DREYFUS EQUITY DIVIDEND FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
One of my most enjoyable duties as portfolio manager of the Dreyfus
Equity Dividend Fund, Inc. is writing this shareholder letter. This report
covers the six-month period ended April 30, 1997 during which the Fund's
total return was 12.19%* compared to 14.71% for the Standard & Poor's 500
Composite Stock Price Index** and 11.80% for the Standard & Poor's Barra
Value Index.*** Beating the performance of these major indices during this
period was extremely difficult given the stock market's overwhelming focus on
the very largest companies. Indeed, the largest multinational companies are
prospering, but economic strength is benefiting many companies, and my
current portfolio management goal is to diversify the Fund's economic
exposure, not to concentrate it in just a narrow part of the economy.
Regardless, the performance results of the Fund were better than the Standard
& Poor's Barra Value Index for the six-month period. We are generally pleased
with these results, especially since the Fund does not attempt to replicate
these indices and, therefore, has a different and, we believe, ultimately
lower risk profile.
ECONOMIC REVIEW
The Federal Reserve Board (the "Fed") decision in March to tighten credit
already has been vindicated by the reported 5.6% rise in first quarter real
Gross Domestic Product and by the drop to 4.9% in April's unemployment rate.
The economic debate is now splintered into 1) those who believe that softer
incoming economic data for the second quarter can keep Fed policy on hold,
and 2) those who believe the economy is fundamentally too strong, warranting
higher rates irrespective of short-term economic fluctuations. Views on the
risk of inflation clearly distinguish these camps. To date, a strong dollar
has helped mute price inflation, preventing a follow-through from rising
wages. Market interest rates are likewise treading water until the policy
outlook becomes clearer. We believe that some tightening is likely in coming
months and this should temper overall growth to sustain a long business
cycle.
First quarter real GDP grew an annualized 5.6% on the quarter and by 4.0%
since the first quarter of 1996, both growth rates unseen since 1987/88.
Virtually every major economic sector contributed positively to growth. In
the early evidence for the second quarter, rising new orders portend
continued strength in exports and capital spending. By contrast, retail
spending weakened in April and the housing sector slowed. However, real
disposable income grew 3.8% in the last year, a pace which, if sustained,
should support the upward cycle in consumer spending, while mortgage rates
have not yet risen substantially.
Alongside the recent evidence of slowing consumer demand is the report of
the drop in unemployment in April. With this, the labor market is becoming
extremely tight. This is raising fears of future inflation even though actual
inflation remains modest and despite signs of a slower second quarter
economy.
If inflation should stay subdued, then the larger risk from the
combination of slower economic growth and a tightening labor market is to
corporate profits. Through the first quarter, however, profits continued to
surprise on the upside, and we expect overall profits to post modest gains in
1997.
The economy is now embarked on the seventh year for this business cycle.
Economic growth is proving stronger than seen since the late 1980s while
inflation is still subdued. More Fed tightening would indicate a willingness
to err on the side of caution and would thus help sustain the expansion.
MARKET OVERVIEW
The six-month fiscal period ended April 30, 1997 was one of the most
volatile in recent stock market history. While the underlying U.S. economy
continued to grow with little inflation, investor concerns over the outlook
for interest rates and for corporate profits caused major shifts in market
sentiment, and hence in prices.
Early in the half-year period, the dominant market trend was strong,
despite nervousness about the solidity of economic growth and the possible
reactions of the Fed. The trend picked up steam during the winter, with the
Dow Jones Industrial Average breaking the 7000 mark in mid-February, and then
hitting a new high of 7085 in mid-March. However, when the Fed, in a widely
anticipated move, increased its overnight lending rate on March 25 by one
quarter of a percentage point, seeking to cool off the economy and the
"irrational exuberance" in the equity markets (as Fed Chairman Alan Greenspan
termed it), the markets promptly obliged. Between mid-March and mid-April the
DJIA dropped 9.8%.
