LETTER TO SHAREHOLDERS
Dear Shareholder:
The Dreyfus Growth and Income Fund completed its fiscal year on October
31, 1994 with total net assets of $1.718 billion, a rise of $552 million from
total net assets of $1.166 billion on October 31, 1993.
The Fund's net asset value was $16.49 per share on October 31, 1994,
compared with $16.86 on October 31, 1993. Including the reinvestment of
income dividends, the total return of your Fund for the fiscal year was
.05%,* compared with 3.86% for the Standard & Poor's 500 Composite Stock
Price Index.** From inception on December 31, 1991 through October 31, 1994,
your Fund's total return has been 39.93%, compared with 22.70% for the
Standard & Poor's 500 Composite Stock Price Index. The average annual total
return for the Fund for the same period was 12.58%, compared to 7.49%** for
the S & P 500.+
Your Fund has the following two goals: (1) long-term capital growth, and
(2) current income and growth of income, consistent with reasonable
investment risk. The Fund's managers seek to produce a favorable yield while
also attempting to increase the net asset value of your shares over time. We
do not limit our stock investments only to those stocks with a high dividend
yield, but rather mix high-yielding and low-yielding investments together to
help achieve the Fund's combined goals. We believe that sometimes growth
opportunities in investments with no yield are attractive enough to justify
inclusion in the portfolio. However, we attempt to offset such investments
with those currently providing a higher than average yield.
The main investment categories for the Fund during its most recently
ended fiscal year were U.S. common stocks and U.S. convertible securities. As
of October 31, 1994, the Fund had a modest investment in foreign stocks, but
had no investments in nonconvertible bonds. The Fund held significant cash
reserves from time to time during the period. We regard these as "tactical
cash reserves," readily available to take advantage of individual investment
opportunities as they arise.
The Fund shifted its position to a somewhat more cautious stance over the
course of the fiscal year. Investments in a number of aggressive securities
were eliminated. The portion of the Fund invested in emerging markets was
reduced. An effort was made to maintain a high degree of diversification
within the Fund in order to spread the risk widely among a variety of
securities. We attempt to manage the overall risk level in your Fund's
portfolio depending on our evaluation of the risk level in the various
markets.
Several factors were responsible for your Fund's lower return during the
fiscal year compared to the Standard and Poor's 500 Composite Stock Price
Index. The Fund entered the fiscal year with substantial unrealized capital
gains in communications or "information highway" stocks which had risen in
the previous fiscal year. At the beginning of the new fiscal year, we began
selling these stocks. This sale program was only partly complete when a
decline in these stocks set in. As a result, many of the remaining stocks
were sold for less than their valuation as of October 31, 1993, albeit at a
gain against original cost.
Investments in aggressive smaller stocks, which had aided performance in
prior fiscal years, generated some capital losses in the 1994 fiscal year,
notably in biotech stocks. In keeping with the general shift to a more
cautious stance within the Fund, the mix of health care stocks was shifted
more towards major blue chip companies over the course of the fiscal year.
Because of our concern with a possible cyclical rise in short-term and
long-term interest rates, we largely avoided investing your Fund in
nonconvertible bonds and had only a limited investment in electric utilities.
To obtain an adequate yield, however, we had a significant investment in
convertible bonds and preferred stocks, a sector which was adversely affected
by rising interest rates. We continue to utilize convertible securities as a
source of yield in your Fund.
We appreciate the willingness of our shareholders to invest in the Dreyfus
Growth and Income Fund, and will endeavor to
realize a favorable return on assets 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 shareholders over a period of
time.
Very truly yours,
(Richard B. Hoey Signature Logo)
Richard B. Hoey
Portfolio Manager
November 18, 1994
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 invest in both debt and
equity securities, 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.
+Past performance is no guarantee of future results. The Fund's share
price and investment return fluctuate so that share price may be more or
less than the original cost upon redemption.
PERFORMANCE
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT IN DREYFUS GROWTH AND
INCOME FUND, INC.
AND THE STANDARD & POOR'S 500 COMPOSITE STOCK PRICE INDEX
[Exhibit A]
* Source: Lipper Analytical Services, Inc.
<TABLE>
AVERAGE ANNUAL TOTAL RETURNS
ONE YEAR ENDED FROM INCEPTION (12/31/91)
OCTOBER 31, 1994 TO OCTOBER 31, 1994
------------------- ----------------------------
<S> <C> <C>
.05% 12.58%
</TABLE>
Past performance is not predictive of future performance.
The above graph compares a $10,000 investment made in Dreyfus Growth and
Income Fund on 12/31/91 (Inception Date) to a $10,000 investment made in the
Standard & Poor's 500 Composite Stock Price Index on that date. All dividends
and capital gain distributions are reinvested.
The Fund's performance takes into account all applicable fees and expenses.
The Standard & Poor's 500 Composite Stock Price Index is a widely accepted,
unmanaged index of overall stock market performance which does not take into
account charges, fees and other expenses. Further information relating to
Fund performance, including expense reimbursements, if applicable, is
contained in the Condensed Financial Information section of the Prospectus
and elsewhere in this report.
