yield zone, payout ratio, trend vs 5-year average, instrument type, and size. MO scores better on the weighted average of those factors.
MO (6.7/10) scores 1.1 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.
MO shows healthier dividend-vs-price trend
MO's yield is 1.71% below its 5y average, versus 1.26% for PEP. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
Volatility comparison unavailable
Beta data missing for one or both tickers.
Comparable scale ($129.8B vs $187.2B)
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 MO 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
MO or PEP — which is better?
MO is better on our scoring, winning 3–0 across six dimensions: yield, dividend safety, growth, cost, scale, and tax treatment. MO wins 3–0 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, MO or PEP?
MO wins 3–0 on our six-dimension comparison, but PEP can still be the better fit depending on your priorities — see each dimension below.
MO vs PEP: which has a higher dividend yield?
MO yields 5.69% and PEP yields 4.31%. On a $10,000 investment that's about $138 more in annual dividend income before taxes — though higher yield often comes with higher risk.
Is MO or PEP a safer dividend in 2026?
MO scores 6.7/10 (Solid) on the Infnits dividend safety scale. PEP scores 5.6/10 (Mixed). MO is the safer pick on our scoring model.
Which has better dividend growth, MO or PEP?
MO's yield is 1.71% below its 5y average, versus 1.26% for PEP. Lower (or below-average) yield trend often means price appreciation outpaced distributions — a healthier signal.
MO 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 MO 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 MO diversifies you or just duplicates what you hold. No account, no download.