LETTER TO SHAREHOLDERS
Dear Fellow Shareholder:
Dreyfus Growth and Income Fund, Inc. completed the first half of its
current fiscal year on April 30, 1995.
For the fiscal half-year, the total return, including the
reinvestment of income dividends and capital gain distributions, was
4.52%* for your Fund, compared with 10.46% for the Standard & Poor's 500
Composite Stock Price Index.** From inception on December 31, 1991 to
April 30, 1995, the total return for the Dreyfus Growth and Income Fund
was 46.25%, compared with 35.53% for the Standard and Poor's 500
Composite Stock Price Index. The average annual return for the Fund
from inception through April 30, 1995 has been 12.09% and for the year
ended April 30, 1995 was 6.82%.*** Of course, past performance is no
guarantee of future results.
The fiscal half-year began with the U.S. economy in a boom, to
which the Federal Reserve Board had responded by raising interest rates.
The Fed tightened for the seventh time in a year in February 1995, but
then fears of further Federal Reserve tightening eased as the economy
weakened. The stock market rose during these months because of a
combination of a high level of earnings and falling long-term interest
rates. The dollar was weak during the period, which aided the earnings
of multinational companies. A currency decline often drives inflation
substantially higher. This did not occur in this instance because the
dollar was not weak against the currencies of our major trading partners
in North America and South America. There were also offsets from such
disinflationary pressures as corporate downsizing, strong productivity
growth and price-sensitive behavior among consumers. Thus the stock
market enjoyed the benefit to earnings of a weak dollar against the yen
and the European currencies without any associated inflation surge which
might have pushed up interest rates and weakened the valuation of the
stock market.
There are several long-term positive forces which have provided a
supportive background for the financial markets. First, the trend of
inflation has remained favorable in the last several years. Second, we
are in the early stages of a key demographic shift as the baby boom
generation begins to focus on the need for a permanent program of saving
to provide for future retirement income. Third, U.S. productivity
growth in manufacturing has been favorable. Finally, a broad consensus
has begun to emerge on the importance of limiting the U.S. budget
deficit.
The performance of the Dreyfus Growth and Income Fund lagged behind
the market averages during the fiscal half-year because the Fund was
cautiously postured. We remain cautious but not bearish about the U.S.
stock market. The good news of a high level of corporate earnings, a
halt to Federal Reserve tightening and a strong rally in the bond market
has been reflected in market values. This does not rule out further
advances in stock prices if the fundamental news remains favorable.
However, we believe that the margin for error in the event of adverse
developments has been reduced by the strong market gains which have
occurred over the last several years.
The cautious posture of the Fund was implemented in a variety of
ways. First, the percentage of the Fund invested in short-term Treasury
securities as tactical cash reserves was above-average relative to many
mutual funds. The cash ratio was reduced somewhat over the course of
the fiscal half-year as the fundamental news improved. Second, the
portion invested in emerging markets has been kept low. Foreign
investments have been concentrated in major industrial countries,
notably in Canada. Third, we have limited the portion of the Fund
invested in aggressive stocks. Fourth, we continue to hold a
substantial portion of the Fund in convertible securities, which often
have defensive characteristics.
A cautious posture is not intended as a permanent strategy for your
Fund. A more aggressive investment posture was in place in the earlier
years of the Fund when market valuations were lower. Shareholders can
expect an alternation between a cautious and aggressive investment
posture over the coming years.
We believe that the period of strongest earnings growth in the U.S.
economy is behind us. Corporate cost-cutting is very far advanced in
many companies as are the benefits of refinancing high-cost debt. The
rate of growth of the U.S. economy is decelerating. Many multinational
companies have already reaped a significant portion of the profit
benefits of a decline in the dollar. Thus we believe that strong profit
growth will become increasingly scarce over the next year. Many of the
largest positions in your Fund are companies which we believe have a
good chance of sustaining strong earnings growth even in this more
challenging environment. While overall market valuations have risen, we
continue to find good companies available in the stock market at
reasonable valuation levels.
We appreciate the willingness of our shareholders to invest in the
Dreyfus Growth and Income Fund and will endeavor to realize a favorable
return for the shareholders commensurate with a reasonable level of
risk. There is likely to be an alternation of periods where the net
asset value of the Fund declines and periods when the net asset value
rises. Our focus is on achieving a satisfactory return for the
shareholders over a period of time.
Sincerely,
(Richard B. Hoey Signature Logo)
Richard B. Hoey
Portfolio Manager
May 18, 1995
New York, N.Y.
*Total return represents the change during the period in a
hypothetical account with dividends reinvested.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment
of income dividends and, where applicable, capital gain
distributions. Unlike the Fund, which can engage in a variety of
investment techniques, the Standard & Poor's 500 Composite Stock
Price Index is a widely accepted unmanaged index of stock market
performance, which is composed of only equity securities.