<TABLE>
DREYFUS GROWTH AND INCOME FUND, INC. OCTOBER 31, 1994
ASSET ALLOCATION DIVERSIFICATION OF FOREIGN INVESTMENTS
[Exhibit B] [Exhibit C]
(Foreign Securities equal 9.29% of Total Net Assets)
<S> <C> <C>
FIVE LARGEST SECTORS
Basic & Process Industries...................................... 13.4%
Energy.......................................................... 9.5
Capital Goods................................................... 8.0
Consumer........................................................ 7.7
Telecommunications.............................................. 7.0
TEN LARGEST HOLDINGS
AT&T............................................................ 3.2%
General Electric................................................ 1.3
Schering-Plough................................................. 1.2
Air Products & Chemicals........................................ 1.1
AMP............................................................. 1.1
Canadian Pacific................................................ 1.0
Albany International, Cl. A..................................... 1.0
WMX Technologies................................................ 1.0
Dresser Industries.............................................. 1.0
IBP............................................................. 1.0
All percentages shown above are based on Total Net Assets.
</TABLE>
<TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS
OCTOBER 31, 1994
COMMON STOCKS--55.4% SHARES VALUE
---------------- ----------------
<S> <C> <C> <C>
BASIC AND PROCESS INDUSTRIES--11.4% Air Products & Chemicals 400,000 $ 19,100,000
American Infrastructure....... 650,000 (a,f) 455,000
Bethlehem Steel............... 50,000 (a) 950,000
Cabot......................... 400,000 11,400,000
Corning....................... 130,000 4,420,000
Dow Chemical.................. 175,000 12,862,500
Eastman Chemical.............. 235,700 12,727,800
Ethyl......................... 230,000 2,616,250
Ferro......................... 225,000 5,765,625
Fluor......................... 225,000 11,137,500
Foster Wheeler................ 290,000 10,440,000
Geon.......................... 100,000 3,000,000
Georgia-Pacific............... 200,000 14,775,000
Grupo Carso................... 100,000 (a,b) 2,175,000
IMC Fertilizer Group.......... 75,000 (a) 3,187,500
IMCO Recycling................ 130,000 (a) 1,885,000
Jacobs Engineering Group...... 61,300 (a) 1,310,288
Kaiser Resources.............. 140,000 (a) 1,085,000
Longview Fibre................ 501,000 8,391,750
Lyondell Petrochem............ 100,000 2,737,500
Methanex...................... 300,000 (a) 4,481,250
Mitsubishi Gas Chemical....... 290,000 1,601,135
Morton International.......... 175,000 4,987,500
Olin.......................... 43,300 2,376,087
Praxair....................... 85,000 1,965,625
Sumitomo Chemical............. 280,000 1,652,838
Teijin........................ 260,000 1,540,144
Tyco International............ 309,165 14,917,211
USX-U.S. Steel Group.......... 150,000 5,625,000
Union Carbide................. 200,000 6,625,000
Willamette Industries......... 100,000 4,650,000
Witco......................... 535,000 14,980,000
----------------
195,823,503
----------------
CAPITAL GOODS--6.7% Albany International, Cl. A 904,800 17,869,800
Boeing........................ 125,000 5,484,375
Brown Boveri & Cie Ag......... 3,125 2,681,059
CBI Industries................ 400,000 9,250,000
Cooper Industries............. 175,000 6,540,625
Deere & Co.................... 75,000 5,381,250
Emerson Electric.............. 155,400 9,440,550
General Electric.............. 450,000 21,993,750
Illinois Tool Works........... 125,000 5,609,375
Keppel........................ 300,000 2,758,856
Sembawang Shipyard............ 300,000 2,329,700
WMX Technologies.............. 600,000 17,625,000
Wheelabrator Technologies..... 525,000 7,284,375
----------------
114,248,715
----------------
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
---------------- ----------------
CONSUMER--3.7% Authentic Fitness 432,200 (a) $ 6,537,025
Consolidated Stores........... 100,000 (a) 1,812,500
Cracker Barrel Old Country Store 100,000 2,200,000
Genting Berhad................ 112,500 1,034,129
IBP........................... 500,000 17,062,500
Labatt (John)................. 100,000 1,524,390
Maytag........................ 81,000 1,285,875
McDonald's.................... 100,000 2,875,000
Penney (J.C.)................. 100,000 5,062,500
PepsiCo....................... 50,000 1,750,000
Philip Morris Cos............. 150,000 9,187,500
Premark International......... 100,000 4,475,000
Price/Costco.................. 400,000 (a) 6,300,000
Resorts World Berhad.......... 125,000 792,099
