UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21455
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Claymore Dividend & Income Fund
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(Exact name of registrant as specified in charter)
2455 Corporate West Drive, Lisle, IL 60532
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(Address of principal executive offices) (Zip code)
J. Thomas Futrell
2455 Corporate West Drive, Lisle, IL 60532
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(Name and address of agent for service)
Registrant's telephone number, including area code: (630) 505-3700
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Date of fiscal year end: October 31
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Date of reporting period: July 31, 2009
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 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. ss. 3507.
Item 1. Schedule of Investments.
Attached hereto.
DCS|CLAYMORE DIVIDEND & INCOME FUND
PORTFOLIO OF INVESTMENTS
JULY 31, 2009 (UNAUDITED)
NUMBER OF SHARES VALUE
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TOTAL LONG-TERM INVESTMENTS - 147.1%
COMMON STOCKS - 119.5%
CONSUMER DISCRETIONARY - 12.4%
13,135 Fortune Brands, Inc. $ 519,752
14,494 Genuine Parts Co. 513,377
154,917 Home Depot, Inc. 4,018,547
11,955 JC Penney Co., Inc. 360,443
29,750 Johnson Controls, Inc. 769,930
14,781 Leggett & Platt, Inc. 256,450
31,634 Limited Brands, Inc. 409,344
30,435 Mattel, Inc. 535,047
100,441 McDonald's Corp. 5,530,281
27,212 McGraw-Hill Cos., Inc. (The) 853,096
11,288 Nordstrom, Inc. 298,455
6,438 Pearson PLC, ADR (United Kingdom) 74,616
4,260 Snap-On, Inc. 151,784
7,433 Stanley Works (The) 298,435
10,535 Thomson Reuters Corp. (Canada) 341,650
10,091 VF Corp. 652,787
3,730 Whirlpool Corp. 212,946
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15,796,940
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CONSUMER STAPLES - 26.1%
172,816 Altria Group, Inc. 3,029,464
20,640 Avon Products, Inc. 668,323
25,342 Campbell Soup Co. 786,362
118,061 Coca-Cola Co. (The) 5,884,160
9,612 Diageo PLC, ADR (United Kingdom) 599,597
21,219 General Mills, Inc. 1,250,011
20,511 Hershey Co. (The) 819,414
25,618 HJ Heinz Co. 985,268
6,006 JM Smucker Co. (The) 300,480
26,188 Kellogg Co. 1,243,930
38,014 Kimberly-Clark Corp. 2,221,918
70,555 Kraft Foods, Inc. - Class A 1,999,529
7,703 Lorillard, Inc. 567,865
8,257 McCormick & Co., Inc. 266,041
107,529 PepsiCo, Inc. 6,102,271
95,489 Philip Morris International, Inc. 4,449,787
59,686 Sara Lee Corp. 635,059
53,973 Sysco Corp. 1,282,398
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33,091,877
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ENERGY - 15.4%
36,317 BP PLC, ADR (United Kingdom) 1,817,303
85,941 Chevron Corp. 5,970,321
120,680 ConocoPhillips 5,274,923
7,483 EnCana Corp. (Canada) 401,463
1,718 Enerplus Resources Fund (Canada) 37,452
35,880 Marathon Oil Corp. 1,157,130
4,605 Penn West Energy Trust (Canada) 60,187
16,044 Repsol YPF SA, ADR (Spain) 374,307
31,758 Royal Dutch Shell PLC, ADR (United Kingdom) 1,671,741
6,600 Sasol Ltd., ADR (South Africa) 235,752
6,387 Sunoco, Inc. 157,695
5,995 Tenaris SA, ADR (Luxembourg) 181,768
29,942 Total SA, ADR (France) 1,666,272
29,906 Williams Cos., Inc. (The) 499,131
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19,505,445
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FINANCIALS - 1.5%
9,480 Federated Investors, Inc. - Class B 245,816
3,766 Invesco Ltd. (Bermuda) 74,379
39,990 Marsh & McLennan Cos., Inc. 816,596
12,065 Plum Creek Timber Co., Inc. - REIT 377,393
5,368 Waddell & Reed Financial, Inc. - Class A 152,290
