Argo Investments (ASX:ARG) Announces Record Interim Dividend and Half-Year Profit
Financial Performance
Argo Investments reported a half-year profit of $121.2 million, down from $125.3 million. Revenue from dividends increased to $137.5 million, up from $132.6 million. Earnings per share stood at 15.9 cents, compared to 16.5 cents in the previous period.
Dividend Details
The company declared a fully franked interim dividend of 17.0 cents per share, up from 16.5 cents. To neutralise the Dividend Reinvestment Plan and Dividend Substitution Share Plan, Argo will buy shares on-market due to the current share price discount to Net Tangible Assets.
Investment Performance
In calendar year 2024, Argo achieved an 11.7% NTA return, outperforming the S&P/ASX 200 Accumulation Index’s 11.4%. Over the six months to 31 December 2024, Argo returned 6.3%, slightly trailing the Index’s 6.9%. Technology One, with a share price increase of over 65%, was the most significant positive contributor.
Portfolio Investment
Argo made notable purchases including Worley, Steadfast Group, NAB, BHP Group, Westpac, and Amotiv. The company divested from Commonwealth Bank, Arcadium Lithium, QANTM Intellectual Property, Aristocrat Leisure, Macquarie Group, and Computershare, fully exiting the last three. The total number of stocks in the portfolio decreased to 80 during the period.
Outlook
Argo remains optimistic about the domestic economy despite market volatility. The company expects potential monetary easing from the Reserve Bank of Australia and continues to capitalise on short-term opportunities with its diversified portfolio, including stocks generating US dollar revenue.
Motley Fool contributor Lianne Eastty has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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