WARNING: THE EDGAR SYSTEM ENCOUNTERED ERROR(S) WHILE PROCESSING THIS SCHEDULE.
<TABLE> <S> <C>
<ARTICLE> 6
<CIK> 0000799704
<NAME> Federated Equity Income Fund, Inc.
<SERIES>
<NUMBER> 003
<NAME> Federated Equity Income Fund, Inc. - Class C
<S> <C>
<PERIOD-TYPE> 6-MOS
<FISCAL-YEAR-END> Mar-31-2001
<PERIOD-END> Sep-30-2000
<INVESTMENTS-AT-COST> 2,563,656,141
<INVESTMENTS-AT-VALUE> 3,302,765,955
<RECEIVABLES> 40,399,442
<ASSETS-OTHER> 0
<OTHER-ITEMS-ASSETS> 208,603
<TOTAL-ASSETS> 3,343,374,000
<PAYABLE-FOR-SECURITIES> 32,246,877
<SENIOR-LONG-TERM-DEBT> 0
<OTHER-ITEMS-LIABILITIES> 4,710,737
<TOTAL-LIABILITIES> 36,957,614
<SENIOR-EQUITY> 0
<PAID-IN-CAPITAL-COMMON> 2,490,611,939
<SHARES-COMMON-STOCK> 11,969,979
<SHARES-COMMON-PRIOR> 10,509,042
<ACCUMULATED-NII-CURRENT> 5,307,671
<OVERDISTRIBUTION-NII> 0
<ACCUMULATED-NET-GAINS> 71,386,962
<OVERDISTRIBUTION-GAINS> 0
<ACCUM-APPREC-OR-DEPREC> 739,109,814
<NET-ASSETS> 266,190,024
<DIVIDEND-INCOME> 24,869,770
<INTEREST-INCOME> 14,768,548
<OTHER-INCOME> 0
<EXPENSES-NET> (23,696,902)
<NET-INVESTMENT-INCOME> 15,941,416
<REALIZED-GAINS-CURRENT> 67,405,915
<APPREC-INCREASE-CURRENT> (216,381,093)
<NET-CHANGE-FROM-OPS> (133,033,762)
<EQUALIZATION> 0
<DISTRIBUTIONS-OF-INCOME> (483,308)
<DISTRIBUTIONS-OF-GAINS> (4,111,147)
<DISTRIBUTIONS-OTHER> 0
<NUMBER-OF-SHARES-SOLD> 2,534,304
<NUMBER-OF-SHARES-REDEEMED> (1,261,501)
<SHARES-REINVESTED> 188,134
<NET-CHANGE-IN-ASSETS> 184,408,247
<ACCUMULATED-NII-PRIOR> 292,006
<ACCUMULATED-GAINS-PRIOR> 54,378,389
<OVERDISTRIB-NII-PRIOR> 0
<OVERDIST-NET-GAINS-PRIOR> 0
<GROSS-ADVISORY-FEES> 9,454,360
<INTEREST-EXPENSE> 0
<GROSS-EXPENSE> 23,814,382
<AVERAGE-NET-ASSETS> 255,291,064
<PER-SHARE-NAV-BEGIN> 23.690
<PER-SHARE-NII> 0.080
<PER-SHARE-GAIN-APPREC> (1.130)
<PER-SHARE-DIVIDEND> (0.040)
<PER-SHARE-DISTRIBUTIONS> (0.360)
<RETURNS-OF-CAPITAL> 0.000
<PER-SHARE-NAV-END> 22.240
<EXPENSE-RATIO> 1.82
[AVG-DEBT-OUTSTANDING] 0
[AVG-DEBT-PER-SHARE] 0.000
</TABLE>