2,090,015 Washington Mutual, Inc. (a) 196,461
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1,862,935
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HEALTH CARE - 25.1%
102,358 Abbott Laboratories 4,605,086
22,991 AstraZeneca PLC, ADR (United Kingdom) 1,067,702
1,431 Biovail Corp. (Canada) 19,161
160,667 Bristol-Myers Squibb Co. 3,492,901
92,456 Eli Lilly & Co. 3,225,790
38,667 GlaxoSmithKline PLC, ADR (United Kingdom) 1,480,559
104,343 Johnson & Johnson 6,353,445
182,717 Merck & Co., Inc. 5,483,337
385,188 Pfizer, Inc. 6,136,045
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31,864,026
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INDUSTRIALS - 18.4%
63,457 3M Co. 4,474,988
9,365 Avery Dennison Corp. 250,326
32,008 Caterpillar, Inc. 1,410,272
3,035 Cooper Industries Ltd. - Class A (Bermuda) 100,003
9,487 Dover Corp. 322,653
14,445 Eaton Corp. 749,984
72,991 Emerson Electric Co. 2,655,413
1,765 Empresa Brasileira de Aeronautica SA, ADR (Brazil) (a) 34,400
4,193 Harsco Corp. 115,349
37,723 Honeywell International, Inc. 1,308,988
4,301 Hubbell, Inc. - Class B 160,513
48,008 Illinois Tool Works, Inc. 1,946,724
3,079 Ingersoll-Rand PLC (Ireland) 88,922
7,593 Koninklijke Philips Electronics NV (Netherlands) 172,817
34,417 Masco Corp. 479,429
18,768 Norfolk Southern Corp. 811,716
15,972 Northrop Grumman Corp. 712,032
6,898 Pentair, Inc. 188,453
19,380 Pitney Bowes, Inc. 400,197
7,147 Rockwell Automation, Inc. 295,957
21,640 RR Donnelley & Sons Co. 300,796
3,790 Tyco International Ltd. (Switzerland) 114,534
95,216 United Parcel Service, Inc. - Class B 5,115,956
43,594 Waste Management, Inc. 1,225,427
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23,435,849
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INFORMATION TECHNOLOGY - 10.1%
26,709 Analog Devices, Inc. 731,025
8,362 AU Optronics Corp., ADR (Taiwan) 93,153
48,112 Automatic Data Processing, Inc. 1,792,172
365,557 Intel Corp. 7,036,972
20,334 Linear Technology Corp. 546,375
14,814 Maxim Integrated Products, Inc. 262,504
16,690 Microchip Technology, Inc. 449,462
33,292 Paychex, Inc. 882,238
89,145 Taiwan Semiconductor Manufacturing Co. Ltd., ADR (Taiwan) 933,348
4,371 Tyco Electronics Ltd. (Switzerland) 93,845
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12,821,094
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MATERIALS - 8.0%
8,345 Bemis Co., Inc. 219,640
23,579 BHP Billiton Ltd., ADR (Australia) 1,484,534
7,801 Cia Siderurgica Nacional SA, ADR (Brazil) 199,706
4,146 CRH PLC, ADR (Ireland) 102,531
87,486 Dow Chemical Co. (The) 1,852,079
6,911 Eastman Chemical Co. 343,200
84,574 EI Du Pont de Nemours & Co. 2,615,874
2,143 Greif, Inc. - Class A 110,000
5,784 International Flavors & Fragrances, Inc. 203,944
5,836 Lubrizol Corp. 338,079
15,428 Nucor Corp. 686,083
15,677 PPG Industries, Inc. 862,235
3,696 Rio Tinto PLC, ADR (United Kingdom) 619,376
5,912 RPM International, Inc. 94,356
9,440 Sonoco Products Co. 249,971
8,061 Steel Dynamics, Inc. 131,878
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10,113,486
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TELECOMMUNICATION SERVICES - 0.7%
920 Cellcom Israel Ltd. (Israel) 25,723
4,925 CenturyTel, Inc. 154,596
8,454 Chunghwa Telecom Co. Ltd., ADR (Taiwan) 147,598
15,951 Hellenic Telecommunications Organization SA, ADR (Greece) 125,056
3,689 Magyar Telekom Telecommunications PLC, ADR (Hungary) 66,365
2,780 Partner Communications Co. Ltd., ADR (Israel) 52,431
1,764 Philippine Long Distance Telephone Co., ADR (Philippines) 92,910
5,962 Telecom Corp. of New Zealand Ltd., ADR (New Zealand) 55,506
