DREYFUS GROWTH AND INCOME FUND, INC.
LETTER TO SHAREHOLDERS
Dear Shareholder:
The Dreyfus Growth and Income Fund completed the first half of its
current fiscal year on April 30, 1996.
For the fiscal half year, the total return, including the reinvestment of
income dividends and capital gain distributions, was 15.01%* for your Fund,
compared to 13.76% for the Standard & Poor's 500 Composite Stock Price
Index.** From inception on December 31, 1991 to April 30, 1996, the total
return for the Dreyfus Growth and Income Fund was 82.13%, compared with
76.44% for the Standard and Poor's 500 Composite Stock Price Index. The
average annual total return for the Fund from inception through April 30,
1996 was 14.85% and for the year ended April 30, 1996 was 24.53%.*** Of
course, past performance is no guarantee of future results.
The fiscal half year was a period in which there was a major shift in the
economic consensus. In the early part of the period, there were widespread
fears that economic weakness would intensify enough to pull the economy into
a recession. In the latter part of the fiscal period, it began to dawn on
market observers that economic weakness was giving way to economic strength
and that the pattern of Federal Reserve Board easing was likely to come to a
halt. The market effects of this shift in consensus economic sentiment were a
rise in interest rates and a rebound in hopes for favorable corporate
profits. The stock market rose even as the prices of bonds and such
interest-sensitive stocks as electric utilities weakened.
There are several long-term positive forces that 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.
The Dreyfus Growth and Income Fund outperformed the Standard and Poor's
500 Composite Stock Price Index for the fiscal half year in part because it
was invested to benefit from the shift from fears of recession to recognition
of economic strengthening. The Fund avoided straight bonds and had a low
weighting in interest-sensitive sectors such as electric utilities, which
underperformed during the period. The Fund benefited from its investment
in several cyclical industries, notably chemicals.
Your Fund has tended to obtain much of its income from its investment in
convertible bonds and preferred stocks. Convertible securities offer the
opportunity to invest in a wide variety of companies in many industries.
Despite the uptrend in interest rates during the fiscal period, good gains
were generated by securities convertible into a number of companies including
Emerson Electric (Liebert convertible bonds), First Data Corporation (First
Financial Management convertible bonds), Seagate Technology, Thermo Electron,
Occidental Petroleum, Unisys, MFS Communications, Sandoz (a major Swiss
pharmaceutical company) and Mitsubishi Bank (a large Japanese bank).
We continue to 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.
Many multinational companies have already reaped a significant portion of the
profit benefits of a decline in the dollar, and may be somewhat vulnerable to
the emergence of a dollar uptrend.
Thus we believe that strong profit growth may become increasingly scarce
over the next year. Many of the largest positions in your Fund are companies
that we believe have a good chance of sustaining strong revenue 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 continue realizing 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 30, 1996
New York, N.Y.
*Total return includes reinvestment of dividends and any capital gains
paid.
**SOURCE: LIPPER ANALYTICAL SERVICES, INC. - Reflects the reinvestment of
income dividends and, where applicable, capital gain distributions.
