<PAGE>
[LOGO]
Dreyfus
Growth and
Income Fund, Inc.
Semi-Annual
Report
April 30, 1997
<PAGE>
Dreyfus Growth and Income Fund
- --------------------------------------------------------------------------------
Letter to Shareholders
Dear Shareholder:
We are pleased to provide you with this semi-annual report for the Dreyfus
Growth and Income Fund, Inc. for its six-month reporting period ended April 30,
1997. Over this period your Fund produced a total return of 2.57%*, which
compares with a total return of 14.71% for the Standard & Poor's 500 Composite
Stock Price Index.**
During the six months, we have managed the Fund cautiously. This can be an
advantage in declining markets, but has a price during a bull market.
ECONOMIC REVIEW
The Federal Reserve Board's step to tighten credit in March was vindicated by
the reported strong rise in first quarter real Gross Domestic Product and by the
drop in April's unemployment rate below 5%. The economic debate is now
splintered into those who believe that softer incoming economic data can keep
Federal Reserve policy on hold, and those who believe the economy is
fundamentally too strong, warranting higher rates irrespective of short-term
economic fluctuations. Views on the risk of inflation clearly distinguish these
camps. Market interest rates are treading water until the policy outlook becomes
clearer.
First quarter real GDP grew about 4% from a year earlier, a growth rate
unseen for nearly a decade. Virtually every major economic sector contributed
positively to growth. More recently, rising new orders portend continued
strength in exports and capital spending. Real disposable income grew almost 4%
in the last year, while mortgage rates have not yet risen substantially.
By contrast, retail spending has weakened and the housing sector has slowed.
The labor market is becoming extremely tight with the unemployment rate
falling below 5% in April. This is raising fears of future inflation even though
actual inflation remains modest. Bond yields remain near their recent highs,
despite the news of a Washington agreement on the budget.
If inflation should stay subdued, then the larger risk from the combination
of slower economic growth and a tightening labor market may be to corporate
profits. So far, profits have continued to surprise on the upside. The economy
is now embarked on the seventh year for this business cycle. Economic growth is
proving stronger than seen since the late 1980s while inflation is still
subdued.
MARKET OVERVIEW
The six-month fiscal period ended April 30, 1997 was one of the most volatile
in recent stock market history. While the underlying U.S. economy continued to
grow with little inflation, investor concerns over the outlook for interest
rates and for corporate profits caused major shifts in market sentiment, and
hence in prices.
Early in the half-year period, the dominant market trend was strong, despite
nervousness about the strength of economic growth and the possible reactions of
the Fed. The trend picked up steam during the winter, with the Dow Jones
Industrial Average breaking the 7000 mark in mid-February, and then hitting a
new high of 7085 in mid-March. However, when the Fed, in a widely anticipated
move, increased its overnight lending rate on March 25 by one quarter of a
percentage point, seeking to cool off the economy and the "irrational
exuberance" in the equity markets (as Fed Chairman Alan Greenspan termed it),
the markets promptly obliged. Between mid-March and mid- April the DJIA dropped
9.8%.
By then, however, a stream of strong quarterly profit reports began issuing
from major corporations, and the latest Government numbers on inflation appeared
reassuring. Moreover, underlying economic expansion continued, but at a pace
that appeared sustainable.
The market's reaction was to resume the upward trend of earlier in the year,
breaking the 7000 level once again on April 30. Clearly one of the engines
currently driving the market is the profit outlook. According to two
companies that monitor profit reports, I.B.E.S. and First Call, overall
first-quarter corporate profits ran about 3.7% above forecasts. This reflects
results from most of the companies in the Standard & Poor's 500 Composite
Stock Price Index. At the same time, increases in wages and compensation
during that same period were modest.
<PAGE>
Big, heavily capitalized and well-established companies were the chief
beneficiaries. For the six months under review, the blue chip DJIA gained
17.42%, the Standard & Poor's 500 rose 14.71%, the Nasdaq was up only 3.23% and
the Russell 2000 Index of small-cap stocks only 1.61%. The mid- and small-cap
stocks enjoyed a revival along with the general market in late April and the
first few days of May.