By then, however, a stream of strong quarterly profit reports began
issuing from major corporations, and the latest Government numbers on
inflation appeared reassuring. Moreover, underlying economic expansion
continued, but at a pace that appeared sustainable. The market's reaction was
to resume the upward trend of earlier in the year, breaking the 7000 level
once again on April 30.
Clearly one of the engines currently driving the market is the profit
outlook. According to two companies that monitor profit reports, I.B.E.S. and
First Call, overall first-quarter corporate profits ran about 3.7% above
forecasts. This reflects results from most of the companies in the Standard &
Poor's 500 Index. At the same time, increases in wages and compensation
during that same period were modest.
Big, heavily capitalized and well-established companies were the chief
beneficiaries. For the six months under review, the blue chip DJIA gained
17.42%, the Standard & Poor's 500 rose 14.71%, the Nasdaq was up only 3.23%
and the Russell 2000 Index of small-cap stocks only 1.61%. The mid- and
small-cap stocks enjoyed a revival along with the general market in late
April and the first few days of May. (Of course, past performance is no
guarantee of future results).
The latest trend could, of course, be affected by a Fed decision to raise
interest rates once again. However, there is no denying the resilience
displayed by the equity markets, especially the larger issues, in the closing
days of the Fund's latest fiscal period.
TEAM EFFORT
Managing your investment assets is certainly a team effort. In our last
shareholder letter I described our research effort and the significant part
our team of analysts plays in selecting investments for your Fund. The effort
employed to manage your assets is much broader, and this letter will review
some of the other hard work involved on your behalf.
Your Dreyfus Equity Dividend Fund is managed in a disciplined manner.
Since it is a stock fund, you should realize that you will always have stock
market exposure. We believe that, except in unique circumstances, the
decision to diversify into other asset classes should not be made by a
manager of a stock mutual fund of this kind. Rather it is the investor's job
to allocate his or her investment portfolio among various available asset
classes as appropriate.
Your Fund is designed to deliver a significant portion of its total
return from common stock dividends. Total return for a portfolio of stocks
comes in two forms: dividends and capital gain distributions, and capital
appreciation. Distributions can never be negative (but can be "zero");
capital appreciation can be negative. Dividends are believed to be the more
steady and predictable portion of total return. It follows that the Fund's
structure, emphasizing dividends, is more conservative than stock mutual
funds that do not emphasize dividends. The Fund can generally be expected to
lag the overall stock market during periods of exceptionally strong capital
appreciation. Conversely, during flat or down markets, the Fund is designed
to provide returns in excess of the market averages.
As your Fund manager, I follow specific, internally created buy and sell
criteria to help maintain this disciplined process. Both an extensive team of
research analysts and proprietary computer models are employed in this
process. My experience as portfolio manager for the Fund determines whether
to buy or sell a security, and provides the structure of the portfolio of
investments.
Trading is another area where we attempt to add value. Dreyfus has
dedicated security traders who focus on implementing the investment decisions
of the portfolio manager. This team of traders works hard to achieve the best
prices possible when the securities in your Fund are bought or sold. In
addition, the traders provide a flow of timely information to the analysts
and portfolio manager. The accounting team at Dreyfus also works hard to make
sure that, among other duties, security trades settle properly, that
available cash is properly calculated, and that the Fund's share price is
calculated accurately on a daily basis.
Managing your assets is a team effort at The Dreyfus Corporation.
PORTFOLIO FOCUS
Investment results during this annual period benefited from holdings such
as Dean Foods, Flowers Industries, Sun Company, Exxon, NationsBank,
BankAmerica, Glaxo Wellcome ADR, Bristol-Myers Squibb, Reynolds Metals,
Southern Peru Copper, Xerox, and Masco. Relative performance results were
penalized by holdings including AMP, Millennium Chemicals, Tenneco, J.C.
Penney, and Entergy.
It is both an honor and a pleasure to be managing your investment assets.
Sincerely,
[Timothy M. Ghriskey signature logo]
Timothy M. Ghriskey
Portfolio Manager
May 15, 1997
New York, N.Y.
* Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions. The
Standard & Poor's 500 Composite Stock Price Index is a widely accepted
unmanaged index of U.S. stock market performance.
