N-CSR 1 form763.htm SEMI-ANNUAL REPORT form763
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION 
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT 
INVESTMENT COMPANIES

Investment Company Act file number    811-5719 

Dreyfus Stock Index Fund, Inc.
(Exact name of Registrant as specified in charter) 

c/o The Dreyfus Corporation
200 Park Avenue
New York, New York 10166
(Address of principal executive offices)    (Zip code) 

Michael A. Rosenberg, Esq.
200 Park Avenue
New York, New York 10166
(Name and address of agent for service) 

Registrant's telephone number, including area code:    (212) 922-6000 

Date of fiscal year end:    12/31 

Date of reporting period:    12/31/2007 

FORM N-CSR 

Item 1.    Reports to Stockholders. 

The views expressed in this report reflect those of the portfolio manager only through the end of the period covered and do not necessarily represent the views of Dreyfus or any other person in the Dreyfus organization. Any such views are subject to change at any time based upon market or other conditions and Dreyfus disclaims any responsibility to update such views.These views may not be relied on as investment advice and, because investment decisions for a Dreyfus fund are based on numerous factors, may not be relied on as an indication of trading intent on behalf of any Dreyfus fund.

Not FDIC-Insured • Not Bank-Guaranteed • May Lose Value

Contents
 
    THE FUND 
2    A Letter from the CEO 
3    Discussion of Fund Performance 
6    Fund Performance 
8    Understanding Your Fund’s Expenses 
8    Comparing Your Fund’s Expenses 
With Those of Other Funds
9    Statement of Investments 
25    Statement of Financial Futures 
26    Statement of Assets and Liabilities 
27    Statement of Operations 
28    Statement of Changes in Net Assets 
30    Financial Highlights 
32    Notes to Financial Statements 
40    Report of Independent Registered 
    Public Accounting Firm 
41    Important Tax Information 
42    Board Members Information 
45    Officers of the Fund 
 
FOR MORE INFORMATION
    Back Cover 

Dreyfus 
Stock Index Fund, Inc. 

The    Fund 

A LETTER FROM THE CEO

Dear Shareholder:

We are pleased to present this annual report for Dreyfus Stock Index Fund, Inc., covering the 12-month period from January 1, 2007, through December 31, 2007.

Looking back, 2007 was a year of significant change for the stock market.Turmoil in the sub-prime mortgage market, declining housing values and soaring energy prices sparked a “flight to quality” in which investors reassessed their attitudes toward risk. As a result, smaller, more speculative companies that had led the stock market over the past several years lost value over the second half of the year, while shares of larger, multinational growth companies returned to favor. Many financial services and consumer discretionary companies were hurt by repercussions from the sub-prime lending crisis and economic downturn, but energy and basic materials producers generally moved higher along with underlying commodity prices.

The turbulence of 2007 reinforced a central principle of successful investing: diversification. Investors with broad exposure to the world’s stock and bond markets were better protected from the full impact of market volatility in areas that, earlier in the year, were among the bright spots at the time. As we look ahead, we believe that now is the perfect time to meet with your financial advisor, who can help you plan and diversify your investment portfolio in a way that manages the potential opportunities and risks that may continue to arise in 2008.

For information about how the fund performed during the reporting period, as well as market perspectives, we have provided a Discussion of Fund Performance given by the fund’s Portfolio Manager.

Thank you for your continued confidence and support.

  Thomas F. Eggers
Chief Executive Officer
The Dreyfus Corporation
January 15, 2008

2

DISCUSSION OF FUND PERFORMANCE

For the period of January 1, 2007, through December 31, 2007, as provided by Thomas Durante, CFA, Portfolio Manager

Fund and Market Performance Overview

After producing favorable returns over the first half of 2007, the stock market produced relatively lackluster results over the second half as investors became concerned over recessionary conditions in U.S. housing markets, rising energy prices and a credit crunch emanating from the sub-prime mortgage market.The difference in returns between the fund and its benchmark was primarily the result of transaction costs and other operating expenses that are not reflected in the benchmark’s results.

For the 12-month period ended December 31, 2007, Dreyfus Stock Index Fund produced total returns of 5.26% for its Initial shares and 4.99% for its Service shares.1 In comparison, the fund’s benchmark, the Standard & Poor’s 500 Composite Stock Price Index (“S&P 500 Index”), produced a total return of 5.49% for the same period.2,3

The Fund’s Investment Approach

The fund seeks to match the total return of the S&P 500 Index by generally investing in all 500 stocks in the S&P 500 Index in proportion to their respective weighting. Often considered a barometer for the stock market in general, the S&P 500 Index is made up of 500 widely held common stocks across 10 economic sectors. Each stock is weighted by its market capitalization; that is, larger companies have greater representation in the S&P 500 Index than smaller ones. The S&P 500 Index is dominated by large-cap, blue-chip stocks that comprise nearly 75% of total U.S. market capitalization.

Stocks with Significant Overseas Exposure Advanced

U.S. stocks posted positive returns during the reporting period despite growing pessimism during the third and fourth quarters regarding the direction of the U.S. economy and the effects of a credit crunch. Concerns over the deteriorating housing and mortgage markets, higher gasoline prices and their potential effects on consumer spending weighed

The Fund 3

DISCUSSION OF FUND PERFORMANCE (continued)

heavily on equity markets.The Federal Reserve Board attempted to forestall a potential recession by reducing the overnight federal funds rate three times between September and December, driving its target for short-term interest rates to 4.25% by the reporting period’s end.

Some of the year’s stronger gains stemmed from large domestic companies with sizeable overseas operations whose ability to sell products in stronger global markets helped them maintain healthy profits. For example, energy stocks ranked among the top contributors to the S&P 500 Index’s results for the reporting period, with integrated energy producers and oil equipment services providers benefiting from a substantial global presence.A production slowdown in some oil fields during the reporting period also led to greater exploration and production activities for deepwater drillers and related service companies.

Within the information technology sector, gains for the S&P 500 Index were concentrated in a few names within each industry group while the balance of the stocks posted less stellar returns. The four major contributors were driven by two common characteristics: they had large overseas operations and offered a wide range of consumer products.Winners included a maker of personal computers and electronic consumer products that benefited from new products, an Internet search engine firm that began offering new services to its customers, a software firm that recently acquired a number of new products, and a semiconductor company that was a leading chip manufacturer for many new consumer products.

Industrials stocks also gained value, most notably aerospace and defense companies as well as construction, industrial machinery, farm equipment and engineering businesses that focus on global infrastructure development. Companies that sell heavy equipment needed to build roads, factories and mines fared especially well. Agricultural equipment companies benefited from increased farming for corn and wheat used in ethanol production. Heavy participation in overseas markets also boosted the fortunes of consumer staples stocks, including those of soft drink, tobacco and household products companies.

Two market sectors produced disappointing results in 2007. In the financials area, banks, thrifts, mortgage companies, brokerage firms and

4

consumer finance companies faltered due to rising default rates on sub-prime consumer loans and weakness in the mortgage lending business. Consumer discretionary stocks also lagged, as homebuilders, home improvement retailers and department stores were affected by soft housing markets and a slowdown in consumer spending.

Index Funds Offer Diversification Benefits

An as index fund, we attempt to replicate the returns of the S&P 500 Index by closely approximating the composition of the S&P 500 Index. In our view, one of the greatest benefits of an index fund is that it offers a broadly diversified investment vehicle that can help investors manage risks by limiting the impact on the overall portfolio of unexpected losses in any single industry group or holding. In addition, the fund’s investments are not affected by any individual’s preference for one market or security over another. Instead, the fund employs a passive management approach in which all investment decisions are based on the composition of the S&P 500 Index.

January 15, 2008

    The fund is only available as a funding vehicle under variable life insurance policies or variable 
    annuity contracts issued by insurance companies. Individuals may not purchase shares of the fund 
    directly. A variable annuity is an insurance contract issued by an insurance company that enables 
    investors to accumulate assets on a tax-deferred basis for retirement or other long-term goals.The 
    investment objective and policies of Dreyfus Stock Index Fund, Inc. made available through 
    insurance products may be similar to other funds/portfolios managed or advised by Dreyfus. 
    However, the investment results of the fund may be higher or lower than, and may not be 
    comparable to, those of any other Dreyfus fund/portfolio. 
1    Total return includes reinvestment of dividends and any capital gains paid. Past performance is no 
    guarantee of future results. Share price and investment return fluctuate such that upon redemption, 
    fund shares may be worth more or less than their original cost.The fund’s performance does not 
    reflect the deduction of additional charges and expenses imposed in connection with investing in 
    variable insurance contracts, which will reduce returns. Return figures provided reflect the absorption 
    of certain fund expenses by The Dreyfus Corporation pursuant to an agreement in which 
    shareholders are given at least 180 days’ notice, at which time it may be extended, terminated or 
    modified. Had these expenses not been absorbed, the fund’s returns would have been lower. 
2    SOURCE: LIPPER INC. — Reflects reinvestment of dividends daily and, where applicable, 
    capital gain distributions.The Standard & Poor’s 500 Composite Stock Price Index is a widely 
    accepted, unmanaged index of U.S. stock market performance. 
3    “Standard & Poor’s®,”“S&P®,”“Standard & Poor’s 500®” and “S&P 500®” are trademarks 
    of The McGraw-Hill Companies, Inc., and have been licensed for use by the fund.The fund is 
    not sponsored, endorsed, sold or promoted by Standard & Poor’s and Standard & Poor’s makes no 
    representation regarding the advisability of investing in the fund. 

The Fund 5

FUND PERFORMANCE

Average Annual Total Returns as of    12/31/07             
        1 Year    5 Years    10 Years 
Initial shares        5.26%    12.57%    5.63% 
Service shares        4.99%    12.29%    5.44% 

The data for Service shares includes the results of Initial shares for the period prior to December 31, 2000 
(inception date of Service shares). Actual Service shares’ average annual total return and hypothetical growth 
results would have been lower. See notes below. 
† Source: Lipper Inc. 
Past performance is not predictive of future performance.The fund’s performance shown in the graph and table does not 
reflect the deduction of taxes that a shareholder would pay on fund distributions or the redemption of fund shares. 
The fund’s performance does not reflect the deduction of additional charges and expenses imposed in connection 
with investing in variable insurance contracts which will reduce returns. 
The above graph compares a $10,000 investment made in Initial and Service shares of Dreyfus Stock Index Fund, Inc. 
on 12/31/97 to a $10,000 investment made in the Standard & Poor’s 500 Composite Stock Price Index (the 
“Index”) on that date. 

