Media Release - Half-year report to 31 December 2025
Released
Released
Announcement PDF
ArgoInvestmentsLimited
ACN 007 519 520
invest@argoinvestments.com.au
argoinvestments.com.au
Head Office
Level 25, 91 King William St
Adelaide SA 5000
08 8210 9500
Sydney Office
Level 37, 259 George St
Sydney NSW 2000
02 8274 4700
9 February 2026
ASX/ Media Release
Record high fully franked interim dividend declared
Argo Investments Limited (ASX code: ARG), one of Australia’s oldest and largest listed
investment companies, announces a half-year profit of $130.8 million and a fully franked
interim dividend of 18.5 cents per share.
Summary of financial results
Half-year to
31 December 2025
Half-year to
31 December 2024
Profit $130.8 million $121.2 million
Earnings per share 17.2 cents 15.9 cents
Interim dividend per share (fully franked) 18.5 cents 17.0 cents
Management Expense Ratio 0.14% 0.15%
Investment revenue from the portfolio was relatively flat compared to the last half-year.
Profit was bolstered by increased income from trading and options activities.
Continued dividend growth through market volatility
The fully franked interim dividend increased to a record high of 18.5 cents per share, up
+8.8% on the previous corresponding period. Including franking, the interim dividend
brings the grossed-up annual yield to 6.1%, based on Argo’s last closing share price. This
is well above the S&P/ASX 200 Accumulation Index’s grossed-up yield of 4.4%*.
Argo has now grown dividends +37.5% over the last five years. We have achieved this
track record and maintained 100% franking through a particularly volatile period
including the post-COVID market upheaval and heightened geopolitical uncertainty.
In contrast, the S&P/ASX 200 Accumulation Index’s cash dividends have been volatile
and are currently trending lower, while franking levels have fluctuated between 68%
and 85%.
*using the iShares Core S&P/ASX 200 ETF as a proxy for the Index. Yield calculated based on the closing share
price on 6 February 2026.
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Argo will neutralise the Dividend Reinvestment Plan for the interim dividend by buying the
shares required for participants on-market.
Despite increasing our fully franked dividends in recent years, Argo still has a healthy
franking account balance. Recognising that these imputation credits are more valuable
to our shareholders than on our balance sheet, the Board considered it appropriate to
meaningfully increase the interim dividend. The Board is committed to sustainably
growing Argo’s fully franked dividends.
Investment portfolio
The larger movements in the portfolio during the period were:
Purchases
CSL
Amcor
Worley
Rio Tinto
BHP
Generation Development Group*
Clarity Pharmaceuticals
* New position
Sales
Reece
Wesfarmers
Lynas Rare Earths
Eagers Automotive
Healius**
GPT Group**
Brambles
** Fully exited position
Overall, the total number of stocks in the investment portfolio decreased slightly from
85 to 83 during the period.
Investment performance
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. The Index rose +10.3%, before any allowance for costs.
Over the six months to 31 December 2025, Argo returned +1.4%, as compared to the
Index which rose +3.6%. Argo’s performance compared to the Index was driven largely
by our underweight exposure to gold stocks which had a -1.5% effect on relative
performance.
Gold stocks rose sharply in response to the surging gold price as investors sought safe-
haven assets amid the tumult of President Trump’s second term. Although Argo
maintains selective exposure to the gold sector with a $100 million investment in
Newmont Corporation, gold companies have grown dramatically and now account for
almost 5% of the Index.
Argo’s investment approach favours established businesses with sustainable dividends.
We therefore tend to avoid more cyclical, speculative mining stocks which do not pay
reliable dividends because their earnings and share prices can fluctuate with commodity
prices. We have seen an acute demonstration of this in recent weeks, as precious metal
prices have swung wildly.
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Outlook
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. Argo’s portfolio of over 80 Australian listed companies spans multiple
industries, with reliable earnings generated both domestically and offshore.
For nearly 80 years, Argo has remained resilient through changing conditions and
periods of uncertainty, including geopolitical upheaval and other disruptive events. We
are well-positioned to navigate the current environment, applying our conservative
investment approach and remaining focused on growing our shareholders’ capital while
delivering a reliable income stream through market cycles.
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Contacts
Jason Beddow
Managing Director
02 8274 4702
Meredith Hemsley
Communications Manager
02 8274 4707
About Argo
Argo Investments (ASX code: ARG) is one of Australia’s oldest and largest listed
investment companies (LICs). We offer investors low-cost, conservative and diversified
exposure to Australian listed companies. Founded in Adelaide in 1946, Argo is one of
ASX’s top 100 companies and invests approximately $8 billion on behalf of more than
87,000 shareholders.
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