1. The Russell 3000 currently trades at a Price to Book (P/B) of 2.5 with a ROE of 14.0%, a dividend yield (D/P) of 2.0%, and an EPS growth rate (EPS) of 12.0%. A PM has a GARP (Growth at a Reasonable Price) style of investing. Part of the PMs investment philosophy is to only select stocks with dividends because dividends are a sign of quality and quality can help drive outperformance over long investment horizons. Given that conducting detailed fundamental analysis on every company in the investible universe would take too much time, which of the following quantitative screens would be most useful to the PM?

1. A screen that returns 200 stocks using a P/B < 3.0; ROE > 14.0%; EPS > 12.0%; D/P= 0.0%
2. A screen that returns 200 stocks using a P/B < 3.0; ROE < 14.0%; EPS < 12.0%; D/P < 2.0%
3. A screen that returns 200 stocks using a P/B < 3.0; ROE > 14.0%; EPS > 12.0%; D/P > 2.0%