Overview
- PepsiCo is recommended over Coca-Cola on a relative-yield basis, with a roughly 4% dividend near historical highs and P/S and P/B below five-year averages.
- Coca-Cola remains fundamentally sound, reporting about 6% organic sales and EPS growth in Q3 2025, a roughly 3% dividend yield, and valuation metrics near fair value.
- PepsiCo’s broader footprint across beverages, Frito-Lay snacks, and Quaker foods plus control of most bottling and distribution is presented as a diversification and execution advantage.
- Realty Income is highlighted for income reliability, reporting 98.3% Q3 occupancy, monthly dividends for more than 55 years, and per-share payout increases every quarter since 1997 with no tenant over 3.3% of rent.
- NextEra Energy is cited for dividend resilience and future readiness, producing over half its power from renewables, carrying no legacy fossil-fuel assets, and offering a forward dividend yield near 2.8%.