***The Fund's average annual total returns from inception (12/31/91)
and for the 1 year period ended 3/31/95 are 11.79% and 4.12%,
respectively. For more complete information about this Fund,
including management fees, charges and expenses, obtain a Prospectus
by calling toll free 1-800-782-6620. Read the Prospectus carefully
before you invest. Fund's share price and investment return fluctuate
so you may receive more or less than your original cost upon
redemption. Mutual fund shares are not FDIC insured.
<TABLE>
<CAPTION>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS APRIL 30, 1995 (UNAUDITED)
COMMON STOCKS--60.7% SHARES VALUE
--------------- --------------
<S> <C> <C> <C>
Basic and Process Industries--12.1% Air Products & Chemicals.................... 400,000 $ 20,150,000
AlliedSignal................................ 150,000 5,943,750
American Infrastructure..................... 650,000 (a,d) 455,000
Cabot....................................... 258,000 10,126,500
Crown Cork & Seal........................... 50,000 (a) 2,137,500
Dow Chemical................................ 100,000 6,950,000
duPont (EI) de Nemours...................... 700,000 46,112,500
Eastman Chemical............................ 75,000 4,256,250
FMC......................................... 150,000 (a) 9,206,250
Ferro....................................... 350,000 9,931,250
Fluor....................................... 200,000 10,300,000
Foster Wheeler.............................. 350,000 12,950,000
Geon........................................ 100,000 2,700,000
IMCO Recycling.............................. 130,000 2,047,500
Jacobs Engineering Group.................... 70,000 (a) 1,382,500
Longview Fibre.............................. 501,000 8,329,125
Morton International........................ 150,000 4,650,000
Praxair..................................... 210,000 4,987,500
Tyco International.......................... 409,165 21,481,162
USX-U.S. Steel Group........................ 100,000 3,050,000
Union Carbide............................... 200,000 6,400,000
Witco....................................... 420,000 12,022,500
--------------
205,569,287
--------------
Capital Goods--7.2% Albany International, Cl. A ................ 904,800 19,792,500
Boeing ..................................... 125,000 6,875,000
Brown Boveri & Cie Ag ...................... 3,125 3,092,192
CBI Industries.............................. 375,000 9,281,250
Coltec Industries........................... 100,000 (a) 1,825,000
Cooper Industries........................... 100,000 3,900,000
Deere & Co ................................. 75,000 6,150,000
Emerson Electric............................ 155,400 10,450,650
General Electric............................ 100,000 5,600,000
Illinois Tool Works......................... 125,000 6,265,625
Keppel...................................... 150,000 1,215,925
Loral....................................... 100,000 4,700,000
Sembawang Shipyard.......................... 200,000 1,370,158
TRINOVA..................................... 200,000 6,950,000
WMX Technologies............................ 850,000 23,162,500
Wheelabrator Technologies................... 800,000 11,600,000
--------------
122,230,800
--------------
Consumer--5.4% American Greetings, Cl. A................... 100,000 2,725,000
Authentic Fitness........................... 432,200 (a) 7,131,300
Carnival, Cl. A............................. 200,000 4,975,000
Consolidated Stores......................... 165,000 (a) 2,825,625
Masco....................................... 300,000 7,650,000
McDonald's.................................. 50,000 1,750,000
Minnesota Mining & Manufacturing............ 150,000 8,943,750
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
--------------- --------------
Consumer (continued) OfficeMax................................... 299,200 (a) $ 7,667,000
Penney (J.C.)............................... 150,000 6,562,500
Premark International....................... 200,000 9,650,000
Price/Costco................................ 300,000 (a) 4,387,500
Sears, Roebuck.............................. 385,867 20,933,284
Wal-Mart Stores............................. 250,000 5,937,500
--------------
91,138,459
--------------
Energy--9.6% Amerada Hess................................ 300,000 15,187,500
Amoco....................................... 100,000 6,562,500
Dresser Industries.......................... 717,000 15,684,375
Imperial Oil................................ 200,000 7,150,000
Mobil....................................... 50,000 4,743,750
