DREYFUS DISCIPLINED STOCK FUND
LETTER TO SHAREHOLDERS
Dear Shareholder:
It is a pleasure to report that the Dreyfus Disciplined Stock Fund
provided a total return of 13.81% for its Investor shares for the six-month
fiscal period ended April 30, 1996. For Class R shares, the total return was
13.94% for the same period.* These results compare with a total return of
13.76% for the Standard & Poor's 500 Composite Stock Price Index for the same
period.**
As set forth in the following sections of this letter, which provide a
review of the economy and the markets, most of the past six months has been a
time of economic expansion and rising equity prices. However, toward the end
of this period, crosscurrents appeared in the economy that caused some
weakening in equity prices.
ECONOMIC REVIEW
Several key U.S. economic indicators have rebounded in recent months,
implying that the economic slowdown that began in early 1995 may be ending.
However, overall corporate profit growth is slowing this year. The shift to
somewhat faster economic growth is promoting inflation fears and raising bond
yields. Higher bond yields have caused the yield curve to steepen, a
condition that usually favors continued economic growth. Hence, although
this is the sixth expansion year for this business cycle, we believe that it
will prove a long cycle.
The U.S. economy grew only 2.1% in 1995, and sequential economic shocks
since September threatened to keep it slow in 1996 too. But the underlying
trend of the economy proved resilient and real Gross Domestic Product
rebounded 2.8% in the first quarter. In recent months, steady job creation
has supported faster growth in real consumer incomes and spending. Home
sales are at high levels, and capital spending remains robust. Moreover,
inventories are now quite lean. Lean inventories when demand is rising
typically stimulate a period of somewhat faster economic growth, though this
may not translate into continued fast growth of profits.
An imbalance caused by rising demand and low inventories has begun to
affect reported inflation. This symptom is currently most pronounced in the
oil sector, but the strength in overall consumer demand is reigniting fears
of yet higher future inflation. Thus, bond yields have risen substantially
since January. By contrast, short-term market rates have risen only
marginally, held stable by the steadiness of the Federal Funds rate.
Surviving the midcycle growth slowdown that prevailed in 1995, we
believe, raises the odds that economic expansion can be sustained. A key
concern going forward is whether faster growth will reignite inflation.
Higher inflation, if it occurs, would justify a tighter monetary policy.
THE MARKETS
The U.S. equity market benefited from one of its most vigorous price
increases during the early months of this year. One of the underlying
reasons, in addition to economic growth, was a decision by the Federal
Reserve Board to take no action in February to change short-term interest
rates. As winter turned into spring, however, the market's own forces
brought about a tightening of long-term rates. Several
times in March and April, the prospect of higher borrowing costs jolted the
stock averages. Nonetheless, by the time your Fund's latest six-month fiscal
period ended on April 30, 1996, the major stock market indexes were all
solidly ahead of last year's levels.
As shown by the flood of money going into mutual funds, investors appear
to have a voracious appetite for owning stocks. Saving for retirement has
become a national preoccupation, as evidenced by the growth of 401(k) and
other retirement plans. Stock market valuations have, of course, benefited
from this trend. However, if interest rates rise high enough, the attraction
of equities could diminish. The coming months will tell whether this is a
likely possibility.
PORTFOLIO FOCUS
As the total return figures indicate, the Fund performed somewhat better
than the broad market for the six months under review. Holdings of stocks in
money center banks and in consumer cyclicals such as lodging, retail and auto
manufacturers helped performance. However, the portfolio held market
weightings in telephone and electric utilities which hurt relative
performance in an environment of rising interest rates.
The five best performing stocks for the six-month period were Guidant
(+74%), BMC Software (+71%), Sonat (+52%), Sears, Roebuck (+47%) and General
Motors, Cl.H (+46%).
The Fund's goal continues to be to outperform the Standard & Poor's 500
Composite Stock Price Index, one of the most widely recognized measures of
stock market performance. We seek to achieve this goal by investing at least
65% of the Fund's assets in equities. As of April 30, 1996, 97.1% was
invested in equities. As the Prospectus explains, the management team uses
statistical, quantitative and fundamental techniques to select securities for
the Fund.
