Argo delivers record returns

Australian listed investment company Argo Investments has achieved a record profit and increased dividends for the year.

The directors have announced the company’s operating profit increased from $105.1 million in the previous year to a record $123.1 million for the year ending June 30 (after tax and before realised gains on long-term investments).

This boost represents a growth of 17.2 per cent, with many of the portfolio’s stocks paying higher income distributions to investors compared to that of last year.

Argo does not consider realised gains on long term investments are part of its ordinary activities and has therefore identified them separately from it operating profit as being $21.2 million (last year $15.8 million).

Total fully franked dividends amounted to a record 24 cents per share, compared with the 21 cents delivered in the previous year, equalling $115.1 million to be dispersed to shareholders this year.

The Adelaide-based company anticipates its strong financial position will continue.

Argo’s top four principal investments include Macquarie Bank, Milton Corporation, BHP Billiton and National Australia Bank.

Argo said its objective was to maximise long-term, secure returns to shareholders through a balance of capital and dividend growth from a diversified Australian investment portfolio.

It predicts that rising global interest rates, record oil prices and continuing hostilities will return some long-awaited value back into the global market.