DRIP PORTFOLIO

September 16, 1998

Drip Port Buys Mellon Bank
MEL is #4 Buy

After six months of learning about and studying over twenty banking and financial companies, the Drip Portfolio narrowed its focus to eleven, and then five, and then two. The final two contenders were Norwest (NYSE: NOB) combined with its pending partner Wells Fargo (NYSE: WFC), up against Mellon Bank (NYSE: MEL).

After considering both companies for more than a few weeks, the Drip Port sided with Mellon. The company is diversified in several lines of attractive financial businesses and its profitability ratios are extremely high -- among the best of our long study.

The reasoning behind the Mellon purchase (the company's attributes as well as its risks) are provided in the articles linked to the right. Also included are background articles for analyzing the financial services industry, as well as useful terms and definitions. For all of the articles on all the bank companies that led to this decision, please see the Drip Port archives from March to September, 1998.

As always, Fools should understand what they're buying and why. All Fools are responsible for their own decisions (or you can always blame your mom) and the Drip Port's purchase of Mellon Bank doesn't represent a "buy recommendation" for others. Everyone's situation and level of understanding differs, and you should always buy what suits you and what you're comfortable with. Finally, please read the 13 Steps to Investing Foolishly before investing in stocks.

Mellon's DRP is commission-free. The minimum investment (whenever a Fool chooses to invest more funds) is $100. At a current price of $58, the stock is yielding 2.45%. Mellon is the Drip Port's fourth purchase since the portfolio's launch fifteen months prior.

Fool on!