PORTFOLIO FOCUS
There were several reasons for the lag of the performance of your Fund behind
the Standard and Poor's 500 Composite Stock Price Index for the period. First
was the cautious posture of the Fund, reflected both in a relatively high cash
position and a substantial investment in convertible bonds and stocks.
Convertible securities often move up less than the underlying common stocks when
the market rises and they drop less than the underlying common stocks when the
market falls. In addition, your Fund is substantially underrepresented in the
super caps, the several dozen largest capitalization stocks in the market. These
super caps tended to be the strongest performers in the broad market indices in
the period under review. In contrast, your Fund holds a number of middle
capitalization stocks, which had less favorable returns in the period. The
average market capitalization of stocks in your Fund is well below that of the
Standard and Poor's 500 Stock Price Index. Finally, several of the largest
holdings in the Fund had an unfavorable return during the six months, notably
Computer Sciences, OfficeMax, Viacom and securities convertible into the common
stocks of First Data Corporation, Thermo Electron and Worldcom. We continue to
have a favorable view of the long-term prospects for these securities.
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.
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. 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, commensurate with a reasonable level of risk.
Sincerely,
Richard B. Hoey
Portfolio Manager
May 22, 1997
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.
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks--59.8% Shares Value
- --------------------------------------------------------------------------- ------------ ---------------
<S> <C> <C> <C>
Basic and Process Industries--4.4% AlliedSignal.......................... 200,000 $ 14,450,000
Aluminum Co. of America............... 200,000 13,975,000
Dow Chemical.......................... 100,000 8,487,500
duPont (EI) de Nemours................ 100,000 10,612,500
Hercules.............................. 300,000 11,812,500
Industrial Flexible Material.......... 725,000 (a,f) --
Raychem............................... 150,000 9,675,000
Witco................................. 350,000 13,081,250
---------------
82,093,750
---------------
Business Services--1.8% ADT Limited........................... 900,000 24,637,500
Omnicom Group......................... 175,000 9,275,000
---------------
33,912,500
---------------
Capital Goods--3.9% Boeing................................ 205,000 20,218,125
Deere & Co............................ 350,000 16,100,000
Flour................................. 200,000 11,000,000
Perkin-Elmer.......................... 226,900 16,478,612
Thiokol............................... 130,000 8,482,500
---------------
72,279,237
---------------
Consumer--5.9% General Nutrition..................... 700,000 (a) 15,050,000
Nabisco Holdings, Cl. A............... 400,000 15,350,000
OfficeMax............................. 3,500,000 (a) 43,312,500
Philip Morris......................... 100,000 3,937,500
Sunglass Hut International............ 2,540,000 (a) 18,415,000
Wal-Mart Stores....................... 500,000 14,125,000
---------------
110,190,000
---------------
Energy--8.2% Amerada Hess.......................... 275,000 13,371,875
Anadarko Petroleum ................... 100,000 5,487,500
Apache................................ 100,000 3,400,000
Burlington Resources.................. 200,000 8,475,000
ENSERCH............................... 600,000 11,775,000
Exxon................................. 300,000 16,987,500
Louisiana Land & Exploration.......... 350,000 17,500,000
Murphy Oil............................ 200,000 8,700,000
Noble Affiliates...................... 100,000 3,575,000