6

The fund’s Initial shares are not subject to a Rule 12b-1 fee.The fund’s Service shares are subject to a 0.25% annual 
Rule 12b-1 fee.The performance figures for Service shares reflect the performance of the fund’s Initial shares from their 
inception date through December 30, 2000, and the performance of the fund’s Service shares from December 31, 2000 
(inception date of Service shares) to December 31, 2007 (blended performance figures).The performance figures for each 
share class reflect certain expense reimbursements, without which the performance of each share class would have been 
lower. In addition, the blended performance figures have not been adjusted to reflect the higher operating expenses of the 
Service shares. If these expenses had been reflected, the blended performance figures would have been lower. All dividends 
and capital gain distributions are reinvested. 
The fund’s performance shown in the line graph takes into account all applicable fund fees and expenses (after any 
expense reimbursements).The Index is a widely accepted, unmanaged index of U.S. stock market performance, and 
includes the reinvestment of dividends daily. Unlike a mutual fund, the Index is not subject to charges, fees and other 
expenses. Investors cannot invest directly in any index. Further information relating to fund performance, including 
expense reimbursements, if applicable, is contained in the Financial Highlights section of the prospectus and elsewhere 
in this report. 

The Fund 7

UNDERSTANDING YOUR FUND’S EXPENSES (Unaudited)

As a mutual fund investor, you pay ongoing expenses, such as management fees and other expenses. Using the information below, you can estimate how these expenses affect your investment and compare them with the expenses of other funds.You also may pay one-time transaction expenses, including sales charges (loads) and redemption fees, which are not shown in this section and would have resulted in higher total expenses. For more information, see your fund’s prospectus or talk to your financial adviser.

Review your fund’s expenses

The table below shows the expenses you would have paid on a $1,000 investment in Dreyfus Stock Index Fund, Inc. from July 1, 2007 to December 31, 2007. It also shows how much a $1,000 investment would be worth at the close of the period, assuming actual returns and expenses.

Expenses and Value of a $1,000 Investment     
assuming actual returns for the six months ended December 31, 2007 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 1.35    $ 2.60 
Ending value (after expenses)    $985.40    $984.20 

COMPARING YOUR FUND’S EXPENSES 
WITH THOSE OF OTHER FUNDS (Unaudited) 

Using the SEC’s method to compare expenses

The Securities and Exchange Commission (SEC) has established guidelines to help investors assess fund expenses. Per these guidelines, the table below shows your fund’s expenses based on a $1,000 investment, assuming a hypothetical 5% annualized return. You can use this information to compare the ongoing expenses (but not transaction expenses or total cost) of investing in the fund with those of other funds.All mutual fund shareholder reports will provide this information to help you make this comparison. Please note that you cannot use this information to estimate your actual ending account balance and expenses paid during the period.

Expenses and Value of a $1,000 Investment     
assuming a hypothetical 5% annualized return for the six months ended December 31, 2007 
    Initial Shares    Service Shares 
Expenses paid per $1,000 †    $ 1.38    $ 2.65 
Ending value (after expenses)    $1,023.84    $1,022.58 

† Expenses are equal to the fund’s annualized expense ratio of .27% for Initial shares and .52% for Service shares; multiplied by the average account value over the period, multiplied by 184/365 (to reflect the one-half year period).

8

STATEMENT OF INVESTMENTS 
December 31, 2007 

Common Stocks—99.4%    Shares        Value ($) 
Consumer Discretionary—8.4%             
Abercrombie & Fitch, Cl. A    21,500        1,719,355 
Amazon.com    76,800 a      7,114,752 
Apollo Group, Cl. A    34,150 a,b      2,395,622 
AutoNation    34,500 a      540,270 
AutoZone    11,000 a      1,319,010 
Bed Bath & Beyond    66,200 a,b      1,945,618 
Best Buy    87,725 b      4,618,721 
Big Lots    22,600 a,b      361,374 
Black & Decker    15,600 b      1,086,540 
Brunswick    22,000        375,100 
Carnival    109,124        4,854,927 
CBS, Cl. B    171,193        4,665,009 
Centex    30,400 b      767,904 
Circuit City Stores    42,100 b      176,820 
Clear Channel Communications    124,447        4,295,910 
Coach    92,000 a      2,813,360 
Comcast, Cl. A    767,987 a      14,023,443 
D.R. Horton    69,300 b      912,681 
Darden Restaurants    35,450        982,319 
Dillard’s, Cl. A    14,300 b      268,554 
DIRECTV Group    179,400 a      4,147,728 
E.W. Scripps, Cl. A    22,400 b      1,008,224 
Eastman Kodak    72,000 b      1,574,640 
Expedia    51,900 a      1,641,078 
Family Dollar Stores    35,150 b      675,934 
Ford Motor    527,350 a,b      3,549,065 
Fortune Brands    38,150        2,760,534 
GameStop, Cl. A    39,700 a      2,465,767 
Gannett    57,988        2,261,532 
Gap    116,351        2,475,949 
General Motors    141,448 b      3,520,641 
Genuine Parts    41,950 b      1,942,285 
Goodyear Tire & Rubber    59,900 a      1,690,378 
H & R Block    81,200 b      1,507,884 
Harley-Davidson    60,300 b      2,816,613 

The Fund 9

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Consumer Discretionary (continued)         
Harman International Industries    15,100 b    1,113,021 
Harrah’s Entertainment    46,850    4,157,937 
Hasbro    36,750 b    940,065 
Home Depot    421,744    11,361,783 
IAC/InterActiveCorp    46,100 a    1,241,012 
International Game Technology    78,800    3,461,684 
Interpublic Group of Cos.    117,793 a,b    955,301 
J.C. Penney    55,400 b    2,437,046 
Johnson Controls    148,400 b    5,348,336 
Jones Apparel Group    21,300    340,587 
KB Home    19,300 b    416,880 
Kohl’s    78,423 a    3,591,773 
Leggett & Platt    42,500    741,200 
Lennar, Cl. A    34,800 b    622,572 
Limited Brands    77,700 b    1,470,861 
Liz Claiborne    24,900 b    506,715 
Lowe’s Cos.    365,520    8,268,062 
Macy’s    108,208    2,799,341 
Marriott International, Cl. A    78,100    2,669,458 
Mattel    91,695    1,745,873 
McDonald’s    295,555    17,411,145 
McGraw-Hill Cos.    82,200    3,601,182 
Meredith    9,500    522,310 
New York Times, Cl. A    36,000 b    631,080 
Newell Rubbermaid    69,778    1,805,855 
News, Cl. A    578,100    11,845,269 
NIKE, Cl. B    96,000 b    6,167,040 
Nordstrom    47,000 b    1,726,310 
Office Depot    68,200 a,b    948,662 
OfficeMax    18,800    388,408 
Omnicom Group    81,660    3,881,300 
Polo Ralph Lauren    14,700    908,313 
Pulte Homes    53,100 b    559,674 
RadioShack    32,800 b    553,008 
Sears Holdings    18,188 a,b    1,856,085 
Sherwin-Williams    26,100 b    1,514,844 

10

Common Stocks (continued)    Shares    Value ($) 
Consumer Discretionary (continued)         
Snap-On    14,400 b    694,656 
Stanley Works    20,500    993,840 
Staples    176,725    4,077,046 
Starbucks    182,500 a    3,735,775 
Starwood Hotels & Resorts Worldwide    49,800    2,192,694 
Target    207,642    10,382,100 
Tiffany & Co.    33,900 b    1,560,417 
Time Warner    903,368    14,914,606 
TJX Cos.    109,250    3,138,752 
VF    22,000    1,510,520 
Viacom, Cl. B    163,993 a    7,202,572 
Walt Disney    475,709    15,355,886 
Wendy’s International    21,800    563,312 
Whirlpool    19,332 b    1,578,071 
Wyndham Worldwide    44,460 b    1,047,478 
Yum! Brands    127,100    4,864,117 
        271,597,375 
Consumer Staples—10.2%         
Altria Group    526,443    39,788,562 
Anheuser-Busch Cos.    183,350    9,596,539 
Archer-Daniels-Midland    160,705    7,461,533 
Avon Products    107,200    4,237,616 
Brown-Forman, Cl. B    21,600 b    1,600,776 
Campbell Soup    55,649    1,988,339 
Clorox    34,650    2,258,140 
Coca-Cola    496,742    30,485,057 
Coca-Cola Enterprises    71,500    1,861,145 
Colgate-Palmolive    127,350    9,928,206 
ConAgra Foods    121,750    2,896,432 
Constellation Brands, Cl. A    48,500 a    1,146,540 
Costco Wholesale    108,450    7,565,472 
CVS Caremark    369,134 b    14,673,076 
Dean Foods    32,900    850,794 
Estee Lauder Cos., Cl. A    28,500    1,242,885 
General Mills    84,400    4,810,800 
H.J. Heinz    79,200    3,697,056 

The Fund 11

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Consumer Staples (continued)         
Hershey    41,978    1,653,933 
Kellogg    66,000    3,460,380 
Kimberly-Clark    105,698 b    7,329,099 
Kraft Foods, Cl. A    386,624    12,615,541 
Kroger    170,248    4,547,324 
McCormick & Co.    31,900    1,209,329 
Molson Coors Brewing, Cl. B    34,200    1,765,404 
Pepsi Bottling Group    34,650    1,367,289 
PepsiCo    402,291    30,533,887 
Procter & Gamble    776,141    56,984,272 
Reynolds American    42,800 b    2,823,088 
Safeway    110,569    3,782,565 
Sara Lee    180,998    2,906,828 
SUPERVALU    52,851    1,982,970 
SYSCO    151,950    4,742,359 
Tyson Foods, Cl. A    68,400    1,048,572 
UST    39,100 b    2,142,680 
Wal-Mart Stores    590,529    28,067,843 
Walgreen    247,800    9,436,224 
Whole Foods Market    34,800 b    1,419,840 
Wm. Wrigley Jr.    54,425 b    3,186,584 
        329,094,979 
Energy—12.7%         
Anadarko Petroleum    116,568    7,657,352 
Apache    82,722    8,895,924 
Baker Hughes    79,560    6,452,316 
BJ Services    73,200    1,775,832 
Chesapeake Energy    113,500    4,449,200 
Chevron    527,661    49,246,601 
ConocoPhillips    399,793    35,301,722 
Consol Energy    45,300    3,239,856 
Devon Energy    111,200    9,886,792 
El Paso    175,079    3,018,362 
ENSCO International    36,200 b    2,158,244 
EOG Resources    61,500 b    5,488,875 
Exxon Mobil    1,365,418    127,926,012 