Nova........................................ 600,000 5,325,000
Occidental Petroleum........................ 675,000 15,525,000
Parker & Parsley Petroleum.................. 272,000 5,814,000
Phillips Petroleum.......................... 200,000 7,000,000
Schlumberger................................ 550,000 34,581,250
Tenneco..................................... 65,702 3,014,079
Texaco...................................... 300,000 20,512,500
Tidewater................................... 150,000 3,562,500
UGI......................................... 400,000 7,750,000
Western Atlas............................... 225,000 (a) 10,125,000
Western Gas Resources....................... 55,000 1,127,500
--------------
163,664,954
--------------
Financial--3.1%. AT&T Capital................................ 150,000 4,012,500
Boatmen's Bancshares ....................... 150,000 4,987,500
Brascan..................................... 700,000 9,362,500
Citicorp.................................... 100,000 4,637,500
Equitable of Iowa........................... 139,700 5,116,512
Hibernia, Cl. A............................. 100,000 800,000
Mercantile Bancorp.......................... 125,000 4,562,500
Midlantic................................... 300,000 10,950,000
Mortgage Information........................ 245,959 (a,c,d) 482,079
Overseas Union Bank......................... 220,000 1,270,446
Shawmut National............................ 250,000 6,625,000
--------------
52,806,537
--------------
Health Care--7.0% A.L. Pharmaceutical, Cl. A.................. 179,200 4,278,400
Abbott Laboratories......................... 130,000 5,118,750
Advanced Tissue Science..................... 425,100 (a) 2,922,562
Astra Af.................................... 300,000 8,736,864
Bard (C.R.)................................. 150,000 4,368,750
Columbia/HCA Healthcare..................... 500,000 21,000,000
Genzyme..................................... 75,000 3,206,250
Gilead Sciences............................. 1,000,000 15,000,000
Johnson & Johnson........................... 100,000 6,500,000
McKesson.................................... 300,000 11,887,500
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
--------------- --------------
Health Care (continued) Medtronic................................... 100,000 $ 7,437,500
Schering-Plough............................. 50,000 3,768,750
Smithkline Beecham A.D.R.................... 300,000 11,662,500
Teva Pharmaceutical Industries A.D.R ....... 385,000 13,186,250
--------------
119,074,076
--------------
Insurance--1.1%. Exel ....................................... 135,000 6,142,500
Fremont General............................. 200,450 4,434,956
PMI Group................................... 110,000 (a) 4,097,500
USF&G....................................... 250,000 3,687,500
--------------
18,362,456
--------------
Media/Entertainment--1.8% Disney (Walt)............................... 45,000 2,491,875
LIN Broadcasting............................ 138,000 17,215,500
Time Warner................................. 250,000 9,156,250
Valassis Communications..................... 120,000 (a) 2,100,000
--------------
30,963,625
--------------
Mining and Metals--1.9% ASA......................................... 41,700 (a) 1,829,588
Barrick Gold................................ 150,000 3,618,750
Freeport McMoRan............................ 200,000 3,525,000
Lukens...................................... 90,000 2,913,750
Newmont Mining.............................. 275,000 11,515,625
Placer Dome................................. 400,000 9,500,000
--------------
32,902,713
--------------
Real Estate--.6% Crescent Real Estate Equities............... 230,100 6,615,375
Saul Centers................................ 170,000 2,868,750
Sizeler Property Investors.................. 137,500 1,375,000
--------------
10,859,125
--------------
Technology--3.6%. AMP......................................... 400,000 17,100,000
General Instrument.......................... 375,000 12,796,875
Intel....................................... 50,000 5,118,750
Novell...................................... 550,000 (a) 11,962,500
PLATINUM Technology......................... 425,000 (a) 8,500,000
Read-Rite................................... 225,000 (a) 4,781,250
--------------
60,259,375
--------------
Telecommunications--4.6% AT&T........................................ 500,000 25,375,000
DDI......................................... 140 1,230,112
GTE......................................... 150,000 5,118,750
IntelCom Group.............................. 426,000 (a) 4,632,750
