UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED

MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number 811-02297

Stratton Growth Fund, Inc.

(Exact name of registrant as specified in charter)

610 W. Germantown Pike, Suite 300

Plymouth Meeting, PA 19462-1050

(Address of principal executive offices) (Zip code)

Patricia L. Sloan, Secretary/Treasurer

Stratton Growth Fund, Inc.

610 W. Germantown Pike, Suite 300

Plymouth Meeting, PA 19462-1050

(Name and address of agent for service)

Registrant’s telephone number, including area code: 610-941-0255

Date of fiscal year end: December 31, 2004

Date of reporting period: September 30, 2004

Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.

A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.

Item 1. Schedule of Investments.

The Schedule of Investments is attached herewith.

SCHEDULE OF INVESTMENTS September 30, 2004 (unaudited)

Stratton Growth Fund

	Number of Shares	Market Value1
COMMON STOCKS – 95.3%
Banking/Financial – 9.4%
AmSouth Bancorporation	40,000	$	976,000
Capital One Financial Corp.	25,000		1,847,500
Commerce Bancorp, Inc. (NJ)	45,000		2,484,000
Countrywide Financial Corp.	51,000		2,008,890
			7,316,390
Basic Materials – 2.6%
International Paper Co.	50,000		2,020,500
Business Services – 2.1%
Waste Management, Inc.	60,000		1,640,400
Capital Goods – 13.7%
Deere & Co.	40,000		2,582,000
Ingersoll-Rand Co.  Class A	30,000		2,039,100
Rockwell Automation, Inc.	60,000		2,322,000
Tyco International Ltd.	60,000		1,839,600
Xerox Corp.†	130,000		1,830,400
			10,613,100
Chemical – 2.9%
Georgia Gulf Corp.	50,000		2,229,500
Construction – 6.7%
Centex Corp.	30,000		1,513,800
D. R. Horton, Inc.	67,500		2,234,925
Lennar Corp. Class A	30,000		1,428,000
			5,176,725
Consumer Durable – 5.3%
The Black & Decker Corp.	35,000		2,710,400
Hooker Furniture Corp.	50,000		1,381,500
			4,091,900
Consumer Services – 1.4%
American Express Co.	21,000		1,080,660
Distribution – 6.4%
IKON Office Solutions, Inc.	415,000		4,988,300
Energy – 18.7%
Anadarko Petroleum Corp.	35,000		2,322,600
Chesapeake Energy Corp.	100,000		1,583,000
Marathon Oil Corp.	60,000		2,476,800
Occidental Petroleum Corp.	50,000		2,796,500
Penn Virginia Corp.	75,000		2,969,250

	Number of Shares	Market Value1
Energy – Continued
Valero Energy Corp.	30,000	$	2,406,300
			14,554,450
Health Care – 1.2%
Wyeth	26,000		972,400
Industrial – 3.0%
Parker Hannifin Corp.	40,000		2,354,400
Insurance/Services – 8.9%
The Allstate Corp.	40,000		1,919,600
American International Group, Inc.	10,000		679,900
Lincoln National Corp.	20,000		940,000
PacifiCare Health Systems, Inc.†	60,000		2,202,000
The St. Paul Travelers Companies, Inc.	36,004		1,190,292
			6,931,792
Retailing – 2.2%
Office Depot, Inc.†	115,000		1,728,450
Technology – 5.6%
AMETEK, Inc.	55,000		1,667,600
C&D Technologies, Inc.	110,000		2,092,200
SunGard Data Systems Inc.†	25,000		594,250
			4,354,050
Transportation – 2.7%
Yellow Roadway Corp.†	45,000		2,110,050
Utilities – 2.5%
TXU Corp.	40,000		1,916,800
Total Common Stocks (Cost $48,409,013)			74,079,867
Total Investments – 95.3% (Cost $48,409,013*)			74,079,867
Cash and Other Assets Less Liabilities – 4.7%			3,645,509
NET ASSETS – 100.00%		$	77,725,376

† Non-income producing security

* Aggregate cost for federal income tax purposes is $48,409,013 and net unrealized appreciation is as follows:

Gross unrealized appreciation	$	26,316,073
Gross unrealized depreciation		(645,219	)
Net unrealized appreciation	$	25,670,854

¹ Security Valuation – Securities listed or admitted to trading on any national securities exchange are valued at their last sale price on the exchange where the securities are principally traded or, if there has been no sale on that date, at the mean between the last reported bid and asked prices. Securities traded in the over-the-counter market are valued at the official closing price if carried in the National Market Issues section by NASDAQ; other over-the-counter securities are valued at the mean between the closing bid and asked prices obtained from a principal market maker. All other securities and assets are valued at their fair value as determined in good faith by the Boards of Directors of the Funds, which may include the amortized cost method for securities maturing in sixty days or less and other cash equivalent investments.

Item 2. Controls and Procedures.

(a) The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of the report that includes the disclosure required by this paragraph, based on their evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or 240.15d-15(b)).

(b) There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of the Sarbanes-Oxley Act of 2002 are attached hereto.

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.

(Registrant)	Stratton Growth Fund, Inc.
By (Signature and Title)	/s/ James W. Stratton
	James W. Stratton,
	Chief Executive Officer
	(principal executive officer)

Date October 28, 2004

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 (Signature and Title)	/s/ James W. Stratton
	James W. Stratton,
	Chief Executive Officer
	(principal executive officer)

Date October 28, 2004

By (Signature and Title)	/s/ James A. Beers
	James A. Beers,
	Chief Financial Officer
	(principal financial officer)

Date October 28, 2004