12

Common Stocks (continued)    Shares    Value ($) 
Energy (continued)         
Halliburton    220,202    8,347,858 
Hess    69,500    7,009,770 
Marathon Oil    177,480    10,801,433 
Murphy Oil    47,000    3,987,480 
Nabors Industries    70,800 a,b    1,939,212 
National Oilwell Varco    89,100 a    6,545,286 
Noble    67,000    3,786,170 
Noble Energy    42,900    3,411,408 
Occidental Petroleum    207,100    15,944,629 
Peabody Energy    66,200    4,080,568 
Rowan Cos.    27,800 b    1,096,988 
Schlumberger    298,900    29,402,793 
Smith International    50,100    3,699,885 
Spectra Energy    158,023    4,080,154 
Sunoco    29,400    2,129,736 
Tesoro    34,200 b    1,631,340 
Transocean    79,468 a    11,375,844 
Valero Energy    137,600    9,636,128 
Weatherford International    84,300 a    5,782,980 
Williams Cos.    148,371    5,308,714 
XTO Energy    120,833    6,205,957 
        411,701,421 
Financial—17.4%         
ACE    82,350    5,087,583 
Aflac    121,892    7,634,096 
Allstate    142,671    7,451,706 
Ambac Financial Group    25,394 b    654,403 
American Capital Strategies    47,900 b    1,578,784 
American Express    292,273    15,204,041 
American International Group    633,873    36,954,796 
Ameriprise Financial    57,934    3,192,743 
AON    73,350    3,498,061 
Apartment Investment & Management, Cl. A    23,900 b    830,047 
Assurant    23,900 b    1,598,910 
AvalonBay Communities    19,700 b    1,854,558 
Bank of America    1,109,165    45,764,148 

The Fund 13

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Financial (continued)         
Bank of New York Mellon    284,563    13,875,292 
BB & T    137,300    4,210,991 
Bear Stearns Cos.    28,852 b    2,546,189 
Boston Properties    29,800    2,735,938 
Capital One Financial    97,700    4,617,302 
CB Richard Ellis Group, Cl. A    49,500 a,b    1,066,725 
Charles Schwab    234,078    5,980,693 
Chubb    95,900    5,234,222 
Cincinnati Financial    41,530    1,642,096 
CIT Group    47,400    1,139,022 
Citigroup    1,247,690    36,731,994 
CME Group    13,700    9,398,200 
Comerica    37,700    1,641,081 
Commerce Bancorp    48,700    1,857,418 
Countrywide Financial    144,598 b    1,292,706 
Developers Diversified Realty    30,700    1,175,503 
Discover Financial Services    119,358    1,799,919 
E*TRADE FINANCIAL    105,900 a,b    375,945 
Equity Residential    67,750    2,470,843 
Fannie Mae    244,509    9,775,470 
Federated Investors, Cl. B    21,600    889,056 
Fifth Third Bancorp    133,092    3,344,602 
First Horizon National    31,600 b    573,540 
Franklin Resources    40,400    4,622,972 
Freddie Mac    165,315    5,632,282 
General Growth Properties    60,900 b    2,507,862 
Genworth Financial, Cl. A    109,600    2,789,320 
Goldman Sachs Group    99,350    21,365,217 
Hartford Financial Services Group    78,450    6,840,055 
Host Hotels & Resorts    130,600    2,225,424 
Hudson City Bancorp    130,100 b    1,954,102 
Huntington Bancshares    91,404    1,349,123 
IntercontinentalExchange    17,400 a    3,349,500 
Janus Capital Group    38,300 b    1,258,155 
JPMorgan Chase & Co.    839,526    36,645,310 
KeyCorp    97,166    2,278,543 

14

Common Stocks (continued)    Shares    Value ($) 
Financial (continued)         
Kimco Realty    63,200 b    2,300,480 
Legg Mason    33,600    2,457,840 
Lehman Brothers Holdings    132,460 b    8,668,182 
Leucadia National    42,300 b    1,992,330 
Lincoln National    67,300    3,918,206 
Loews    109,850    5,529,849 
M & T Bank    18,700 b    1,525,359 
Marsh & McLennan Cos.    129,958    3,439,988 
Marshall & Ilsley    64,299    1,702,638 
MBIA    31,350 b    584,050 
Merrill Lynch & Co.    213,931    11,483,816 
MetLife    185,100    11,405,862 
MGIC Investment    20,400 b    457,572 
Moody’s    53,600 b    1,913,520 
Morgan Stanley    265,216    14,085,622 
National City    158,299 b    2,605,602 
Northern Trust    47,790 b    3,659,758 
NYSE Euronext    66,200    5,810,374 
Plum Creek Timber    43,050 b    1,982,022 
PNC Financial Services Group    87,323    5,732,755 
Principal Financial Group    65,350    4,498,694 
Progressive    174,428    3,342,040 
ProLogis    64,400    4,081,672 
Prudential Financial    113,450    10,555,388 
Public Storage    31,100 b    2,283,051 
Regions Financial    173,688    4,107,721 
Safeco    23,650    1,316,832 
Simon Property Group    55,700 b    4,838,102 
SLM    128,900    2,596,046 
Sovereign Bancorp    90,105 b    1,027,197 
State Street    96,550    7,839,860 
SunTrust Banks    87,250    5,452,252 
T. Rowe Price Group    66,000    4,018,080 
Torchmark    23,000    1,392,190 
Travelers Cos.    161,134    8,669,009 
U.S. Bancorp    431,505    13,695,969 

The Fund 15

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Financial (continued)         
Unum Group    90,169 b    2,145,121 
Vornado Realty Trust    33,500    2,946,325 
Wachovia    493,708    18,775,715 
Washington Mutual    217,117 b    2,954,962 
Wells Fargo & Co.    843,314    25,459,650 
XL Capital, Cl. A    44,500    2,238,795 
Zions Bancorporation    27,000    1,260,630 
        565,247,614 
Health Care—11.9%         
Abbott Laboratories    386,176    21,683,782 
Aetna    125,064    7,219,945 
Allergan    76,700    4,927,208 
AmerisourceBergen    42,018    1,885,348 
Amgen    271,824 a    12,623,507 
Applera—Applied Biosystems Group    42,050    1,426,336 
Barr Pharmaceuticals    26,900 a    1,428,390 
Baxter International    158,450    9,198,023 
Becton, Dickinson & Co.    61,000    5,098,380 
Biogen Idec    73,327 a    4,173,773 
Boston Scientific    335,363 a    3,900,272 
Bristol-Myers Squibb    494,428    13,112,231 
C.R. Bard    25,500    2,417,400 
Cardinal Health    90,400    5,220,600 
Celgene    96,400 a    4,454,644 
CIGNA    69,813    3,751,052 
Coventry Health Care    38,700 a    2,292,975 
Covidien    124,417    5,510,429 
Eli Lilly & Co.    246,637    13,167,949 
Express Scripts    63,000 a    4,599,000 
Forest Laboratories    77,900 a    2,839,455 
Genzyme    66,450 a    4,946,538 
Gilead Sciences    232,600 a    10,701,926 
Hospira    39,377 a,b    1,679,035 
Humana    42,300 a    3,185,613 
IMS Health    48,450    1,116,288 
Johnson & Johnson    715,202    47,703,973 

16

Common Stocks (continued)    Shares    Value ($) 
Health Care (continued)         
King Pharmaceuticals    61,066 a    625,316 
Laboratory Corp. of America Holdings    28,800 a,b    2,175,264 
McKesson    72,369    4,740,893 
Medco Health Solutions    66,799 a    6,773,419 
Medtronic    282,573 b    14,204,945 
Merck & Co.    543,966    31,609,864 
Millipore    13,600 a,b    995,248 
Mylan    75,600 b    1,062,936 
Patterson Cos.    34,900 a,b    1,184,855 
PerkinElmer    29,668    771,961 
Pfizer    1,706,911    38,798,087 
Quest Diagnostics    39,200 b    2,073,680 
Schering-Plough    404,751    10,782,567 
St. Jude Medical    85,600 a    3,478,784 
Stryker    59,500    4,445,840 
Tenet Healthcare    118,500 a,b    601,980 
Thermo Fisher Scientific    105,400 a    6,079,472 
UnitedHealth Group    322,900    18,792,780 
Varian Medical Systems    31,300 a,b    1,632,608 
Waters    25,050 a    1,980,704 
Watson Pharmaceuticals    25,900 a    702,926 
WellPoint    142,800 a    12,527,844 
Wyeth    334,720    14,791,277 
Zimmer Holdings    58,702 a    3,883,137 
        384,980,459 
Industrial—11.5%         
3M    178,198    15,025,655 
Allied Waste Industries    72,400 a,b    797,848 
Avery Dennison    26,650    1,416,181 
Boeing    193,720    16,942,751 
Burlington Northern Santa Fe    74,492    6,199,969 
C.H. Robinson Worldwide    42,400    2,294,688 
Caterpillar    158,930    11,531,961 
Cintas    33,700    1,132,994 
Cooper Industries, Cl. A    45,000    2,379,600 
CSX    105,100    4,622,298 

