Argo Investments Surges 79% in Profit, Declares 18.5c Fully Franked Dividend
Argo Investments reported a striking 79% jump in half-year profit to $130.8 million, underpinned by stronger investment income, and announced an 18.5 cents per share fully franked interim dividend.
- 79% increase in half-year profit to $130.8 million
- Earnings per share rose 8.2% to 17.2 cents
- Interim fully franked dividend declared at 18.5 cents per share
- Net tangible asset backing per share at $10.34
- On-market share buy-back cancelled 2.2 million shares
Strong Profit Growth Driven by Investment Income
Argo Investments Limited has delivered a robust half-year performance for the period ending 31 December 2025, with profit soaring 79% to $130.8 million compared to the previous corresponding period. This significant uplift was primarily fuelled by increased investment income from trading activities within its diversified Australian equities portfolio.
Earnings per share also improved, rising 8.2% to 17.2 cents, reflecting the company’s effective portfolio management and favourable market conditions. The firm’s strategy of balancing capital growth with dividend returns continues to underpin its financial results.
Dividend and Capital Management
In line with its profit growth, Argo declared a fully franked interim dividend of 18.5 cents per share, payable on 20 March 2026. This represents an increase from the prior period’s 17.0 cents per share dividend, signalling confidence in ongoing earnings and cash flow generation. The company’s Dividend Reinvestment Plan (DRP) and Dividend Substitution Share Plan (DSSP) remain operational, with shares for participants being acquired on-market to neutralise dilution.
Capital management was further highlighted by an on-market share buy-back program, which saw approximately 2.2 million shares purchased and cancelled during the half-year. This move supports shareholder value by reducing the number of shares on issue and potentially enhancing earnings per share over time.
Net Tangible Asset Backing and Portfolio Overview
Net tangible asset (NTA) backing per share stood at $10.34 as at 31 December 2025, slightly down from $10.43 at the previous June but up from $10.01 a year earlier. This metric provides a snapshot of the underlying value of the company’s assets after liabilities, offering investors a tangible measure of intrinsic worth.
Argo’s portfolio remains diversified with no single investment accounting for more than 10% of income, reflecting a cautious yet opportunistic approach to Australian equities. The company continues to manage its portfolio actively with a tax-aware strategy aimed at maximising long-term shareholder returns within a low-cost structure.
Governance and Outlook
The half-year period saw a change in the board with the retirement of Christopher Cuffe AO and the appointment of Symon Parish, maintaining a strong governance framework. The financial report was reviewed by PricewaterhouseCoopers, who confirmed compliance with accounting standards and no independence issues.
While the company did not provide forward guidance, the strong profit growth and dividend increase suggest a positive outlook. Investors will be watching closely how Argo navigates market volatility and continues to deliver on its dual mandate of capital and dividend growth.
Bottom Line?
Argo’s impressive profit surge and dividend boost set the stage for a closely watched 2026 as investors assess sustainability amid market shifts.
Questions in the middle?
- Will Argo sustain its elevated investment income levels in the second half of the financial year?
- How will ongoing share buy-backs impact earnings per share and shareholder returns?
- What is the company’s strategy to manage potential market volatility and tax implications going forward?