Seventh Generation............ 102,894 (a,f) 219,936
United Motor Works Holdings Berhad 691,000 1,810,953
----------------
63,929,407
----------------
ENERGY--8.4% Amerada Hess.......... 200,000 9,950,000
Amoco......................... 150,000 9,506,250
Chevron....................... 100,000 4,500,000
Coastal....................... 100,000 2,850,000
Comercial De Plata ........... 263,240 887,296
Dresser Industries............ 817,000 17,259,125
Exxon......................... 150,000 9,431,250
Imperial Oil.................. 200,000 7,169,253
Mobil......................... 50,000 4,300,000
Nova.......................... 600,000 5,925,000
Occidental Petroleum.......... 575,000 12,578,125
Oceaneering International..... 190,000 (a) 2,446,250
Parker & Parsley Petroleum.... 247,000 6,175,000
Phillips Petroleum............ 200,000 7,375,000
Schlumberger.................. 250,000 14,687,500
Texaco........................ 100,000 6,537,500
Tidewater..................... 100,000 2,287,500
UGI........................... 400,000 8,050,000
Western Atlas................. 250,000 (a) 11,500,000
Western Gas Resources......... 55,000 1,072,500
----------------
144,487,549
----------------
FINANCIAL--4.0% AT&T Capital 150,000 3,487,500
AmSouth Bancorp............... 150,000 4,462,500
Bank of Boston................ 300,000 8,625,000
Boatmen's Bancshares.......... 150,000 4,443,750
Brascan....................... 700,000 10,850,000
City National................. 90,000 (a) 990,000
Development Bank of Singapore. 100,000 1,062,670
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
---------------- ----------------
FINANCIAL (CONTINUED) Equitable of Iowa 89,700 $ 3,173,138
First Fidelity Bancorp........ 100,000 4,500,000
Great Western Financial....... 150,000 2,681,250
Hibernia, Cl. A............... 100,000 800,000
Malayan Banking Berhad........ 200,000 1,361,236
Mercantile Bancorp............ 125,000 4,343,750
Midlantic..................... 300,000 8,400,000
Mortgage Information.......... 245,959 (a,c,f) 482,079
Norwest....................... 110,000 2,695,000
Overseas Union Bank........... 220,000 1,258,856
Shawmut National.............. 200,000 4,125,000
----------------
67,741,729
----------------
HEALTH CARE--5.7% A.L. Pharmaceutical, Cl. A 179,200 3,203,200
Abbott Laboratories........... 130,000 4,030,000
Advanced Tissue Science....... 425,100 (a) 3,135,112
Affymax N.V................... 250,000 (a) 4,250,000
Coastal Healthcare Group...... 200,000 (a) 6,300,000
Columbia/HCA Healthcare....... 150,420 6,261,233
Gilead Sciences............... 985,000 (a) 8,372,500
HealthCare & Retirement....... 150,000 (a) 4,031,250
Hillhaven .................... 100,000 (a) 2,225,000
Johnson & Johnson............. 130,000 7,101,250
Marion Merrell Dow............ 150,000 3,825,000
Merck & Co.................... 130,000 4,647,500
National Health Labs Holdings. 90,000 1,293,750
National Medical Enterprises.. 200,000 (a) 2,900,000
Noven Pharmaceuticals......... 50,000 (a) 762,500
Schering-Plough............... 280,000 19,950,000
SmithKline Beecham A.D.R...... 300,000 9,150,000
Upjohn........................ 50,000 1,650,000
Warner-Lambert................ 50,000 3,812,500
----------------
96,900,795
----------------
INSURANCE--.8% Fremont General 200,450 4,936,081
Skandia Forsakrings Fria...... 305,000 5,577,581
SunAmerica.................... 90,000 3,498,750
----------------
14,012,412
----------------
MEDIA/ENTERTAINMENT--.3% Disney (Walt) 45,000 1,771,875
Gaylord Entertainment, Cl. A.. 100,000 1,962,500
Valassis Communications....... 120,000 (a) 1,830,000
----------------
5,564,375
----------------
MINING AND METALS--.6% Alcan Aluminium 130,000 3,477,500
FreeportMcMoRan............... 300,000 5,512,500
Huntco, Cl. A................. 50,000 1,125,000
LTV........................... 50,000 (a) 956,250
----------------
11,071,250
----------------
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
COMMON STOCKS (CONTINUED) SHARES VALUE
---------------- ----------------
REAL ESTATE--.8% Crescent Real Estate Eq 230,100 $ 6,212,700
Factory Stores of America..... 125,000 2,593,750
Saul Centers.................. 194,800 2,946,350
Sizeler Property Investments.. 137,500 1,512,500
----------------
13,265,300
----------------
TECHNOLOGY--2.7% AMP................ 250,000 18,906,250
Aurora Electronics............ 109,100 (a) 518,225
First Financial Management.... 155,000 8,680,000
General Instrument............ 150,000 (a) 5,025,000
PLATINUM Technology........... 325,000 (a) 7,190,625
Read-Rite .................... 315,000 (a) 5,473,125
----------------
45,793,225
----------------
TELECOMMUNICATIONS--6.8% AT&T 1,000,000 55,000,000