Occidental Petroleum.................. 400,000 8,850,000
Pennzoil.............................. 225,000 11,081,250
Schlumberger.......................... 150,000 16,612,500
UGI................................... 900,000 20,475,000
Union Pacific Resources Group......... 269,389 7,307,177
---------------
153,597,802
---------------
</TABLE>
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- --------------------------------------------------------------------------- ------------ ---------------
<S> <C> <C> <C>
Financial--4.8% BankBoston............................ 450,000 $ 32,737,500
Chase Manhattan....................... 250,000 23,156,250
Citicorp.............................. 100,000 11,262,500
Fannie Mae............................ 200,000 8,225,000
Fleet Financial Group................. 250,000 15,250,000
Mortgage Information.................. 245,959 (a,c,f) --
---------------
90,631,250
---------------
Health Care--5.5% A.L. Pharmaceutical, Cl. A............ 660,000 9,570,000
Algos Pharmaceutical.................. 272,500 4,189,688
American Home Products................ 400,000 26,500,000
Biogen................................ 600,000 (a) 19,200,000
Novartis AG........................... 17,000 (a) 22,450,867
U.S. Surgical......................... 600,000 20,550,000
---------------
102,460,555
---------------
Insurance--1.5% CIGNA................................. 50,000 7,518,750
Chubb................................. 100,000 5,775,000
General Re............................ 50,000 8,362,500
Trenwick Group........................ 185,566 6,054,091
---------------
27,710,341
---------------
Media/Entertainment--6.9% Comcast, Cl. A ....................... 1,085,000 17,088,750
Gannett............................... 100,000 8,725,000
Groupe AB, A.D.S...................... 219,600 (a) 1,592,100
International Game Technology......... 1,700,000 26,987,500
Metromedia International Group........ 1,050,000 (a) 9,778,125
Tele-Comm Liberty Media Group, Cl. A.. 1,175,000 22,104,687
Time Warner........................... 350,000 15,750,000
Viacom, Cl. A......................... 225,000 (a) 5,990,625
Viacom, Cl. B......................... 650,000 (a) 17,387,500
Westinghouse Electric................. 300,000 5,100,000
---------------
130,504,287
---------------
Mining and Metals--1.0% Brascan,Cl. A......................... 800,000 19,300,000
---------------
Multi-Industry--.9% Cognizant............................. 550,000 17,943,750
---------------
Real Estate--.7% CBL Associates Property............... 400,000 9,450,000
Merry Land & Investment............... 175,000 3,587,500
---------------
13,037,500
---------------
Technology--7.8% Adaptec............................... 100,000 (a) 3,700,000
CUC International..................... 600,000 (a) 12,675,000
Cabletron Systems..................... 300,000 (a) 10,350,000
Computer Sciences..................... 600,000 (a) 37,500,000
Electronic Data Systems............... 550,000 18,356,250
General Motors, Cl. H................. 250,000 13,437,500
</TABLE>
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks (continued) Shares Value
- --------------------------------------------------------------------------- ------------ ---------------
<S> <C> <C> <C>
Technology (continued) Informix.............................. 400,000 (a) $ 2,925,000
Intel................................. 100,000 15,312,500
Seagate Technology.................... 150,000 (a) 6,881,250
Thermo Electron....................... 200,000 6,900,000
Xerox................................. 300,000 18,450,000
---------------
146,487,500
---------------
Telecommunications--2.0% Airtouch Communications............... 500,000 (a) 12,750,000
GTE................................... 200,000 9,175,000
SBC Communications.................... 200,000 11,100,000
Viatel................................ 725,000 (a) 4,531,250
---------------
