Argo Investments Ltd (ASX:ARG) announced a record full year profit this morning of $228.1 million and a 1.0 cent or 6.9 per cent increase in the final dividend to 15.5 cent per share.
Argo Investments is an ASX listed investment company established in 1946. The firm manages separate client focused equity portfolios for its clients. It invests in public equity markets across the globe. The firm employs a qualitative analysis to make its investments. It employs a combination of in-house and external research to make its investments.
Profit for the year ending 30 June grew to 16.5 per cent and continues on the growth experienced over the last two years of 11.6 and 4.6 per cent.
Argo’s uninterrupted run of paying dividends every year since 1946 continues, with the total fully franked dividends declared for the financial year rising by 1.5 cents to 29.5 cents per share, the third year in a row that the annual dividend payments have increased.
In addition, the company’s investment portfolio outperformed the broader Australian share market over the financial year, returning 6.1 per cent compared to the ASX200 Accumulation Index returning 5.7 per cent. The total return based on the share price performance was even stronger, at 8.2 per cent for the year.
Argo’s MD, Jason Beddow said the share market’s overall performance for the year was hammered by significant falls in a number of commodity prices, including oil.
“As a result, Argo’s portfolio performance relative to the market index as positively impacted by underweight positions in BHP Billiton and Woodside Petroleum, and similarly benefited from not owning any shares in Fortescue Metals Group or Oil Search. However, this outperformance was offset to some extent by our holdings in MMA Offshore, Santos and Origin Energy. Our relatively large positions in Macquarie group, A.P. Eagers, Ramsay Health Care and APA Group all positively added to Argo’s performance.”
Argo’s share price has experienced healthy and consistent growth over the last four years. The last twelve months has seen a continuation of the uptrend as the company continues to improve their already strong financial performance. Following this morning announcement, its share price has gained 0.36 per cent as of 11.30 AEST.
Author: Ben Visser
Aug 03, 2015
Ben is a Wise-owl equity analyst focusing on ASX blue-chips stocks. Ben has a Bachelor of Business in Finance majoring in property valuations and management. In his role at Wise-owl Ben conducts in-depth fundamental and technical analysis which helps him to find profitable investment opportunities on the ASX and abroad.