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Forget the top Cash ISA rate. I’d pocket 7.8% here

The best flexible Cash ISA on the market offers a disappointing interest rate of just 1.36% at the time of writing.

The good news is, Cash ISAs are not the only instrument you can use to save for the future. Shares are a great alternative, and right now, there’s a whole range of stocks on the market that support dividend yields far above the interest rate offered by the market’s top Cash ISA.

Booming market

Homebuilder Bovis (LSE: BVS) is one of these opportunities. City analysts expect this company to distribute around 104p per share in dividends for 2019 as a whole, which translates into a dividend yield of 8.3% on the current share price.

Analysts are expecting the distribution to remain roughly the same next year as well. They’ve pencilled in a dividend yield of 8% for 2020.

Bovis is one of the leading builders in the country, and the firm has benefited from the recent boom in homebuilding that’s been spurred on by the government’s Help to Buy scheme.

Indeed, Bovis’s earnings per share have more than doubled over the past six years and it does not look as if this trend is going to slow down any time soon.

The company recently inked a deal to buy Galliford Try‘s Linden Homes business for around £1.1bn in cash and shares. The deal will boost the group’s homebuilding capacity to between 7,000 and 8,000 units per year. Management had previously been targeting output of 4,000 homes per year by 2020.

This deal should help support the firm’s growth for the next few years and provide cash to support the dividend. With the demand for homes across the UK still rising, I think you can rely on Bovis as an income champion.

Restoring confidence

Shares in Cineworld (LSE: CINE) also offer a dividend yield of 6.2%.

Investors have been avoiding this stock over the past 12 months due to concerns about Cineworld’s rising debt pile and growth outlook.

However, despite an 8.5% decline in total group revenues between January 1, and December 1 2019, management is still confident that it has the financial capacity to both reduce debt and maintain its dividend.

In a trading update published at the beginning of this month, the company declared: “We remain focused on operational performance, cash flow generation and de-leveraging which will be achieved within our current capital allocation framework with no change to the dividend policy.

On that basis, I think shares in Cineworld could offer value at current levels. As well as the market-beating dividend yield, the stock also looks cheap from an earnings perspective. It is dealing at a forward P/E of 9.9, falling to 8.9 next year based on current City projections. The market has been willing to pay a mid-teens multiple for the stock over the past five years. So it looks as if the shares offer the potential for both income and capital growth at current levels.

A top income share with a juicy 6% forecast dividend yield

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Rupert Hargreaves owns no share 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.