*** The Standard & Poor's Barra Value Index is a capitalization-weighted
index of all the stocks in the Standard & Poor's 500 Composite Stock Price
Index that have low price-to-book ratios. It is designed so that
approximately 50% of the S&P 500's market capitalization is in the Value
Index.
SOURCE: LIPPER ANALYTICAL SERVICES, INC. - The Dow Jones Industrial
Average (DJIA) is a price-weighted average of 30 actively traded blue chip
stocks.
<TABLE>
DREYFUS EQUITY DIVIDEND FUND
STATEMENT OF INVESTMENTS APRIL 30, 1997 (UNAUDITED)
Common Stocks-97.7% Shares Value
------ ------
<S> <C> <C>
Commercial Services-4.1% McGraw-Hill........................ 1,400 $ 71,225
Ogden....................................... 3,300 69,300
------
140,525
------
Consumer Durables-5.8% General Motors................ 1,100 63,663
Goodyear Tire & Rubber................. 1,200 63,150
Jostens..................................... 2,900 69,237
------
196,050
------
Consumer Non-Durables-11.5% Dean Foods..................... 1,800 66,375
Flowers Industries..................... 2,800 68,250
Philip Morris.......................... 1,800 70,875
Quaker Oats............................ 1,700 68,000
RJR Nabisco Holdings................... 1,900 56,525
UST......................................... 2,300 60,088
------
390,113
------
Consumer Services-1.9% King World Productions.............. 1,800 65,700
------
Electronic Technology-7.6% AMP.............................. 1,700 60,987
EG&G........................................ 3,200 60,400
General Dynamics....................... 1,000 71,250
Northrop Grumman....................... 800 66,800
------
259,437
------
Energy Minerals-7.8% Exxon................... 1,200 67,950
Mobil....................................... 500 65,000
Phillips Petroleum..................... 1,600 63,000
Sun......................................... 2,500 68,438
------
264,388
------
Finance-14.2% BankAmerica.................... 600 70,125
Bankers Trust New York................. 900 73,238
Beacon Properties...................... 2,000 61,750
Chase Manhattan........................ 700 64,838
NationsBank............................ 1,200 72,450
Simon DeBartolo Group.................. 2,500 71,562
Transamerica........................... 800 67,800
------
481,763
------
Health Technology-8.4% American Home Products 1,100 72,875
Bausch & Lomb.......................... 1,700 68,637
Bristol-Myers Squibb................... 1,100 72,050
Glaxo Wellcome, A.D.R.................. 1,800 70,875
------
284,437
------
Non-Energy Minerals-4.3% Reynolds Metals............... 1,100 74,662
Southern Peru Copper................... 4,000 70,500
------
145,162
------
Process Industries-12.4% Crompton & Knowles............... 3,600 78,300
duPont (E.I.) deNemours & Co........... 600 63,675
DREYFUS EQUITY DIVIDEND FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1997 (UNAUDITED)
Common Stocks (continued) Shares Value
------ ------
Process Industries (continued) Millennium Chemicals.......... 3,700 $ 65,675
Olin........................................ 1,800 74,025
Temple-Inland.......................... 1,300 72,150
Tenneco................................ 1,700 67,788
------
421,613
------
Producer Manufacturing-9.6% Dana...................................... 2,000 63,750
General Signal......................... 1,500 58,875
Masco....................................... 1,800 67,950
Thomas & Betts......................... 1,400 63,525
Xerox....................................... 1,200 73,800
------
327,900
------
Retail Trade-2.1% Penney (J.C.).............. 1,500 71,625
------
Utilities-8.0% El Paso Natural Gas........... 1,111 64,577
Entergy................................ 2,700 63,113
Hong Kong Telecommunications, A.D.R.... 4,300 73,637
US West Communications Group........... 2,000 70,250
------
271,577
------
TOTAL COMMON STOCKS
(cost $3,051,593).................... $3,320,290
======
Preferred Stocks-1.9%
Energy Minerals; Petroleo Brasileiro
(cost $ 52,779)...................... 300,000 $ 63,058
======
TOTAL INVESTMENTS (cost $3,104,372)......................................... 99.6% $3,383,348
==== ======
CASH AND RECEIVABLES (NET).................................................. .4% $ 15,250
==== ======
NET ASSETS.................................................................. 100.0% $3,398,598
==== ======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS EQUITY DIVIDEND FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1997 (UNAUDITED)
Cost Value
------ ------
<S> <C> <C>
ASSETS: Investments in securities-See Statement of Investments $3,104,372 $3,383,348
Receivable for investment securities sold.. 48,063
Dividends and interest receivable.......... 11,614
Prepaid expenses........................... 17,422
Due from The Dreyfus Corporation........... 443
------
3,460,890
------
LIABILITIES: Due to Distributor......................... 682
Cash overdraft due to Custodian............ 46,488
Accrued expenses........................... 15,122
------
