Argo Investments (ASX: ARG) has dropped -1% today after announcing the company’s half-year results for the year ending 31 December 2021.
The listed investment company (LIC) reported a $129m interim profit. This marks a 91.5% gain from the same period in 2020.
The growth was driven by Argo’s portfolio companies recovering from 2020 covid losses. Argo noted a “record half” of dividend income, with major holdings such as Macquarie Group (ASX: MQG) , BHP (ASX: BHP), Rio Tinto (ASX: RIO), and National Australia Bank (ASX: NAB) lifting dividends by over 100%.
Argo's investment performance (after all costs) was 7.3% for the half-year.
This beat the S&P/ASX 200 Accumulation Index’s return of 3.8%.
“The strong performance relative to the broader Australian share market reflects Argo’s focus on company fundamentals to identify high quality companies with good long-term prospects,” says the company in today’s announcement.
“Our investment approach saw us avoid several stocks and sectors with inflated valuations, which sold off later in the year.”
Argo’s share price gained 15.7% over the reporting period.
Argo will pay a fully franked interim dividend of 16 cents per share.
This is a 14.3% increase from the previous interim dividend of 14 cents.
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