37,556,250
---------------
Transportation--2.3% AMR................................... 210,800 (a) 19,630,750
Canadian Pacific...................... 450,000 10,968,750
Union Pacific......................... 200,000 12,750,000
---------------
43,349,500
---------------
Utilities--2.2% Duke Power............................ 450,000 19,743,750
Entergy............................... 600,000 14,025,000
Texas Utilities....................... 200,000 6,750,000
---------------
40,518,750
---------------
TOTAL COMMON STOCKS
(cost $1,068,095,623)............... $ 1,121,572,972
===============
Convertible Preferred Stocks--11.9%
- --------------------------------------------------------------------------
Basic and Process Industries--.8% International Paper, Cum., $2.625..... 300,000 (b) $ 14,250,000
---------------
Energy--1.8% NORAM Financing, Cum., 6.25%.......... 200,000 12,200,000
Occidental Petroleum, Cum., $3.875.... 300,000 (b) 16,575,000
Tosco Financing Trust, Cum., 5.75%.... 100,000 (b) 5,575,000
---------------
34,350,000
---------------
Financial--1.3% Banco Commercial Portugese, Ser.A, 8%. 286,000 16,373,500
National Australia Bank, Ser. A, Cum.,
$2.125.............................. 300,000 7,931,250
---------------
24,304,750
---------------
Health Care--1.2% McKesson, Cum., $2.50................. 400,000 (b) 23,100,000
---------------
Insurance--.8% Allstate, Cum., $2.30................. 185,000 8,001,250
SunAmerica, Cum.,$3.188............... 189,400 8,002,150
---------------
16,003,400
---------------
Media/Entertainment--1.0% Chancellor Broadcasting, Cum., 7%..... 55,000 (b) 2,949,375
SFX Broadcasting, Cum., 6.50%......... 147,500 (b) 6,748,125
Station Casinos, 7%................... 200,000 8,800,000
---------------
18,497,500
---------------
</TABLE>
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Convertible Preferred Stocks (continued) Shares Value
- --------------------------------------------------------------------------- ------------ ---------------
<S> <C> <C> <C>
Real Estate--1.8% Merry Land & Investment, Ser. C, 8.60% 375,900 $ 10,008,337
Rouse, Ser. B, Cum., $3.00............ 300,000 13,612,500
Tanger Factory, Ser. A, Cum., $1.802.. 299,800 7,120,250
Vornado Realty Trust, Ser. A, Cum., 6.50% 50,000 2,487,500
---------------
33,228,587
---------------
Technology--.5% Microsoft, Ser. A, Cum., $2.196....... 115,000 9,846,875
---------------
Telecommunications--2.7% Airtouch Communications, Ser. C, 4.25%. 50,000 2,275,000
Worldcom, Cum., 8%.................... 575,000 48,012,500
---------------
50,287,500
---------------
TOTAL CONVERTIBLE PERFERRED STOCKS
(cost $190,771,172)................. $ 223,868,612
===============
Principal
Convertible Corporate Notes & Bonds--19.0% Amount
- ------------------------------------------------------------------------- ------------
Business Services--2.4% Corporate Express, Sub. Notes,
4.50%, 7/1/2001..................... $22,000,000 $ 18,810,000
Omnicom Group, Sub. Deb.,
4.25%, 1/3/2007..................... 24,700,000 (b) 26,953,875
---------------
45,763,875
---------------
Capital Goods--.8% Liebert, Sub. Deb.,
8%, 11/15/2010...................... 3,900,000 14,912,625
---------------
Consumer--2.1% Home Depot, Sub. Deb.,
3.25%, 10/1/2001.................... 20,000,000 20,525,000
Pep Boys, Sub. Notes,
Zero Coupon, 9/20/2011.............. 35,000,000 19,425,000
---------------
39,950,000
---------------
Energy--.6% ENRON, Exchangeble Notes,
6.25%, 12/13/1998................... 615,000 12,300,000
---------------
Health Care--.9% Sandoz Capital, Sub. Deb.,
2%, 10/6/2002....................... 6,500,000 (b) 8,165,625
Tenet Healthcare, Sub. Deb.,
6%, 12/4/2005....................... 8,000,000 9,640,000
---------------
17,805,625
---------------
Insurance--.2% Republic of Italy, Sub. Deb.,
5%, 6/28/2001....................... 4,000,000 3,970,000
---------------
