Your medicine cabinet. Your pantry. Your refrigerator. They may not be the most obvious places to look for income and profit opportunities. But in this tough market, they’re the best! suggests Mike Larson, editor of Safe Money Report.

After all, the Fed is on a rampage and investors are openly wringing their hands about recession, making this no time to take big risks in the model portfolio.

Consider Keurig Dr Pepper (KDP). The company’s Snapple beverage tagline used to be “Made from the best stuff on Earth” ... and it applies to stocks like KDP at this phase in the economic cycle.

As investors stare down a looming recession and indications of a bear market abound, they’ll want to position themselves with more stocks like KDP — with its market-beating dividend yield of 2%, its Weiss Rating of “Buy” and its recession-resistant business quality. It’s all there.

Keurig is a consistently high-scoring name in my Safe Money screening process. And it’s much more than a coffee-machine and coffee-pod company.

The $54 billion beverage company with 27,000 employees also sells soda, tea, water, juice and mixers under a wide variety of brands, including Dr Pepper, Canada Dry, Snapple, Bai, Mott’s, Evian, Clamato and Vita Coco.

The 2018 merger of the former Keurig and Dr Pepper Snapple companies has worked out very well for investors, with KDP shares more than doubling since the start of that year. KDP is also vastly outperforming the S&P in this tough market, with modest gains in 2022.

What else do I like? The company is spinning off a dividend yield of around 2% at recent prices. Plus, it’s earned a “Buy” grade from our Weiss Ratings system since June 2020.

Like other consumer products companies, KDP is feeling some margin pressure due to inflation and supply-chain issues. Operating margin declined to 23.8% in Q1 from 25.5% a year earlier, resulting in only a small 0.8% gain in adjusted profit to $474 million.

But sales climbed more than 6% to $3.08 billion, and company officials said they were raising prices to compensate for higher costs. In fact, they raised their full-year revenue growth target to the high single-digit level.

New product rollouts that Keurig Dr Pepper has brewing should also bolster sales going forward. Bottom line? This is a great time to get more defensive by buying KDP in our Bedrock Income portfolio.

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