LDDS Communications......................... 795,592 (a) 19,094,208
MCI Communications.......................... 210,000 4,567,500
MFS Communications.......................... 75,000 (a) 2,681,250
Nippon Telegraph & Telephone................ 480 4,234,624
Tele-Communications, Cl. A.................. 200,000 (a) 3,825,000
Telewest Communications A.D.S............... 101,000 (a) 2,499,750
US West..................................... 100,000 4,137,500
--------------
77,396,444
--------------
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
--------------- --------------
Transportation--2.3% American Freightways........................ 50,000 (a) $ 1,168,750
Burlington Northern......................... 230,000 13,685,000
Canadian Pacific............................ 900,000 13,725,000
Kirby....................................... 223,500 3,073,125
Overseas Shipholding........................ 370,000 7,400,000
--------------
39,051,875
--------------
Utilities--.4% Central & South West........................ 110,000 2,708,750
Entergy..................................... 190,000 4,132,500
--------------
6,841,250
--------------
TOTAL COMMON STOCKS
(cost $970,233,689)....................... $1,031,120,976
==============
CONVERTIBLE PREFERRED STOCKS--8.1%
Basic and Process Industries--.2% Bowater, Ser. B, Cum., 7%................... 60,000 $ 1,935,000
Tiregator, Ser. B, Cum., $.50............... 600,000 (a,d) 850,425
--------------
2,785,425
--------------
Consumer--.4% Ford Motor, Ser. A, Cum., $4.20............. 35,000 3,084,375
RJR Nabisco Holdings, Ser. C, Cum., $.6012.. 550,000 3,300,000
--------------
6,384,375
--------------
Energy--1.8% Occidental Petroleum, Cum., $3.875.......... 300,000 (b) 16,987,500
Occidental Petroleum, Cum., $3.00........... 80,000 4,560,000
Western Gas Resources, Cum., $2.625......... 228,000 8,407,500
--------------
29,955,000
--------------
Financial--3.0% Chemical Banking, Cum., $5.00............... 85,000 6,842,500
Citicorp, Ser. 15, Cum.,
Depositary Shares, 8.25%.................. 2,000,000 40,000,000
People's Bank, Ser. A, Cum., 8.50% ......... 40,000 3,565,000
--------------
50,407,500
--------------
Insurance--.5% Allstate, Cum., $2.30....................... 235,000 8,489,375
--------------
Mining And Metals--.5% Newmont Mining, Cum., $2.75................. 150,000 (b) 8,925,000
--------------
Real Estate--1.3% Merry Land & Investment, Ser. C, 8.60%..... 295,000 7,301,250
Rouse, Ser. A, Cum., 6.50%.................. 192,000 9,072,000
Tanger Factory, Ser. A, Cum., $1.802........ 299,800 6,295,800
--------------
22,669,050
--------------
Telecommunications--.2% LCI International, Cum., $1.25.............. 85,000 2,900,625
--------------
Transportation--.2% AMR, Ser. A, Cum.,
Depositary Shares, $3.00.................. 30,000 (b) 1,410,000
Arkansas Best, Ser. A, Cum., $2.875......... 75,000 2,887,500
--------------
4,297,500
--------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $135,135,219)....................... $ 136,813,850
==============
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995 (UNAUDITED)
PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS--14.4% AMOUNT VALUE
--------------- --------------
Basic and Process Industries--1.0% American Infrastructure, Sub. Deb.,
10%, 1/31/1996............................ $ 500,000 (d) $ 250,000
Riverwood International, Sub. Deb.:
6.75%, 9/15/2003.......................... 9,350,000 (b) 12,762,750
6.75%, 9/15/2003.......................... 2,950,000 4,008,313
--------------
17,021,063
--------------
Capital Goods--.9% Cooper Industries, Sub. Deb.,
.05%, 1/1/2015............................ 4,540,000 4,698,900
Liebert, Sub. Deb.,
8%, 11/15/2010........................... 3,900,000 9,784,125
--------------
14,483,025
--------------
Consumer--2.2% Federated Department Stores, Sr. Notes,
6%, 2/15/2004............................. 5,000,000 5,037,500
Grand Metropolitan PLC, Euro. Unsub. Deb.,
6.50%, 1/31/2000.......................... 15,000,000 (b) 16,181,250
Omnicom Group, Sub. Deb.,
4.50%, 9/1/2000........................... 13,500,000 (b) 14,731,875
Wendy's International, Sub. Deb.,
7%, 4/1/2006.............................. 1,500,000 2,171,250
--------------
38,121,875
--------------
Financial--2.4% First Financial Management, Sr. Notes,
5%, 12/15/1999............................ 35,500,000 41,357,500
--------------
Health Care--1.9% Genesis Health Ventures, Sr. Sub. Deb.,
6%, 11/30/2003............................ 6,000,000 7,687,500
Omnicare, Sub. Notes,
