Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Huge fan of your work. Very impressive!' - Scott Pape, The Barefoot Investor, Australia's #1 bestseller.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of the finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts...most comprehensive analyst I follow in Oz' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

Tuesday, 4 August 2015

Argo delivers

Difficult trading environment or not, Argo Investments (ARG) came up with the goods this reporting season.

Reported revenue was up by 14.8 per cent to $241.9 million, while profit was up by 16.5 per cent to $228.1 million.

As at 30 June 2015, ARG had net asset backing of $7.52 per share (the closing share price yesterday was $8.29 for a market capitalisation of $5.5 billion).

The final fully franked dividend will be 15.5 cents payable on 2 September 2015, to follow on from the interim fully franked dividend of 14 cents.

This adds to an already impressive dividend history for the company. 

Argo has paid out dividends every year since it was established in 1946.


Why has Argo performed well through this tough period for investors?

Through avoiding chasing short term profits and investing in a diversified portfolio of quality companies for the long term and the cumulative impact of their results.

The costs of managing the portfolio or management expense ratio (MER) equated to just 0.15 per cent of average assets under management in the last financial year (compare that to what you are being charged in your super fund).

Argo offers a dividend reinvestment plan (DRP), such that $10,000 investment in ARG on 1 July 1999 would have been worth $42,591 by 30 June 2014.

Generally speaking Argo's portfolio has not been weighted towards resources companies. 

---

Disclaimer: This blog does not represent financial advice. See a financial advisor before buying any investments.