62,292
------
NET ASSETS.................................................................. $3,398,598
======
REPRESENTED BY: Paid-in capital............................ $2,869,783
Accumulated undistributed investment income-net.............................. 7,254
Accumulated net realized gain (loss) on investments and
foreign currency transactions............... 242,589
Accumulated net unrealized appreciation (depreciation)
on investments and foreign currency transactions 278,972
------
NET ASSETS.................................................................. $3,398,598
======
SHARES OUTSTANDING
(unlimited number of $.001 par value shares of Beneficial Interest
authorized) ........................................... 224,655
NET ASSET VALUE, offering and redemption price per share.................... $15.13
======
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS EQUITY DIVIDEND FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1997 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME
INCOME: Cash dividends (net of $255 foreign taxes
withheld at source).................... $ 56,730
Interest................................... 1,596
-----
Total Income......................... $ 58,326
EXPENSES: Management fee-Note 3(a)................... 11,954
Auditing fees.............................. 15,964
Registration fees.......................... 14,698
Shareholder servicing costs-Note 3(b)...... 5,837
Prospectus and shareholders' reports....... 4,529
Custodian fees-Note 3(b)................... 1,685
Directors' fees and expenses-Note 3(c)..... 277
Legal fees................................. 153
Loan commitment fees-Note 2................ 18
Miscellaneous.............................. 940
-----
Total Expenses....................... 56,055
Less-expense reimbursement from Manager due to
undertaking-Note 3(a).................. (35,436)
-----
Net Expenses......................... 20,619
-----
INVESTMENT INCOME-NET....................................................... 37,707
-----
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS-Note 4:
Net realized gain (loss) on investments and
foreign currency transactions.......... $243,085
Net unrealized appreciation (depreciation) on investments
and foreign currency transactions...... 79,965
-----
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS...................... 323,050
-----
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $360,757
=====
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS EQUITY DIVIDEND FUND
STATEMENT OF CHANGES IN NET ASSETS
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996*
--------- ---------
<S> <C> <C>
OPERATIONS:
Investment income-net.................................................. $ 37,707 $ 43,777
Net realized gain (loss) on investments................................ 243,085 58,919
Net unrealized appreciation (depreciation) on investments.............. 79,965 199,007
------- ------
Net Increase (Decrease) in Net Assets Resulting from Operations...... 360,757 301,703
------- ------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net.................................................. (32,626) (41,604)
Net realized gain on investments....................................... (59,415) ----
------- ------
Total Dividends...................................................... (92,041) (41,604)
------- ------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold.......................................... 266,758 2,686,354
Dividends reinvested................................................... 89,802 40,843
Cost of shares redeemed................................................ (84,610) (129,364)
------- ------
Increase (Decrease) in Net Assets from Capital Stock Transactions.... 271,950 2,597,833
------- ------
Total Increase (Decrease) in Net Assets.......................... 540,666 2,857,932
NET ASSETS:
Beginning of Period.................................................... 2,857,932 ----
------- ------
End of Period.......................................................... $3,398,598 $2,857,932
======= ======
Undistributed investment income-net........................................ $ 7,254 $ 2,173
------- ------
Shares Shares
------- ------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................ 18,416 212,527
Shares issued for dividends reinvested................................. 6,227 3,055
Shares redeemed........................................................ (5,786) (9,784)
------- ------
Net Increase (Decrease) in Shares Outstanding........................ 18,857 205,798
======= ======
* From December 29, 1995 (commencement of operations) to October 31, 1996.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
<TABLE>
DREYFUS EQUITY DIVIDEND FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Beneficial Interest outstanding, total investment return, ratios to average
net assets and other supplemental data for each period indicated. This
information has been derived from the Fund's financial statements.
