Hard Assets
Physical, tangible assets that generate real cashflow: ships, pipelines, mines, oil wells, and infrastructure. Unlike growth stocks, hard assets earn revenue from actual, physical operations today.
Hard Assets: What They Are and Why Dividend Investors Love Them
A hard asset is any investment with physical substance and intrinsic value — something that exists in the real world and earns revenue by doing something tangible. Ships carry cargo. Pipelines transport gas. Mines produce copper.
This stands in contrast to "soft" or intangible assets like software platforms, patents, or brand value, whose worth depends on future expectations.
Categories of Hard Assets
| Category | Examples | Typical Yield |
|---|---|---|
| Shipping | Tankers (VLCC, Suezmax), LNG carriers, Bulkers | 6–15% |
| Pipelines / Midstream | TC Energy, Enbridge, Enterprise Products | 5–9% |
| Mining | BHP, Newmont, Rio Tinto (copper, gold, coal) | 3–8% |
| Upstream Energy | Devon Energy, APA Corporation (oil & gas wells) | 4–10% |
| Real Estate (REITs) | Medical Properties, Realty Income | 4–9% |
Marco's Thesis: Hard assets produce cashflow regardless of narrative. A VLCC earns $80,000/day whether the market believes in energy transition or not. That's the non-negotiable quality of the asset class — the physical reality generates the dividend.
Why Hard Assets for Dividend Investors?
- Inflation protection: Physical assets reprice with inflation (freight rates, commodity prices)
- High current yield: 6–15% dividends from real earnings, not financial engineering
- Tangible cashflow: The ship moves, the pipeline flows, the mine produces — every day
- Cyclical opportunity: Hard assets go through boom/bust cycles — buying in a bust delivers exceptional YOC
Marco Bozem
Investor & Analyst | Hard Assets, Dividends, Shipping | MB Capital Strategies
Marco's portfolio is 100% hard assets. Not financial advice.
Not financial advice. Past yields do not guarantee future returns. Always conduct your own due diligence.