The Fund 17

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Industrial (continued)         
Cummins    25,500    3,247,935 
Danaher    63,300    5,553,942 
Deere & Co.    110,900    10,327,008 
Dover    49,650    2,288,369 
Eaton    36,600    3,548,370 
Emerson Electric    196,780    11,149,555 
Equifax    32,950    1,198,062 
Expeditors International Washington    53,300    2,381,444 
FedEx    77,340 b    6,896,408 
Fluor    22,100    3,220,412 
General Dynamics    100,572    8,949,902 
General Electric    2,525,683    93,627,069 
Goodrich    31,200    2,203,032 
Honeywell International    186,624    11,490,440 
Illinois Tool Works    103,300    5,530,682 
Ingersoll-Rand, Cl. A    68,100    3,164,607 
ITT    45,300    2,991,612 
Jacobs Engineering Group    30,200    2,887,422 
L-3 Communications Holdings    31,402    3,326,728 
Lockheed Martin    86,760    9,132,358 
Manitowoc    32,400    1,582,092 
Masco    92,200 b    1,992,442 
Monster Worldwide    32,000 a,b    1,036,800 
Norfolk Southern    96,750    4,880,070 
Northrop Grumman    84,604    6,653,259 
Paccar    92,002 b    5,012,269 
Pall    30,601    1,233,832 
Parker Hannifin    42,062    3,167,689 
Pitney Bowes    54,200    2,061,768 
Precision Castparts    34,500    4,785,150 
R.R. Donnelley & Sons    53,650    2,024,751 
Raytheon    107,250 b    6,510,075 
Robert Half International    40,300 b    1,089,712 
Rockwell Automation    37,300    2,572,208 
Rockwell Collins    40,750    2,932,778 

18

Common Stocks (continued)    Shares    Value ($) 
Industrial (continued)         
Ryder System    14,500 b    681,645 
Southwest Airlines    183,412 b    2,237,626 
Terex    25,600 a    1,678,592 
Textron    62,300    4,441,990 
Trane    42,800    1,999,188 
Tyco International    123,617    4,901,414 
Union Pacific    65,628    8,244,189 
United Parcel Service, Cl. B    262,650    18,574,608 
United Technologies    247,082    18,911,656 
W.W. Grainger    16,800    1,470,336 
Washington Post, Cl. B    1,400    1,108,002 
Waste Management    127,054    4,150,854 
        371,394,297 
Information Technology—16.7%         
Adobe Systems    143,400 a    6,127,482 
Advanced Micro Devices    150,900 a,b    1,131,750 
Affiliated Computer Services, Cl. A    25,100 a    1,132,010 
Agilent Technologies    96,590 a    3,548,717 
Akamai Technologies    41,500 a,b    1,435,900 
Altera    83,900 b    1,620,948 
Analog Devices    75,800    2,402,860 
Apple    218,800 a    43,339,904 
Applied Materials    344,400    6,116,544 
Autodesk    57,700 a    2,871,152 
Automatic Data Processing    131,478    5,854,715 
BMC Software    48,900 a    1,742,796 
Broadcom, Cl. A    117,587 a    3,073,724 
CA    97,909 b    2,442,830 
Ciena    21,485 a,b    732,853 
Cisco Systems    1,516,218 a    41,044,021 
Citrix Systems    47,400 a    1,801,674 
Cognizant Technology Solutions, Cl. A    72,600 a    2,464,044 
Computer Sciences    43,500 a    2,151,945 
Compuware    71,500 a    634,920 
Convergys    32,502 a    534,983 

The Fund 19

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Information Technology (continued)         
Corning    393,798    9,447,214 
Dell    560,012 a    13,725,894 
eBay    284,100 a    9,429,279 
Electronic Arts    78,700 a    4,596,867 
Electronic Data Systems    127,950    2,652,404 
EMC    524,344 a    9,716,094 
Fidelity National Information Services    42,700    1,775,893 
Fiserv    41,182 a    2,285,189 
Google, Cl. A    57,900 a    40,036,692 
Hewlett-Packard    644,280    32,523,254 
Intel    1,461,210    38,955,859 
International Business Machines    344,368 b    37,226,182 
Intuit    83,200 a    2,629,952 
Jabil Circuit    52,000 b    794,040 
JDS Uniphase    54,899 a,b    730,157 
Juniper Networks    130,400 a    4,329,280 
KLA-Tencor    45,500    2,191,280 
Lexmark International, Cl. A    23,650 a    824,439 
Linear Technology    55,850 b    1,777,706 
LSI    176,400 a,b    936,684 
MEMC Electronic Materials    57,300 a    5,070,477 
Microchip Technology    53,500 b    1,680,970 
Micron Technology    190,050 a,b    1,377,863 
Microsoft    2,010,696    71,580,778 
Molex    35,375 b    965,738 
Motorola    570,885    9,156,995 
National Semiconductor    58,700 b    1,328,968 
Network Appliance    86,000 a    2,146,560 
Novell    87,400 a    600,438 
Novellus Systems    29,000 a,b    799,530 
NVIDIA    138,800 a    4,721,976 
Oracle    985,492 a    22,252,409 
Paychex    83,375    3,019,843 
QLogic    34,200 a    485,640 
QUALCOMM    409,000    16,094,150 

20

Common Stocks (continued)    Shares    Value ($) 
Information Technology (continued)         
SanDisk    57,000 a    1,890,690 
Sun Microsystems    207,046 a    3,753,744 
Symantec    216,779 a    3,498,813 
Tellabs    109,800 a    718,092 
Teradata    45,200 a    1,238,932 
Teradyne    43,400 a    448,756 
Texas Instruments    349,448    11,671,563 
Total System Services    49,500    1,386,000 
Tyco Electronics    124,217    4,612,177 
Unisys    86,900 a    411,037 
VeriSign    55,200 a,b    2,076,072 
Western Union    187,640    4,555,899 
Xerox    231,066    3,740,959 
Xilinx    73,500 b    1,607,445 
Yahoo!    333,976 a    7,768,282 
        539,450,927 
Materials—3.3%         
Air Products & Chemicals    53,850    5,311,226 
Alcoa    211,956    7,746,992 
Allegheny Technologies    25,536    2,206,310 
Ashland    14,000    664,020 
Ball    25,100    1,129,500 
Bemis    25,100    687,238 
Dow Chemical    236,052    9,305,170 
E.I. du Pont de Nemours & Co.    224,650    9,904,819 
Eastman Chemical    20,200    1,234,018 
Ecolab    43,700    2,237,877 
Freeport-McMoRan Copper & Gold    95,482 b    9,781,176 
Hercules    28,900 b    559,215 
International Flavors & Fragrances    20,300    977,039 
International Paper    107,020    3,465,308 
MeadWestvaco    46,139    1,444,151 
Monsanto    136,626    15,259,758 
Newmont Mining    112,954 b    5,515,544 
Nucor    72,000    4,263,840 

The Fund 21

STATEMENT OF INVESTMENTS (continued)

Common Stocks (continued)    Shares    Value ($) 
Materials (continued)         
Pactiv    32,650 a    869,470 
PPG Industries    40,933 b    2,874,725 
Praxair    78,900    6,999,219 
Rohm & Haas    31,341    1,663,267 
Sealed Air    40,346    933,606 
Sigma-Aldrich    32,500    1,774,500 
Titanium Metals    21,900 b    579,255 
United States Steel    29,500    3,566,845 
Vulcan Materials    27,000 b    2,135,430 
Weyerhaeuser    52,400    3,863,976 
        106,953,494 
Telecommunication Services—3.6%         
American Tower, Cl. A    101,200 a    4,311,120 
AT & T    1,515,630    62,989,583 
CenturyTel    27,600    1,144,296 
Citizens Communications    81,900    1,042,587 
Embarq    38,208    1,892,442 
Qwest Communications International    392,462 b    2,751,159 
Sprint Nextel    710,761 b    9,332,292 
Verizon Communications    722,313    31,557,855 
Windstream    119,228    1,552,349 
        116,573,683 
Utilities—3.7%         
AES    167,300 a    3,578,547 
Allegheny Energy    41,500 b    2,639,815 
Ameren    52,000 b    2,818,920 
American Electric Power    99,950    4,653,672 
CenterPoint Energy    80,246 b    1,374,614 
CMS Energy    56,300 b    978,494 
Consolidated Edison    67,900 b    3,316,915 
Constellation Energy Group    45,150    4,629,230 
Dominion Resources    146,184    6,936,431 
DTE Energy    40,950    1,800,162 
Duke Energy    315,147    6,356,515 

22

Common Stocks (continued)    Shares    Value ($) 
Utilities (continued)         
Dynergy, Cl. A    123,928 a    884,846 
Edison International    81,400    4,344,318 
Entergy    48,550    5,802,696 
Exelon    164,950    13,466,518 
FirstEnergy    76,233    5,514,695 
FPL Group    101,700    6,893,226 
Integrys Energy    19,029    983,609 
Nicor    11,300 b    478,555 
NiSource    68,553    1,294,966 
Pepco Holdings    50,100    1,469,433 
PG & E    88,450    3,811,311 
Pinnacle West Capital    25,100    1,064,491 
PPL    93,000    4,844,370 
Progress Energy    64,785    3,137,538 
Public Service Enterprise Group    63,550    6,243,152 
Questar    43,200    2,337,120 
Range Resources    37,300    1,915,728 
Sempra Energy    65,295    4,040,455 
Southern    189,810    7,355,138 
TECO Energy    52,700 b    906,967 
Xcel Energy    104,995    2,369,738 
        118,242,185 
Total Common Stocks         
(cost $1,928,643,611)        3,215,236,434 
 
    Principal     
Short-Term Investments—.1%    Amount ($)    Value ($) 
U.S. Treasury Bills:         
2.95%, 3/6/08    1,007,000 c    1,001,582 
3.02%, 2/28/08    1,100,000 c    1,094,819 
3.44%, 1/31/08    1,600,000 c    1,596,256 
3.76%, 1/24/08    250,000 c    249,600 
Total Short-Term Investments         
(cost $3,941,097)        3,942,257 

The Fund 23

STATEMENT OF INVESTMENTS (continued)

Other Investment—.4%    Shares    Value ($) 
Registered Investment Company;         
Dreyfus Institutional Preferred         
Plus Money Market Fund         
(cost $14,521,000)    14,521,000 d    14,521,000 
 
Investment of Cash Collateral         
for Securities Loaned—5.5%         
Registered Investment Company;         
Dreyfus Institutional Cash         
Advantage Plus Fund         
(cost $177,302,538)    177,302,538 d    177,302,538 
 
Total Investments (cost $2,124,408,246)    105.4%    3,411,002,229 
Liabilities, Less Cash and Receivables    (5.4%)    (176,082,070) 
Net Assets    100.0%    3,234,920,159 

a Non-income producing security. 
b All or a portion of these securities are on loan. At December 31, 2007, the total market value of the fund’s securities 
on loan is $206,831,761 and the total market value of the collateral held by the fund is $215,547,233, consisting 
of cash collateral of $177,302,538 and U.S. Government and agency securities valued at $38,244,695. 
c All or partially held by a broker as collateral for open financial futures positions. 
d Investment in affiliated money market mutual fund. 

