CAPITAL INCOME BUILDER
THIRD-QUARTER REPORT
for the nine months ended July 31, 1996
[The American Funds Group(R)]
FELLOW INVESTORS:
We are pleased to inform you that Capital Income Builder's dividend was
raised in August for the 36th consecutive quarter to 46 cents a share. Large
special dividends issued by United Kingdom utilities allowed the fund to earn
its dividend earlier than usual. This is the first time that the dividend for
this quarter has been paid in August rather than September.
This table shows CIB's dividends since the fund began operations in
mid-1987:
<TABLE>
<CAPTION>
Cents Per Share
Dividend Payment (As Declared)
<S> <C>
September 1987 22*
December 1987 28
March 1988 28.5
June 1988 29
September 1988 29.5
December 1988 30
March 1989 30.5
June 1989 31
September 1989 31.5
December 1989 32.5
March 1990 33
June 1990 33.5
September 1990 34
December 1990 34.5
March 1991 35
June 1991 35.5
September 1991 36
December 1991 36.5
</TABLE>
*After less than a full quarter of operations
<TABLE>
<CAPTION>
Cents Per Share
(With Capital
Gain Distributions
Dividend Payment (As Declared) Reinvested)
<S> <C> <C>
March 1992 37 37.3
June 1992 37.5 37.8
September 1992 38 38.3
December 1992 38.5 38.8
March 1993 39 39.5
June 1993 39.5 40
September 1993 40 40.5
December 1993 40.5 41
April 1994 41 41.6
June 1994 41.5 42.1
September 1994 42 42.6
December 1994 42.5 43.1
March 1995 43 43.8
June 1995 43.5 44.3
September 1995 44 44.8
December 1995 44.5 45.3
March 1996 45 46.4
June 1996 45.5 47
August 1996 46 47.5
</TABLE>
Capital Income Builder's portfolio will appear in the fund's annual
report, scheduled to be mailed to you in December. We look forward to reporting
to you then.
Jon B. Lovelace
Chairman of the Board
September 6, 1996
Capital Income Builder(R) seeks to provide a growing dividend - with higher
income distributions every quarter as far as possible - together with a current
yield which exceeds that paid by U.S. stocks generally.
For information about your account or any of the fund's services, please
contact your financial adviser or call American Funds Service Company,
toll-free, at 800/421-0180.
Litho in USA TAG/ALI/3036
(C)1996 American Funds Distributors, Inc.
Lit. No. CIB-012-0996