• Half-year profit of $130.8 million
• Fully franked interim dividend increased to 18.5 cents per share, up 8.8%
• Dividend yield of 6.1% is well above the S&P/ASX 200 Accumulation Index's yield of 4.4%

Argo Investments Limited (ASX code: ARG), one of Australia's oldest and largest listed investment companies, has announced a half-year profit of $130.8 million and a fully franked interim dividend of 18.5 cents per share. The fully franked interim dividend increased by 8.8% compared to the previous corresponding period, bringing the grossed-up annual yield to 6.1% based on Argo's last closing share price, well above the S&P/ASX 200 Accumulation Index's grossed-up yield of 4.4%. Investment revenue from the portfolio was relatively flat compared to the last half-year, but profit was bolstered by increased income from trading and options activities. Argo has now grown dividends by 37.5% over the last five years, maintaining 100% franking through a particularly volatile period. The Board is committed to sustainably growing Argo's fully franked dividends. In an extremely unpredictable investing environment in calendar year 2025, Argo gained 8.1% as measured by net tangible assets (NTA) after all costs and adjusted for company tax paid, compared to the Index which rose 10.3%. Argo's performance was driven largely by its underweight exposure to gold stocks, which had a -1.5% effect on relative performance. The outlook is highly uncertain, with clear geopolitical and macroeconomic risks to the downside, but Argo remains well-positioned to navigate the current environment through its conservative investment approach and diversified portfolio.

Economic and market forecasting is inherently difficult, but it is exceptionally challenging in the current climate. The outlook is highly uncertain and Australian shares are susceptible to a range of largely offshore forces. There are clear geopolitical and macroeconomic risks to the downside. Domestically, the monetary policy outlook has pivoted, with strong inflation numbers persisting, prompting the Reserve Bank of Australia to raise interest rates for the first time in over two years. At the same time, Australia may benefit from some structural tailwinds, including growing demand for critical minerals and resources. In this rapidly shifting investment landscape, with a higher-than-usual degree of unpredictability, we believe the most prudent approach is broad diversification across the economy.