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Forget a Cash ISA! I’d buy these 2 FTSE 100 dividend stocks yielding 6%+ today

Since Cash ISAs generally offer income returns that are 1.5% or below, it is possible to generate four times that level of income from a number of FTSE 100 shares.

Admittedly, in some cases they may have uncertain futures. This could mean that their financial performance is somewhat lacking in the near term, or that investor sentiment is weak over the coming months.

However, with these two FTSE 100 stocks appearing to offer wide margins of safety, improving income prospects and growth potential, now could be the right time to buy them instead of saving through a Cash ISA.

Kingfisher

Home improvement specialist Kingfisher’s (LSE: KGF) financial performance has been disappointing in the last couple of years. It has faced difficult operating conditions across a number of its brands. This trend could continue in the near term, and may mean that investor sentiment remains weak.

However, with an efficiency programme having the potential to offset weaker sales growth, the company could have a bright future. Plans for a new CEO may also provide new ideas that could catalyse the company’s future financial performance. And, with it forecast to post a rise in net profit of 22% in the current year, its financial prospects may be stronger than the market is expecting.

With Kingfisher currently having a dividend yield of around 6.1% that is covered 2.3 times by profit, it could offer income investing potential over the long run. Although it may be less resilient than some of its index peers due to an uncertain economic outlook across Europe, it could produce high returns in the long run that make it more enticing than a Cash ISA.

WPP

With the prospects for the world economy being somewhat uncertain at the present time, advertising and PR specialist WPP (LSE: WPP) could face a challenging near-term outlook. This, though, appears to have been factored into its stock price, with it currently trading on a price-to-earnings (P/E) ratio of just 8.

This suggests that the stock could offer good value for money at a time when it is forecast to post a rise in net profit of 5% in the current year.

Under a new management team, WPP is focused on improving its performance in core areas, as well as becoming more efficient. Although the changes it is making to its business model may take time to have their desired impact, it has a strong position in a number of key markets.

With a dividend yield of just over 6% being covered twice by profit, it seems to be in a strong position to raise shareholder payouts over the medium term. While it lacks the resilience of some of its index peers, it could deliver a high total return in the long run that makes it more appealing than a Cash ISA on a risk/reward basis.

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Peter Stephens has no position in any of the shares mentioned. The Motley Fool UK has no position in any of the shares mentioned. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.