DDI........................... 70 634,262
GTE........................... 200,000 6,150,000
IDB Communications Group...... 515,000 4,763,750
IntelCom Group................ 325,000 (a) 4,956,250
LDDS Communications........... 650,000 (a) 15,275,000
MCI Communications............ 210,000 4,830,000
MFS Communications............ 100,000 (a) 3,700,000
Nippon Telegraph & Telephone.. 680 6,350,877
Sprint........................ 200,000 6,525,000
Tele-Communications, Cl. A.... 200,000 (a) 4,525,000
Telecom Argentina S.A., Cl. B. 100,000 608,122
US West....................... 100,000 3,762,500
----------------
117,080,761
----------------
TRANSPORTATION--3.1% Air France 135 (a) 7,418
American Freightways.......... 50,000 (a) 1,062,500
Burlington Northern........... 80,000 3,990,000
CSX........................... 125,000 9,062,500
Canadian Pacific.............. 1,121,300 17,940,800
Conrail....................... 150,000 8,156,250
Kirby......................... 223,500 (a) 3,743,625
M.S. Carriers................. 50,000 (a) 1,175,000
Overseas Shipholding.......... 370,000 8,741,250
----------------
53,879,343
----------------
UTILITIES--.4%. Central & South West 110,000 2,475,000
Cia Naviera Perez S.A......... 187,500 (a) 1,012,703
Entergy....................... 155,000 3,623,125
----------------
7,110,828
----------------
TOTAL COMMON STOCKS
(cost $ 921,331,022) $ 950,909,192
================
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED)
OCTOBER 31, 1994
CONVERTIBLE PREFERRED STOCKS--9.2% SHARES VALUE
---------------- ----------------
BASIC AND PROCESS INDUSTRIES--.3% Bowater, Ser. B, Cum., 7% 60,000 $ 1,560,000
Tiregator, Ser. B, Cum., $.50. 600,000 (a,f) 3,000,000
----------------
4,560,000
----------------
CAPITAL GOODS--.8% Westinghouse, Electric, Ser. C, Cum., $1.30 990,000 (b) 14,602,500
----------------
CONSUMER--3.4% Chrysler, Ser. A, Cum., 4.625% 90,000 (b) 12,228,750
Ford Motor, Ser. A, Cum., $4.20 35,000 3,386,250
RJR Nabisco Holdings, Cum., $3.34 . 2,125,500 14,878,500
RJR Nabisco Holdings, Ser. C, Cum., $.6012 2,400,000 16,500,000
Sears Roebuck, Ser. A, Cum., $3.75 209,500 11,862,937
----------------
58,856,437
----------------
ENERGY--1.1% Occidental Petroleum, Cum., $3.875 100,000 (b) 5,406,250
Occidental Petroleum, Cum., $3.00 80,000 4,020,000
Tenneco, Ser. A, Cum., $2.80.. 67,700 2,818,012
Unocal, Cum., $3.50........... 35,000 (b) 1,933,750
Western Gas Resources, Cum., $2.625 145,000 4,966,250
----------------
19,144,262
----------------
FINANCIAL--1.2% Carolina First, Ser. 1993, 7.50% 48,000 1,374,000
Chemical Banking, 10%......... 85,000 6,247,500
Citicorp, Ser. 15, Cum.,
Depositary Shares, 8.25% 277,100 5,438,088
People's Bank, Ser. A, Cum., 8.50% 90,000 6,907,500
----------------
19,967,088
----------------
MINING AND METALS--.7% Newmont Mining, Cum., $2.75 100,000 (b) 6,000,000
Noranda, Ser. E, Cum., 6%..... 300,000 5,875,832
----------------
11,875,832
----------------
REAL ESTATE--.9% Rouse, Ser. A, Cum., 6.50% 192,000 9,552,000
Tanger Factory, Ser. A, Cum., $1.575 299,800 6,145,900
----------------
15,697,900
----------------
TELECOMMUNICATIONS--.2% LCI International, Cum., 5% 85,000 2,826,250
----------------
TRANSPORTATION--.6% AMR, Ser. A, Cum.,
Depositary Shares, $3.00 175,000 (b) 7,339,062
Arkansas Best, Ser. A, Cum., $2.875 75,000 3,271,875
----------------
10,610,937
----------------
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $ 149,185,247) $ 158,141,206
================
PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS--9.9% AMOUNT
----------------
BASIC AND PROCESS INDUSTRIES--1.7% American Infrastructure, Sub. Deb.,
10%, 1/31/1996................. $ 500,000 (f) $ 250,000
CEMEX SA, de, C.V. Sub. Deb.,
4.25%, 11/1/1997............... 15,000,000 (b) 15,468,750
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS (CONTINUED) AMOUNT VALUE
---------------- ----------------
BASIC & PROCESS
INDUSTRIES (CONTINUED) Riverwood International, Sub. Deb.:
6.75%,9/15/2003................ $ 2,950,000 $ 3,326,125
6.75%,9/15/2003................ 9,350,000 (b) 10,612,250
----------------
29,657,125
----------------
CAPITAL GOODS--.5% Leibert, Sub. Deb.,
8%, 11/15/2010................. 3,900,000 8,857,875
Rohr, Sub. Notes.,
7.75%, 5/15/2004............... 500,000 570,000
----------------
9,427,875
----------------
CONSUMER--.6% Omnicom Group, Sub. Deb.,
4.50%, 9/1/2000................ 3,000,000 (b) 3,187,500
Pep Boys, Sub. Notes.,
4%, 9/1/1999................... 3,750,000 4,012,500
Wendy's International, Sub. Deb.,
7%, 4/1/2006................... 2,000,000 2,580,000
----------------
9,780,000
----------------
FINANCIAL--.1% Banco Nacional de Mexico, Sub. Deb.
