Here is a 5% yield situation, this one from a smaller company enjoying a nice uptick in growth while kicking out consistent dividends, explains John Dobosz, editor of Forbes Dividend Investor.

Founded in 1976 and based in Pryor, Oklahoma, Orchids Paper Products (TIS) makes paper towels, bathroom tissue, and paper napkins.

The company sells to dollar stores, discount retailers, grocery stores, wholesalers and cooperatives, and convenience stores. Brands include Colortex, My Size, Velvet, Big Mopper, Linen Soft, Soft & Fluffy, Tackle, and Noble.

Revenue is expected to grow 20% this year and to grow 20% again next year with revenues totaling $170 million.

Earnings are expected to jump 60% next year to $2.00 per share, giving Orchids stock a lean forward P/E multiple of 14.1 times earnings.

That’s an especially modest valuation for a company with sales and profits growing as fast as Orchids. It’s also 18% lower than the average P/E ratio of 17.2 over the past five years.

Next year’s expected earnings multiplied by that average P/E gets you a $34.40 stock price.

Dividends have been paid for the past four years and currently total $1.40 per year, good for a yield of nearly 5% at today’s prices.

What’s nice to see is the insider buying by the top dog. CEO Jeffrey Schoen took down more than $300,000 worth of Orchids stock late last summer at prices between $26.60 and $27.92 per share.

Subscribe to Forbes Dividend Investor here…

More from MoneyShow.com:

P&G: Streamlining and New Products

Macy's: Parade of Profits?

Retailers: Big Box to Boutique