Argo Investments Ltd (ASX: ARG) is a leading ASX dividend stalwart. It's a listed investment company (LIC) that provides investors with exposure to ASX blue-chip shares.
Unlike many ASX-listed exchange-traded funds (ETFs) that listed in the last decade or two, Argo is very old and has a demonstrated track record of stability and longevity. It has been operating since 1946, making it one of the oldest companies on the ASX.
LICs are not a high-growth area, but they have unique benefits compared to ETFs and operating companies that makes Argo an appealing choice.
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Solid passive dividend income
The business says it provides fully franked sustainable dividends. It has paid dividends every year since inception in 1946 and those payments have been fully franked since 1995.
That doesn't mean the payout will necessarily be bigger every single year. But, since 2010, most financial years have seen a payout increase for shareholders.
In the FY26 half-year result, the business announced that it's going to increase its interim dividend per share by 8.8% to 18.5 cents.
That means the last two dividends to be declared by the business come to 38.5 cents per share, translating into a grossed-up dividend yield of 6.2%, including franking credits, at the time of writing.
There are not many ASX dividend stalwarts that have a higher dividend yield than that.
Diversification
The business does not follow an index, so it gives investors a different exposure than the S&P/ASX 200 Index (ASX: XJO), but it does still invest in a variety of recognisable names.
Some of its biggest positions include BHP Group Ltd (ASX: BHP)), Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Ltd (ASX: RIO), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).
I like that the risks are spread across a number of businesses, rather than just one. Plus, Argo can switch its portfolio to different investments if one stock goes wrong. This can be contrasted to a concentrated investment such as a bank (a bank is stuck as a bank!).
Great value
A business like Argo is backed by its significant portfolio value. We can price it largely to the underlying value of all of the shares it owns. It seems to be trading very cheaply.
The ASX dividend stalwart regularly tells investors about its underlying value, which is measured with the net tangible assets (NTA) figure.
On 8 May 2026, the business had a pre-tax NTA of $10.48. It's currently trading at a 16% discount, at the time of writing, which is around the biggest discount it has traded within the last 30 years.
I think this is a good time to invest in the business for the long-term.