8,562 Telefonos de Mexico SAB de CV, ADR (Mexico) 135,365
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855,550
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UTILITIES - 1.8%
1,873 Cia de Saneamento Basico do Estado de Sao Paulo, ADR (Brazil) 63,139
5,462 DPL, Inc. 130,815
13,953 MDU Resources Group, Inc. 280,874
6,952 National Fuel Gas Co. 282,112
46,778 Public Service Enterprise Group, Inc. 1,517,946
2,371 WGL Holdings, Inc. 78,528
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2,353,414
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TOTAL COMMON STOCKS - 119.5%
(Cost $157,209,339) 151,700,616
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PREFERRED STOCKS - 11.3%
CONSUMER STAPLES - 7.2%
140,000 Dairy Farmers of America, 7.875% (b) 9,126,250
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FINANCIALS - 4.0%
50,000 Axis Capital Holdings Ltd., Series B, 7.500% (Bermuda) (c) 4,046,875
518,900 Scottish Re Group Ltd., 7.250% (Cayman Islands) (c) 1,037,800
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5,084,675
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TELECOMMUNICATION SERVICES - 0.1%
3,328 Brasil Telecom SA, ADR (Brazil) 71,852
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UTILITIES - 0.0%
3,360 Cia Energetica de Minas Gerais, ADR (Brazil) 47,981
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TOTAL PREFERRED STOCKS - 11.3%
(Cost $32,837,506) 14,330,758
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CONVERTIBLE PREFERRED STOCKS - 1.1%
FINANCIALS - 1.1%
505 Fannie Mae, 5.375% (a)
(Cost $49,831,000) 1,388,750
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PRINCIPAL AMOUNT
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CORPORATE BONDS - 14.9%
CONSUMER DISCRETIONARY - 2.9%
$ 750,000 Comcast Corp., BBB+, 6.550%, 7/1/39 818,843
750,000 Fortune Brands, Inc., BBB-, 6.625%, 7/15/28 649,234
750,000 International Game Technology, BBB, 7.500%, 6/15/19 799,671
500,000 Time Warner, Inc., BBB, 7.700%, 5/1/32 555,175
750,000 Walt Disney Co. (The), A, 7.000%, 3/1/32 905,336
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3,728,259
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ENERGY - 1.4%
750,000 Anadarko Petroleum Corp., BBB-, 8.700%, 3/15/19 891,653
750,000 Weatherford International Ltd., BBB+, 9.625%, 3/1/19 (Switzerland) 931,765
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1,823,418
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FINANCIALS - 6.6%
750,000 American Express Co., BBB+, 8.125%, 5/20/19 830,090
750,000 Caterpillar Financial Services Corp., A, 7.150%, 2/15/19 845,699
750,000 Citigroup, Inc., A, 8.500%, 5/22/19 799,871
750,000 General Electric Capital Corp., AA+, 6.750%, 3/15/32 720,179
750,000 Goldman Sachs Group, Inc. (The), A-, 6.750%, 10/1/2037 758,923
750,000 HSBC Finance Corp., A, 5.500%, 1/19/16 726,575
750,000 JPMorgan Chase & Co., A+, 6.300%, 4/23/19 816,280
750,000 Manufacturers & Traders Trust Co., A-, 6.625%, 12/4/17 722,537
500,000 Merrill Lynch & Co., Inc., A-, 6.110%, 1/29/37 419,574
500,000 Morgan Stanley, A, 5.550%, 4/27/17 501,080
750,000 PNC Bank NA, A, 5.250%, 1/15/17 729,319
2,000,000 Preferred Term Securities XI Ltd., NR
Subordinate Income Notes 0.000%, 9/24/33 (a) (b) 322,600
3,000,000 Preferred Term Securities XIX Ltd., NR
Subordinate Income Notes 0.000%, 12/22/35 (a) (b) 165,300
2,000,000 Preferred Term Securities XX Ltd., NR
Subordinate Income Notes 0.000%, 3/22/38 (a) (b) 26,800
2,000,000 Preferred Term Securities XXI Ltd., NR
Subordinate Income Notes 0.000%, 3/22/38 (a) 1,200
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8,386,027