Media/Entertainment--1.2% Telecommunications, Sub. Deb.,
4.50%, 2/15/2006.................... 29,500,000 21,830,000
---------------
Mining and Metals--.5% Inco, Yankee Deb.,
5.75%, 7/1/2004..................... 7,250,000 8,881,250
---------------
</TABLE>
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Convertible Corporate Notes & Bonds (continued) Shares Value
- --------------------------------------------------------------------------- ------------ ---------------
<S> <C> <C> <C>
Real Estate--.4% Sizeler Properties, Sub. Deb.,
8%, 7/15/2003....................... $ 8,000,000 $ 7,330,000
---------------
Technology--8.2% Adaptec, Sub. Deb.,
4.75%, 2/1/2004..................... 12,000,000 (b) 11,940,000
CUC International, Sub. Deb.,
3%, 2/15/2002....................... 25,000,000 (b) 24,125,000
First Financial Management, Sr. Deb.,
5%, 12/15/1999...................... 30,000,000 47,812,500
Softkey International, Sub. Deb.,
5.50%, 11/1/2000.................... 16,750,000 (b) 12,185,625
Thermo Electron, Euro. Sub. Deb.,
4.25%, 1/1/2003..................... 52,000,000 (b) 56,290,000
---------------
152,353,125
---------------
Telecommunications--1.7% U.S. West:
Exchangeable Notes,
7.625%, 12/15/1998................ 345,000 11,730,000
Liquid Yield Option Notes,
Zero Coupon, 6/25/2011............ 55,000,000 20,693,750
---------------
32,423,750
---------------
Transportation--.0% Campagnie Nationale Air France, Sub. Deb.,
4%, 1/1/2000........................ 893,193 (f) 153,259
---------------
TOTAL CONVERTIBLE CORPORATE NOTES
AND BONDS
(cost $336,303,238)................. $ 357,673,509
===============
Short-Term Investments--11.8%
- --------------------------------------------------------------------------
U.S. Treasury Bills: 5.30%, 5/29/1997...................... $55,433,000 (d,e) $ 55,225,681
5.04%, 6/5/1997....................... 50,000,000 49,761,500
5.06%, 6/12/1997...................... 2,155,000 2,142,673
5.40%, 7/24/1997...................... 77,352,000 76,439,247
5.12%, 7/31/1997...................... 33,384,000 32,954,014
5.08%, 8/7/1997....................... 4,564,000 4,500,195
---------------
TOTAL SHORT-TERM INVESTMENTS
(cost $220,984,562)................. $ 221,023,310
===============
TOTAL INVESTMENTS (cost $1,816,154,595)................................... 102.5% $ 1,924,138,403
====== ===============
LIABILITIES, LESS CASH AND RECEIVABLES ................................... (2.5%) $ (47,778,700)
====== ===============
NET ASSETS................................................................ 100.0% $ 1,876,359,703
====== ===============
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- ---------------------------------------------------------------------------
Statement of Investments (continued) April 30, 1997 (Unaudited)
<FN>
Notes to Statement of Investments:
- ---------------------------------------------------------------------------
(a) Non-income producing.
(b) Securities 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, 1997,
these securities amounted to $208,857,625 or approximately 11.1% 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 broker as collateral for open short sale positions.
(f) Securities restricted as to public resale. Investments in restricted
securities, with an aggregate value of $153,259 represent approximately .01%
of net assets.
</TABLE>
<TABLE>
<CAPTION>
Acquisition Purchase Percentage of
Issuer Date Price Net Assets Valuation*
- ----- ---------- -------- ------------ ----------
<S> <C> <C> <C> <C>
Campagnie Nationale Air France, Sub., Deb.,
4%, 1/1/2000 5/4/93 $ 0.19 0.01% cost
Mortgage Information 5/18/1987 1.12 0.00% zero
2/1/1988 1.12
12/13/1988 1.12
Industrial Flexible Material 3/31/1993 5.00 0.00% zero
<FN>
- -------------------
* The valuation of these securities has been determined in good faith under the
direction of the Board of Directors.
