S&P/ASX 200 Index (ASX: XJO) stock Argo Investments Limited (ASX: ARG) is managing to shrug off the broader market sell-down today.
Shares in the Aussie listed investment company (LIC) closed on Friday trading for $9.02. In late Monday morning trade, shares are changing hands for $9.03 apiece.
While that sees Argo shares up a slender 0.1% at time of writing, it certainly beats the 1.9% losses posted by the ASX 200 at this same time. Aussie investors are clearly anxious today following major tariff announcements over the weekend from US President Donald Trump.
Here's what's supporting the Argo share price during the broader market sell-down.
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ASX 200 stock reports record interim dividends
The Argo share price is catching tailwinds after the company released its half-year results (H1 FY 2025) covering the six months to 31 December.
Among the highlights, the ASX 200 stock declared an all-time high fully franked interim dividend of 17.0 cents per share. That's up 3% from the H1 FY 2024 interim dividend. And it sees the LIC trading at a fully franked dividend yield (part trailing, part pending) of 3.9%.
In other core financial metrics, revenue of $137.5 million was up 3.7%, boosted by better-than-expected dividends from a number of companies in Argo's investment portfolio.
However, profits declined by 3.3% year on year to $121.2 million. The company's management expense ratio remained stable at 0.15%.
On the performance front (as measured by the net tangible assets (NTA) return after all costs and adjusted for company tax paid), the ASX 200 stock gained 11.7% in the calendar year 2024, outpacing the 11.4% increase posted by the S&P/ASX 200 Accumulation Index.
But the second half of calendar year 2024 (H1 FY 2025) saw Argo return 6.3%, trailing the 6.9% increase on the Accumulation Index.
Management credited Argo's holding of software-as-a-service provider Technology One Ltd (ASX: TNE) as the most significant positive contributor to the LIC's performance over the half-year. The Technology One share price soared some 65% over the six months.
Dragging on the half-year performance was Argo's underweight exposure to ASX 200 bank stock Commonwealth Bank of Australia (ASX: CBA). The CBA share price surged more than 20% during the half-year. But Argo said CBA represented only 4.9% of its investment portfolio compared to 9.4% of the Accumulation Index.
Now what?
Looking at what could impact the ASX 200 stock ahead in 2025, management noted that "Donald Trump's election has triggered significant share market volatility".
According to Argo's management:
Looking ahead, we expect the new US administration's policies and pronouncements will continue to drive major market movements and play a pivotal role in reshaping the global economic landscape, including trade conditions and supply chains.
Despite recent market fluctuations, we remain generally optimistic about the outlook for the domestic economy. The jobs market remains strong, corporate balance sheets are robust, and expenditure has remained resilient.
And the ASX 200 stock could benefit from forecasts of ongoing strength in the US dollar.
Argo noted:
With cash available to capitalise on short-term opportunities and a diversified portfolio, Argo is well-positioned to navigate the current investment landscape. Notably, our portfolio includes stocks that generate US dollar revenue positioning them to benefit from the strong greenback.
