Argo Investments declares dividend as profits climb

Argo Investments (ASX:ARG) announced a record-breaking half-year result, declaring a fully franked interim dividend of 18.5 cents per share, an 8.8% increase over the previous year.

Despite relatively flat investment revenue from its core portfolio, the investment giant saw its half-year profit climb to $130.8 million, bolstered significantly by active trading and options income.

The payout brings Argo’s grossed-up annual yield to a 6.1%, comfortably outperforming the S&P/ASX 200 Accumulation Index's yield of 4.4%.

Management highlighted the company’s resilience, noting a 37.5% dividend growth over the last five years while maintaining 100% franking credits.

The performance stands in stark contrast to the broader market index, where cash dividends have remained volatile and franking levels have fluctuated between 68% and 85%.

At the time of reporting, Argo Investments' share price was $9.12.