5.75%, 10/1/2003.......................... 2,000,000 3,432,500
Roche Holdings, Liquid Yield Option Notes,
Zero Coupon............................... 55,000,000 (b) 20,625,000
--------------
31,745,000
--------------
Insurance--1.1%. Nac Re, Sub. Deb.,
5.25%, 12/15/2002......................... 10,050,000 (b) 8,668,125
Re Capital, Deb.,
5.50%, 8/1/2000........................... 2,000,000 2,152,500
Trenwick, Deb.,
6%, 12/15/1999............................ 8,000,000 8,100,000
--------------
18,920,625
--------------
Media/Entertainment--.9% Time Warner, Sub. Deb.,
8.75%, 1/10/2015.......................... 15,000,000 15,037,500
--------------
Mining and Metals--.7% Inco, Yankee Deb.,
5.75%, 7/1/2004........................... 11,000,000 11,646,250
--------------
Real Estate--.7% Continental Homes Holding, Sub. Notes,
6.875%. 3/15/2002......................... 3,250,000 2,604,062
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1995 (UNAUDITED)
PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS (CONTINUED) AMOUNT VALUE
--------------- --------------
Real Estate (continued) Liberty Property Trust, Sub. Deb.,
8%, 7/1/2001.............................. $ 4,800,000 $ 4,596,000
Sizeler Property Investors, Sub. Deb.,
8%, 7/15/2003............................. 5,000,000 4,362,500
--------------
11,562,562
--------------
Technology--2.1% Seagate Technology, Sub. Deb.,
5%,11/1/2003.............................. 10,000,000 (b) 12,818,750
Thermo Electron, Euro. Sub. Deb.:
4.625%, 8/1/1997.......................... 5,500,000 9,405,000
4.875%, 8/1/1997.......................... 8,000,000 13,680,000
--------------
35,903,750
--------------
Transportation--.5% AMR, Sub. Deb.,
6.125%, 11/1/2024......................... 8,750,000 (b) 8,487,500
Air France, Sub. Deb.,
4%, 1/1/2000.............................. 893,193 (d) 181,359
--------------
8,668,859
--------------
TOTAL CONVERTIBLE CORPORATE
NOTES AND BONDS
(cost $219,994,960)....................... $ 244,468,009
==============
U.S. TREASURY NOTES--11.6%
3.875%, 8/31/1995........................... $73,711,000 $ 73,198,487
4.25%, 5/15/1996............................ 37,500,000 36,714,863
6.125%, 7/31/1996........................... 37,500,000 37,365,225
7.25%, 11/30/1996........................... 50,000,000 50,531,250
--------------
TOTAL U.S. TREASURY NOTES
(cost $196,940,076)....................... $ 197,809,825
==============
SHORT-TERM INVESTMENTS--3.5%
U.S. Treasury Bills: 6.33%, 6/8/1995............................. $ 6,570,000 $ 6,528,740
6.32%, 6/15/1995............................ 947,000 940,049
6.37%, 7/6/1995............................. 1,621,000 1,603,737
5.20%, 7/27/1995............................ 51,302,000 50,579,668
--------------
TOTAL SHORT-TERM INVESTMENTS
(cost $59,670,991)........................ $ 59,652,194
==============
TOTAL INVESTMENTS (cost $1,581,974,935)............................................ 98.3% $1,669,864,854
====== ==============
CASH AND RECEIVABLES (NET)......................................................... 1.7% $ 28,340,065
====== ==============
NET ASSETS......................................................................... 100.0% $1,698,204,919
====== ==============
</TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO STATEMENT OF INVESTMENTS:
(a) Non-income producing.
(b) Security exempt from registration under Rule 144A of the Securities
Act of 1933. These Securities may be resold in transactions exempt
from registration, normally to qualified institutional buyers. At
April 30, 1995, these securities amounted to $121,597,750 or
approximately 7.2% of net assets.
(c) Investment in non-controlled affiliate (cost $275,959)-
See note 1(d).
(d) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate value of $2,218,864 represent
approximately .13% of net assets.
<TABLE>
<CAPTION>
ACQUISITION PURCHASE PERCENTAGE OF
ISSUER DATE PRICE NET ASSETS VALUATION(1)
- ------ ---------------------- --------------- ------------
<S> <C> <C> <C> <C>
Air France, Sub., Deb., 4/28/1993 $ .19 0.01% cost
4%, 1/1/2000 5/04/1993 .19
American Infrastructure 2/14/1991 10.00 0.03 $.70/share
6/4/1991 10.00
American Infrastructure,
Conv. Sub. Deb., 10%, 1/31/1996 2/14/1991 1,000.00 0.01 500.00
Mortgage Information 5/18/1987 1.12 0.03 1.96/share
2/1/1988 1.12
12/13/1988 1.12
Tiregator, Ser. B, Cum., $.50 3/31/1993 5.00 0.05 $1.417375/share
_______________
(1) The valuation of these securities has been determined in good faith
under the direction of the Board of Directors.
</TABLE>
See independent accountants' review report and notes to financial
statements.