Portfolio Summary (Unaudited) †         
 
    Value (%)        Value (%) 
Financial    17.4    Short-Term/Money     
Information Technology    16.7    Market Investments    6.0 
Energy    12.7    Utilities    3.7 
Health Care    11.9    Telecommunication Services    3.6 
Industrial    11.5    Materials    3.3 
Consumer Staples    10.2         
Consumer Discretionary    8.4        105.4 

† Based on net assets. 
See notes to financial statements. 

24

STATEMENT OF FINANCIAL FUTURES 
December 31, 2007 

        Market Value        Unrealized 
        Covered by        Appreciation 
    Contracts    Contracts ($)    Expiration    at 12/31/2007 ($) 
 
Financial Futures Long                 
Standard & Poor’s 500    61    22,527,300    March 2008    96,720 

See notes to financial statements.

The Fund 25

STATEMENT OF ASSETS AND LIABILITIES 
December 31, 2007 

    Cost    Value 
Assets ($):         
Investments in securities—See Statement         
of Investments (including securities on loan,     
valued at $206,831,761)—Note 1(b):         
Unaffiliated issuers    1,932,584,708    3,219,178,691 
Affiliated issuers    191,823,538    191,823,538 
Cash        478,297 
Dividends and interest receivable        4,904,562 
Receivable for investment securities sold        2,769,927 
Receivable for shares of Common Stock subscribed    402,464 
Prepaid expenses        3,630 
        3,419,561,109 
Liabilities ($):         
Due to The Dreyfus Corporation and affiliates—Note 3(c)    804,464 
Liability for securities on loan—Note 1(b)        177,302,538 
Payable for investment securities purchased    3,007,210 
Payable for shares of Common Stock redeemed    2,856,351 
Payable for futures variation margin—Note 4    133,350 
Interest payable—Note 2        14,781 
Accrued expenses        522,256 
        184,640,950 
Net Assets ($)        3,234,920,159 
Composition of Net Assets ($):         
Paid-in capital        2,092,117,708 
Accumulated undistributed investment income—net    662,532 
Accumulated net realized gain (loss) on investments    (144,550,784) 
Accumulated net unrealized appreciation         
(depreciation) on investments (including $96,720     
net unrealized appreciation on financial futures)    1,286,690,703 
Net Assets ($)        3,234,920,159 
 
 
Net Asset Value Per Share         
    Initial Shares    Service Shares 
Net Assets ($)    2,702,209,060    532,711,099 
Shares Outstanding    72,248,089    14,239,092 
Net Asset Value Per Share ($)    37.40    37.41 

See notes to financial statements.

26

STATEMENT OF OPERATIONS 
Year Ended December 31, 2007 

Investment Income ($):     
Income:     
Dividends:     
Unaffiliated issuers    71,179,423 
Affiliated issuers    1,248,709 
Interest    147,926 
Income from securities lending    303,109 
Total Income    72,879,167 
Expenses:     
Management fee—Note 3(a)    9,078,491 
Distribution fees (Service Shares)—Note 3(b)    1,468,294 
Prospectus and shareholders’ reports    532,814 
Directors’ fees and expenses—Note 3(d)    198,942 
Professional fees    99,244 
Shareholder servicing costs (Initial Shares)—Note 3(c)    31,547 
Loan commitment fees—Note 2    25,434 
Interest expense—Note 2    18,215 
Miscellaneous    153,860 
Total Expenses    11,606,841 
Investment Income—Net    61,272,326 
Realized and Unrealized Gain (Loss) on Investments—Note 4 ($): 
Net realized gain (loss) on investments    614,789,281 
Net realized gain (loss) on financial futures    (3,581,663) 
Net Realized Gain (Loss)    611,207,618 
Net unrealized appreciation (depreciation) on investments (including 
$228,895 net unrealized appreciation on financial futures)    (452,122,460) 
Net Realized and Unrealized Gain (Loss) on Investments    159,085,158 
Net (Increase) in Net Assets Resulting from Operations    220,357,484 

a    On April 27, 2007, the fund had a redemption-in-kind with total proceeds in the amount of $592,868,197.The 
    net realized gain of the transaction of $262,068,054 will not be realized for tax purposes. 
See notes to financial statements. 

The Fund 27

STATEMENT OF CHANGES IN NET ASSETS

    Year Ended December 31, 
    2007    2006 
Operations ($):         
Investment income—net    61,272,326    67,147,348 
Net realized gain (loss) on investments    611,207,618    34,544,172 
Net unrealized appreciation         
(depreciation) on investments    (452,122,460)    487,048,921 
Net Increase (Decrease) in Net Assets         
Resulting from Operations    220,357,484    588,740,441 
Dividends to Shareholders from ($):         
Investment income—net:         
Initial Shares    (51,901,425)    (58,504,884) 
Service Shares    (8,464,420)    (7,682,739) 
Total Dividends    (60,365,845)    (66,187,623) 
Capital Stock Transactions ($):         
Net proceeds from shares sold:         
Initial Shares    191,058,227    214,641,802 
Service Shares    45,115,540    71,589,515 
Dividends reinvested:         
Initial Shares    51,901,425    58,504,884 
Service Shares    8,464,420    7,682,739 
Cost of shares redeemed:         
Initial Shares    (1,273,704,679)    (748,919,033) 
Service Shares    (132,956,416)    (87,250,920) 
Increase (Decrease) in Net Assets         
from Capital Stock Transactions    (1,110,121,483)    (483,751,013) 
Total Increase (Decrease) in Net Assets    (950,129,844)    38,801,805 
Net Assets ($):         
Beginning of Period    4,185,050,003    4,146,248,198 
End of Period    3,234,920,159    4,185,050,003 
Undistributed investment income—net    662,532    497,350 

28

    Year Ended December 31, 
    2007    2006 
Capital Share Transactions:         
Initial Shares         
Shares sold    5,108,918    6,432,965 
Shares issued for dividends reinvested    1,381,441    1,728,125 
Shares redeemed    (33,667,185)    (22,393,535) 
Net Increase (Decrease) in Shares Outstanding    (27,176,826)    (14,232,445) 
Service Shares         
Shares sold    1,202,179    2,117,508 
Shares issued for dividends reinvested    224,806    226,501 
Shares redeemed    (3,531,945)    (2,654,935) 
Net Increase (Decrease) in Shares Outstanding    (2,104,960)    (310,926) 

See notes to financial statements.

The Fund 29

FINANCIAL HIGHLIGHTS

The following tables describe the performance for each share class for the fiscal periods indicated. All information (except portfolio turnover rate) reflects financial results for a single fund share.Total return shows how much your investment in the fund would have increased (or decreased) during each period, assuming you had reinvested all dividends and distributions.These figures have been derived from the fund’s financial statements.

            Year Ended December 31,     
Initial Shares    2007    2006    2005    2004    2003 
Per Share Data ($):                     
Net asset value,                     
beginning of period    36.15    31.82    30.89    28.43    22.47 
Investment Operations:                     
Investment income—net a    .64    .56    .49    .51    .37 
Net realized and unrealized                     
gain (loss) on investments    1.26    4.33    .94    2.48    5.96 
Total from Investment Operations    1.90    4.89    1.43    2.99    6.33 
Distributions:                     
Dividends from investment                     
income—net    (.65)    (.56)    (.50)    (.53)    (.37) 
Dividends from return of capital    —    —    (.00)b    (.00)b    — 
Total Distributions    (.65)    (.56)    (.50)    (.53)    (.37) 
Net asset value, end of period    37.40    36.15    31.82    30.89    28.43 
Total Return (%)    5.26    15.50    4.69    10.64    28.36 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .27    .27    .27    .26    .28 
Ratio of net investment income                     
to average net assets    1.70    1.67    1.60    1.76    1.52 
Portfolio Turnover Rate    4.54    4.91    6.09    3.78    2.80 
Net Assets, end of period                     
($ x 1,000)    2,702,209    3,594,085    3,616,211    3,842,397    3,771,728 

a    Based on average shares outstanding at each month end. 
b    Amount represents less than $.01 per share. 
See notes to financial statements. 

30

        Year Ended December 31,     
Service Shares    2007    2006    2005    2004    2003 
Per Share Data ($):                     
Net asset value,                     
beginning of period    36.16    31.82    30.90    28.40    22.44 
Investment Operations:                     
Investment income—net a    .55    .47    .42    .46    .32 
Net realized and unrealized                     
gain (loss) on investments    1.26    4.35    .93    2.46    5.93 
Total from Investment Operations    1.81    4.82    1.35    2.92    6.25 
Distributions:                     
Dividends from investment                     
income—net    (.56)    (.48)    (.43)    (.42)    (.29) 
Dividends from return of capital    —    —    (.00)b    (.00)b    — 
Total Distributions    (.56)    (.48)    (.43)    (.42)    (.29) 
Net asset value, end of period    37.41    36.16    31.82    30.90    28.40 
Total Return (%)    4.99    15.21    4.43    10.35    28.05 
Ratios/Supplemental Data (%):                     
Ratio of total expenses                     
to average net assets    .52    .52    .52    .51    .53 
Ratio of net investment income                     
to average net assets    1.45    1.43    1.35    1.59    1.27 
Portfolio Turnover Rate    4.54    4.91    6.09    3.78    2.80 
Net Assets, end of period                     
($ x 1,000)    532,711    590,965    530,037    503,456    283,150 

a    Based on average shares outstanding at each month end. 
b    Amount represents less than $.01 per share. 
See notes to financial statements. 