</TABLE>
Statement of Financial Futures April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Market Value Unrealized
Covered Appreciation
Contracts by Contracts Expiration at 4/30/97
-------- ------------ --------- ------------
Financial Futures:
- ---------------
<S> <C> <C> <C> <C>
Standard & Poor's 500................. 150 $60,210,000 June '97 $3,296,083
===========
</TABLE>
Statement of Securities Sold Short April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Common Stocks Shares Value
- -------------- -------- -----------
<S> <C> <C>
International Paper
(proceeds $6,027,197)................................................ 150,002 $6,337,500
==========
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- -----------------------------------------------------------------------
Statement of Assets and Liabilities April 30, 1997 (Unaudited)
<TABLE>
<CAPTION>
Cost Value
--------------- ---------------
<S> <C> <C> <C>
ASSETS: Investments in securities--See Statement of Investments. $1,816,154,595 $1,924,138,403
Cash................................................... 1,116,333
Receivable from brokers for proceeds on securities sold short 6,027,197
Dividends and interest receivable...................... 4,759,844
Receivable for investment securities sold.............. 550,919
Receivable for futures variation margin--Note 4(a)..... 225,000
Receivable for shares of Common Stock subscribed....... 5,450
Net unrealized appreciation on forward
currency exchange contracts--Note 4(a)............... 38,566
Prepaid expenses....................................... 92,495
---------------
1,936,954,207
---------------
LIABILITIES: Due to The Dreyfus Corporation and affiliates.......... 1,277,063
Payable for shares of Common Stock redeemed............ 48,333,374
Securities sold short, at value
(proceeds $6,027,197)--see statement................. 6,337,500
Payable for investment securities purchased............ 4,352,660
Accrued expenses....................................... 293,907
---------------
60,594,504
---------------
NET ASSETS ................................................................... $1,876,359,703
===============
REPRESENTED BY: Paid-in capital........................................ $1,622,940,950
Accumulated undistributed investment income--net....... 1,935,254
Accumulated net realized gain (loss) on investments and
foreign currency transactions........................ 140,481,816
Accumulated net unrealized appreciation (depreciation)
on investments, securities sold short and foreign currency
transactions [including $3,296,083 net unrealized
appreciation on financial futures].................. 111,001,683
---------------
NET ASSETS ................................................................... $1,876,359,703
===============
SHARES OUTSTANDING
(300 million shares of $.001 par value Common Stock authorized)................ 103,354,826
NET ASSET VALUE, offering and redemption price per share....................... $18.15
======
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- ------------------------------------------------------------------------------
Statement of Operations Six Months Ended April 30, 1997 (Unaudited)
<TABLE>
<S> <C> <C> <C>
INVESTMENT INCOME
INCOME: Cash dividends
(net of $101,612 foreign taxes withheld at source).. $ 13,781,037
Interest............................................... 13,157,877
------------
Total Income..................................... $ 26,938,914
EXPENSES: Management fee--Note 3(a)............................... 7,409,878
Shareholder servicing costs--Note 3(b).................. 2,489,399
Custodian fees--Note 3(b)............................... 133,695
Dividends on securities sold short..................... 132,000
Professional fees...................................... 44,037
Directors' fees and expenses--Note 3(c)................ 41,436
Prospectus and shareholders' reports.................. 38,869
Registration fees...................................... 20,559
Miscellaneous.......................................... 22,358
------------
Total Expenses................................... 10,332,231
------------
INVESTMENT INCOME--NET.......................................................... 16,606,683
------------
REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS--Note 4:
Net realized gain (loss) on investments:
Long transactions (including foreign currency
transactions)...................................... $132,353,932
Short sale transactions.............................. 388,094
Net realized gain (loss) on financial futures........... 1,167,116
Net realized gain (loss) on forward currency exchange
contracts............................................... 3,200,384
------------
Net Realized Gain (Loss).......................... 137,109,526
Net unrealized appreciation (depreciation) on
investments, foreign currency transactions and
securities sold short [including $3,296,083 net
unrealized appreciation on financial futures]......... (96,028,931)
------------
NET REALIZED AND UNREALIZED GAIN (LOSS) ON INVESTMENTS.......................... 41,080,595
------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS............................ $ 57,687,278