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 3/31/96 are 14.95% and 25.84%, 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>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS-59.8% SHARES VALUE
______ ________
<S> <C> <C>
BASIC AND PROCESS INDUSTRIES-6.0% AlliedSignal......................... 200,000 $ 11,625,000
duPont (EI) de Nemours............... 200,000 16,075,000
FMC.................................. 100,000 (a) 6,937,500
Industrial Flexible Material......... 725,000 (a,f) 850,365
Longview Fibre....................... 258,600 4,557,825
Monsanto............................. 70,000 10,605,000
Olin................................. 169,300 14,983,050
Praxair.............................. 300,000 11,587,500
Raychem.............................. 300,000 23,362,500
Witco................................ 500,000 17,062,500
_______________
117,646,240
_______________
CAPITAL GOODS-4.0% Albany International, Cl. A.......... 704,800 15,153,200
Boeing............................... 150,000 12,318,750
Cooper Industries.................... 500,000 21,250,000
Illinois Tool Works.................. 125,000 8,406,250
York International................... 427,900 20,539,200
_______________
77,667,400
_______________
CONSUMER-9.7% Authentic Fitness.................... 400,000 9,550,000
Canandaigua Wine, Cl. A.............. 650,000 (a) 19,743,750
General Motors....................... 500,000 27,125,000
Harcourt General..................... 110,000 4,840,000
Lowes................................ 900,000 29,137,500
Nabisco Holdings, Cl. A.............. 700,000 21,437,500
Nordstrom............................ 200,000 10,175,000
OfficeMax............................ 1,120,000 (a) 29,400,000
PepsiCo.............................. 300,000 19,050,000
Sensormatic Electronics.............. 350,000 7,131,250
Thrifty Payless Holdings............. 925,000 12,487,500
_______________
190,077,500
_______________
ENERGY-4.5% Amerada Hess......................... 550,000 31,143,750
Anadarko Petroleum................... 125,000 7,281,250
Occidental Petroleum................. 900,000 23,175,000
Triton Energy........................ 75,000 4,125,000
UGI.................................. 700,000 15,662,500
Union Pacific Resources Group........ 275,000 7,562,500
_______________
88,950,000
_______________
FINANCIAL-1.7% Bank of Boston....................... 300,000 14,512,500
Chase Manhattan...................... 150,000 10,331,250
Citicorp............................. 100,000 7,875,000
Mortgage Information................. 245,959 (a,c,f) -
_______________
32,718,750
_______________
HEALTH CARE-10.7% A.L. Pharmaceutical, Cl. A........... 269,200 6,595,400
Astra Af............................. 550,000 24,374,201
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ _________
HEALTH CARE (CONTINUED) Baxter International................. 400,000 $ 17,700,000
Cardinal Health...................... 342,000 (a) 21,460,500
Forest Laboratories.................. 195,000 (a) 8,994,375
Fuisz Technologies................... 200,000 (a) 5,100,000
Gilead Sciences...................... 275,000 8,387,500
Guidant.............................. 342,000 19,194,750
Johnson & Jonhson.................... 384,690 35,583,825
Manor Care........................... 425,000 17,053,125
McKesson............................. 100,000 4,762,500
Roche Holding........................ 874 6,860,619
Sandoz............................... 13,240 14,432,026
Teva Pharmaceutical Industries, A.D.R. 330,000 14,808,750
Vencor............................... 155,800 (a) 5,258,250
_______________
210,565,821
_______________
INSURANCE-3.1% ACE Limited.......................... 205,000 9,020,000
Aetna Life & Casualty................ 100,000 7,125,000
American Reinsurance................. 355,000 14,732,500