<TABLE>
<CAPTION>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1995 (UNAUDITED)
ASSETS:
<S> <C> <C>
Investments in securities, at value
(cost $1,581,974,935)--see statement.................................. $1,669,864,854
Receivable for investment securities sold............................... 113,886,308
Dividends and interest receivable....................................... 7,939,715
Receivable for subscriptions to Common Stock............................ 52,122
Prepaid expenses........................................................ 192,237
--------------
1,791,935,236
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 1,039,593
Payable for investment securities purchased............................. 89,113,742
Payable for Common Stock redeemed....................................... 110,540
Accrued expenses and other liabilities.................................. 3,466,442 93,730,317
----------- --------------
NET ASSETS ................................................................ $1,698,204,919
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,597,585,418
Accumulated undistributed investment income--net........................ 2,927,181
Accumulated undistributed net realized gain on investments.............. 9,799,870
Accumulated net unrealized appreciation on investments and
foreign currency transactions--Note 4(b)............................. 87,892,450
--------------
NET ASSETS at value applicable to 101,103,193 outstanding shares of
Common Stock, equivalent to $16.80 per share
(300 million shares of $.001 par value authorized)...................... $1,698,204,919
==============
</TABLE>
See independent accountants' review report and notes to financial
statements.
<TABLE>
<CAPTION>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1995 (UNAUDITED)
INVESTMENT INCOME:
INCOME:
<S> <C> <C>
Interest.............................................................. $19,374,534
Cash dividends (net of $101,405 foreign taxes withheld at source)..... 11,703,448
-----------
TOTAL INCOME...................................................... $31,077,982
EXPENSES:
Management fee--Note 3(a)............................................. 6,128,595
Shareholder servicing costs--Note 3(b)................................ 2,392,832
Dividends on securities sold short.................................... 101,000
Prospectus and shareholders' reports.................................. 80,966
Custodian fees........................................................ 80,476
Registration fees..................................................... 76,627
Professional fees..................................................... 44,844
Directors' fees and expenses--Note 3(c)............................... 20,970
Miscellaneous......................................................... 21,067
-----------
TOTAL EXPENSES.................................................... 8,947,377
-----------
INVESTMENT INCOME--NET............................................ 22,130,605
-----------
REALIZED AND UNREALIZED GAIN ON INVESTMENTS
Net realized gain (loss) on investments--Note 4(a):
Long transactions (including option transactions)..................... $ 8,577,984
Short sale transactions............................................... (151,229)
Net realized (loss) on foreign currency tranactions..................... (94)
Net realized gain on financial futures--Note 4(a);
Short transactions.................................................... 1,001,900
-----------
NET REALIZED GAIN..................................................... 9,428,561
Net unrealized appreciation on investments:
Unaffiliated issuers.................................................. $40,092,733
Affiliated issuers.................................................... --
Translation of assets and liabilities in foreign currencies............. 2,531
-----------
TOTAL UNREALIZED APPRECIATION..................................... 40,095,264
-----------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................... 49,523,825
-----------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $71,654,430
===========
</TABLE>
See independent accountants' review report and notes to financial
statements.
<TABLE>
<CAPTION>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1995
1994 (UNAUDITED)
--------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net............................................ $ 33,644,815 $ 22,130,605
Net realized gain on investments.................................. 18,079,746 9,428,561
Net unrealized appreciation (depreciation) on investments
for the period.................................................. (58,317,363) 40,095,264
-------------- --------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS. (6,592,802) 71,654,430
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (31,151,196) (24,372,174)
Net realized gain on investments.................................. (2,937,836) (17,083,782)
-------------- --------------
TOTAL DIVIDENDS................................................. (34,089,032) (41,455,956)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 1,009,565,228 146,493,608
Dividends reinvested.............................................. 32,199,203 39,486,332
Cost of shares redeemed........................................... (448,852,062) (235,706,888)
-------------- --------------
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS 592,912,369 (49,726,948)
-------------- --------------
TOTAL INCREASE (DECREASE) IN NET ASSETS..................... 552,230,535 (19,528,474)
NET ASSETS:
Beginning of period............................................... 1,165,502,858 1,717,733,393
-------------- --------------
End of period (including undistributed investment income--
net: $5,168,750 in 1994 and $2,927,181 in 1995)................. $1,717,733,393 $1,698,204,919
============== ==============
SHARES SHARES
--------------- ----------------
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 60,025,508 9,079,634
Shares issued for dividends reinvested............................ 1,969,430 2,500,424
Shares redeemed................................................... (26,930,996) (14,669,767)
-------------- --------------
NET INCREASE (DECREASE) IN SHARES OUTSTANDING................... 35,063,942 (3,089,709)
============== ==============
</TABLE>
See independent accountants' review report and notes to financial
statements.
DREYFUS GROWTH AND INCOME FUND, INC.