Six Months Ended
April 30, 1997 Year Ended
PER SHARE DATA: (Unaudited) October 31, 1996(1)
------------ ----------
<S> <C> <C>
Net asset value, beginning of period.................................. $13.89 $12.50
---- ----
Investment Operations:
Investment income-net................................................. .17 .23
Net realized and unrealized gain (loss)
on investments...................................................... 1.50 1.38
---- ----
Total from Investment Operations...................................... 1.67 1.61
---- ----
Distributions:
Dividends from investment income-net.................................. (.15) (.22)
Dividends from net realized gain on investments....................... (.28) -
---- ----
Total Distributions................................................... (.43) (.22)
---- ----
Net asset value, end of period........................................ $15.13 $13.89
==== ====
TOTAL INVESTMENT RETURN................................................... 12.19%(2) 12.93%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... .64%(2) 1.08%(2)
Ratio of net investment income to average net assets.................. 1.17%(2) 1.76%(2)
Decrease reflected in above expense ratios
due to undertakings by the Manager.................................. 1.10%(2) 1.05%(2)
Portfolio Turnover Rate............................................... 70.70%(2) 98.84%(2)
Average commission rate paid (3)...................................... $.0534 $.0483
Net Assets, end of period (000's Omitted)............................. $3,399 $2,858
(1) From December 29, 1995 (commencement of operations) to October 31, 1996.
(2) Not annualized.
(3) Reflects the average commission rate paid per share for purchases and sales of investment securities.
SEE NOTES TO FINANCIAL STATEMENTS.
</TABLE>
DREYFUS EQUITY DIVIDEND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Equity Dividend Fund (the "Fund") is a series of Dreyfus Income
Funds (the "Company") which is registered under the Investment Company Act of
1940 ("Act") as a diversified open-end management investment company and
operates as a series company currently offering four series, including the
Fund. The Fund's investment objective is current income. The Dreyfus
Corporation ("Manager") serves as the Fund's investment adviser. The Manager
is a direct subsidiary of Mellon Bank, N.A., which is a wholly-owned
subsidiary of Mellon Bank Corporation. Premier Mutual Fund Services, Inc.
(the "Distributor") is the distributor of the Fund's shares, which are sold
to the public without a sales charge.
The Company accounts separately for the assets, liabilities and
operations of each fund. Expenses directly attributable to each fund are
charged to that fund's operations; expenses which are applicable to all funds
are allocated among them on a pro rata basis.
As of April 30, 1997, APT Holdings Corporation, an indirect subsidiary of
Mellon Bank Corporation, held 167,474 shares of the Fund.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management
estimates and assumptions. Actual results could differ from those estimates.
(a) Portfolio valuation: Investments in securities (including options and
financial futures) are valued at the last sales price on the securities
exchange on which such securities are primarily traded or at the last sales
price on the national securities market. Securities not listed on an exchange
or the national securities market, or securities for which there were no
transactions, are valued at the average of the most recent bid and asked
prices, except for open short positions, where the asked price is used for
valuation purposes. Bid price is used when no asked price is available.
Investments denominated in foreign currencies are translated to U.S. dollars
at the prevailing rates of exchange.
(b) Foreign currency transactions: The Fund does not isolate that portion
of the results of operations resulting from changes in foreign exchange rates
on investments from the fluctuations arising from changes in market prices of
securities held. Such fluctuations are included with the net realized and
unrealized gain or loss from investments.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest and foreign withholding taxes recorded on
the Fund's books, and the U.S. dollar equivalent of the amounts actually
received or paid. Net unrealized foreign exchange gains and losses arise from
changes in the value of assets and liabilities other than investments in
securities, resulting from changes in exchange rates. Such gains and losses
are included with net realized and unrealized gain or loss on investments.