CIGNA................................ 75,000 8,503,125
EXEL................................. 160,000 11,520,000
Prudential Reinsurance Holdings...... 463,600 10,546,900
_______________
61,447,525
_______________
MEDIA/ENTERTAINMENT-4.3% Comcast, Cl. A....................... 800,000 14,000,000
Disney (Walt)........................ 150,000 9,300,000
Liberty Media Group.................. 500,000 13,687,500
Time Warner.......................... 800,000 32,700,000
Viacom, Cl. A........................ 175,000 (a) 7,000,000
Viacom, Cl. B........................ 200,000 (a) 8,200,000
_______________
84,887,500
_______________
MINING AND METALS-.7% Brascan.............................. 719,700 14,124,112
_______________
REAL ESTATE-1.7% CBL Associates Property.............. 400,000 8,250,000
Crescent Real Estate Equities........ 230,100 7,794,637
Host Marriott........................ 550,000 7,356,250
Patriot American Hospitality......... 250,000 6,968,750
Prime Residential.................... 100,000 1,812,500
Rouse................................ 100,000 2,300,000
_______________
34,482,137
_______________
TECHNOLOGY-6.1% Altera............................... 250,000 (a) 13,187,500
Cisco Systems........................ 200,000 (a) 10,375,000
General Motors, Cl. E................ 900,000 50,737,500
Hewlett-Packard...................... 100,000 10,587,500
Intel................................ 100,000 6,775,000
Perkin-Elmer......................... 275,000 15,090,625
Storage Technology................... 400,000 (a) 12,300,000
_______________
119,053,125
_______________
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS (CONTINUED) SHARES VALUE
______ _________
TELECOMMUNICATIONS-2.8% ADC Telecommunications............... 150,000 (a) $ 6,300,000
AT&T................................. 200,000 12,250,000
MFS Communications .................. 500,000 (a) 17,343,750
SBC Communications .................. 200,000 10,000,000
StrataCom............................ 159,000 (a) 8,268,000
_______________
54,161,750
_______________
TRANSPORTATION-1.8% AMR.................................. 110,800 (a) 9,888,900
Canadian Pacific..................... 450,000 9,168,750
Teekay Shipping ..................... 285,900 7,933,725
Union Pacific ..................... 125,000 8,515,625
_______________
35,507,000
_______________
UTILITIES-2.7% Entergy.............................. 400,000 10,600,000
GTE.................................. 500,000 21,687,500
Texas Utilities...................... 500,000 20,125,000
_______________
52,412,500
_______________
TOTAL COMMON STOCKS
(cost $1,015,254,680) $1,173,701,360
===============
CONVERTIBLE PREFERRED STOCKS-6.3%
BASIC AND PROCESS INDUSTRIES-.7% International Paper, Cum., $2.625.... 300,000(b) $ 13,875,000
_______________
CONSUMER-.2% Ford Motor, Ser. A, Cum., $4.20...... 35,000 4,060,000
_______________
ENERGY-1.4% Occidental Petroleum, Cum., $3.875... 300,000 (b) 18,600,000
Western Gas Resources, Cum., $2.625.. 228,000 8,364,750
_______________
26,964,750
_______________
INSURANCE-.4% Allstate, Cum., $2.30..................... 235,000 9,047,500
_______________
MEDIA/ENTERTAINMENT-1.0% Station Casinos, 7%.................. 177,000 9,447,375
TCI Communications, Ser. A, $2.125... 200,000 9,350,000
_______________
18,797,375
_______________
REAL ESTATE-1.3% Merry Land & Investment, Ser. C, 8.60%.. 295,000 8,075,625
Rouse, Ser. A, Cum., 6.50%.............. 192,000 10,560,000
Tanger Factory, Ser. A, Cum., $1.802.... 299,800 6,670,550
_______________
25,306,175
_______________
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
CONVERTIBLE PREFERRED STOCKS (CONTINUED) SHARES VALUE
______ ________
TELECOMMUNICATIONS-1.3% MFS Communications, 8%............... 435,000 $ 25,692,188
____________
TOTAL CONVERTIBLE PREFERRED STOCKS
(cost $108,093,528) ...............
