Argo Investments has reported a half-year profit of $130.8 million and declared a record fully franked interim dividend of 18.5 cents per share, reflecting strong dividend growth despite a challenging market environment.
- Half-year profit rises to $130.8 million
- Record fully franked interim dividend of 18.5 cents per share
- Dividend growth of 37.5% over five years
- Portfolio adjusted with selective new and exited positions
- Net tangible assets grew 8.1% in 2025, underperforming ASX 200 index
Strong Profit and Dividend Growth
Argo Investments Limited, one of Australia's longest-standing listed investment companies, has announced a robust half-year profit of $130.8 million for the six months ending 31 December 2025. This marks an increase from $121.2 million in the previous corresponding period. The company declared a fully franked interim dividend of 18.5 cents per share, an 8.8% rise year-on-year and a new record for the firm.
The dividend growth is particularly notable given the volatile market conditions over recent years, including post-pandemic disruptions and geopolitical uncertainties. Argo has successfully increased dividends by 37.5% over the past five years while maintaining full franking credits, a significant benefit for Australian shareholders.
Portfolio Moves and Investment Performance
While investment revenue remained relatively flat, Argo's profit was supported by increased income from trading and options activities. The company made several portfolio adjustments, including new positions in Generation Development Group and Clarity Pharmaceuticals, while fully exiting holdings in Healius and GPT Group among others. The total number of stocks held slightly decreased from 85 to 83.
Despite a challenging investment environment, Argo's net tangible assets rose by 8.1% in 2025, though this performance lagged behind the S&P/ASX 200 Accumulation Index, which increased by 10.3%. The underperformance was largely attributed to Argo's underweight exposure to gold stocks, which surged amid safe-haven demand during political uncertainty.
Navigating Uncertainty with Conservative Strategy
Argo’s investment philosophy focuses on established companies with sustainable dividends, avoiding more speculative sectors like cyclical mining stocks. This conservative approach has helped the company maintain resilience through turbulent times. The board emphasised its commitment to sustainably growing fully franked dividends, supported by a healthy franking account balance.
Looking ahead, Argo acknowledges the uncertain economic and geopolitical landscape, including recent interest rate hikes by the Reserve Bank of Australia and ongoing global risks. Nevertheless, the company remains confident in its diversified portfolio spanning over 80 Australian listed companies across multiple industries, positioning it well to weather market fluctuations.
For nearly eight decades, Argo has demonstrated an ability to adapt and deliver reliable income streams, a track record that continues to underpin investor confidence in its conservative yet growth-oriented strategy.
Bottom Line?
Argo’s record dividend and steady profit growth underscore its resilience, but market uncertainties loom large.
Questions in the middle?
- How will Argo balance dividend growth with potential market headwinds in 2026?
- Will Argo increase exposure to sectors like gold if safe-haven demand persists?
- How might rising interest rates impact Argo’s portfolio and dividend sustainability?