The Fund 31

NOTES TO FINANCIAL STATEMENTS

NOTE 1—Significant Accounting Policies:

Dreyfus Stock Index Fund, Inc. (the “fund”) is registered under the Investment Company Act of 1940, as amended (the “Act”), as a non-diversified open-end management investment company, that is intended to be a funding vehicle for variable annuity contracts and variable life insurance policies to be offered by the separate accounts of life insurance companies.The fund’s investment objective is to match the total return of the Standard and Poor’s 500 Composite Stock Price Index. The Dreyfus Corporation (the “Manager” or “Dreyfus”) serves as the fund’s manager and Mellon Equity Associates (“Mellon Equity”), an affiliate of Dreyfus, served as the fund’s index manager. On December 31, 2007, Mellon Equity was merged into its affiliate,Mellon Capital Management Corporation (“Mellon Capital”) immediately following a transfer of the Mellon Equity partnership interests among affiliates (the “Transaction”). There has been no change in the ultimate control of Mellon Equity, as both Mellon Capital and Mellon Equity are indirect, wholly-owned subsidiaries of The Bank of New York Mellon Corporation.

On July 1, 2007, Mellon Financial Corporation and The Bank of New York Company, Inc. merged, forming The Bank of New York Mellon Corporation (“BNY Mellon”). As part of this transaction, Dreyfus became a wholly-owned subsidiary of BNY Mellon.

MBSC Securities Corporation (the “Distributor”), a wholly-owned subsidiary of Dreyfus, is the distributor of the fund’s shares, which are sold without a sales charge.The fund is authorized to issue 400 million shares of $.001 par value Common Stock in each of the following classes of shares: Initial shares (250 million shares authorized) and Service shares (150 million shares authorized). Initial shares are subject to a shareholder services fee and Service shares are subject to a distribution fee. Each class of shares has identical rights and privileges, except with respect to the distribution plan and shareholder services plan and the expenses borne by each class, the allocation of certain transfer agency class and certain voting rights. Income, expenses (other than expenses attributable to a specific class), and realized and unrealized gains or losses on investments are allocated to each class of shares based on its relative net assets.

32

The fund’s financial statements are prepared in accordance with U.S. generally accepted accounting principles, which requires the use of management estimates and assumptions. Actual results could differ from those estimates.

The fund enters into contracts that contain a variety of indemnifications. The fund’s maximum exposure under these arrangements is unknown.The fund does not anticipate recognizing any loss related to these arrangements.

(a) Portfolio valuation: Investments in securities are valued at the last sales price on the securities exchange or national securities market on which such securities are primarily traded. Securities listed on the National Market System for which market quotations are available are valued at the official closing price or, if there is no official closing price that day, at the last sales price. 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. Registered open-end investment companies that are traded on an exchange are valued at their net asset value.When market quotations or official closing prices are not readily available, or are determined not to reflect accurately fair value, such as when the value of a security has been significantly affected by events after the close of the exchange or market on which the security is principally traded (for example, a foreign exchange or market), but before the fund calculates its net asset value, the fund may value these investments at fair value as determined in accordance with the procedures approved by the Board of Directors. Fair valuing of securities may be determined with the assistance of a pricing service using calculations based on indices of domestic securities and other appropriate indicators, such as prices of relevant ADRs and futures contracts. For other securities that are fair valued by the Board of Directors, certain factors may be considered such as: fundamental analytical data, the nature and duration of restrictions on disposition, an evaluation of the forces that influence the market in which the securities are purchased and sold, and public trading

The Fund 33

NOTES TO FINANCIAL STATEMENTS (continued)

in similar securities of the issuer or comparable issuers. Financial futures are valued at the last sales price on the principal exchange.

The Financial Accounting Standards Board (“FASB”) released Statement of Financial Accounting Standards No. 157 “Fair Value Measurements” (“FAS 157”). FAS 157 establishes an authoritative definition of fair value, sets out a framework for measuring fair value, and requires additional disclosures about fair-value measurements.The application of FAS 157 is required for fiscal years beginning after November 15, 2007 and interim periods within those fiscal years. Management does not believe that the application of this standard will have a material impact on the financial statements of the fund.

(b) Securities transactions and investment income: Securities transactions are recorded on a trade date basis. Realized gains and losses from securities transactions are recorded on the identified cost basis. Dividend income is recognized on the ex-dividend date and interest income is determined on the basis of coupon interest accrued, adjusted for accretion of discount of premium on debt securities.

The fund has an arrangement with the custodian bank whereby the fund receives earnings credits from the custodian when positive cash balances are maintained, which are used to offset custody fees. For financial reporting purposes, the fund includes net earnings credits, if any, as an expense offset in the Statement of Operations.

Pursuant to a securities lending agreement with Mellon Bank, N.A. (“Mellon Bank”), an affiliate of Dreyfus, the fund may lend securities to qualified institutions. It is the fund’s policy, that at origination, all loans are secured by collateral of at least 102% of the value of U.S. securities loaned and 105% of the value of foreign securities loaned. It is the fund’s policy that collateral equivalent to at least 100% of the market value of securities on loan is maintained at all times. Collaterals are either in the form of cash, which can be invested in certain money market mutual funds managed by Dreyfus, U.S. Government and Agency securities or Letters of Credit.The fund is entitled to receive all income on securities loaned, in addition to income earned as a result of the lending transac-tion.Although each security loaned is fully collateralized, the fund bears

34

the risk of delay in recovery of, or loss of rights in, the securities loaned should a borrower fail to return the securities in a timely manner. During the period ended December 31, 2007, Mellon Bank earned $129,904 from lending fund portfolio securities, pursuant to the securities lending agreement.

(c) Affiliated issuers: Investments in other investment companies advised by the Manager 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 gains, if any, 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 of 1986, as amended (the “Code”). To the extent that net realized capital gains can be offset by capital loss carryovers, it is the policy of the fund not to distribute such gains. Income and capital gain distributions are determined in accordance with income tax regulations, which may differ from U.S. generally accepted accounting principles.

(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 Code, and to make distributions of taxable income sufficient to relieve it from substantially all federal income and excise taxes.

During the current year, the fund adopted FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine

The Fund 35

NOTES TO FINANCIAL STATEMENTS (continued)

whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority.Tax positions not deemed to meet the more-likely-than-not threshold would be recorded as a tax benefit or expense in the current year.The adoption of FIN 48 had no impact on the operations of the fund for the period ended December 31, 2007.

The fund is not subject to examination by U.S. Federal, State and City tax authorities for the tax years before 2004.

At December 31, 2007, the components accumulated earnings on a tax basis were as follows: undistributed ordinary income $412,810, undistributed capital losses $68,637,255 and unrealized appreciation $1,211,026,896.

The accumulated capital loss carryover is available to be applied against future net securities profits, if any, realized subsequent to December 31, 2007. If not applied, $3,448,291 of the carryover expires in fiscal 2011, $15,235,400 expires in fiscal 2012 and $49,953,564 expires in fiscal 2013.

The tax characters of distributions paid to shareholders during fiscal periods ended December 31, 2007 and December 31, 2006 were as follows: ordinary income $60,365,845 and $66,187,623, respectively.

During the period ended December 31, 2007, as a result of permanent book to tax differences, primarily due to the tax treatment for real estate investment trusts and net realized gains from redemption-in-kind, the fund decreased accumulated undistributed investment income-net by $741,299, decreased net realized gain (loss) on investments by $250,215,115 and increased paid-in-capital by $250,956,414. Net assets and net asset value per share were not affected by this reclassification.

NOTE 2—Bank Line of Credit:

The fund participates with other Dreyfus-managed funds in a $350 million redemption credit facility (the “Facility”) to be utilized for temporary or emergency purposes, including the financing of redemptions. In connection therewith, the fund has agreed to pay commitment fees

36

on its pro rata portion of the Facility. Interest is charged to the fund based on prevailing market rates in effect at the time of borrowings.

The average daily amount of borrowings outstanding under the Facility during the period ended December 31, 2007, was approximately $322,800 with a related weighted average annualized interest rate of 5.64% .

NOTE 3—Management Fee, Index Management Fee and Other Transactions With Affiliates:

(a) Pursuant to a Management Agreement with Dreyfus, the management fee is computed at the annual rate of .245% of the value of the fund’s average daily net assets, and is payable monthly. Dreyfus has agreed to pay Mellon Capital a monthly index-management fee at the annual rate of .095% of the value of the fund’s average daily net assets. Dreyfus has undertaken from January 1, 2007 until such time as they give shareholders at least 180 days notice to the contrary that if any full fiscal year the fund’s aggregate expenses exclusive of brokerage commissions, Rule 12b-1 distribution plan fees, transaction fees and extraordinary expenses, exceed an annual rate of .40% of the fund’s average daily net assets, the fund may deduct from the payments to be made to Dreyfus, or Dreyfus will bear, such excess expense. During the period ended December 31, 2007, there was no expense reimbursement pursuant to the undertaking.

(b) Under the Distribution Plan (the “Plan”) adopted pursuant to Rule 12b-1 under the Act, Service shares pay the Distributor for distributing their shares, for servicing and/or maintaining Service shares shareholder accounts and for advertising and marketing for Service shares.The Plan provides payments to be made at an annual rate of .25% of the value of the Service shares average daily net assets. The Distributor may make payments to Participating Insurance Companies and brokers and dealers acting as principal underwriter for their variable insurance products. The fees payable under the Plan are payable without regard to actual expenses incurred. During the period ended December 31, 2007, Service shares were charged $1,468,294 pursuant to the Plan.

The Fund 37

NOTES TO FINANCIAL STATEMENTS (continued)

(c) Under the Shareholder Services Plan, Initial shares reimburse the Distributor an amount not to exceed an annual rate of .25% of the value of the Initial shares’ average daily net assets for certain allocated expenses with respect to servicing and/or maintaining Initial shares shareholder accounts. During the period ended December 31, 2007, Initial shares were charged $22,223 pursuant to the Shareholders Services Plan.

