Thursday, 9 January 2025

ARG argo

 ARG
09/07/26

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The price of Argo has hovered between $5 and $9 over the past 19 years.  So if you were to hold long term you wouldn't have doubled even if you managed to buy at its bottom and sell at its top..... thus, its not a "growth" stock. 

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Over the last 5 years, Argo Investments (ASX:ARG)—a leading Australian listed investment company (LIC)—has delivered steady long-term results, outperforming its index with total returns averaging over 12% per annum. It maintains virtually zero debt, highly stable profit margins, and consistently pays fully franked dividends. [1, 2, 3, 4, 5, 6]
Financial Snapshot
  • Profit: Recorded a preliminary full-year profit of A\(\$259.8\) million (up from A\(\$253\) million in 2024), and a record half-year profit of A\(\$130.8\) million for the half-year ending 31 December 2025.
  • Debt: Almost entirely debt-free, with a Total Debt-to-Equity ratio of just 0.03%.
  • ROE (Return on Equity): Stands at 4.04%, reflecting its conservative mandate focused on large-cap, dividend-paying companies.
  • Profit Margin: Achieves exceptionally high profit margins of ~89.62% to 95.91% as it is structured as an investment vehicle. [1, 2, 3, 4, 5]
5-Year Performance & Returns
  • Capital Growth & Returns: Over the volatile five-year post-COVID stretch, long-term Argo investors have achieved a respectable total return of approximately 46%. [1]
  • Dividends: Continued its long history of paying fully franked dividends, lifting its full-year dividend to 37.0 cents per share (cps) and paying an interim dividend of 18.5 cps in early 2026. The dividend yield typically hovers around 4.2%. [1, 2, 3, 4]
Key Strategic Highlights
  • Portfolio: Argo manages a diversified portfolio of around 90 Australian listed companies, heavily weighted towards blue-chip stocks like banks, major miners, and healthcare.
  • Fees: Maintains a notably low Management Expense Ratio (MER) of 0.15%, making it a cost-effective option for long-term equity exposure. [1, 2, 3, 4]
Review the most up-to-date Argo Investments 2025 Annual Report or explore real-time pricing and fundamental metrics via Yahoo Financ
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