$123,742,988
============
PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS-18.5% AMOUNT
______
BASIC AND PROCESS INDUSTRIES-1.0% Renong Berhad, Sub. Deb.,
2%, 7/15/2005...................... $ 6,000,000 (b) $ 6,202,500
Riverwood International, Sub. Deb.:
6.75%, 9/15/2003................... 9,350,000 (b) 10,729,125
6.75%, 9/15/2003................... 2,950,000 3,420,377
______________
20,352,002
--------------
CAPITAL GOODS-.6%. Liebert, Sub. Deb.,
8%, 11/15/2010....................... 3,900,000 12,133,875
_____________
CONSUMER-1.9% Omnicom Group, Sub. Deb.,
4.50%, 9/1/2000.................... 13,500,000 (b) 21,448,125
Staples, Sub. Deb.,
4.50%, 10/1/2000................... 15,000,000 (b) 16,275,000
__________
37,723,125
----------
ENERGY-.8%. ENRON, Exchangeable Notes,
6.25%, 12/13/1998.................. 615,000 15,759,375
__________
HEALTH CARE-1.9% Alza, Sub. Deb.,
5%, 5/1/2006....................... 2,000,000 2,005,000
Genesis Health Ventures, Sr. Sub. Deb.,
6%, 11/30/2003.................... 6,000,000 11,887,500
Omnicare, Sub. Notes,
5.75%, 10/1/2003................... 2,000,000 8,302,500
Sandoz Capital, Sub. Deb.,
2%, 10/6/2002...................... 6,500,000 (b) 6,946,875
Tenet Healthcare, Sub. Deb.,
6%, 12/4/2005...................... 8,000,000 8,640,000
______________
37,781,875
______________
INSURANCE-1.0% Nac Re, Sub. Deb.,
5.25%, 12/15/2002 ................. 10,050,000 (b) 9,899,250
Trenwick, Sub. Deb.,
6%, 12/15/1999..................... 8,000,000 8,680,000
______________
18,579,250
--------------
MEDIA/ENTERTAINMENT-1.0% Telecommunications, Sub. Deb.,
4.50%, 2/15/2006................... 20,000,000 18,950,000
______________
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
PRINCIPAL
CONVERTIBLE CORPORATE NOTES & BONDS (CONTINUED) AMOUNT VALUE
________ _______
MINING AND METALS-.4% Inco, Yankee Deb.,
5.75%, 7/1/2004 ................... $ 5,750,000 $ 7,273,750
______________
REAL ESTATE-.6% Liberty Property Trust, Sub. Deb.,
8%, 7/1/2001....................... 4,800,000 5,064,000
Sizeler Properties, Sub. Deb.,
8%, 7/15/2003...................... 8,000,000 6,720,000
______________
11,784,000
--------------
TECHNOLOGY-8.8% First Financial Management, Sr. Deb.,
5%, 12/15/1999..................... 33,500,000 60,676,875
Seagate Technology, Sub. Deb.,
5%,11/1/2003....................... 7,500,000 (b) 16,725,000
Softkey International, Sub. Deb.,
5.50%, 11/1/2000 .................. 25,750,000 (b) 22,531,250
Spectrumholobtye, Sub. Deb.,
6.50%, 9/15/2002................... 4,400,000 (b) 3,102,000
Thermo Electron, Euro. Sub. Deb.:
4.625%, 8/1/1997................... 5,500,000 15,785,000
4.875%, 8/1/1997................... 8,000,000 22,960,000
4.25%, 1/1/2003 ................... 15,500,000 (b) 18,987,500
Unisys, Sub. Deb.,
8.25%, 3/15/2006................... 10,900,000 12,085,375
_____________
172,853,000
-------------
TELECOMMUNICATIONS-.5% U.S. West, Exchangeable Notes,
7.625%, 12/15/1998................. 345,000 (b) 9,401,250
_______________
TRANSPORTATION-.0% Air Campagnie Nationale Air France,
Sub. Deb., 4%, 1/1/2000............ 893,193 (f) 172,631
_______________
TOTAL CONVERTIBLE CORPORATE
NOTES AND BONDS
(cost $270,150,406)................. $362,764,133
===============
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF INVESTMENTS (CONTINUED) APRIL 30, 1996 (UNAUDITED)
PRINCIPAL
SHORT-TERM INVESTMENTS-15.9% AMOUNT VALUE
_____ ________
U.S. TREASURY BILLS: 5.83%, 5/2/1996...................... $23,523,000 $ 23,519,707
5.29%, 5/9/1996...................... 75,297,000 75,217,185
5.33%, 5/16/1996..................... 66,633,000 66,499,734
5.575%, 5/30/1996.................... 14,213,000 14,157,996
5.20%, 6/13/1996..................... 16,334,000 (d) 16,237,793
5.03%, 7/5/1996...................... 93,904,000 (e) 93,060,742
5.02%, 7/11/1996..................... 14,659,000 14,515,195
5.38%, 7/25/1996..................... 9,013,000 8,906,736
_______________
TOTAL SHORT-TERM INVESTMENTS
(cost $312,118,975) $ 312,115,088
===============
TOTAL INVESTMENTS (cost $1,705,617,589)............................................ 100.5% $1,972,323,569
===== ===============
LIABILITIES, LESS CASH AND RECEIVABLES............................................. (.5%) $(11,154,243)
===== ===============
NET ASSETS......................................................................... 100.0% $1,961,169,326
===== ===============
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, 1996,
these securities amounted to $174,722,875 or approximately 8.9% of net
assets.
