The dividend, which equates to more than $6 million, is up from 0.25c 12 months ago with the net profit result a 56% increase.
However, underlying earnings were only up 5% to $46.5 million, while guidance for the full year remains unchanged at $90-100 million.
Macmahon said it has continued to maintain a strong balance sheet, with gearing of 20%, cash on hand of $148.4 million, and net debt of $129 million - as at December 31.
Macmahon increased and extended its debt facilities during the period to $170 million from $75 million.
"As a result, the company is well placed to fund growth opportunities with cash and unutilised facilities of $255 million," the contractor said.
Macmahon has an order book standing at more than $4 billion.
Shares in Macmahon were down slightly to 23.5c in late trade, capitalising the company at about $506 million.