Better Buy: Starbucks vs. PepsiCo
Coffee chain Starbucks (NASDAQ: SBUX) is an international food-service powerhouse with over 32,000 locations. PepsiCo (NASDAQ: PEP) is also a global player, diversified in beverage, snack, and home-prepared food segments. And many investors are attracted to these stocks for their reliable dividends.
When picking a dividend stock, it's tempting to merely look at the dividend yield -- the last year of dividends divided by the current stock price. Currently, Starbucks' dividend yield is 2.3%, while PepsiCo's is 3%. This seems to suggest PepsiCo is the better dividend stock.
That's always been the surface-level conclusion. As the chart below shows, there's never been a moment when Starbucks offered a higher dividend yield than PepsiCo.
Source Fool.com
