Coca-Cola Is Crushing the Nasdaq and S&P 500 in 2026, but This Higher-Yield Dividend King Could Be an Even Better Stock to Buy for the Second Half of 2026

While Coca-Cola has outperformed the market with a 16% gain in 2026 due to its stable dividend history and outsourced production model that shields it from inflation, PepsiCo presents a compelling alternative for dividend investors. PepsiCo, which owns its bottling operations and snack brands, faced margin pressures from inflation but is showing signs of recovery with improved Q1 results. With a higher dividend yield of 4.2% versus Coca-Cola's 2.6% and 54 consecutive years of dividend increases, PepsiCo could reward investors while awaiting market recognition of its turnaround.