(Gtd. by Grupo Financiero Banamex
Accival S.A. de C.V.),
7%, 12/15/1999.............. 2,000,000 (b,d) 2,225,000
----------------
HEALTH CARE--1.1% Beverly Enterprises, Sub. Deb.,
7.625%, 3/15/2003.............. 5,000,000 4,875,000
Genesis Health Ventures, Sub. Deb.,
6%, 11/30/2003................. 6,000,000 8,302,500
Omnicare, Sub. Deb.,
5.75%, 10/1/2003............... 4,000,000 5,330,000
----------------
18,507,500
----------------
INSURANCE--1.1%.. Nac Re, Sub. Deb.,
5.25%, 12/15/2002.............. 10,050,000 (b) 8,492,250
Re Capital, Sub. Deb.,
5.50%, 8/1/2000.............. 2,000,000 1,882,500
Trenwick, Sub. Deb.,
6%, 12/15/1999................. 8,000,000 7,760,000
----------------
18,134,750
----------------
MEDIA/ENTERTAINMENT--.7% News America Holdings, Senior Liquid Yield
Option Notes (Gtd. by News Ltd.),
Zero Coupon, 3/11/2013......... 6,000,000 (e) 2,370,000
Time Warner, Sub. Deb.,
Zero Coupon, 6/22/2013......... 25,000,000 9,062,500
----------------
11,432,500
----------------
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) OCTOBER 31, 1994
PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS (CONTINUED) AMOUNT VALUE
---------------- ----------------
MINING AND METALS--.7% Inco, Sub. Deb.,
5.75%, 7/1/2004................ $ 11,000,000 $ 12,856,250
----------------
REAL ESTATE--.8% Continental Homes Holding, Sub. Deb.,
6.875%, 3/15/2002.............. 3,250,000 2,835,625
Liberty Property Trust, Sub. Deb.,
8%, 7/1/2001................... 6,000,000 5,722,500
Sizeler Properties, Sub. Deb.,
8%, 7/15/2003.................. 5,000,000 4,643,750
----------------
13,201,875
----------------
TECHNOLOGY--2.5% Network Equipment Technology, Sub. Deb.,
7.25%, 5/15/2014............... 6,160,000 5,798,100
Seagate Technology, Sub. Deb.,
5%, 11/1/2003.................. 12,000,000 (b) 13,080,000
Thermo Electron, Euro Sub. Deb.:
4.625%, 8/1/1997............... 8,500,000 12,558,750
4.875%, 8/1/1997............... 8,000,000 11,820,000
----------------
43,256,850
----------------
TRANSPORTATION--.1% Air France, Sub. Deb.,
4%, 1/1/2000................... 893,193 173,436
Delta AirLines, Sub. Deb.,
3.23%, 6/15/2003............... 3,000,000 2,152,500
----------------
2,325,936
----------------
TOTAL CONVERTIBLE CORPORATE
NOTES AND BONDS
(cost $ 161,542,604) $ 170,805,661
================
SHORT-TERM INVESTMENTS--27.4%
U.S. TREASURY BILLS: 4.25%, 11/3/1994 $ 22,303,000 $ 22,295,658
4.81%, 11/10/1994............. 76,362,000 76,267,395
3.20%, 11/17/1994............. 68,027,000 67,884,694
4.595%, 11/25/1994............ 40,508,000 40,387,318
4%, 12/1/1994................. 10,265,000 10,226,902
4.65%, 12/8/1994.............. 19,676,000 19,582,954
3%, 12/15/1994................ 17,734,000 17,632,030
4.545%, 12/22/1994............ 37,816,000 37,557,085
3.85%, 1/5/1995............... 36,239,000 35,919,434
3.52%, 1/12/1995.............. 8,588,000 8,502,843
4.71%, 1/19/1995.............. 100,000,000 98,891,110
3.50%, 2/9/1995............... 36,320,000 35,801,340
----------------
TOTAL SHORT-TERM INVESTMENTS
(cost $ 470,948,763) $ 470,948,763
================
TOTAL INVESTMENTS (cost $ 1,703,007,636) .......................... 101.9% $1,750,804,822
====== ================
LIABILITIES, LESS CASH AND RECEIVABLES............................. (1.9%) $ (33,071,429)
====== ================
NET ASSETS............................................................... 100.0% $1,717,733,393
====== ================
</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 October 31,
1994, these securities amounted to $102,751,062 or approximately 6.0% of
net assets.
