Argo Investments posts 2.7% uptick in annual profit, lifts dividend
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The news: Listed investment company Argo Investments has reported full-year net profit of $259.8 million, up 2.7% from $253 million last year, after the company's investment revenue was bolstered by better-than-expected dividends from a number of its portfolio companies.
Argo declared a final dividend of 20 cents per share, taking total dividends to 37 cents, up from 34.5 cents in fiscal 2024.
The numbers: Argo said that during the year, the company purchased $335 million of investments, including new holdings and additions to existing positions. Over 12-month period, the company received $370 million from sales of investments, including $48 million in Commonwealth Bank.
Argo's investment performance of 13.3%, measured by net tangible asset returns, was slightly behind the S&P/ASX 200 Accumulation Index, which increased 13.8%.
The context: Argo said its holding in software company Technology One was the biggest positive contributor to its investment performance, with its share price surging more than 120% over the year.
The biggest negative contributor was Argo's underweight holding in Commonwealth Bank.
"In defiance of traditional valuation metrics, the bank's share price reached numerous record highs during the year and we selectively reduced our exposure to end the financial year with 5.4% of the portfolio invested in CBA, compared to the index weighting of 12%," the company noted.
The source: ASX