============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
Statement of Changes in Net Assets
<TABLE>
<CAPTION>
Six Months Ended
April 30, 1997 Year Ended
(Unaudited) October 31, 1996
---------------- ----------------
<S> <C> <C>
OPERATIONS:
Investment income--net................................................ $ 16,606,683 $ 34,268,586
Net realized gain (loss) on investments.............................. 137,109,526 256,817,745
Net unrealized appreciation (depreciation) on investments............ (96,028,931) 42,647,165
-------------- --------------
Net Increase (Decrease) in Net Assets Resulting from Operations.. 57,687,278 333,733,496
-------------- --------------
DIVIDENDS TO SHAREHOLDERS FROM:
Investment income--net................................................ (18,918,777) (31,664,919)
Net realized gain on investments..................................... (255,311,969) (49,168,158)
-------------- --------------
Total Dividends................................................ (274,230,746) (80,833,077)
-------------- --------------
CAPITAL STOCK TRANSACTIONS:
Net proceeds from shares sold........................................ 1,644,097,002 535,580,601
Dividends reinvested................................................. 262,333,045 77,406,742
Cost of shares redeemed.............................................. (1,881,979,934) (560,806,153)
-------------- --------------
Increase (Decrease) in Net Assets from Capital Stock Transactions 24,450,113 52,181,190
-------------- --------------
Total Increase (Decrease) in Net Assets........................ (192,093,355) 305,081,609
NET ASSETS:
Beginning of Period.................................................. 2,068,453,058 1,763,371,449
-------------- --------------
End of Period........................................................ $1,876,359,703 $2,068,453,058
============== ==============
Undistributed investment income--net.................................... $ 1,935,254 $ 4,247,348
-------------- --------------
Shares Shares
-------------- --------------
CAPITAL SHARE TRANSACTIONS:
Shares sold.......................................................... 86,612,785 26,977,092
Shares issued for dividends reinvested............................... 14,734,551 4,123,044
Shares redeemed...................................................... (98,759,610) (28,518,323)
-------------- --------------
Net Increase (Decrease) in Shares Outstanding.................... 2,587,726 2,581,813
============== ==============
</TABLE>
See notes to financial statements.
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
Financial Highlights
Contained below is per share operating performance data for a share of Common
Stock outstanding, total investment return, ratios to average net assets and
other supplemental data for each period indicated. This information has been
derived from the Fund's financial statements.
<TABLE>
<CAPTION>
Six Months Ended Year Ended October 31,
April 30, 1997 ------------------------------------------------------
PER SHARE DATA: (Unaudited) 1996 1995 1994 1993 1992(1)
--------------- ---------- -------- -------- -------- -------
<S> <C> <C> <C> <C> <C> <C>
Net asset value, beginning of period $20.53 $17.96 $16.49 $16.86 $13.89 $12.50
------ ------ ------ ------ ------ ------
Investment Operations:
Investment income--net............ .17 .35 .44 .34 .38 .19
Net realized and unrealized gain
(loss) on investments........... 29 3.05 1.67 (.34) 2.95 1.38
------ ------ ------ ------ ------ ------
Total from Investment Operations. .46 3.40 2.11 -- 3.33 1.57
------ ------ ------ ------ ------ ------
Distributions:
Dividends from investment
income--net (.19) (.32) (.47) (.33) (.36) (.18)
Dividends from net realized gain
on investments................. (2.65) (.51) (.17) (.04) -- --
------ ------ ------ ------ ------ ------
Total Distributions.............. (2.84) (.83) (.64) (.37) (.36) (.18)
------ ------ ------ ------ ------ ------
Net asset value, end of period... $18.15 $20.53 $17.96 $16.49 $16.86 $13.89
====== ====== ====== ====== ====== ======
TOTAL INVESTMENT RETURN............. 2.57%(2) 19.41% 13.17% .05% 24.24% 12.57%(2)
RATIOS/SUPPLEMENTAL DATA:
Ratio of operating expenses to
average net assets............. .51%(2) 1.02% 1.05% 1.14% 1.24% 1.02%(2)
Ratio of dividends on securities
sold short to average net
assets......................... .01(2) .01% .01% -- -- --
Ratio of net investment income
to average net assets.......... .83%(2) 1.78% 2.55% 2.18% 2.92% 2.30%(2)
Decrease reflected in above
expense ratios due to
undertakings by the Manager.... -- -- -- -- .04% .39%(2)
Portfolio Turnover Rate.......... 57.71%(2) 131.30% 132.46% 97.47% 85.26% 127.24%(2)
Average commission rate paid(3).. $.0638 $.1073 -- -- -- --
Net Assets, end of period
(000's Omitted)................ $1,876,360 $2,068,453 $1,763,371 $1,717,733 $1,165,503 $98,532
<FN>
- --------------------
(1) December 31, 1991 (commencement of operations) to October 31, 1992.
(2) Not annualized.
(3) For fiscal years beginning November 1, 1995, the Fund is required to
disclose its average commission rate paid per share for purchases and
sales of investment securities.
