Media Release - Half-year report to 31 December 2024
| Stock | Argo Investments Ltd (ARG.ASX) |
|---|---|
| Release Time | 3 Feb 2025, 8:46 a.m. |
| Price Sensitive | Yes |
Argo Investments announces increased dividend revenue and record high fully franked interim dividend
- Half-year profit of $121.2 million
- Fully franked interim dividend of 17.0 cents per share
- Portfolio investment revenue rose, bolstered by better-than-expected dividends
Argo Investments Limited (ASX code: ARG), one of Australia's oldest and largest listed investment companies, announced a half-year profit of $121.2 million and a fully franked interim dividend of 17.0 cents per share. The company's revenue from dividends received increased to $137.5 million, up from $132.6 million in the previous corresponding period. This was bolstered by better-than-expected dividends from a number of companies in the investment portfolio, as well as special dividends. However, this was largely offset by lower income from other activities and net losses from option writing and trading activities. In calendar year 2024, Argo gained +11.7% as measured by the NTA return after all costs and adjusted for company tax paid, outperforming the S&P/ASX 200 Accumulation Index which increased +11.4%. Over the six months to 31 December 2024, Argo returned +6.3%, slightly trailing the Index which rose +6.9%. The most significant positive contributor to performance over the half-year was the company's holding in Technology One, with its share price up more than +65% during the period. In contrast, Argo's underweight exposure to Commonwealth Bank detracted from performance.
Argo expects the new US administration's policies and pronouncements will continue to drive major market movements and play a pivotal role in reshaping the global economic landscape, including trade conditions and supply chains. The company remains generally optimistic about the outlook for the domestic economy, with the jobs market remaining strong, corporate balance sheets robust, and expenditure resilient.
Despite recent market fluctuations, Argo remains generally optimistic about the outlook for the domestic economy, with the jobs market remaining strong, corporate balance sheets robust, and expenditure resilient. The company is well-positioned to navigate the current investment landscape, with cash available to capitalise on short-term opportunities and a diversified portfolio that includes stocks generating US dollar revenue.