The Argo Investments Ltd (ASX: ARG) share price is in focus after the company reported a half-year profit of $130.8 million and a record high fully franked interim dividend of 18.5 cents per share.
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What did Argo Investments Limited report?
- Half-year profit: $130.8 million, up from $121.2 million last year
- Earnings per share: 17.2 cents, up from 15.9 cents
- Interim dividend: 18.5 cents per share (fully franked), up 8.8%
- Management expense ratio: 0.14%, improved from 0.15%
- Grossed-up annual yield: 6.1% based on the last closing share price
What else do investors need to know?
Argo's investment revenue from its portfolio was flat over the half, but profit was lifted by trading and options income. The company has boosted its fully franked dividend by 37.5% over the past five years, maintaining 100% franking even throughout volatile market conditions.
During the period, Argo made some notable investment changes, adding CSL Ltd (ASX: CSL), Amcor (ASX: AMC), Worley Ltd (ASX: WOR), Rio Tinto Ltd (ASX: RIO), BHP Group Ltd (ASX:BHP) , Generation Development Group Ltd (ASX: GDG), and Clarity Pharmaceuticals Ltd (ASX: CU6), while selling all shares in Healius Ltd (ASX: HLS) and GPT Group (ASX: GPT). The total number of portfolio stocks decreased slightly from 85 to 83.
What did Argo Investments management say?
Managing Director Jason Beddow said:
We considered it appropriate to meaningfully increase the interim dividend. The Board is committed to sustainably growing Argo's fully franked dividends.
What's next for Argo Investments?
Looking ahead, Argo noted the outlook remains highly uncertain given ongoing geopolitical risks and shifting monetary policy, including higher Australian interest rates. The team highlighted Australia's structural advantages, particularly in resources and critical minerals.
Argo plans to keep its diversified approach, spanning more than 80 ASX-listed companies. The company says it aims to provide shareholders with reliable income and long-term capital growth, even through volatile markets.
Argo Investments share price snapshot
Over the past 12 months, Argo Investments shares have risen 1%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 3% over the same period.