(c) Investment in non-controlled affiliate (cost $275,959)-See Note
1(c).
(d) Exchangeable for Grupo Financiero Banamex Accival, S.A. de C.V.,
Ser. L, Common Stock.
(e) Exchangeable for News Ltd. ordinary shares.
(f) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate value of $4,407,015 represent approximately
.3% of net assets:
<TABLE>
ACQUISITION PURCHASE PERCENTAGE OF
ISSUER DATE PRICE NET ASSETS VALUATION(1)
- ------ ------------ ---------- --------------- ------------
<S> <C> <C> <C> <C>
American Infrastructure 2/14/1991 $ 10.00 .0%(2) $.70/share
6/4/1991 10.00
American Infrastructure,
Conv. Sub. Deb., 10%, 1/31/1996 2/14/1991 1,000.00 .0%(2) $500.00
Mortgage Information 5/18/1987 1.12 .0%(2) $1.96/share
2/1/1988 1.12
12/13/1988 1.12
Seventh Generation 9/20/1990 13.33 .0%(2) $2.1375/share
Tiregator 3/31/1993 5.00 .2% cost
- ----------------
(1) The valuation of these securities has been determined in good faith
under the direction of the Board of Directors.
(2) Less than .1% of net assets.
</TABLE>
See notes to financial statements.
<TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES
OCTOBER 31, 1994
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $1,703,007,636)_see statement................................... $1,750,804,822
Cash.................................................................... 11,760,570
Receivable for investment securities sold............................... 53,982,236
Dividends and interest receivable....................................... 5,685,975
Receivable for subscriptions to Common Stock............................ 10,859
Prepaid expenses........................................................ 172,533
----------------
1,822,416,995
LIABILITIES:
Due to The Dreyfus Corporation.......................................... $ 1,092,472
Payable for investment securities purchased............................. 102,762,140
Payable for Common Stock redeemed....................................... 17,502
Accrued expenses and other liabilities.................................. 811,488 104,683,602
--------------- ---------------
NET ASSETS ................................................................ $1,717,733,393
==============
REPRESENTED BY:
Paid-in capital......................................................... $1,647,312,366
Accumulated undistributed investment income_net......................... 5,168,750
Accumulated undistributed net realized gain on investments.............. 17,455,091
Accumulated net unrealized appreciation on investments_Note 4(b)........ 47,797,186
----------------
NET ASSETS at value applicable to 104,192,902 shares outstanding
(300 million shares of $.001 par value Common Stock authorized)......... $1,717,733,393
==============
NET ASSET VALUE, offering and redemption price per share
($1,717,733,393 / 104,192,902 shares)................................... $16.49
======
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF OPERATIONS
YEAR ENDED OCTOBER 31, 1994
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Cash dividends (net of $288,067 foreign taxes withheld at source)..... $ 28,465,524
Interest.............................................................. 22,732,160
-------------
TOTAL INCOME...................................................... $51,197,684
EXPENSES:
Management fee_Note 3(a).............................................. 11,591,497
Shareholder servicing costs_Note 3(b)................................. 4,991,846
Registration fees..................................................... 302,417
Custodian fees........................................................ 247,069
Prospectus and shareholders' reports.................................. 143,188
Professional fees..................................................... 140,911
Directors' fees and expenses_Note 3(c)................................ 44,640
Dividends on securities sold short.................................... 40,500
Miscellaneous......................................................... 50,801
-------------
TOTAL EXPENSES.................................................... 17,552,869
-------------
INVESTMENT INCOME--NET............................................ 33,644,815
-------------
REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS--NOTE 4(A):
Net realized gain on investments:
Long transactions (including option transactions)..................... $ 23,125,464
Short sale transactions............................................... (632,457)
Net realized (loss) on forward currency exchange contracts;
Short transactions.................................................... (3,663,025)
Net realized (loss) on financial futures_Note 4(a):
Long transactions .................................................... (1,331,861)
Short transactions.................................................... 581,625
-------------
NET REALIZED GAIN..................................................... 18,079,746
Net unrealized (depreciation) on investments and forward
currency exchange contracts for the year:
Unaffiliated issuers.............................................. $(58,799,443)
Affiliated issuers................................................ 482,080 (58,317,363)
------------- -------------
NET REALIZED AND UNREALIZED (LOSS) ON INVESTMENTS................. (40,237,617)
-------------
NET (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS...................... $ (6,592,802)
============
See notes to financial statements.
