3 Powerhouse Passive-Income Stocks to Buy This Summer

Passive income is a phrase that gets thrown around a lot these days, and for good reason. The idea of making money by doing nothing has a lot of appeal. But it's easy to go astray searching for outsize returns from investment vehicles that generate periodic payments.

One tried-and-true method for earning passive income is by investing in companies with a track record for growing their earnings and consistently raising their dividends. However, some folks don't want to go with a stodgy consumer-staples company with organic growth in the low single digits.

Investors looking for a little bit more upside potential (along with a dividend they can count on) have come to the right place. Buying shares of Target (NYSE: TGT), United Parcel Service (NYSE: UPS), and Caterpillar (NYSE: CAT) as a group will give an investor an average dividend yield of 2.5%, as well as exposure to a diversified portfolio. Here's what makes these three powerhouse dividend stocks a great buy now.

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Source Fool.com