We look forward to continue applying these investment methods on your
behalf.
Sincerely,
[Bert J. Mullins signature logo]
Bert J. Mullins
Portfolio Manager
May 10, 1996
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.
<TABLE>
<CAPTION>
DREYFUS DISCIPLINED STOCK FUND
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS-97.1% SHARES VALUE
_______ _____
<S> <C> <C>
BASIC INDUSTRIES-5.0% Consolidated Papers 25,300 $ 1,385,175
.................. duPont (EI) deNemours 89,100 7,161,413
....................... Eastman Chemical 36,800 2,474,800
............................ Fort Howard 49,000 (a) 1,078,000
......................... Kimberly-Clark 66,500 4,829,562
............................... Monsanto 24,400 3,696,600
................... Morton International 49,600 1,754,600
................................ Praxair 60,000 2,317,500
............................. Sealed Air 27,700 (a) 979,888
.......................... Union Carbide 73,100 3,326,050
............................... Westvaco 60,500 1,875,500
_____________
30,879,088
_____________
CONSUMER CYCLICAL-12.3%..... Albertson's 64,400 2,479,400
............................... Chrysler 74,100 4,649,775
.............. Cox Communications, Cl. A 41,800 (a) 856,900
................................... Dana 34,900 1,160,425
.......................... Dayton Hudson 22,600 2,158,300
....... Dillard Department Stores, Cl. A 38,200 1,532,775
.......................... Disney (Walt) 93,371 5,789,002
................................. Eckerd 44,800 (a) 2,139,200
............ Federated Department Stores 100,500 (a) 3,354,187
.................................... Gap 86,800 2,614,850
......................... General Motors 132,100 7,166,425
................. Goodyear Tire & Rubber 54,600 2,846,025
........... Infinity Broadcasting, Cl. A 75,895 (a) 2,200,955
................................. Kroger 38,800 (a) 1,595,650
................................. Lowe's 50,700 1,641,413
................. Marriott International 45,200 2,203,500
............................. McDonald's 86,200 4,126,825
.................. New York Times, Cl. A 58,200 1,891,500
..................... News Corp, A.D.S. 164,000 3,854,000
.............................. OfficeMax 62,300 (a) 1,635,375
..................... Outback Steakhouse 37,200 (a) 1,492,650
............. Reynolds & Reynolds, Cl. A 31,400 1,452,250
................................ Safeway 88,100 2,973,375
............................. Scholastic 17,200 (a) 1,126,600
........................ Sears, Roebuck 155,700 7,765,537
.................................... TJX 60,900 1,796,550
................. Viking Office Products 28,700 (a) 1,704,063
............................... Walgreen 35,300 1,129,600
_____________
75,337,107
_____________
CONSUMER SERVICES-21.9%............ AGCO 77,800 1,964,450
................................ Adaptec 26,800 (a) 1,541,000
......................... Analog Devices 51,400 (a) 1,323,550
...................... Arrow Electronics 18,500 (a) 927,313
.................................. Avnet 49,200 2,595,300
........................ COMPAQ Computer 45,300 2,112,112
DREYFUS DISCIPLINED STOCK FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
CONSUMER SERVICES (CONTINUED)...... Case 34,500 $ 1,742,250
............................... Ceridian 55,800 (a) 2,664,450
.......................... cisco Systems 119,400 (a) 6,193,875
...... Computer Associates International 29,000 2,127,875
....................... Emerson Electric 42,300 3,537,337
....................... General Electric 200,000 15,500,000
.................. General Motors, Cl. H 47,400 2,897,325
............... Harnischfeger Industries 62,900 2,547,450
................................. Harsco 27,400 1,887,176
........................ Hewlett-Packard 84,900 8,988,787
.................... Illinois Tool Works 46,200 3,106,950
............................... Informix 78,800 (a) 2,078,350
.................................. Intel 98,700 6,686,925