(c) Investment in non-controlled affiliate (cost $275,959)-See Note 1(d).
(d) Partially held by custodian in a segregated account as collateral for
open futures positions.
(e) Partially held by brokers as collateral for open short positions.
(f) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate value of $1,022,996
represent approximately .05% of net assets.
</TABLE>
<TABLE>
ACQUISITION PURCHASE PERCENTAGE OF
ISSUER DATE PRICE NET ASSETS VALUATION(1)
_________________________________ _______________ _________ _______________ ______________
<S> <C> <C> <C> <C>
Air Campagnie Nationale Air France,
Sub. Deb., 4%, 1/1/2000 4/28/1993 $ .19 .01% cost
Sub. Deb., 4%, 1/1/2000 5/4/1993 .19
Mortgage Information 5/18/1987 1.12 .00% zero
2/1/1988 1.12
12/13/1988 1.12
Industrial Flexible Material 3/31/1993 5.00 .04% 1.173 per 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>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF FINANCIAL FUTURES APRIL 30, 1996 (UNAUDITED)
MARKET VALUE UNREALIZED
NUMBER OF COVERED APPRECIATION
FINANCIAL FUTURES LONG; CONTRACTS BY CONTRACTS EXPIRATION AT 4/30/96
_____________ ______ _______ ______ ______
<S> <C> <C> <C> <C>
Standard & Poor's 500........................ 300 $98,227,500 June `96 $1,713,925
===========
</TABLE>
<TABLE>
STATEMENT OF SECURITIES SOLD SHORT APRIL 30, 1996 (UNAUDITED)
COMMON STOCKS: SHARES VALUE
___________________ ________ _____________
<S> <C> <C>
Inco........................................................................ 100,000 $ 3,362,500
International Paper......................................................... 60,000 2,392,500
Omnicare.................................................................... 125,000 7,500,000
Thermo Electron............................................................. 100,000 6,162,500
_____________
TOTAL SECURITIES SOLD SHORT (proceeds $15,838,584).......................... $19,417,500
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF ASSETS AND LIABILITIES APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
ASSETS:
Investments in securities, at value
(cost $1,705,617,589)-see statement.................................. $1,972,323,569
Receivable for investment securities sold............................... 18,380,881
Receivable from brokers for proceeds on securities sold short........... 15,838,584
Dividends and interest receivable....................................... 5,240,604
Net unrealized appreciation on forward currency exchange contracts-Note 4(a) 247,486
Receivable for subscriptions to Common Stock............................ 6,231
Prepaid expenses........................................................ 240,151
________________
2,012,277,506
LIABILITIES:
Due to The Dreyfus Corporation and subsidiaries......................... $ 1,504,986
Due to Custodian........................................................ 5,402,360
Payable for investment securities purchased............................. 23,360,527
Securities sold short, at value
(proceeds $15,838,584)-see statement................................. 19,417,500
Payable for Common Stock redeemed....................................... 843,903
Accrued expenses and other liabilities.................................. 578,904 51,108,180
________________ _____________
NET ASSETS.................................................................. $1,961,169,326
=============
REPRESENTED BY:
Paid-in capital......................................................... $1,546,442,553
Accumulated undistributed investment income-net......................... 4,091,731
Accumulated undistributed net realized gain on investments.............. 145,546,748
Accumulated net unrealized appreciation on investments and
foreign currency transactions (including $1,713,925 net
unrealized appreciation on financial futures)......................... 265,088,294
_____________
NET ASSETS at value applicable to 98,310,849 outstanding shares of
Common Stock, equivalent to $19.95 per share (300 million shares
of $.001 par value authorized).......................................... $1,961,169,326
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF OPERATIONS SIX MONTHS ENDED APRIL 30, 1996 (UNAUDITED)
<S> <C> <C>
INVESTMENT INCOME:
INCOME:
Interest.............................................................. $ 13,439,551
Cash dividends (net of $120,503 foreign taxes withheld at source)..... 12,602,325
