Argo Investments' full-year profit drops as lower payouts weigh

The news: Argo Investments has reported a drop in full-year profit, weighed down by lower income from companies in its investment portfolio.

The numbers: The listed investment company recorded profit of $253 million for the year to June, down 6.9% from the previous fiscal year. Despite the drop, it kept the final dividend unchanged at 18 cents a share, taking full year dividend to 34.5 cents a share, also flat from last year. Argo shares were down 1.1% at $8.87 in early trading on the ASX.

The context: The investment manager attributed the lower profits to lower investment income. "Most notably, dividends paid by BHP Group, Rio Tinto and Woodside Energy were down significantly, reflecting softer commodity prices. Income generated from option writing and trading activities also fell," it told investors.

Argo expects the investment uncertainty to continue in the coming months, with inflation, interest rates and the geopolitical environment set to remain as the dominant macroeconomic factors. It expects Australian companies to report higher costs and other headwinds in the earnings season.