Home design and building project management company Tamawood Limited (ASX: TWD) today confirmed that it would pay a 25 cent fully franked dividend for the 2016 financial year (FY16).

At the current price of $2.88, that equates to a dividend yield of 8.7%, or 12.4% if you include the franking credits. The company will pay a 10 cent interim dividend, with the remaining 15 cents to paid after the full-year results are announced in August this year.

Reporting its first half financial results for The company says it has seen a 30% increase in sales, with no material increase in fixed overheads (assuming this calendar year to date).

Here are some of the highlights…

  1. Revenues down 5.9% to $46.9 million compared to the previous corresponding half year (1H FY15)
  2. Net profit after tax of $3.3 million, up 4.3% over 1H FY15
  3. Earnings per share of 13.1 cents, up slightly from the 12.6 cents reported in 1H FY15
  4. Operating cash flow of $2.4 million, compared to $565,000 in 1H FY15

The company says that its NSW operations were impacted by continual delays in land registration – (perhaps a dig at the NSW state government?) but sales continue to rise, and are expected to be strong in the second half of 2016 as delays ease.

Tamawood also announced that it was looking to expand its franchise business into Melbourne and Adelaide within the next 12-18 months.

Foolish takeaway

Underestimated, unloved or overlooked, it’s hard to work out why Tamawood doesn’t receive the attention and premium price tag it deserves. For investors looking for a solid, high-yielding business – which has averaged yields of 9.7% over the past decade and a total shareholder return of 16.3% (according to Commsec) – it’s hard to go past Tamawood.

NEW: The Motley Fool's Top Fully Franked Dividend Share For 2016

Forget BHP and Woolworths. This "dirt cheap" company. is growing like gangbusters, and trading on a 5.6% dividend yield, FULLY FRANKED (8% gross). With interest rates set to stay at these low levels for years to come, for income-hungry investors, including SMSFs, this ASX company could be the "Holy Grail" of dividend plays for 2016. Click here to gain access to this comprehensive FREE investment report, including the name of this fast growing ASX dividend share. No credit card required.

HOT OFF THE PRESSES: Motley Fool’s #1 Dividend Pick for 2017!

With its shares up 155% in just the last five years, this ‘under the radar’ consumer favourite is both a hot growth stock AND our expert’s #1 dividend pick for 2017. Now we’re pulling back the curtain for you... And all you have to do to discover the name, code and a full analysis is enter your email below!

Simply enter your email now to receive your copy of our brand-new FREE report, “The Motley Fool’s Top Dividend Stock for 2017.”

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our https://www.fool.com.au/financial-services-guide">Financial Services Guide (FSG) for more information.

Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.