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Just before Christmas, the U.S. Bureau of Economic Analysis (BEA) reported 4.3% real gross domestic product (GDP) growth for Q3, between July and September, greatly surpassing the forecasted 3.3%. Reported GDP was also 0.8% above the Atlanta Fed’s GDPNow model.

On one hand, given the massive, entrenched and systemic welfare fraud which gets transferred to consumption, it is safe to assume that a significant portion of GDP is artificial. On the other hand, all else being equal, corporate earnings make no distinction between organic and subsidized dollars.

As we explored previously, this dynamic keeps the K-shaped economy going, leading to a jobless growth environment, which is likely to become even more prevalent in 2026 under AI-driven pressure. The AI sector itself is headed for record growth during 2026 despite bubble concerns.

In December’s report, Goldman Sachs estimated that AI capex alone accounted for 0.8% of GDP, signaling all-hands on deck and no-exit optionality. This bodes well for dividend-paying energy companies and REITs.

In fact, a week before Christmas, on Dec. 18, President Trump hinted to White House reporters that he is unlikely to bring the housing market value down because “I want them to continue to have a big value for their house” despite younger generations being largely unable to afford a home.

In short, investors should leverage the emerging K-shaped economy and the too-big-to-fail AI buildout while putting less emphasis on broad consumer health. With that in mind, these dividend stocks stand out as solid passive income

Enterprise Products Partners L.P. (NYSE: EPD) – 6.8% Dividend Yield at $0.54 Payout per Share

As noted in our recent energy stocks roundup, following the bombing of Europe’s Nord Stream pipelines, the U.S. is heading to increase its liquefied natural gas (LNG) supply 50% through 2030. Enterprise Products Partners is the dominant midstream leader in facilitating the transportation, storage and processing of natural gas and natural gas liquids (NGLs) across 50,000 miles of North American pipelines.

The bulk of the company’s revenue comes from long-term, fee-based contracts with minimal take-or-pay clauses, making it largely insulated from commodity price volatility. As such, EPD is also a dividend aristocrat stock, having increased its payouts for 26 consecutive years.

In 2026, EPD is heading to open Bahia NGL pipeline alongside two more gas processing plants, P2 Neches River Terminal and EHT LPG Export Expansion. This is on top of opening two gas processing plants in 2025, P1 Neches River Terminal and Frac 14. Since 2019, EPD expanded its stock buyback program from $2 billion to $5 billion, as of October 2025.

At the current price level of $32.16 per share, EPD stock is still under the average price target of $36. In fact, this price level is now aligned with the bottom outlook of $32 per share, making for an optimal exposure entry to one of the safest business models in existence.

Essex Property Trust Inc. (NYSE: ESS) – 4.01% Dividend Yield at $2.57 Payout per Share

Primarily a residential REIT (Real Estate Investment Trust), Essex is developing and operating apartment communities in the U.S. West Coast. This makes for a high-barrier market that is supply-constrained but high in demand.

Essex is holding over 62,000 apartment homes, generating $2.56 net income per diluted share in the latest Q3 earnings report. This is up 39.1% from $1.84 per share in the year-ago quarter. In that quarter, the trust sold multiple apartment communities for $244.7 million while acquiring a single apartment community for $100 million.

This suggests active capital recycling and disciplined portfolio optimization rather than balance-sheet stress. Overall, Essex maintains very high occupancy at 96.1%, just slightly under 96.2% in the year-ago quarter.

Having to distribute at least 90% of taxable income to shareholders, Essex REIT is well-positioned to sustain shareholder returns. Although REITs like Orchid Island Capital (ORC) have nearly five-fold greater dividend yield, at 19.78%, they are also heavily leveraged as they are centered on agency residential mortgage-backed securities (RMBS).

At the current price level of $256.89 per share, ESS stock is still significantly under its average price target of $281.03 per share, according to the Wall Street Journal’s forecasting data.

American Tower REIT (NYSE: AMT) – 3.88% Dividend Yield at $1.7 Payout per Share

American Tower serves as the financial underpinning of the wireless access layer for the digital economy. Specifically, it is one of the largest operators of wireless communication sites globally upon which all telecom companies rely, such as AT&T, Verizon and T-Mobile.

Although not an aristocrat dividend stock, most analysts expect continued dividend growth going forward. As of Q3 2025, American Tower owns $2.6 billion worth of properties, up 5.9% from the year-ago quarter. In that quarter, the company reported a net loss of $792 million, which has since reversed into net income of $853 million.

Of all the regions, the REIT tracked organic tenant billings growth (OTBG) in Africa & APAC the most, at 13.5% compared to North America at 3.9%. Of course, this is the difference between developed and developing regions.

However, the data center demand more than makes up for it with a 14% year-over-year revenue growth. Accordingly, American Tower raised 2025 revenue outlook in Q3 to $10.25 billion from the prior outlook of $10.21 billion.

At the current price of $174.80, AMT stock is significantly under its average price target of $227.32, in addition to being below the bottom price forecast of $200 per share.

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