CATALOGUE shopping group Argos is to pay shareholders a special £127 million one off dividend as a reward for record earnings and a growing cash pile.

Investors will receive a special dividend of 42p per share on top of a normal total payout of 13p, compared with 10.5p in 1994, on earnings per share 4.2p higher at 27.5p. News of the dividends accompanied results for last year which showed pretax profits at a record £124.4 million, compared with £100.2 million in the previous 12 months.