Key Takeaways
- Coca-Cola yields 2.3% and Procter & Gamble yields 2.7%, and both beat Wall Street’s estimates with their latest quarters in October.
- P&G’s dividend used 67% of its free cash flow over the twelve months to Sept. 30, 2026, while Coca-Cola’s used 79% over the twelve months to Oct. 2, 2026.
- Coca-Cola’s free cash flow fell short of its dividend in fiscal 2024 and 2025, but the company now expects at least $13.0 billion in 2026.
- Watch Coca-Cola’s 2027 guidance, due with its fourth-quarter report, and P&G’s rising commodity costs.
Coca-Cola (KO) hit a record high on Nov. 6, and Procter & Gamble (PG) shares jumped when it beat estimates on Oct. 22.
For a retiree living off dividends, the share price matters less than the check. Both companies pay one every quarter, and both say returning cash to shareholders is a top priority.
So which one pays a check you can count on for the next decade?
| Metric | Coca-Cola (KO) | Procter & Gamble (PG) |
|---|---|---|
| Dividend yield | 2.3% | 2.7% |
| Annual dividend | $2.12 | $4.35 |
| Dividend growth, 5 years | 4.5% a year (fiscal 2020-2025) | 5.6% a year (fiscal 2021-2026) |
| Cash dividend payout ratio (TTM) | 79% | 67% |
| Net debt/EBITDA | 1.5x | 0.9x |
| Interest coverage | 10.7x | 24.2x |
| Forward P/E | 28x | 23x |
Source: TIKR and the companies, as of Nov. 9, 2026.
6 safe dividend stocks paying retirees 6%+ yields
There are over 100 stocks paying 6%+ annual dividends today.
But after an extensive investment review leveraging TIKR’s proprietary data, we now believe only six of them are truly safe for retirees.
They’re all yours for free as part of our new investment report, which you can access right here.
Two lean years for Coca-Cola’s cash
Coca-Cola’s business is in good shape. Net revenues grew 7% to $13.4 billion in the third quarter of 2026 compared with the same quarter a year earlier. Unit case volume rose 5%, led by India, China, Mexico and Brazil. Management now expects organic revenues to grow at least 5% in 2026, and comparable currency-neutral EPS to grow at least 9%.
Its cash record is shakier. Free cash flow fell short of the dividend in four of the ten fiscal years from 2016 to 2025, including the last two:
In fiscal 2025, the dividend took an uncovered 166% of free cash flow.
Cash flow has improved in 2026. Coca-Cola generated $11.4 billion of free cash flow in the first nine months of the year. On Oct. 27, it raised its full-year target to at least $13.0 billion, up from $12.4 billion. That puts its cash dividend payout ratio at a tight but covered 79% for the twelve months to Oct. 2. The board declared its regular 53-cent quarterly dividend on Oct. 15. On Dec. 1, Monster Energy’s Rob Gehring takes over the North America unit from CFO John Murphy, who has run it on an interim basis since Aug. 1.
The main risk is pricing. Management put price/mix at about 2% for 2026, one of its lowest years in a decade. Shares slipped 2% on the day Coca-Cola reported, despite the beat.
P&G covers its dividend year after year
P&G’s record is much steadier. Free cash flow covered the dividend in every fiscal year from 2017 to 2026, and comfortably:
The dividend took between 53% and 70% of free cash flow in each fiscal year from 2021 to 2026. Over the twelve months to Sept. 30, 2026, it took a well-covered 67%. P&G also carries less debt than Coca-Cola, at 0.9x EBITDA against 1.5x.
Its sales are growing more slowly. Net sales rose 4% to $23.3 billion in the quarter ended Sept. 30, 2026, compared with a year earlier, with growth in all 10 product categories and all six regions. On Oct. 13, P&G declared its $1.0885 quarterly dividend, and it says it has raised that dividend for 70 consecutive years. It expects to pay over $10 billion in dividends in fiscal 2027, the year to June.
The risk is earnings. P&G expects core EPS to grow 0% to 3% in fiscal 2027, from $6.89 in fiscal 2026. It’s facing roughly $1.9 billion of after-tax headwinds from commodities, energy, transportation, currency and interest costs. Earnings growing that slowly would leave less room for big raises.
So which dividend wins?
For retirees, I’d go with Procter & Gamble. It pays the bigger check, it has raised that check faster, and its free cash flow has covered the dividend every year for a decade.
Put $10,000 into each today, and P&G pays $270 a year, while Coca-Cola pays $230. Assume each dividend keeps growing at its five-year rate: 5.6% a year for P&G (fiscal 2021-2026) and 4.5% for Coca-Cola (fiscal 2020-2025). P&G’s income would reach about $442 in year 10, a 4.4% yield on the original $10,000. Coca-Cola’s would reach about $341. At those rates, Coca-Cola never catches up.
P&G is also cheaper to buy today. Coca-Cola trades at 28x forward earnings, near the top of its five-year range and well above its 23x average:
P&G trades at 23x.
None of this means Coca-Cola’s dividend is in trouble. Its business is growing faster than P&G’s right now, and its 2026 free cash flow should cover the dividend with room left over. But a retiree living on these checks wants the one that has held up every single year, and that’s P&G.
Of course, Coca-Cola gives its 2027 guidance with its fourth-quarter report. Another year of free cash flow like 2026’s would narrow the gap in coverage.
Forget Procter & Gamble: 6 safe 6%+ dividend yields you can buy right now
Dividends can hold the key to enormous wealth. But only if you buy the right ones.
Picking the right high-yield dividend stock can be the difference between a dream retirement…and scraping by every month, waiting for the next Social Security check to clear.
We’ve identified six stocks yielding 6%+ that we believe every retiree should know about right now. (And Procter & Gamble isn’t one of them.)
Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