_______________
TOTAL INCOME.................................................... $ 26,041,876
EXPENSES:
Management fee-Note 3(a).............................................. 7,034,328
Shareholder servicing costs-Note 3(b)................................. 2,170,723
Custodian fees........................................................ 150,124
Prospectus and shareholders' reports.................................. 89,837
Registration fees..................................................... 45,122
Dividends on securities sold short.................................... 42,150
Directors' fees and expenses-Note 3(c)................................ 40,918
Professional fees..................................................... 2,614
Miscellaneous......................................................... 34,806
_______________
TOTAL EXPENSES.................................................. 9,610,622
_____________
INVESTMENT INCOME-NET........................................... 16,431,254
_____________
REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain (loss) on investments-Note 4(a):
Long transactions (including foreign currency transactions)........... $142,337,785
Short sale transactions............................................... (1,191,379)
Net realized (loss) on financial futures-Note 4(a)...................... (363,575)
Net realized gain on forward currency exchange contracts................ 2,897,403
_______________
NET REALIZED GAIN................................................. 143,680,234
Net unrealized appreciation on investments (including foreign currency
transactions and $1,713,925 net unrealized appreciation on financial futures).. 100,704,845
_____________
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS................. 244,385,079
_____________
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS........................ $260,816,333
=============
See independent accountants' review report and notes to financial statements.
</TABLE>
<TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
STATEMENT OF CHANGES IN NET ASSETS
YEAR ENDED SIX MONTHS ENDED
OCTOBER 31, APRIL 30, 1996
1995 (UNAUDITED)
_________ _________
<S> <C> <C>
OPERATIONS:
Investment income-net............................................. $ 43,552,097 $ 16,431,254
Net realized gain on investments.................................. 50,663,363 143,680,234
Net unrealized appreciation on investments for the period......... 116,586,263 100,704,845
_________ _______
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............ 210,801,723 260,816,333
_________ _______
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income-net............................................. (47,077,166) (13,983,204)
Net realized gain on investments.................................. (17,083,782) (49,168,158)
_________ _______
TOTAL DIVIDENDS................................................. (64,160,948) (63,151,362)
_________ _______
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold..................................... 311,302,461 207,525,078
Dividends reinvested.............................................. 61,009,090 60,630,128
Cost of shares redeemed........................................... (473,314,270) (268,022,300)
_________ _______
INCREASE (DECREASE) IN NET ASSETS FROM CAPITAL STOCK TRANSACTIONS (101,002,719) 132,906
_________ _______
TOTAL INCREASE IN NET ASSETS.................................. 45,638,056 197,797,877
NET ASSETS:
Beginning of period............................................... 1,717,733,393 1,763,371,449
_________ _______
End of period (including undistributed investment income-net of
$1,643,681 in 1995 and $4,091,731 in 1996)............................ $1,763,371,449 $1,961,169,326
========= =======
SHARES SHARES
________________ ________________
CAPITAL SHARE TRANSACTIONS:
Shares sold....................................................... 18,271,501 10,841,370
Shares issued for dividends reinvested............................ 3,697,330 3,295,914
Shares redeemed................................................... (27,976,446) (14,011,722)
________________ ________________
NET INCREASE (DECREASE) IN SHARES OUTSTANDING................... (6,007,615) 125,562
================ ================
See independent accountants' review report and 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 period indicated. This
information has been derived from the Fund's financial statements.