........ International Business Machines 77,500 8,331,250
.............................. LSI Logic 47,300 (a) 1,702,800
........................ Lockheed Martin 35,427 2,856,302
............................... Manpower 38,300 1,417,100
...................... McDonnell Douglas 30,300 2,923,950
.............................. Microsoft 79,100 (a) 8,967,962
.................. Nokia, Cl. A, A.D.R. 37,500 1,364,063
....................... Northrop Grumman 25,300 1,565,437
.......................... Omnicom Group 40,300 1,748,012
................................. Oracle 155,200 (a) 5,238,000
........................ Parker-Hannifin 63,800 2,695,550
............................... Raytheon 77,600 3,928,500
................. Rockwell International 55,200 3,229,200
................................... 3COM 31,000 (a) 1,429,875
...................... Texas Instruments 30,700 1,734,550
................................ Textron 52,300 4,484,725
........................ Thermo Electron 33,800 2,082,925
................................. Timken 19,700 780,613
.......................... U.S. Robotics 12,100 (a) 1,893,650
.................... United Technologies 35,200 3,889,600
.................................. Xerox 10,400 1,523,600
_____________
134,210,139
_____________
CONSUMER STAPLES-13.7%.. Anheuser-Busch 30,600 2,054,025
...................... CPC International 27,800 1,921,675
.............................. Coca-Cola 145,700 11,874,550
................................ ConAgra 70,900 2,738,512
.............................. Dole Food 52,200 2,088,000
.......................... Eastman Kodak 59,600 4,559,400
............................... Gillette 83,400 4,503,600
.................................... IBP 88,300 2,362,025
...................... Johnson & Johnson 117,500 10,868,750
................................ Kellogg 37,300 2,662,288
................................ PepsiCo 144,900 9,201,150
.................... Philip Morris Cos. 131,700 11,869,462
.......... Pioneer Hi-Bred International 16,700 931,025
DREYFUS DISCIPLINED STOCK FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
CONSUMER STAPLES (CONTINUED)Procter & Gamble 103,400 $ 8,737,300
................... Ralston-Purina Group 31,800 1,856,325
............................... Sara Lee 101,100 3,134,100
................................ Seagram 73,700 2,496,588
_____________
83,858,775
_____________
ENERGY-9.1%....................... Amoco 79,200 5,781,600
............. British Petroleum, A.D.S. 78,221 8,545,644
................................ Coastal 30,200 1,196,675
.................... Columbia Gas System 26,600 1,293,425
............... Consolidated Natural Gas 50,900 2,379,575
.................................. Exxon 186,500 15,852,500
.......................... Global Marine 1,600 18,200
............................ Halliburton 56,500 3,241,688
......................... Noble Drilling 1,400 (a) 21,000
.................... Pacific Enterprises 52,200 1,344,150
................. Royal Dutch Petroleum 98,500 (a) 14,110,125
.................................. Sonat 50,400 2,198,700
_____________
55,983,282
_____________
HEALTH CARE-8.4%. American Home Products 54,500 5,749,750
...................... Becton, Dickinson 25,500 2,055,938
................................. Biogen 21,800 (a) 1,436,075
................ Columbia/HCA Healthcare 42,484 2,256,962
................................ Guidant 39,500 2,216,938
................................. Humana 41,600 (a) 1,024,400
............................ Lilly (Eli) 115,500 6,814,500
.............................. Medtronic 43,400 2,305,625
........................... Merck & Co. 150,400 9,099,200
....................... OrNda Healthcorp 34,500 (a) 948,750
....... PacifiCare Health Systems, Cl. B 21,710 (a) 1,820,926
................................. Pfizer 88,750 6,112,656
........................ Schering-Plough 76,000 4,360,500
............ SmithKline Beecham, A.D.S. 33,200 1,792,800