</TABLE>
<TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED OCTOBER 31,
-----------------------------------
1993 1994
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income_net................................................... $ 15,628,381 $ 33,644,815
Net realized gain on investments........................................ 2,531,927 18,079,746
Net unrealized appreciation (depreciation) on investments for the year.. 103,044,415 (58,317,363)
---------------- ---------------
NET INCREASE (DECREASE) IN NET ASSETS RESULTING FROM OPERATIONS....... 121,204,723 (6,592,802)
---------------- ---------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net................................................... (13,079,365) (31,151,196)
Net realized gain on investments........................................ ____ (2,937,836)
---------------- ---------------
TOTAL DIVIDENDS....................................................... (13,079,365) (34,089,032)
---------------- ---------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................... 1,177,630,870 1,009,565,228
Dividends reinvested.................................................... 12,383,305 32,199,203
Cost of shares redeemed................................................. (231,168,477) (448,852,062)
---------------- ---------------
INCREASE IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS................ 958,845,698 592,912,369
---------------- ---------------
TOTAL INCREASE IN NET ASSETS...................................... 1,066,971,056 552,230,535
NET ASSETS:
Beginning of year....................................................... 98,531,802 1,165,502,858
---------------- ---------------
End of year (including undistributed investment income_net: $2,675,131 in 1993
and $5,168,750 in 1994)............................................... $1,165,502,858 $1,717,733,393
================ ==============
SHARES SHARES
---------------- ---------------
CAPITAL SHARE TRANSACTIONS:
Shares sold............................................................. 75,412,429 60,025,508
Shares issued for dividends reinvested.................................. 788,052 1,969,430
Shares redeemed......................................................... (14,163,247) (26,930,996)
---------------- ---------------
NET INCREASE IN SHARES OUTSTANDING.................................... 62,037,234 35,063,942
================ ==============
See notes to financial statements.
</TABLE>
<TABLE>
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 year indicated. This information
has been derived from the Fund's financial statements.
YEAR ENDED OCTOBER 31,
---------------------------------
PER SHARE DATA: 1992(1) 1993 1994
------- ------- -------
<S> <C> <C> <C>
Net asset value, beginning of year.................................... $12.50 $13.89 $16.86
------- ------- -------
INVESTMENT OPERATIONS:
Investment income--net................................................ .19 .38 .34
Net realized and unrealized gain (loss) on investments................ 1.38 2.95 (.34)
------- ------- -------
TOTAL FROM INVESTMENT OPERATIONS.................................... 1.57 3.33 -_
------- ------- -------
DISTRIBUTIONS:
Dividends from investment income--net................................. (.18) (.36) (.33)
Dividends from net realized gain on investments....................... -_ -_ (.04)
------- ------- -------
TOTAL DISTRIBUTIONS................................................. (.18) (.36) (.37)
------- ------- -------
Net asset value, end of year.......................................... $13.89 $16.86 $16.49
======= ====== ======
TOTAL INVESTMENT RETURN 12.57%(2) 24.24% .05%
RATIOS/SUPPLEMENTAL DATA:
Ratio of expenses to average net assets............................... 1.02%(2) 1.24% 1.14%
Ratio of net investment income to average net assets.................. 2.30%(2) 2.92% 2.18%
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%
Net Assets, end of year (000's Omitted)............................... $98,532 $1,165,503 $1,717,733
- ------------------
(1) From December 31, 1991 (commencement of operations) to October 31, 1992.
(2) Not annualized.
</TABLE>
See notes to financial statements.
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS
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. Dreyfus Service
Corporation, until August 24, 1994, acted as the exclusive distributor of the
Fund's shares, which are sold to the public without a sales charge. Dreyfus
Service Corporation is a wholly-owned subsidiary of The Dreyfus Corporation
("Manager"). Effective August 24, 1994, the Manager became a direct
subsidiary of Mellon Bank N.A.
On August 24, 1994, Premier Mutual Fund Services, Inc. (the
"Distributor") was engaged as the Fund's distributor. The Distributor,
located at One Exchange Place, Boston, Massachusetts 02109 is a wholly-owned
subsidiary of Institutional Administration Services, Inc., a provider of
mutual fund administration services, the parent company of which is Boston
Institutional Group, Inc.
(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.
Short-term investments are carried at amortized cost, which approximates
value. 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) 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) AFFILIATED ISSUERS: Issuers in which the Fund held 5% or more of the
outstanding voting securities are defined as "affiliated" in the Act.
(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 it is the policy of the Fund not to distribute such
gain.
(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.
The Fund has an unused capital loss carryover of approximately $3,409,000
available for Federal income tax purposers 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.
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 October 31, 1994, 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 year
ended October 31, 1994.
(B) Pursuant to the Fund's Shareholder Services Plan, the Fund reimburses
Dreyfus Service Corporation 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 year ended
October 31, 1994, the Fund was charged an aggregate of $2,636,592 pursuant to
the Shareholder Services Plan.
(C) Prior to August 24, 1994 certain officers and directors of the Fund
were "affiliated persons," as defined in the Act, of the Manager and/or
Dreyfus Service Corporation. Each director who is not an "affiliated person"
receives an annual fee of $4,500 and an attendance fee of $500 per meeting.
Prior to March 16, 1994, the annual fee was $1,000 and the attendance fee was
$250.
