As of early 2026, Coca-Cola (KO) and PepsiCo (PEP) are being highlighted as defensive stocks amid market volatility, with Coca-Cola securing a higher return on invested capital (ROIC) of 18% compared to Pepsi’s 14%. Institutional ownership stands at 64% for Coca-Cola and 75% for Pepsi, indicating their stability during economic fluctuations.
Coca-Cola’s annual earnings for fiscal 2025 are projected to rise 3% to $2.98 per share, with expectations of an additional 8% increase to $3.22 in FY26. Its sales are estimated to grow 3% in FY25, reaching $51.01 billion, and the company will report Q4 results on February 10. Conversely, Pepsi’s FY25 earnings are expected to dip slightly to $8.12 per share, before rebounding to $8.55 in FY26, with projected sales of $97.07 billion.
Both companies are known as “Dividend Kings,” having increased dividends for over 50 years. Coca-Cola offers a dividend yield of 3%, while Pepsi has a slightly higher yield at 4%. Amid all-time high stock indexes, their defensive characteristics make them attractive options for investors.