...................... United Healthcare 54,100 3,164,850
_____________
51,159,870
_____________
INTEREST SENSITIVE-13.0%....... Allstate 103,830 4,036,391
......................... Bank of Boston 30,000 1,451,250
....................... Bank of New York 107,100 5,194,350
............................ BankAmerica 128,200 9,711,150
............................... BayBanks 46,900 4,912,775
..................... Bear Stearns Cos. 125,500 3,153,187
.................................. CIGNA 46,000 5,215,250
........................ Chase Manhattan 61,940 4,266,118
............................... Citicorp 43,800 3,449,250
................... CoreStates Financial 22,700 885,300
.. Federal National Mortgage Association 87,100 2,667,437
DREYFUS DISCIPLINED STOCK FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ ______
INTEREST SENSITIVE (CONTINUED)First Chicago NBD 94,984 $ 3,918,090
......................... First Security 23,700 598,425
..................... ITT Hartford Group 34,600 1,691,075
....................... Lincoln National 58,300 2,812,975
.......................... Merrill Lynch 33,200 2,004,450
............................ NationsBank 77,200 6,156,700
............. Old Republic International 38,500 1,270,500
.............................. Providian 47,200 2,177,100
................................. SAFECO 69,300 2,286,900
................................ Salomon 61,000 2,478,125
........ Standard Federal Bancorporation 22,100 875,713
........................... Transamerica 23,000 1,748,000
........................ Travelers Group 109,500 6,734,250
_____________
79,694,761
_____________
MINING AND METALS-1.8%Aluminum Co. of America 63,600 3,967,050
........................... Barrick Gold 119,200 3,650,500
.............. Potash Corp. Saskatchewan 45,200 3,186,600
_____________
10,804,150
_____________
TRANSPORTATION-1.4%............. Conrail 67,200 4,687,200
............ Continental Airlines, Cl. B 22,500 (a) 1,276,875
........................ Delta Air Lines 32,900 2,644,337
_____________
8,608,412
_____________
UTILITIES-10.5%.................... AT&T 193,600 11,858,000
................. Allegheny Power System 51,300 1,500,525
.............................. Ameritech 145,900 8,516,913
.......................... Bell Atlantic 46,500 3,022,500
.......................... Boston Edison 41,800 1,018,875
............................. CMS Energy 30,300 882,487
.................... Consolidated Edison 107,100 3,146,063
................................ Entergy 151,300 4,009,450
.................................... GTE 151,200 6,558,300
............................... Illinova 49,000 1,249,500
..................... MCI Communications 195,500 5,755,031
..................... SBC Communications 134,200 6,710,000
............................... Southern 86,700 1,907,400
........................ Texas Utilities 112,900 4,544,225
................................. UniCom 41,900 1,152,250
............................... WorldCom 57,800 (a) 2,716,600
_____________
64,548,119
_____________
.................... TOTAL COMMON STOCKS
.................. (cost $498,282,502) $595,083,703
=============
DREYFUS DISCIPLINED STOCK FUND
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
PRINCIPAL
REPURCHASE AGREEMENT-2.0% AMOUNT VALUE
______ ______
. Goldman Sachs & Company Tri-Party Repo
...... Agreement, 5.31% dated 4/30/96
.. to be repurchased at $12,496,368 on
5/1/96, collateralized by $12,593,000 U.S.
....... Treasury Notes, 6% due 8/31/97
................... (cost $12,494,525) $12,494,525 $ 12,494,525
=============
TOTAL INVESTMENTS (cost $510,777,027) ............................... ... 99.1% $607,578,228
======= ============
CASH AND RECEIVABLES (NET)..... ............................... ...... .9% $ 5,193,079
======= ============
NET ASSETS..................... ................................ ... .. 100.0% $612,771,307
======= ============
NOTE TO STATEMENT OF INVESTMENTS;
(a) Non-income producing.
See notes to financial statements.