(c) Securities transactions and investment income: Securities
transactions are recorded on a trade date basis. Realized gain and loss from
securities transactions are recorded on the identified cost basis. Dividend
income is recognized on the ex-dividend date and interest income, including,
where applicable, amortization of discount on investments, is recognized on
the accrual basis.
(d) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid on a
quarterly basis. Dividends from net realized capital gain are normally
declared and paid annually, but the Fund may make distributions on a more
frequent basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
DREYFUS EQUITY DIVIDEND FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(e) Federal income taxes: It is the policy of the Fund to continue to
qualify as a regulated investment company, if such
qualification is in the best interests of its shareholders, by complying with
the applicable provisions of the Internal Revenue Code, and to make
distributions of taxable income sufficient to relieve it from substantially
all Federal income and excise taxes.
NOTE 2-BANK LINE OF CREDIT:
The Fund participates with other Dreyfus-managed funds in a $600 million
redemption credit facility ("Facility") to be utilized for temporary or
emergency purposes, including the financing of redemptions. In connection
therewith, the Fund has agreed to pay commitment fees on its pro rata portion
of the Facility. Interest is charged to the Fund at rates based on prevailing
market rates in effect at the time of borrowings. For the period ended April
30, 1997, the Fund did not borrow under the Facility.
NOTE 3-MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(a) Pursuant to a management agreement with the Manager, the management
fee is computed at the annual rate of
.75 of 1% of the value of the Fund's average daily net assets and is payable
monthly. The Manager has undertaken from November 1, 1996 through October 31,
1997 to reduce the management fee paid by, or reimburse such excess expenses
of the Fund, to the extent that the Fund's aggregate annual expenses
(exclusive of taxes, brokerage, interest on borrowings and extraordinary
expenses) exceed an annual rate of 1.25% of the value of the Fund's average
daily net assets. The expense reimbursement pursuant to the undertaking,
amounted to $35,436 during the period ended April 30, 1997.
(b) Under the Shareholder Services Plan, pursuant to which it pays a fee
to the Distributor, for the provision of certain services to Fund
shareholders at an annual rate of .25 of 1% of the value of the Fund's
average daily net assets. The services provided may include personal services
relating to shareholder accounts, such as answering shareholder inquiries
regarding the Fund and providing reports and other information, and services
related to the maintenance of shareholder accounts. The Distributor may make
payments to Service Agents (a securities dealer, financial institution or
other industry professional) in respect of these services. The Distributor
determines the amounts to be paid to Service Agents. During the period ended
April 30, 1997, the Fund was charged $3,985 pursuant to the Shareholder
Services Plan.
The Fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of
the Manager, under a transfer agency agreement for providing personnel and
facilities to perform transfer agency services for the Fund. Such
compensation amounted to $267 for the period ended April 30, 1997.
The Fund compensates Mellon under a custody agreement to provide
custodial services for the Fund. During the period ended April 30, 1997,
$1,685 was charged by Mellon pursuant to the custody agreement.
(c) Each trustee who is not an "affiliated person" as defined in the Act
receives from the Company an annual fee of $2,500 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an additional 25% of
such compensation.
NOTE 4-SECURITIES TRANSACTIONS:
The aggregate amount of purchases and sales of investment securities,
excluding short-term securities, during the period ended April 30, 1997
amounted to $2,534,171 and $2,206,506, respectively.
At April 30, 1997, accumulated net unrealized appreciation on investments
was $278,976, consisting of $350,661 gross unrealized appreciation and
$71,685 gross unrealized depreciation.
At April 30, 1997, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
Registration Mark
[Dreyfus lion "d" logo]
DREYFUS EQUITY DIVIDEND FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 042SA974
Registration Mark
[Dreyfus logo]
Equity
Dividend Fund
Semi-Annual
Report
April 30, 1997