FINANCIAL HIGHLIGHTS
Contained below is per share operating performance data for a share
of Common 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>
YEAR ENDED OCTOBER 31, SIX MONTHS ENDED
-------------------------------- APRIL 30, 1995
PER SHARE DATA: 1992(1) 1993 1994 (UNAUDITED)
------- ------ ------ -----------
<S> <C> <C> <C> <C>
Net asset value, beginning of period.................... $12.50 $13.89 $16.86 $16.49
------ ------ ------ ------
INVESTMENT OPERATIONS:
Investment income--net.................................. .19 .38 .34 .22
Net realized and unrealized gain (loss) on investments.. 1.38 2.95 (.34) .50
------ ------ ------ ------
TOTAL FROM INVESTMENT OPERATIONS...................... 1.57 3.33 -- .72
------ ------ ------ ------
DISTRIBUTIONS:
Dividends from investment income--net................... (.18) (.36) (.33) (.24)
Dividends from net realized gain on investments......... -- -- (.04) (.17)
------ ------ ------ ------
TOTAL DISTRIBUTIONS................................... (.18) (.36) (.37) (.41)
------ ------ ------ ------
Net asset value, end of period.......................... $13.89 $16.86 $16.49 $16.80
====== ====== ====== ======
TOTAL INVESTMENT RETURN 12.57%(2) 24.24% .05% 4.52%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets....... 1.02%(2) 1.24% 1.14% .53%(2)
Ratio of dividends on securities sold short to
average net assets ................................... -- -- -- .01%(2)
Ratio of net investment income to average net assets.... 2.30%(2) 2.92% 2.18% 1.34%(2)
Decrease reflected in above expense ratios due to undertakings
by the Manager........................................ .39%(2) .04% -- --
Portfolio Turnover Rate................................. 127.24%(2) 85.26% 97.47% 50.49%(2)
Net Assets, end of period (000's Omitted)............... $98,532 $1,165,503 $1,717,733 $1,698,205
- ---------------------------------------
(1) From December 31, 1991 (commencement of operations) to
October 31, 1992.
(2) Not annualized.
</TABLE>
See independent accountants' review report and notes to financial
statements.
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1--SIGNIFICANT ACCOUNTING POLICIES:
The Fund is registered under the Investment Company Act of 1940
("Act") as a non-diversified open-end management investment company.
Premier Mutual Fund Services, Inc. (the "Distributor") acts as the
exclusive distributor of the Fund's shares, which are sold to the public
without a sales charge. The Distributor, located at One Exchange Place,
Boston, Massachusetts 02109, is a wholly-owned subsidiary of FDI
Distribution Services, Inc., a provider of mutual fund administration
services, which in turn is a wholly-owned subsidiary of FDI Holdings,
Inc., the parent company of which is Boston Institutional Group, Inc.
The Dreyfus Corporation ("Manager") serves as the Fund's investment
adviser. The Manager is a direct subsidiary of Mellon Bank N.A.
(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. 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. Investments denominated in
foreign currencies are translated to U.S. dollars at the prevailing
rates of exchange. Investments in forward currency exchange contracts
are valued at the offsetting rate.
(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.
Reported net realized foreign exchange gains or losses arise
from sales and maturities of short-term securities, sales of foreign
currencies, 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 at
fiscal year end, resulting from changes in exchange rates.
(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) AFFILIATED ISSUERS: Issuers in which the Fund held 5% or
more of the outstanding voting securities are defined as "affiliated" in
the Act.
(E) 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, it is the policy of the Fund
not to distribute such gain.
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
(F) 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.
The Fund has an unused capital loss carryover of approximately
$3,409,000 available for Federal income tax purposes to be applied
against future net securities profits, if any, realized subsequent to
October 31, 1994. If not applied, the carryover expires in fiscal 2000.
NOTE 2--BANK LINE OF CREDIT:
In accordance with an agreement with a bank, the Fund may borrow
up to $10 million under a short-term unsecured line of credit. Interest
on borrowings is charged at rates which are related to Federal Funds
rates in effect from time to time.
At April 30, 1995, there were no outstanding borrowings under
the line of credit.
NOTE 3--MANAGEMENT FEE AND OTHER TRANSACTIONS WITH AFFILIATES:
(A) Pursuant to a management agreement ("Agreement") with the
Manager, the management fee is computed at the annual rate of .75 of 1%
of the average daily value of the Fund's net assets and is payable
monthly. The Agreement provides for an expense reimbursement from the
Manager should the Fund's aggregate expenses, exclusive of taxes,
brokerage, interest on borrowings (which, in the view of Stroock &
Stroock & Lavan, counsel to the Fund, also contemplates interest and
dividends on securities sold short), and extraordinary expenses, exceed
the expense limitation of any state having jurisdiction over the Fund.