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, forward currency exchange contracts and options transactions,
during the year ended October 31, 1994:
<TABLE>
PURCHASES SALES
---------------- ----------------
<S> <C> <C>
Long transactions............................................ $1,439,016,709 $1,154,226,960
Short sale transactions...................................... 27,055,576 26,423,119
---------------- ----------------
Total...................................................... $1,466,072,285 $1,180,650,079
=============== =================
</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
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
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 custodian, of cash and/or U.S. Government securities sufficient to
cover its short position. At October 31, 1994, there were no securities sold
short outstanding.
When executing forward currency exchange contracts, the Fund is obligated
to buy or sell a foreign currency at a specified rate on a certain date in
the future. With respect to sales of forward currency exchange contracts, the
Fund would incur a loss if the value of the contract increases between the
date the forward contract is opened and the date the forward contract is
closed. The Fund realizes a gain if the value of the contract decreases
between those dates. With respect to purchases of forward currency exchange
contracts, the Fund would incur a loss if the value of the contract decreases
between the date the forward contract is opened and the date the forward
contract is closed. The Fund realizes a gain if the value of the contract
increases between those dates.
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 October 31, 1994, there were no financial
futures contracts outstanding.
(B) At October 31, 1994, accumulated net unrealized appreciation on
investments was $47,797,186, consisting of $93,707,275 gross unrealized
appreciation and $45,910,089 gross unrealized depreciation.
At October 31, 1994, 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.
REPORT OF ERNST & YOUNG LLP, INDEPENDENT AUDITORS
SHAREHOLDERS AND BOARD OF DIRECTORS
DREYFUS GROWTH AND INCOME FUND, INC.
We have audited the accompanying statement of assets and liabilities of
Dreyfus Growth and Income Fund, Inc., including the statement of investments,
as of October 31, 1994, and the related statement of operations for the year
then ended, the statement of changes in net assets for each of the two years
in the period then ended, and financial highlights for each of the years
indicated therein. These financial statements and financial highlights are
the responsibility of the Fund's management. Our responsibility is to express
an opinion on these financial statements and financial highlights based on
our audits.
We conducted our audits in accordance with generally accepted auditing
standards. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements and
financial highlights are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures
in the financial statements. Our procedures included confirmation of
securities owned as of October 31, 1994 by correspondence with the custodian
and brokers. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the
overall financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the financial statements and financial highlights
referred to above present fairly, in all material respects, the financial
position of Dreyfus Growth and Income Fund, Inc. at October 31, 1994, the
results of its operations for the year then ended, the changes in its net
assets for each of the two years in the period then ended, and the financial
highlights for each of the indicated years, in conformity with generally
accepted accounting principles.
(Ernst & Young LLP Signature)
New York, New York
December 5, 1994
DREYFUS GROWTH AND INCOME FUND, INC.
IMPORTANT TAX INFORMATION (UNAUDITED)
For Federal tax purposes the Fund hereby designates $.0081 per share as a
long-term capital gain distribution of the $.1325 per share paid on December
20, 1993.
DREYFUS GROWTH AND
INCOME FUND, INC.
144 Glenn Curtiss Boulevard
Uniondale, NY 11556
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. 010AR9410
Growth and
Income Fund, Inc.
Annual Report
October 31, 1994
COMPARISON OF CHANGE IN VALUE OF $10,000 INVESTMENT
IN DREYFUS GROWTH AND INCOME FUND, INC. AND THE STANDARD
& POOR'S 500 COMPOSITE STOCK PRICE INDEX
EXHIBIT A:
____________________________________________________________
| | | STANDARD |
| | DREYFUS | & POOR'S 500 |
| PERIOD | GROWTH AND INCOME | COMPOSITE STOCK |
| | FUND | PRICE INDEX * |
|----------------|--------------------- | ----------------|
| 12/31/91 | 10,000 | 10,000 |
| 10/31/92 | 11,257 | 10,281 |
| 10/31/93 | 13,986 | 11,814 |
| 10/31/94 | 13,993 | 12,270 |
|-----------------------------------------------------------|
*Sourc: Lipper Analytical Services, Inc.
Dreyfus Growth and Income Fund, Inc. October 31, 1994
Asset Allocation
-------------------------------------------------------------|
|Common Stocks 55.4 %|
|Convertible Preferred Stocks 9.2 %|
|Convertible Corporate Notes & Bonds 9.9 %|
|Cash Equivalents 25.5 %|
-------------------------------------------------------------|
Dreyfus Growth and Income Fund, Inc. October 31, 1994
Diversification of Foreign Investments
|-------------------------------------------------------------|
|Canada 4.31 %|
|Mexico 1.16 %|
|Netherlands 1.10 %|
|Japan 0.69 %|
|United Kingdom 0.53 %|
|Singapore 0.43 %|
|Sweden 0.32 %|
|Malaysia 0.29 %|
|Switzerland 0.16 %|
|Argentina 0.15 %|
|Australia 0.14 %|
|France 0.01 %|
|-------------------------------------------------------------|
(Foreign Securities equal 9.29% of Total Net Assets)
