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Calling ISA investors! Could these 6% and 9% dividend yields help you retire in luxury?

One of the biggest mistakes investors can make is to stash their money in a low-yielding Cash ISA. Why on earth would anyone settle for such paltry returns when there’s a top opportunity to make some serious cash with UK dividend stocks?

Shoe Zone (LSE: SHOE) is one big yielder that has attracted improved buyer interest of late and it’s easy to see why. City predictions of a 15% earnings rise in the current fiscal year (to September 2020) leave it dealing on a forward price-to-earnings (P/E) ratio of 7.3 times. And with this comes expectations of more dividend growth, resulting in a giant 9% dividend yield.

Demand for Shoe Zone shares picked up after a reassuring financial update in late October, one in which the AIM-quoted retailer said that revenues rose fractionally in the last fiscal year to £161.9m.

However, I’d advise investors not to get too excited. The release follows on from a profit warning over the summer, a shocking release that forced chief executive Nick Davis to resign with immediate effect.

And judging from latest Office for National Statistics retail sales data this week, numbers which showed sales grow at the slowest rate since spring 2018 in the three months to October (at 0.2%), there’s plenty of reason to keep giving Shoe Zone a miss. The chances of its share price sinking again are far too high for my liking.

A better fit

Conversely, Centamin’s (LSE: CEY) share price has swung lower in recent weeks as gold values have weakened on market hopes of a trade deal breakthrough between Beijing and Washington. I believe that this represents a terrific buying opportunity, as the chances of a sharp snapback in bullion prices is strong.

The boffins at UBS certainly believe gold could be on the cusp of a comeback. They commented this week that “the bar remains high for a full trade resolution.” and so predict that the yellow metal will barge through the $1,600 per ounce marker in 2020. This is up from recent levels around $1,460.

Indeed, they see no reason for alarm following this recent weakness as they believe that “the recent consolidation in prices and positioning is healthy and prepares the market for another leg higher.”

Gold star

And why wouldn’t they be optimistic? The factors that propelled gold values to six-year peaks over the autumn remain very much in play, from those fears over prolonged US-China trade bickering (and the possibility that President Trump will put his European trading partners in the crosshairs next), to the probability of more central bank rate cuts and a subsequent rise in inflationary concerns, to Brexit uncertainty stretching through 2020, to the possibility of key European economies moving into recession, to China’s economy continuing to sputter.

The bulk of City analysts certainly reckon on prices of the safe-haven metal remaining robust next year and consensus suggests that earnings at Centamin will rise 43% in 2020. This has two positive knock-on effects: firstly it leaves the FTSE 250 business trading on a forward price-to-earnings growth reading of 0.4. Secondly it leads to predictions of more excellent dividend growth, leaving Centamin with a giant yield of 6.3% for next year. I’d happily buy Centamin shares in the hopes of big dividends now and in the years ahead.

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Royston Wild 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.