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INDUSTRIALS - 1.9%
750,000 FedEx Corp., BBB, 8.000%, 1/15/19 879,097
750,000 Southwest Airlines Co., BBB+, 5.125%, 3/1/17 649,490
750,000 Waste Management, Inc., BBB, 7.375%, 3/11/19 853,433
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2,382,020
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INFORMATION TECHNOLOGY - 0.9%
500,000 Corning, Inc., BBB+, 6.625%, 5/15/19 543,032
500,000 Oracle Corp., A, 6.125%, 7/8/39 553,078
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1,096,110
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MATERIALS - 0.4%
500,000 Alcoa, Inc., BBB-, 6.750%, 7/15/18 470,740
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UTILITIES - 0.8%
500,000 Allegheny Energy Supply Co. LLC, BBB-, 8.250%, 4/15/12 (b) 534,930
500,000 Southwestern Electric Power Co., BBB, 6.450%, 1/15/19 527,972
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1,062,902
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TOTAL CORPORATE BONDS - 14.9%
(Cost $26,315,167) 18,949,476
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NUMBER OF SHARES
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LIMITED PARTNERSHIP - 0.3%
REAL ESTATE - 0.3%
400,000 Kodiak Funding, LP (d)
(Cost $3,530,000) 400,000
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TOTAL LONG-TERM INVESTMENTS - 147.1% 186,769,600
(Cost $269,723,012) ------------------
SHORT-TERM INVESTMENTS - 3.8%
4,837,247 Dreyfus Money Market Bond Fund
(Cost $4,837,247) 4,837,247
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TOTAL INVESTMENTS - 150.9%
(Cost $274,560,259) 191,606,847
Other Assets in excess of Liabilities - 0.3% 320,498
Preferred Shares, at Liquidation Value - (-51.2% of
Net Assets Applicable to Common Shares or -33.9% of
Total Investments) (65,000,000)
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NET ASSETS APPLICABLE TO COMMON SHARES - 100.0% $ 126,927,345
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ADR - American Depositary Receipt
LLC - Limited Liability Corp.
LP - Limited Partnership
Ltd. - Limited
NV - Publicly Traded Company
PLC - Public Limited Partnership
REIT - Real Estate Investment Trust
SA - Corporation
SAB de CV - Variable Capital Company
(a) Non-income producing security.
(b) Securities are exempt from registration under Rule 144A of the Securities
Act of 1933. These securities may be resold in transactions exempt from
registration, normally to qualified institutional buyers. At July 31, 2009,
these securities amounted to 8.0% of net assets applicable to Common
shares.
(c) Floating or variable rate security.
(d) Security is valued in accordance with Fair Valuation procedures established
in good faith by the Board of Trustees. The total market value of such
securities is $400,000 which represents 0.3% of Net Assets Applicable to
Common Shares.
Ratings shown are per Standard & Poor's; securities classified NR are not rated
by Standard & Poor's.
All percentages shown in the Portfolio of Investments are based on Net Assets
Applicable to Common Shares unless otherwise noted.
See previously submitted notes to financial statements for the period ended
April 30, 2009.
% of Total
Country Breakdown* Investments
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United States 89.1%
United Kingdom 3.8%
Bermuda 2.2%
France 0.9%
Australia 0.8%
Taiwan 0.6%
Switzerland 0.6%
Cayman Islands 0.5%
Canada 0.4%
Brazil 0.2%
Spain 0.2%
South Africa 0.1%
Ireland 0.1%
Luxembourg 0.1%
Netherlands 0.1%
Mexico 0.1%
Greece 0.1%
Philippines 0.1%
Israel 0.0%**
Hungary 0.0%**
New Zealand 0.0%**
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* Subject to change daily.