YEAR ENDED OCTOBER 31, SIX MONTHS ENDED
_____________________________________________ APRIL 30, 1996
PER SHARE DATA: 1992(1) 1993 1994 1995 (UNAUDITED)
____ ____ ____ ____ _________
<S> <C> <C> <C> <C> <C>
Net asset value, beginning of period.... $12.50 $13.89 $16.86 $16.49 $17.96
______ _____ ______ _______ _______
INVESTMENT OPERATIONS:
Investment income-net................... .19 .38 .34 .44 .17
Net realized and unrealized gain
(loss) on investments................. 1.38 2.95 (.34) 1.67 2.47
______ _____ ______ _______ _______
TOTAL FROM INVESTMENT OPERATIONS...... 1.57 3.33 - 2.11 2.64
______ _____ ______ _______ _______
DISTRIBUTIONS:
Dividends from investment income-net.... (.18) (.36) (.33) (.47) (.14)
Dividends from net realized gain on investments - - (.04) (.17) (.51)
______ _____ ______ _______ _______
TOTAL DISTRIBUTIONS................... (.18) (.36) (.37) (.64) (.65)
______ _____ ______ _______ _______
Net asset value, end of period.......... $13.89 $16.86 $16.49 $17.96 $19.95
====== ===== ====== ======= =======
TOTAL INVESTMENT RETURN..................... 12.57%(2) 24.24% .05% 13.17% 15.01%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to average net assets 1.02%(2) 1.24% 1.14% 1.05% .51%(2)
Ratio of dividends on securities sold short to
average net assets.......................... - - - .01% -
Ratio of net investment income to
average net assets.......................... 2.30%(2) 2.92% 2.18% 2.55% .87%(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% 132.46% 66.07%(2)
Average commission rate paid (3)............ $.0862
Net Assets, end of period (000's Omitted)... $98,532 $1,165,503 $1,717,733 $1,763,371 $1,961,169
_____________________
(1) From December 31, 1991 (commencement of operations) to October 31, 1992.
(2) Not annualized.
(3) For fiscal years beginning on or after November 1, 1995, the fund is
required to disclose its average commission rate paid per share for purchases
and sales of investment securities.
See independent accountants' review report and notes to financial statements.
</TABLE>
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
NOTE 1-SIGNIFICANT ACCOUNTING POLICIES:
Dreyfus Growth and Income Fund, Inc. (the "Fund") is registered under the
Investment Company Act of 1940 ("Act") as a non-diversified open-end
management investment company. The Fund's investment objective is to provide
investors with long term capital growth, current income and growth of income,
consistent with reasonable investment risk. The Dreyfus Corporation
("Manager") serves as the Fund's investment adviser. The Manager is a direct
subsidiary of Mellon Bank, N.A. ("Mellon"). Premier Mutual Fund Services,
Inc. (the "Distributor") acts as the distributor of the Fund's shares, which
are sold to the public without a sales charge.
(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. Forward currency exchange contracts are
valued at the forward 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.
Net realized foreign exchange gains or losses arise from sales and
maturities of short-term securities, sales of foreign currencies, currency
gains or losses realized on securities transactions, the difference between
the amounts of dividends, interest, 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,
resulting from changes in exchange rates. Such gains and losses are included
with net realized and unrealized gain or loss on investments.
(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
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
basis to comply with the distribution requirements of the Internal
Revenue Code. To the extent that net realized capital gain can be offset by
capital loss carryovers, if any, it is the policy of the Fund not to
distribute such gain.
(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.
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. For the six months ended April 30, 1996, there were
no 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 value
of the Fund's average daily 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, 1996.
(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 certain allocated expenses of providing personal
services and/or maintaining 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, 1996, the Fund was charged an aggregate
of $1,143,844 pursuant to the Shareholder Services Plan.
Effective December 1, 1995, the Fund compensates Dreyfus Transfer, Inc.,
a wholly-owned subsidiary of the Manager, under a transfer agency agreement
for providing personnel and facilities to perform transfer agency services
for the Fund. Such compensation amounted to $542,962 for the period from
December 1, 1995 through April 30, 1996.