DREYFUS DISCIPLINED STOCK FUND
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
ASSETS:
Investments in securities, at value (cost $510,777,027)-see Statement
of Investments (including repurchase agreement of $12,494,525)........ $607,578,228
Cash.................................................................... 1,338,171
Receivable for investment securities sold............................... 2,665,258
Receivable for Capital Stock sold....................................... 1,771,860
Dividends and interest receivable....................................... 581,756
_____________
613,935,273
LIABILITIES:
Due to The Dreyfus Corporation-Note 2(a)................................ $847,323
Due to Distributor-Note 2(b)............................................ 4,815
Payable for Capital Stock redeemed...................................... 192,699
Payable for investment securities purchased............................. 72,450
Directors' fees payable-Note 2(c)....................................... 46,679 1,163,966
________ _____________
NET ASSETS.................................................................. $612,771,307
=============
REPRESENTED BY:
Paid-in capital......................................................... $492,320,803
Accumulated undistributed investment income-net......................... 1,497,285
Accumulated undistributed net realized gain on investments.............. 22,152,018
Accumulated net unrealized appreciation on investments-Note 3........... 96,801,201
_____________
NET ASSETS at value......................................................... $612,771,307
=============
NET ASSET VALUE, offering and redemption price per share:
Investor Shares
(80 million shares of $.001 par value Capital Stock authorized)
($23,942,803 3 981,746 shares of Capital Stock outstanding)........... $24.39
=======
Class R Shares
(165 million shares of $.001 par value Capital Stock authorized)
($588,828,504 3 24,133,272 shares of Capital Stock outstanding)....... $24.40
=======
See notes to financial statements.
DREYFUS DISCIPLINED STOCK FUND
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $27,536 foreign taxes withheld at source)...... $ 4,873,926
Interest.............................................................. 391,317
_____________
TOTAL INCOME...................................................... $ 5,265,243
EXPENSES:
Investment management fee-Note 2(a)................................... 2,232,718
Distribution fee (Investor shares)-Note 2(b).......................... 27,814
Directors' fees and expenses-Note 2(c)................................ 25,087
_____________
TOTAL EXPENSES.................................................... 2,285,619
_____________
INVESTMENT INCOME-NET............................................. 2,979,624
REALIZED AND UNREALIZED GAIN ON INVESTMENTS-Note 3:
Net realized gain on investments........................................ $23,870,440
Net unrealized appreciation on investments.............................. 35,731,597
_____________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 59,602,037
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $62,581,661
===========
See notes to financial statements.
DREYFUS DISCIPLINED STOCK FUND
STATEMENT OF CHANGES IN NET ASSETS
SIX MONTHS ENDED YEAR ENDED
APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995
_________________ ______________
OPERATIONS:
Investment income-net................................................ $ 2,979,624 $ 4,919,280
Net realized gain on investments..................................... 23,870,440 10,544,076
Net unrealized appreciation on investments for the period............ 35,731,597 54,555,889
_______________ ___________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............... 62,581,661 70,019,245
_______________ ___________
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net:
Investor Shares.................................................... (150,072) (323,712)
Class R Shares..................................................... (2,787,577) (4,170,807)
Net realized gain on investments:
Investor Shares.................................................... (515,099) (607,507)
Class R Shares..................................................... (10,485,121) (5,904,735)
_______________ ___________
TOTAL DIVIDENDS.................................................. (13,937,869) (11,006,761)
_______________ ___________
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold:
Investor Shares.................................................... 3,977,750 31,801,974
Class R Shares..................................................... 206,708,432 205,045,630
Dividends reinvested:
Investor Shares.................................................... 503,344 227,141
Class R Shares..................................................... 11,415,226 7,292,203
Cost of shares redeemed:
Investor Shares.................................................... (15,033,424) (24,904,167)
Class R Shares..................................................... (58,278,841) (122,289,547)
_______________ ___________
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS........... 149,292,487 97,173,234
_______________ ___________
TOTAL INCREASE IN NET ASSETS................................... 197,936,279 156,185,718
NET ASSETS:
Beginning of period.................................................. 414,835,028 258,649,310
_______________ ___________
End of period (including undistributed investment income-net:
$1,497,285 in 1996 and $1,455,310 in 1995)......................... $ 612,771,307 $ 414,835,028
=============== ===========
</TABLE>
<TABLE>
<CAPTION>
SHARES
_____________________________________________________________________
INVESTOR CLASS R
_______________________________ ________________________________
SIX MONTHS SIX MONTHS
ENDED YEAR ENDED ENDED YEAR ENDED
APRIL 30,1996 OCTOBER 31, APRIL 30, 1996 OCTOBER 31,
(UNAUDITED) 1995 (UNAUDITED) 1995
_____________ ____________ ____________ ____________
<S> <C> <C> <C> <C>
CAPITAL SHARE TRANSACTIONS:
Shares sold......................... 168,846 1,765,427 8,768,436 10,432,849
Shares issued for dividends reinvested 22,346 12,685 503,745 406,003
Shares redeemed..................... (667,205) (1,376,660) (2,460,325) (6,410,071)
_________ ___________ _____________ ___________
NET INCREASE (DECREASE) IN
SHARES OUTSTANDING.................... (476,013) 401,452 6,811,856 4,428,781
========= =========== ============= ===========
</TABLE>
See notes to financial statements.