</TABLE>
See notes to financial statements.
<PAGE>
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. is the distributor of the Fund's shares, which are
sold to the public without a sales charge.
The Fund's financial statements are prepared in accordance with generally
accepted accounting principles which may require the use of management estimates
and assumptions. Actual results could differ from those estimates
(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, and foreign withholding taxes recorded on the
Fund's books, and the U.S. dollar equivalent of the amounts actually received or
paid. Net unrealized foreign exchange gains and losses arise from changes in the
value of assets and liabilities other than investments in securities, 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. The
following summarizes affiliated issuers during the period ended April 30, 1997:
Shares
------------------------------------------------------------
Beginning End of Dividend Market
Name of issuer of period Purchases Sales period income Value
- -------------- --------- --------- ----- ------ -------- ------
Mortgage
Information 245,959 -- -- 245,959 -- 0
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
(e) Dividends to shareholders: Dividends are recorded on the ex-dividend
date. Dividends from investment income-net are declared and paid on a quarterly
basis. Dividends from net realized capital gain are normally declared and paid
annually, but the Fund may make distributions on a more frequent basis to comply
with the distribution requirements of the Internal Revenue Code. To the extent
that net realized capital gain can be offset by capital loss carryovers, 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:
The Fund may borrow up to $10 million for leveraging purposes under a
short-term unsecured line of credit and participates with other Dreyfus-managed
funds in a $100 million unsecured line of credit primarily to be utilized for
temporary or emergency purposes, including the financing of redemptions.
Interest is charged to the Fund at rates which are related to the Federal Funds
rate in effect at the time of borrowings. During the period ended April 30,
1997, the Fund did not borrow under either line of credit.
NOTE 3--Management Fee and Other Transactions With Affiliates:
(a) Pursuant to a management 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.
(b) Under the 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
inquireis regarding the Fund and providing reports and other information, and
services related to the maintenance of shareholder accounts. During the period
ended April 30, 1997, the Fund was charged an aggregate fo $1,470,401 pursuant
to the Shareholder Services Plan.
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 $642,282 during the period ended April 30, 1997.
The Fund compensates Mellon under a custody agreement to provide custodial
services for the Fund. During the period ended April 30, 1997, $133,695 was
charged by Mellon pursuant to the custody agreement.
(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.
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
NOTE 4--Securities Transactions:
(a) The following summarizes the aggregate amount of purchases and sales of
investment securities and securities sold short, excluding short-term
securities, financial futures and forward currency exchange contracts during the
period ended April 30, 1997:
Purchases Sales
-------------- ---------------
Long transactions....................... $1,020,378,588 $1,145,883,785
Short sale transactions................. 47,012,729 45,101,773
-------------- ---------------
Total................................. $1,067,391,317 $1,190,985,558
============== ===============
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, 1997, 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, 1997:
Foreign Unrealized
Currency Appreciation
Forward Currency Contracts Amount Proceeds Value (Depreciation)
- -------------------------- -------- ------------ ---------- --------------
Sales:
Swiss Francs, expiring,
5/9/97................. 18,000,000 $12,289,206 $12,249,898 $39,308
Swiss Francs, expiring,
5/19/97................ 8,000,000 5,449,592 5,450,334 (742)
-------
Total.......................... $38,566
=======
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 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 gain on each open
contract.
The Fund may invest in financial futures contracts in order to
gain exposure to or 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 (See Statement of Financial Futures). Investments in
financial futures require the Fund to "mark to
<PAGE>
Dreyfus Growth and Income Fund, Inc.
- --------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS (Unaudited) (continued)
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 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, 1997, and their related
unrealized appreciation are set forth in the Statement of Financial
Futures.
(b) At April 30, 1997, accumulated net unrealized appreciation on
investments, forward currency exchange contracts, financial futures and
securities sold short was $111,008,154, consisting of $203,245,327 gross
unrealized appreciation and $92,237,173 gross unrealized depreciation.
At April 30, 1997, 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).
<PAGE>
[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.
P.O. Box 9671
Providence, RI 02940
Printed in U.S.A. 010SA974