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
Effective May 10, 1996, the Fund entered into a Custody Agreement with
Mellon to provide custodial services for the Fund.
(C) Each director who is not an "affiliated person" as defined in the Act
receives from the Fund 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.
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, financial futures and forward currency exchange contracts, during
the six months ended April 30, 1996:
<TABLE>
PURCHASES SALES
___________________ ___________________
<S> <C> <C>
Long transactions.......................................... $1,112,122,592 $1,277,684,335
Short sale transactions.................................... 19,074,232 33,721,437
___________________ ___________________
TOTAL.................................................... $1,131,196,824 $1,311,405,772
==================== ===================
</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 custodian, of
cash and/or U.S. Government securities sufficient to cover its short
position. Securities sold short at April 30, 1996, and their related market
values and proceeds are set forth in the Statement of Securities Sold Short.
The following summarizes open forward currency exchange contracts at
April 30, 1996:
<TABLE>
FOREIGN
CURRENCY U.S. DOLLAR UNREALIZED
FORWARD CURRENCY SALES CONTRACTS: AMOUNT PROCEEDS VALUE APPRECIATION
_________________________________ _____________ ______________ _______________ _____________
<S> <C> <C> <C> <C>
Swiss Francs, expiring 5/15/96...... 12,000,000 $ 9,745,797 $ 9,658,725 $ 87,072
Swedish Kronas, expiring 5/15/96.... 75,000,000 11,171,520 11,017,260 154,260
Swedish Kronas, expiring 5/29/96.... 30,000,000 4,411,505 4,405,351 6,154
___________
$247,486
===========
</TABLE>
The Fund enters into forward currency exchange contracts in order to
hedge its exposure to changes in foreign currency exchange rates on its
foreign portfolio holdings. 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
DREYFUS GROWTH AND INCOME FUND, INC.
NOTES TO FINANCIAL STATEMENTS (UNAUDITED) (CONTINUED)
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 also exposed to credit risk
associated with counter party nonperformance on these forward currency
exchange contracts which is typically limited to the unrealized gains on such
contracts that are recognized in the Statement of Assets and Liabilities.
The Fund may invest in financial futures contracts in order to gain
exposure to or to protect against changes in the market. 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. Typically,
variation margin payments are received or made 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. Contracts open at April 30, 1996 and their related unrealized market
appreciation are set forth in the Statement of Financial Futures.
(B) At April 30, 1996, accumulated net unrealized appreciation on
investments and forward currency exchange contracts was $265,088,475,
consisting of $289,118,335 gross unrealized appreciation and $24,029,860
gross unrealized depreciation.
At April 30, 1996, the cost of investments for Federal income tax
purposes was substantially the same as the cost for financial reporting
purposes (see the Statement of Investments).
DREYFUS 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 statements of
investments, financial futures and securities sold short as of April 30,
1996, and the related statements of operations and changes in net assets and
financial highlights for the six month period ended April 30, 1996. 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, 1995 and financial highlights for each of the four years in the
period ended October 31, 1995 and in our report dated December 14, 1995, we
expressed an unqualified opinion on such statement of changes in net assets
and financial highlights.
New York, New York
June 11, 1996
[Dreyfus lion "d" logo]
DREYFUS GROWTH AND
INCOME FUND, INC.
200 Park Avenue
New York, NY 10166
MANAGER
The Dreyfus Corporation
200 Park Avenue
New York, NY 10166
CUSTODIAN
Mellon Bank, N.A.
One Mellon Bank Center
Pittsburgh, PA 15258
TRANSFER AGENT &
DIVIDEND DISBURSING AGENT
Dreyfus Transfer Inc.
One American Express Plaza
Providence, RI 02903
Further information is contained in the Prospectus,
which must precede or accompany this report.
Printed in U.S.A. 010SA964
[Dreyfus logo]
Growth and
Income Fund, Inc.
Semi-Annual
Report
April 30, 1996