The most stringent state expense limitation applicable to the Fund
presently requires reimbursement of expenses in any full fiscal year
that such expenses (exclusive of certain expenses as described above)
exceed 2 1/2% of the first $30 million, 2% of the next $70 million and 1
1/2% of the excess over $100 million of the average value of the Fund's
net assets in accordance with California "blue sky" regulations. No
expense reimbursement was required pursuant to the Agreement for the six
months ended April 30, 1995.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund
reimburses Dreyfus Service Corporation, a wholly-owned subsidiary of
The Manager, an amount not to exceed an annual rate of .25 of 1% of the
value of the Fund's average daily net assets for servicing shareholder
accounts. 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. During the
six months ended April 30, 1995, the Fund was charged an aggregate of
$1,325,828 pursuant to the Shareholder Services Plan.
(C) Each director who is not an "affiliated person," as defined
in the Act, receives an annual fee of $4,500 and an attendance fee of
$500 per meeting. The Chairman of the Board receives an additional 25%
of such compensation.
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
NOTE 4--SECURITIES TRANSACTIONS:
(A) The following summarizes the aggregate amount of purchases
and sales of investment securities and securities sold short, excluding
short-term securities and options transactions, during the six months
ended April 30, 1995:
<TABLE>
<CAPTION>
PURCHASES SALES
------------ ------------
<S> <C> <C>
Long transactions............................................. $842,633,420 $634,520,739
Short sale transactions....................................... 17,551,948 17,400,719
------------ ------------
TOTAL....................................................... $860,185,368 $651,921,458
============ ============
</TABLE>
The Fund is engaged in short-selling which obligates the Fund to
replace the security borrowed by purchasing the security at current
market value. The Fund would incur a loss if the price of the security
increases between the date of the short sale and the date on which the
Fund replaces the borrowed security. The Fund would realize a gain if
the price of the security declines between those dates. Until the Fund
replaces the borrowed security, the Fund will maintain daily, a
segregated account with a broker and/or custodian, of cash and/or U.S.
Government securities sufficient to cover its short position. At April
30, 1995, there were no securities sold short outstanding.
The Fund is engaged in trading financial futures contracts. The
Fund is exposed to market risk as a result of changes in the value of
the underlying financial instruments. Investments in financial futures
require the Fund to "mark to market" on a daily basis, which reflects
the change in the market value of the contract at the close of each
day's trading. Accordingly, variation margin payments are made or
received to reflect daily unrealized gains or losses. When the contracts
are closed, the Fund recognizes a realized gain or loss. These investments
require initial margin deposits with a custodian, which consist of cash or
cash equivalents, up to approximately 10% of the contract amount. The amount
of these deposits is determined by the exchange or Board of Trade on which
the contract is traded and is subject to change. At April 30, 1995, there
were no financial futures contracts outstanding.
(B) At April 30, 1995, accumulated net unrealized appreciation
on investments was $87,889,919, consisting of $126,363,922 gross
unrealized appreciation and $38,474,003 gross unrealized depreciation,
excluding foreign currency transactions.
At April 30, 1995, 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 GROWTH AND INCOME FUND, INC.
REVIEW REPORT OF ERNST & YOUNG LLP, INDEPENDENT ACCOUNTANTS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS GROWTH AND INCOME FUND, INC.
We have reviewed the accompanying statement of assets and
liabilities of Dreyfus Growth and Income Fund, Inc., including the
statement of investments, as of April 30, 1995, and the related
statements of operations and changes in net assets and financial
highlights for the six month period ended April 30, 1995. These
financial statements and financial highlights are the responsibility of
the Fund's management.
We conducted our review in accordance with standards established
by the American Institute of Certified Public Accountants. A review of
interim financial information consists principally of applying
analytical procedures to financial data, and making inquiries of persons
responsible for financial and accounting matters. It is substantially
less in scope than an audit conducted in accordance with generally
accepted auditing standards, which will be performed for the full year
with the objective of expressing an opinion regarding the financial
statements and financial highlights taken as a whole. Accordingly, we do
not express such an opinion.
Based on our review, we are not aware of any material
modifications that should be made to the interim financial statements
and financial highlights referred to above for them to be in conformity
with generally accepted accounting principles.
We have previously audited, in accordance with generally
accepted auditing standards, the statement of changes in net assets for
the year ended October 31, 1994 and financial highlights for each of the
three years in the period ended October 31, 1994 and in our report dated
December 5, 1994, we expressed an unqualified opinion on such statement
of changes in net assets and financial highlights.
(Ernst & Young LLP Signature logo)
New York, New York
May 31, 1995
DREYFUS GROWTH AND
INCOME FUND FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
The Bank of New York
90 Washington Street
New York, NY 10286
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
The Shareholder Services Group, Inc.
P.O. Box 9671
Providence, RI 02940
Further information is contained in the Prospectus, which must precede
or accompany this report.
Printed in U.S.A. 010SA954
Growth and
Income Fund, Inc.
Semi-Annual
Report
April 30, 1995
(Dreyfus Lion Logo)