DREYFUS DISCIPLINED STOCK FUND
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share of
Capital Stock 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.
<TABLE>
<CAPTION>
INVESTOR SHARES
______________________________________________________
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1996 ________________________________
PER SHARE DATA: (UNAUDITED) 1995 1994(1)(2)
_________________ _____________ _____________
<S> <C> <C> <C>
Net asset value, beginning of period.............. $22.08 $18.54 $17.86
______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net............................. .13 .28 .16
Net realized and unrealized gain on investments... 2.87 3.98 .66
______ ______ ______
TOTAL FROM INVESTMENT OPERATIONS................ 3.00 4.26 .82
______ ______ ______
DISTRIBUTIONS:
Dividends from investment income-net.............. (.13) (.25) (.14)
Dividends from net realized gain on investments... (.56) (.47) -
______ ______ ______
TOTAL DISTRIBUTIONS............................. (.69) (.72) (.14)
______ ______ ______
Net asset value, end of period.................... $24.39 $22.08 $18.54
====== ====== ======
TOTAL INVESTMENT RETURN............................... 13.81%(3) 23.96% 4.62%(3)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets. .57%(3) 1.15% .66%(3)
Ratio of net investment income to average net assets .49%(3) 1.36% .74%(3)
Portfolio Turnover Rate........................... 32.07%(3) 60.00% 106.00%(3)
Average commission rate paid(4)................... $.0533 - -
Net Assets, end of period (000's Omitted)......... $23,943 $32,189 $19,580
______
(1) The Fund commenced selling Investor shares on April 6, 1994.
(2) Effective October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment mananger. Prior to October 17, 1994, Mellon Bank, N.A. served as
the Fund's investment manager.
(3) Not annualized.
(4) For fiscal years beginning on or after November 1, 1995, the Fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.
</TABLE>
See notes to financial statements.
DREYFUS DISCIPLINED STOCK FUND
FINANCIAL HIGHLIGHTS (CONTINUED)
Contained below is per share operating performance data for a share of
Capital Stock 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.
<TABLE>
<CAPTION>
CLASS R SHARES
_____________________________________________________________________
SIX MONTHS ENDED YEAR ENDED OCTOBER 31,
APRIL 30, 1996 ________________________________________________
PER SHARE DATA: (UNAUDITED) 1995 1994(1)(2) 1993 1992 1991
________ ___ __ __ __ __
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning
of period............... $22.09 $18.54 $18.69 $17.21 $16.40 $12.41
______ ______ ______ ______ ______ ______
INVESTMENT OPERATIONS:
Investment income-net..... .14 .30 .26(3) .30 .27 .27
Net realized and unrealized
gain on investments..... 2.88 4.02 .25 2.56 1.33 4.04
______ ______ ______ ______ ______ ______
TOTAL FROM INVESTMENT
OPERATIONS.......... 3.02 4.32 .51 2.86 1.60 4.31
______ ______ ______ ______ ______ ______
DISTRIBUTIONS:
Dividends from investment
income-net.............. (.15) (.30) (.26) (.31) (.27) (.27)
Dividends from net realized gain
on investments.......... (.56) (.47) (.40) (1.07) (.52) (.05)
______ ______ ______ ______ ______ ______
TOTAL DISTRIBUTIONS..... (.71) (.77) (.66) (1.38) (.79) (.32)
______ ______ ______ ______ ______ ______
Net asset value, end of period $24.40 $22.09 $18.54 $18.69 $17.21 $16.40
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN....... 13.94%(5) 24.33% 2.82% 17.46% 10.06% 35.27%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to
average net assets(4)... .45%(5) .90% .90%(6) .90% .90% .90%
Ratio of net investment income
to average net assets... .60%(5) 1.61% 1.54% 1.82% 1.73% 1.92%
Portfolio Turnover Rate... 32.07%(5) 60.00% 106.00% 64.00% 84.00%6 9.00%
Average commission rate paid(7) $.0533 - - - - -
Net Assets, end of period
(000's Omitted)......... $588,828 $382,646 $239,069 $92,955 $43,742 $25,931
______
(1) The Fund commenced selling Investor Shares on April 6, 1994. Those
shares outstanding prior to April 4, 1994 were designated Trust Shares.