** Represents less than 0.1%
In September, 2006, the Financial Accounting Standards Board ("FASB") issued
Statement of Financial Accounting Standards No. 157, "Fair Valuation
Measurements" ("FAS 157"). The Fund adopted FAS 157 effective on November 1,
2008. This standard clarifies the definition of fair value for financial
reporting, establishes a framework for measuring fair value and requires
additional disclosures about the use of fair value measurements. FAS 157
establishes three different categories for valuations. Level 1 valuations are
those based upon quoted prices in active markets. Level 2 valuations are those
based upon quoted prices in inactive markets or based upon significant
observable inputs (e.g. yield curves; benchmark interest rates; indices). Level
3 valuations are those based upon unobservable inputs (e.g. discounted cash flow
analysis; non-market based methods used to determine fair valuation). In April
2009, the FASB issued FSP FAS 157-4, "Determining Fair Value When Volume and
Level of Activity for the Asset or Liability Have Significantly Decreased and
Identifying Transactions That Are Not Orderly" (FSP 157-4). FSP 157-4 provides
guidance on how to determine the fair value of assets and liabilities when the
volume and level of activity for the asset/liability has significantly
decreased. The Fund adopted FAS 157-4 effective on July 31, 2009. The following
table represents the Fund's investments carried on the Statement of Assets and
Liabilities by caption and by level within the fair value hierarchy as of July
31, 2009.
Description LEVEL 1 LEVEL 2 LEVEL 3 TOTAL
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(value in $000s)
Assets:
Common stocks:
Consumer Discretionary $ 15,797 $ - $ - $ 15,797
Consumer Staples 33,092 - - 33,092
Energy 19,505 - - 19,505
Financials 1,863 - - 1,863
Health Care 31,864 - - 31,864
Industrials 23,436 - - 23,436
Information Technology 12,821 - - 12,821
Materials 10,114 - - 10,114
Telecommunication Services 855 - - 855
Utilities 2,353 - - 2,353
Preferred Stocks 14,331 - - 14,331
Convertible Preferred Stocks 1,389 - - 1,389
Corporate Bonds - 18,950 - 18,950
Limited Partnerships - - 400 400
Money Market Fund 4,837 - - 4,837
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Total $ 172,257 $ 18,950 $ 400 $ 191,607
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Liabilities: - - - -
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Total $ - $ - $ - $ -
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For fair valuations using unobservable inputs, FAS 157 requires a reconciliation
of the beginning to ending balances for reported market values that presents
changes attributable to total realized and unrealized gains or losses, purchases
and sales, and transfers in/out of the Level 3 category during the period. The
following table presents the reconciliation of the Fund's investments measured
at fair value using significant unobservable inputs (Level 3 valuations) for the
period ended July 31, 2009.
LEVEL 3 HOLDINGS SECURITIES DERIVATIVES TOTAL
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Beginning Balance at 10/31/08 $ 2,900 $ - $ 2,900
Total Realized Gain/Loss (5,633) - (5,633)
Change in Unrealized Gain/Loss 5,000 - 5,000
Net Purchases and Sales (1,867) - (1,867)
Net Transfers In/Out - - -
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Ending Balance at 7/31/09 $ 400 $ - $ 400
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Item 2. Controls and Procedures.
(a) The registrant's principal executive officer and principal financial
officer have evaluated the registrant's disclosure controls and
procedures (as defined in Rule 30a-3(c) under the Investment Company
Act of 1940) within 90 days of this filing and have concluded, based
on such evaluation, that the registrant's disclosure controls and
procedures were effective, as of that date, in ensuring that
information required to be disclosed by the registrant in this Form
N-Q was recorded, processed, summarized and reported within the time
periods specified in the Securities and Exchange Commission's rules
and forms.
(b) There was no change in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the Investment
Company Act of 1940) 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.
Separate certifications for each principal executive officer and principal
financial officer of the registrant as required by Rule 30a-2(a) under the
Investment Company Act of 1940, 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.
Claymore Dividend & Income Fund
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By: /s/ J. Thomas Futrell
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J. Thomas Futrell
Chief Executive Officer
Date: September 28, 2009
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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. Thomas Futrell
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J. Thomas Futrell
Chief Executive Officer
Date: September 28, 2009
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By: /s/ Steven M. Hill
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Steven M. Hill
Treasurer and Chief Financial Officer
Date: September 28, 2009
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