share for every ten shares held to shareholders of record September 15.

The move comes just ahead of a cash dividend of 18 cents a share, payable October 15 to shareholders of record September 30.

Secretary David C. Carruthers said: "The overall effect of this is an increase of 16.5 percent in the cash dividend payable on October 15.

"The directors are pleased that the results of our 199 6/97 financial year and those of this year to date justify this distribution to shareholders.

"It will be particularly welcomed by those shareholders who are retired and on fixed incomes.'' Managing director, John Sainsbury, said: "We've had over the last 17 years, probably ten to 12 stock dividends at one level or another. It is what we do, although it is not that common with other companies.

"It gives more liquidity. There are more shares out there, more shares in the market and it keeps the blood flowing so to speak.'' Argus, like many companies, has generally maintained a dividend pay out of 30 to 35 percent of the previous year's net income. With annual increases in bottom line profits, they have traditionally raised dividends per share in line with that philosophy.

Mr. Sainsbury said: "This year it is a bit more than that because we have had a good start, mainly because of the local stock market, where we are fairly heavily invested and have had considerable appreciation in our portfolio over the last few months.

"We had been a buyer of the local market over the last several years, while the market was depressed. We had the money and it was a good time to buy.

"There is no guarantee, but if the market continues in the upward direction that it is going, it could give our earnings a nice boost for this year.''