Effective October 17, 1994, the Fund's Trust Shares were redesignated Class R
Shares.
(2) Effective October 17, 1994, The Dreyfus Corporation serves as the Fund's
investment manager. Prior to October 17, 1994, Mellon Bank, N.A. served as
the Fund's investment manager.
(3) Net investment income per share before reimbursement of expenses by the
investment adviser was $.25 for the year ended October 31, 1994.
(4) For the years ended October 31, 1993, 1992 and 1991, the investment
adviser reimbursed expenses of the Fund amounting to $.0627, $.0981 and
$.1721 per share, respectively.
(5) Not annualized
(6) Expense ratio before reimbursement of expenses by the adviser was .96%
for the year ended October 31, 1994.
(7) For fiscal years beginning on or after November 1, 1995, the Fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.
</TABLE>
See notes to financial statements.
DREYFUS DISCIPLINED STOCK FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
The Dreyfus/Laurel Funds, Inc. (the "Company") 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
seventeen series including the Dreyfus Disciplined Stock Fund (the "Fund").
The Fund's investment objective is to seek investment returns (including
capital appreciation and income) consistently superior to the Standard &
Poor's 500 Composite Stock Price Index by investing in a broadly diversified
list of equity securities generated by the application of quantitative
security selection and risk control techniques. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. ("Mellon Bank").
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
distributor of the Fund's shares. The Fund is currently authorized to issue
two classes of shares: Investor shares and Class R Shares. Investor shares
are sold primarily to retail investors and bear a distribution fee. Class R
shares are sold primarily to bank trust departments and other financial
service providers (including Mellon Bank and its affiliates) acting on behalf
of customers having a qualified trust or investment account or relationship
at such institution, and bear no distribution fee. Each class of shares has
identical rights and privileges, except with respect to the distribution fee
and voting rights on matters affecting a single class.
Investment income, net of expenses (other than class specific expenses),
realized and unrealized gains and losses are allocated daily to each class of
shares based upon the relative proportion of net assets of each class.
(A) PORTFOLIO VALUATION: Investments in securities 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. Bid price is used when no asked price
is available. Securities for which there are no such valuations are valued at
fair value as determined in good faith under the direction of the Board of
Directors.
(B) 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.
(C) REPURCHASE AGREEMENTS: The Fund may engage in repurchase agreement
transactions. Under the terms of a typical repurchase agreement, the Fund,
through its custodian and sub-custodian, takes possession of an underlying
debt obligation subject to an obligation of the seller to repurchase, and the
Fund to resell, the obligation at an agreed-upon price and time, thereby
determining the yield during the Fund's holding period. This arrangement
results in a fixed rate of return that is not subject to market fluctuations
during the Fund's holding period. The value of the collateral is at least
equal, at all times, to the total amount of the repurchase obligation,
including interest. In the event of a counterparty default, the Fund has the
right to use the collateral to offset losses incurred. There is potential
loss to the Fund in the event the Fund is delayed or prevented from
exercising its rights to dispose of the collateral securities,
DREYFUS DISCIPLINED STOCK FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
including the risk of a possible decline in the value of the underlying
securities during the period while the Fund seeks to assert its rights. The
Fund's manager, acting under the supervision of the Board of Directors,
reviews the value of the collateral and the creditworthiness of those banks
and dealers with which the Fund enters into repurchase agreements to evaluate
potential risks.
