5. IBM

Liability Adjusted Cash Flow Yield: 4.6%

Dividend Yield: 1.66%

LACFY/10-Year Treasury Yield: 2.22

Return on Invested Capital: 43%

Warren Buffett recently announced that Berkshire Hathaway accumulated $10.7 billion worth of IBM stock -- a 5.5% stake in the company. Oddly, this news comes as IBM ( IBM) stock is reaching all-time highs.

It's hard to imagine IBM as anything but fairly-to-over valued, yet the numbers suggest that IBM is still one of the cheapest in the Dow. The company's 4.6% liability-adjusted cash flow yield is well in excess of the 10-year Treasury yield (and the 30-year bond for that matter). And at 43%, IBM's return on invested capital in downright spectacular.

If IBM can continue to grow cash flows, the stock will remain an attractive investment. As for the quality of IBM's cash flow, the tech giant has one of the most consistent free cash flow/net income ratios in the business (consistently hovering near 1.0).

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