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Forget the top Cash ISA rate. I’d pocket 5%+ from these 2 FTSE 100 dividend stocks

With interest rates forecast to stay at low levels over the medium term, the prospect of generating a high income return from a Cash ISA seems remote.

As such, now may be the right time to focus your capital on FTSE 100 shares. In many cases they offer generous dividend yields, as well as the potential to generate capital growth.

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With that in mind, here are two large-cap shares that could be worth buying today alongside a diverse portfolio of stocks.

Standard Life Aberdeen

The Standard Life Aberdeen (LSE: SLA) share price has made strong gains in recent months. For example, it has risen by 7% in the past three months, with investor sentiment seemingly improving as the business delivers on its strategy.

Its recent results showed progress is being made in growing its presence in the wealth advisory segment and in developing its range of funds. It is also making cost reductions across its business, which could improve its competitive position.

The rise in Standard Life Aberdeen’s share price means that it now has a dividend yield of 7%. Furthermore, the affordability of its dividend could improve since the company is forecast to post a rise in its net profit of 4% in the current year and 10% next year.

As such, now could be the right time to buy a slice of the business. Certainly, its progress is heavily linked to the outlook for the wider economy. But its high dividend yield and the progress it is making in implementing its strategy suggest that its risk/reward ratio is favourable for income-seeking investors at the present time.

BHP

Another high-yielding FTSE 100 share is diversified mining business BHP (LSE: BHP). Its share price has also risen in the last three months, with the continued growth potential of the world economy providing a buoyant industry outlook for mining businesses.

With the US and China having signed a ‘phase one’ trade deal, the prospects for the world economy could gradually improve. However, with tariffs remaining on $360bn of Chinese exports and $110bn of US exports for the time being, the trade war is clearly far from over. As such, investor sentiment towards global mining companies could be highly changeable in the short run.

BHP’s diverse range of operations and its strong balance sheet mean that it is potentially less risky than other resources companies. However, it is still highly dependent on commodity prices, and may therefore offer a relatively volatile outlook for investors.

With a dividend yield of 5.7%, it appears to offer good value for money. Investors seem to have factored in the potential risks that the company faces, which may mean that its risk/reward opportunity is attractive. As such, now could be the right time to buy a slice of the business for the long term.

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Peter Stephens owns shares of Standard Life Aberdeen. 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.