(D) DISTRIBUTIONS 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.
On May 2, 1996, the Board of Directors declared dividends from net
investment income for the Investor shares and Class R shares in the amount of
$0.047 per share and $0.062 per share, respectively, payable on May 3, 1996
to shareholders of record on May 2, 1996.
(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-INVESTMENT MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) INVESTMENT MANAGEMENT FEE: Pursuant to an Investment Management
agreement with the Manager, the Manager provides or arranges for one or more
third parties and or affiliates to provide investment advisory,
administrative, custody, fund accounting and transfer agency services to the
Fund. The Manager also directs the investments of the Fund in accordance with
its investment objective, policies and limitations. For these services, the
Fund is contractually obligated to pay the Manager a fee, calculated daily
and paid monthly, at the annual rate of .90% of the value of the Fund's
average daily net assets. Out of its fee, the Manager pays all of the
expenses of the Fund except brokerage fees, taxes, interest, Rule 12b-1
distribution fees and expenses, fees and expenses of non-interested Directors
(including counsel fees) and extraordinary expenses. In addition, the Manager
is required to reduce its fee in an amount equal to the Fund's allocable
portion of fees and expenses of the non-interested Directors (including
counsel).
(B) DISTRIBUTION PLAN: The Fund has adopted a distribution plan (the
"Plan") pursuant to Rule 12b-1 under the 1940 Act relating to its Investor
shares. Under the Plan, the Fund may pay annually up to .25% of the value of
the average daily net assets attributable to its Investor shares to
compensate the Distributor and Dreyfus Service Corporation, an affiliate of
the Manager, for shareholder servicing activities and the Distributor for
activities primarily intended to result in the sale of Investor shares. The
Class R shares bear no distribution fee. For the six months ended April 30,
1996, the distribution fee for the Investor shares was $27,814.
Under its terms, the Plan shall remain in effect from year to year,
provided such continuance is approved annually by a vote of majority of those
Directors who are not "interested persons" of the
DREYFUS DISCIPLINED STOCK FUND
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Company and who have no direct or indirect financial interest in the
operation of the Plan or in any agreement related to the Plan.
(C) DIRECTOR'S FEES: Each director who is not an "interested person" as
defined in the Act receives $27,000 per year, $1,000 for each Board meeting
attended and $750 for each Audit Committee meeting attended and is reimbursed
for travel and out-of-pocket expenses. These expenses are paid in total by
the following funds: The Dreyfus/Laurel Funds, Inc., The Dreyfus/Laurel
Tax-Free Municipal Funds, and The Dreyfus/Laurel Funds Trust. In addition
the Chairman of the Board receives an annual fee of $75,000 per year. These
fees and expenses are charged and allocated to each series based on net
assets.
(D) BROKERAGE COMMISSIONS: For the six months ended April 30, 1996, the
Fund incurred total brokerage commissions of $491,209, of which $92,280 was
paid to Dreyfus Investment Services, a subsidiary of Mellon Bank Corporation.
NOTE 3-SECURITIES TRANSACTIONS:
The aggregate amount of purchase and sales of investment securities,
excluding short-term securities, during the six months ended April 30, 1996,
amounted to $275,035,613 and $156,740,764, respectively.
At April 30, 1996, accumulated net unrealized appreciation on investments
was $96,801,201, consisting of $99,562,489 gross unrealized appreciation and
$2,761,288 gross unrealized depreciation.
At April 30, 1996, 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).
[Dreyfus lion "d" logo]
DREYFUS DISCIPLINED STOCK FUND
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer, Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 328/728SA964
[Dreyfus logo]
Disciplined
Stock Fund
Semi-Annual
Report
April 30, 1996
