6. Procter & Gamble
Liability Adjusted Cash Flow Yield: 4.6%
Dividend Yield: 3.36%
LACFY/10-Year Treasury Yield: 2.22Return on Invested Capital: 12% Despite owning some of the world's best-known "everyday" brands, Procter & Gamble (PG - Get Report) is suffering from deterioration in net income and free cash flow. Many investors don't realize that the consumer products giant has current liabilities in excess of current assets, however, the company's balance sheet is improving (at 0.83, the current ratio is paltry, but the best number since 2006). Although the company is an old-favorite among dividend investors -- a Dividend Aristocrat, after all -- management frustratingly allocates more cash to share buybacks than paying out distributions to owners. Investors looking for alternatives may wish to look outside the Dow at Church & Dwight (CHD), a nimbler competitor within the household products space.
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