The fund compensates Dreyfus Transfer, Inc., a wholly-owned subsidiary of Dreyfus, under a transfer agency agreement for providing personnel and facilities to perform transfer agency services for the fund. During the period ended December 31, 2007, the fund was charged $1,168 pursuant to the transfer agency agreement.

During the period ended December 31, 2007, the fund was charged $4,821 for services performed by the Chief Compliance Officer which is included in miscellaneous expenses.

The components of “Due to The Dreyfus Corporation and affiliates” in the Statement of Assets and Liabilities consist of: management fees $683,653, Rule 12b-1 distribution plan fees $114,965, shareholder services plan fees $2,000, chief compliance officer fees $3,616 and transfer agency per account fees $230.

(d) Each Board member also serves as a Board member of other funds within the Dreyfus complex. Annual retainer fees and attendance fees are allocated to each fund based on net assets.

NOTE 4—Securities Transactions:

The aggregate amount of purchases and sales of investment securities, excluding short-term securities and financial futures, during the period ended December 31, 2007, amounted to $165,861,144 and $1,275,863,217, respectively.

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. 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.

38

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 broker, which consist of cash or cash equivalents. 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 December 31, 2007 are set forth in the Statement of Financial Futures.

At December 31, 2007, the cost of investments for federal income tax purposes was $2,199,975,333; accordingly, accumulated net unrealized appreciation on investments was $1,211,026,896, consisting of $1,454,770,301 gross unrealized appreciation and $243,743,405 gross unrealized depreciation.

NOTE 5—Change in Independent Registered Public Accounting Firm:

PricewaterhouseCoopers LLP (“PWC”), 300 Madison Avenue, New York, New York 10017, an independent registered public accounting firm,was the independent registered public accounting firm for the fund for the fiscal year ended December 31, 2006. At a meeting held on December 5, 2006, the Audit Committee and the Board of Directors of the fund engaged Ernst & Young LLP to replace PWC as the independent registered public accounting firm for the fund, effective upon the conclusion of the audit of the 2006 financial statements of the fund.

During the funds’ past two fiscal years and any subsequent interim period: (i) no report on the funds’ financial statements contained an adverse opinion or a disclaimer of opinion, or was qualified or modified as to uncertainty, audit scope, or accounting principles; and (ii) there were no “disagreements” (as such term is used in Item 304 of Regulation S-K) with PWC on any matter of accounting principles or practices, financial statement disclosure, or auditing scope or procedure, which disagreement(s), if not resolved to the satisfaction of PWC, would have caused it to make reference to the subject matter of the disagreement(s) in connection with its report.

The Fund 39

REPORT OF INDEPENDENT REGISTERED 
PUBLIC ACCOUNTING FIRM 

Shareholders and Board of Directors 
Dreyfus Stock Index Fund, Inc. 

We have audited the accompanying statement of assets and liabilities of Dreyfus Stock Index Fund, including the statements of investments and financial futures, as of December 31, 2007, and the related statement of operations, the statement of changes in net assets and financial highlights the year then ended.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 audit.The statement of changes in net assets for the year ended December 31, 2006 and the highlights for each of the indicated periods through December 31, 2006, were audited by other auditors whose report dated February 7, 2007, expressed an unqualified opinion on the statements and financial highlights.

We conducted our audit in accordance with the standards of the Public Company Accounting Oversight Board (United States). 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.We were not engaged to perform an audit of the Fund’s internal control over financial reporting. Our audits included consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Fund’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements and financial highlights, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. Our procedures included confirmation of securities owned as of December 31, 2007, by correspondence with the custodian and others. 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 Stock Index Fund at December 31, 2007, and the results of its operations, the changes in its net assets, and financial highlights the year then ended, in conformity with U.S. generally accepted accounting principles.

New York, New York
February 11, 2008

40

IMPORTANT TAX INFORMATION ( U n a u d i t e d )

For federal tax purposes, the portfolio hereby designates 100% of the ordinary dividends paid during the fiscal year ended December 31, 2007 as qualifying for the corporate dividends received deduction. Shareholders will receive notification in January 2008 of the percentage applicable to the preparation of their 2007 income tax returns.

The Fund 41

BOARD MEMBERS INFORMATION ( U n a u d i t e d )

Joseph S. DiMartino (64) 
Chairman of the Board (1995) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• The Muscular Dystrophy Association, Director 
• Century Business Services, Inc., a provider of outsourcing functions for small and 
medium size companies, Director 
• The Newark Group, a provider of a national market of paper recovery facilities, paperboard 
mills and paperboard converting plants, Director 
• Sunair Services Corporation, a provider of certain outdoor-related services to homes and 
businesses, Director 
No. of Portfolios for which Board Member Serves: 163 

Peggy C. Davis (64) 
Board Member (2006) 
Principal Occupation During Past 5 Years: 
• Shad Professor of Law, New York University School of Law (1983-present) 
• Writer and teacher in the fields of evidence, constitutional theory, family law, social sciences 
and the law, legal process and professional methodology and training 
No. of Portfolios for which Board Member Serves: 64 

David P. Feldman (68) 
Board Member (1989) 
Principal Occupation During Past 5 Years: 
• Corporate Director and Trustee 
Other Board Memberships and Affiliations: 
• BBH Mutual Funds Group (11 funds), Director 
• The Jeffrey Company, a private investment company, Director 
No. of Portfolios for which Board Member Serves: 50 

42

James F. Henry (77) 
Board Member (2006) 
Principal Occupation During Past 5 Years: 
• President,The International Institute for Conflict Prevention and Resolution, a non- profit 
organization principally engaged in the development of alternatives to business litigation 
(Retired 2003) 
• Advisor to The Elaw Forum, a consultant on managing corporate legal costs 
• Advisor to John Jay Homestead (the restored home of the first U.S. Chief Justice) 
• Individual Trustee of several trusts 
Other Board Memberships and Affiliations: 
• Director, advisor and mediator involved in several non-profit organizations, primarily engaged 
in domestic and international dispute resolution, and historic preservation 
No. of Portfolios for which Board Member Serves: 41 

Ehud Houminer (67) 
Board Member (1996) 
Principal Occupation During Past 5 Years: 
• Executive-in-Residence at the Columbia Business School, Columbia University 
Other Board Memberships and Affiliations: 
• Avnet Inc., an electronics distributor, Director 
• International Advisory Board to the MBA Program School of Management, Ben Gurion 
University, Chairman 
No. of Portfolios for which Board Member Serves: 67 

Gloria Messinger (78) 
Board Member (1996) 
Principal Occupation During Past 5 Years: 
• Arbitrator for American Arbitration Association and National Association of Securities Dealers, Inc. 
• Consultant in Intellectual Property 
Other Board Memberships and Affiliations: 
• Theater for a New Audience, Inc., Director 
• Brooklyn Philharmonic, Director 
No. of Portfolios for which Board Member Serves: 41 

The Fund 43

BOARD MEMBERS INFORMATION (Unaudited) (continued)

Dr. Martin Peretz (68) 
Board Member (2006) 
Principal Occupation During Past 5 Years: 
• Editor-in-Chief of The New Republic Magazine 
• Lecturer in Social Studies at Harvard University (1965-2002) 
• Director of TheStreet.com, a financial information service on the web 
Other Board Memberships and Affiliations: 
• American Council of Trustees and Alumni, Director 
• Pershing Square Capital Management, Advisor 
• Montefiore Ventures, General Partner 
• Harvard Center for Blood Research,Trustee 
• Bard College,Trustee 
• Board of Overseers of YIVO Institute for Jewish Research, Chairman 
No. of Portfolios for which Board Member Serves: 41 

Anne Wexler (77) 
Board Member (1991) 
Principal Occupation During Past 5 Years: 
• Chairman of the Wexler & Walker Public Policy Associates, consultants specializing in 
government relations and public affairs from January 1981 to present 
Other Board Memberships and Affiliations: 
• Wilshire Mutual Funds (5 funds), Director 
• The Community Foundation for the National Capital Region, Director 
• Member of the Council of Foreign Relations 
• Member of the National Park Foundation 
No. of Portfolios for which Board Member Serves: 50 

Once elected all Board Members serve for an indefinite term, but achieve Emeritus status upon reaching age 80.The address of the Board Members and Officers is in c/o The Dreyfus Corporation, 200 Park Avenue, New York, New York 10166. Additional information about the Board Members is available in the fund’s Statement of Additional Information which can be obtained from Dreyfus free of charge by calling this toll free number: 1-800-554-4611.

John M. Fraser, Jr., Emeritus Board Member Dr. Paul A. Marks, Emeritus Board Member

44

OFFICERS OF THE FUND (Unaudited)

J. DAVID OFFICER, President since 
December 2006. 

Chief Operating Officer,Vice Chairman and a Director of the Manager, and an officer of 78 investment companies (comprised of 163 portfolios) managed by the Manager. He is 59 years old and has been an employee of the Manager since April 1998.

PHILLIP N. MAISANO, Executive Vice 
President since July 2007. 

Chief Investment Officer,Vice Chair and a director of the Manager, and an officer of 78 investment companies (comprised of 163 portfolios) managed by the Manager. Mr. Maisano also is an officer and/or Board member of certain other investment management subsidiaries of The Bank of New York Mellon Corporation, each of which is an affiliate of the Manager. He is 60 years old and has been an employee of the Manager since November 2006. Prior to joining the Manager, Mr. Maisano served as Chairman and Chief Executive Officer of EACM Advisors, an affiliate of the Manager, since August 2004, and served as Chief Executive Officer of Evaluation Associates, a leading institutional investment consulting firm, from 1988 until 2004.

MICHAEL A. ROSENBERG, Vice President 
and Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 47 years old and has been an employee of the Manager since October 1991.

JAMES BITETTO, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel and Secretary of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 41 years old and has been an employee of the Manager since December 1996.

JONI LACKS CHARATAN, Vice President 
and Assistant Secretary since 
August 2005. 

Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. She is 52 years old and has been an employee of the Manager since October 1988.

JOSEPH M. CHIOFFI, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 46 years old and has been an employee of the Manager since June 2000.

JANETTE E. FARRAGHER, Vice President 
and Assistant Secretary since 
August 2005. 

Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. She is 45 years old and has been an employee of the Manager since February 1984.

JOHN B. HAMMALIAN, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 44 years old and has been an employee of the Manager since February 1991.

ROBERT R. MULLERY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 55 years old and has been an employee of the Manager since May 1986.

The Fund 45

OFFICERS OF THE FUND (Unaudited) (continued)

JEFF PRUSNOFSKY, Vice President and 
Assistant Secretary since August 2005. 

Associate General Counsel of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 42 years old and has been an employee of the Manager since October 1990.

JAMES WINDELS, Treasurer since 
November 2001. 

Director – Mutual Fund Accounting of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 49 years old and has been an employee of the Manager since April 1985.

ROBERT ROBOL, Assistant Treasurer 
since August 2005. 

Senior Accounting Manager – Money Market and Municipal Bond Funds of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 43 years old and has been an employee of the Manager since October 1988.

ROBERT SALVIOLO, Assistant Treasurer 
since July 2007. 

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since June 1989.

ROBERT SVAGNA, Assistant Treasurer 
since December 2002. 

Senior Accounting Manager – Equity Funds of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 40 years old and has been an employee of the Manager since November 1990.

GAVIN C. REILLY, Assistant Treasurer 
since December 2005. 

Tax Manager of the Investment Accounting and Support Department of the Manager, and an officer of 79 investment companies (comprised of 180 portfolios) managed by the Manager. He is 39 years old and has been an employee of the Manager since April 1991.

JOSEPH W. CONNOLLY, Chief Compliance 
Officer since October 2004. 

Chief Compliance Officer of the Manager and The Dreyfus Family of Funds (79 investment companies, comprised of 180 portfolios). From November 2001 through March 2004, Mr. Connolly was first Vice-President, Mutual Fund Servicing for Mellon Global Securities Services. In that capacity, Mr. Connolly was responsible for managing Mellon’s Custody, Fund Accounting and Fund Administration services to third-party mutual fund clients. He is 50 years old and has served in various capacities with the Manager since 1980, including manager of the firm’s Fund Accounting Department from 1997 through October 2001.

WILLIAM GERMENIS, Anti-Money 
Laundering Compliance Officer since 
September 2002. 

Vice President and Anti-Money Laundering Compliance Officer of the Distributor, and the Anti-Money Laundering Compliance Officer of 75 investment companies (comprised of 176 portfolios) managed by the Manager. He is 37 years old and has been an employee of the Distributor since October 1998.

  46

NOTES

Item 2.    Code of Ethics. 

The Registrant has adopted a code of ethics that applies to the Registrant's principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions. There have been no amendments to, or waivers in connection with, the Code of Ethics during the period covered by this Report.

Item 3.    Audit Committee Financial Expert. 

The Registrant's Board has determined that David Feldman, a member of the Audit Committee of the Board, is an audit committee financial expert as defined by the Securities and Exchange Commission (the "SEC"). Mr. Feldman is "independent" as defined by the SEC for purposes of audit committee financial expert determinations.

Item 4.    Principal Accountant Fees and Services 

(a) Audit Fees. The aggregate fees billed for each of the last two fiscal years (the "Reporting Periods") for professional services rendered by the Registrant's principal accountant (the "Auditor") for the audit of the Registrant's annual financial statements, or services that are normally provided by the Auditor in connection with the statutory and regulatory filings or engagements for the Reporting Periods, were $46,000 in 2006 with respect to PricewaterhouseCoopers LLP (“PWC”), the Registrant’s previous Auditor and $46,000 in 2007 with respect to Ernst & Young LLP (“E&Y”), the Registrant’s current Auditor.

(b) Audit-Related Fees. The aggregate fees billed in the Reporting Periods for assurance and related services by the Auditor that are reasonably related to the performance of the audit of the Registrant's financial statements and are not reported under paragraph (a) of this Item 4 were $0 in 2006 and $14,778 in 2007 with respect to E&Y. These services consisted of (i) agreed upon procedures related to compliance with Internal Revenue Code section 817(h), (ii) security counts required by Rule 17f-2 under the Investment Company Act of 1940, as amended.

The aggregate fees billed in the Reporting Periods for non-audit assurance and related services by the Auditor to the Registrant's investment adviser (not including any sub-investment adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the Registrant ("Service Affiliates"), that were reasonably related to the performance of the annual audit of the Service Affiliate, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

Note: For the second paragraph in each of (b) through (d) of this Item 4, certain of such services were not pre-approved prior to May 6, 2003, when such services were required to be pre-approved. On and after May 6, 2003, 100% of all services provided by the Auditor were pre-approved as required. For comparative purposes, the fees shown assume that all such services were pre-approved, including services that were not pre-approved prior to the compliance date of the pre-approval requirement.

(c) Tax Fees. The aggregate fees billed in the Reporting Periods for professional services rendered by the Auditor for tax compliance, tax advice and tax planning ("Tax Services") were $3,300 in 2006 and $3,500 in

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2007 with respect to PWC. These services consisted of (i) review or preparation of U.S. federal, state, local and excise tax returns; (ii) U.S. federal, state and local tax planning, advice and assistance regarding statutory, regulatory or administrative developments, (iii) tax advice regarding tax qualification matters and/or treatment of various financial instruments held or proposed to be acquired or held.

The aggregate fees billed in the Reporting Periods for Tax Services by the Auditor to Service Affiliates which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

(d) All Other Fees. The aggregate fees billed in the Reporting Periods for products and services provided by the Auditor, other than the services reported in paragraphs (a) through (c) of this Item, were $0 2006 and $0 in 2007.

The aggregate fees billed in the Reporting Periods for Non-Audit Services by the Auditor to Service Affiliates, other than the services reported in paragraphs (b) through (c) of this Item, which required pre-approval by the Audit Committee were $0 in 2006 and $0 in 2007.

Audit Committee Pre-Approval Policies and Procedures. The Registrant's Audit Committee has established policies and procedures (the "Policy") for pre-approval (within specified fee limits) of the Auditor's engagements for non-audit services to the Registrant and Service Affiliates without specific case-by-case consideration. Pre-approval considerations include whether the proposed services are compatible with maintaining the Auditor's independence. Pre-approvals pursuant to the Policy are considered annually.

Non-Audit Fees. The aggregate non-audit fees billed by the Auditor for services rendered to the Registrant, and rendered to Service Affiliates, for the Reporting Periods were $90,000 in 2006with respect to PWC and $1,889,332 in 2007 with respect to E&Y.

Auditor Independence. The Registrant's Audit Committee has considered whether the provision of non-audit services that were rendered to Service Affiliates which were not pre-approved (not requiring pre-approval) is compatible with maintaining the Auditor's independence.

Item 5.    Audit Committee of Listed Registrants. 
    Not applicable. [CLOSED-END FUNDS ONLY] 
Item 6.    Schedule of Investments. 
    Not applicable. 
Item 7.    Disclosure of Proxy Voting Policies and Procedures for Closed-End Management 
    Investment Companies. 
    Not applicable. [CLOSED-END FUNDS ONLY] 
Item 8.    Portfolio Managers of Closed-End Management Investment Companies. 
    Not applicable. [CLOSED-END FUNDS ONLY, beginning with reports for periods ended 
    on and after December 31, 2005] 
Item 9.    Purchases of Equity Securities by Closed-End Management Investment Companies and 
    Affiliated Purchasers. 
    Not applicable. [CLOSED-END FUNDS ONLY] 

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Item 10.    Submission of Matters to a Vote of Security Holders. 

The Registrant has a Nominating Committee (the "Committee"), which is responsible for selecting and nominating persons for election or appointment by the Registrant's Board as Board members. The Committee has adopted a Nominating Committee Charter (the "Charter"). Pursuant to the Charter, the Committee will consider recommendations for nominees from shareholders submitted to the Secretary of the Registrant, c/o The Dreyfus Corporation Legal Department, 200 Park Avenue, 8th Floor East, New York, New York 10166. A nomination submission must include information regarding the recommended nominee as specified in the Charter. This information includes all information relating to a recommended nominee that is required to be disclosed in solicitations or proxy statements for the election of Board members, as well as information sufficient to evaluate the factors to be considered by the Committee, including character and integrity, business and professional experience, and whether the person has the ability to apply sound and independent business judgment and would act in the interests of the Registrant and its shareholders. Nomination submissions are required to be accompanied by a written consent of the individual to stand for election if nominated by the Board and to serve if elected by the shareholders, and such additional information must be provided regarding the recommended nominee as reasonably requested by the Committee.

Item 11.    Controls and Procedures. 

(a) The Registrant's principal executive and principal financial officers have concluded, based on their evaluation of the Registrant's disclosure controls and procedures as of a date within 90 days of the filing date of this report, that the Registrant's disclosure controls and procedures are reasonably designed to ensure that information required to be disclosed by the Registrant on Form N-CSR is recorded, processed, summarized and reported within the required time periods and that information required to be disclosed by the Registrant in the reports that it files or submits on Form N-CSR is accumulated and communicated to the Registrant's management, including its principal executive and principal financial officers, as appropriate to allow timely decisions regarding required disclosure.

(b) There were no changes to the Registrant's internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the Registrant's internal control over financial reporting.

Item 12.    Exhibits. 

(a)(1)    Code of ethics referred to in Item 2. 

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940.

(a)(3) Not applicable.

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the Registrant has duly caused this Report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dreyfus Stock Index Fund, Inc.

By:    /s/ J. David Officer 
    J. David Officer 
    President
 
Date:    February 14, 2008 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this Report has been signed below by the following persons on behalf of the Registrant and in the capacities and on the dates indicated.

By:    /s/ J. David Officer 
    J. David Officer 
    President
 
Date:    February 14, 2008 

By:    /s/ James Windels 
    James Windels 
    Treasurer
 
Date:    February 14, 2008 

EXHIBIT INDEX

(a)(1) Code of ethics referred to in Item 2.

(a)(2) Certifications of principal executive and principal financial officers as required by Rule 30a-2(a) under the Investment Company Act of 1940. (EX-99.CERT)

(b) Certification of principal executive and principal financial officers as required by Rule 30a-2(b) under the Investment Company Act of 1940. (EX-99.906CERT)

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