-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, I2CAAWEVWCcJFTHTY1MFmMm0pnaZOCiT6aoAA7KxtpedXiW5A9KZ2F6julPHz6cf wi/NpjKYae7nbqX+3JZMww== 0000950116-05-001515.txt : 20050428 0000950116-05-001515.hdr.sgml : 20050428 20050428104615 ACCESSION NUMBER: 0000950116-05-001515 CONFORMED SUBMISSION TYPE: N-Q PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20050228 FILED AS OF DATE: 20050428 DATE AS OF CHANGE: 20050428 EFFECTIVENESS DATE: 20050428 FILER: COMPANY DATA: COMPANY CONFORMED NAME: DELAWARE INVESTMENTS DIVIDEND & INCOME FUND INC CENTRAL INDEX KEY: 0000896923 IRS NUMBER: 232713064 STATE OF INCORPORATION: MD FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: N-Q SEC ACT: 1940 Act SEC FILE NUMBER: 811-07460 FILM NUMBER: 05778798 BUSINESS ADDRESS: STREET 1: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 BUSINESS PHONE: 2152552127 MAIL ADDRESS: STREET 1: 2005 MARKET STREET CITY: PHILADELPHIA STATE: PA ZIP: 19103 FORMER COMPANY: FORMER CONFORMED NAME: DELAWARE GROUP DIVIDEND & INCOME FUND INC DATE OF NAME CHANGE: 19930714 N-Q 1 n-q.txt 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: 811-7460 Exact name of registrant as specified in charter: Delaware Investments Dividend and Income Fund, Inc. Address of principal executive offices: 2005 Market Street Philadelphia, PA 19103 Name and address of agent for service: Richelle S. Maestro, Esq. 2005 Market Street Philadelphia, PA 19103 Registrant's telephone number, including area code: (800) 523-1918 Date of fiscal year end: November 30 Date of reporting period: February 28, 2005
ITEM 1. SCHEDULE OF INVESTMENTS. SCHEDULE OF INVESTMENTS (Unaudited) DELAWARE INVESTMENTS DIVIDEND AND INCOME FUND, INC. - --------------------------------------------------- February 28, 2005
NUMBER OF MARKET SHARES VALUE COMMON STOCK- 77.60% Automobiles & Automotive Parts - 2.50% *General Motors 39,900 $ 1,423,233 Goodrich (B.F.) 76,400 2,829,092 ----------- 4,252,325 ----------- Banking, Finance & Insurance - 8.30% Bank of America 53,400 2,491,110 J.P. Morgan Chase 44,700 1,633,785 MBNA 108,100 2,742,497 Mellon Financial 85,100 2,440,668 Morgan Stanley 57,300 3,235,730 Wells Fargo 26,400 1,567,632 ----------- 14,111,422 ----------- Building & Materials - 0.09% *+Foster Wheeler 8,434 151,388 ----------- 151,388 ----------- Chemicals - 4.19% Dow Chemical 63,700 3,513,055 duPont (E.I.) deNemours 67,700 3,608,410 ----------- 7,121,465 ----------- Computers & Technology - 3.40% Intel 74,200 1,779,316 +Intuit 50,700 2,169,960 Pitney Bowes 40,000 1,834,400 ----------- 5,783,676 ----------- Consumer Products - 1.06% Procter & Gamble 34,000 1,805,060 ----------- 1,805,060 ----------- Electronics & Electrical Equipment - 2.32% Emerson Electric 25,000 1,658,000 General Electric 65,100 2,291,520 ----------- 3,949,520 ----------- Energy - 5.69% ChevronTexaco 56,000 3,476,480 Exxon Mobil 40,000 2,532,400 Kerr-McGee 45,300 3,517,998 *+Petroleum Geo-Services ADR 1,989 142,943 ----------- 9,669,821 ----------- Food, Beverage & Tobacco - 5.98% Anheuser-Busch 49,900 2,367,755 General Mills 58,900 3,084,593 Kellogg 47,500 2,090,000 PepsiCo 48,600 2,617,596 ----------- 10,159,944 ----------- Healthcare REIT's - 0.21% +#Medical Properties Trust 144A 35,000 350,000 ----------- 350,000 ----------- Healthcare & Pharmaceuticals - 4.66% Abbott Laboratories 35,000 1,609,650 Pfizer 75,200 1,977,008 +Tenet Healthcare 177,400 1,935,434 Wyeth 58,800 2,400,216 ----------- 7,922,308 ----------- Industrial REIT's - 1.45% AMB Property 63,300 2,457,306 ----------- 2,457,306 ----------- Investment Companies - 1.74% *Gladstone Capital 120,300 2,959,380 ----------- 2,959,380 ----------- Leisure, Lodging & Entertainment - 1.61% Starwood Hotels & Resorts Worldwide 47,900 2,741,796 ----------- 2,741,796 -----------
Mall REIT's - 4.42% General Growth Properties 113,538 3,962,476 Simon Property Group 57,300 3,550,308 ----------- 7,512,784 ----------- Manufactured Housing REIT's - 0.33% Sun Communities 16,000 560,640 ----------- 560,640 ----------- Media - 0.07% *+XM Satellite Radio Holdings Class A 3,500 115,360 ----------- 115,360 ----------- Mortgage REIT's - 8.60% *American Home Mortgage Investment 98,400 3,065,160 Fieldstone Investment 100,000 1,500,000 *Friedman Billings Ramsey Group Class A 95,495 1,771,432 +#KKR Financial 144A 182,600 1,917,300 *MortgageIT Holdings 187,000 3,225,750 +#Peoples Choice 144A 176,700 1,767,000 Saxon Capital 30,100 540,596 Sunset Financial Resources 84,800 826,800 ----------- 14,614,038 ----------- Multifamily REIT's - 1.26% BRE Properties Class A 32,500 1,274,000 *+Education Realty Trust 50,900 860,210 ----------- 2,134,210 ----------- Office/Industrial REIT's - 3.04% Duke Realty 83,900 2,657,952 Liberty Property Trust 60,270 2,498,794 ----------- 5,156,746 ----------- Office REIT's - 4.73% Equity Office Properties Trust 92,400 2,787,709 Prentiss Properties Trust 73,572 2,581,641 Reckson Associates Realty 87,420 2,670,681 ----------- 8,040,031 ----------- Paper & Forest Products - 0.88% International Paper 40,000 1,494,000 ----------- 1,494,000 ----------- Retail - 0.09% *+Kmart Holding 1,550 151,079 ----------- 151,079 ----------- Retail Strip Centers REIT's - 1.61% Ramco-Gershenson Properties 96,400 2,728,120 ----------- 2,728,120 ----------- Telecommunications - 6.04% Alltel 63,500 3,632,200 *BCE 148,900 3,490,216 +Fairpoint Communications 180,000 3,132,000 ----------- 10,254,416 ----------- Utilities - 3.33% Dominion Resources 36,600 2,636,298 *FPL Group 38,000 3,015,300 ----------- 5,651,598 ----------- TOTAL COMMON STOCK (COST $105,987,765) 131,848,433 =========== CONVERTIBLE PREFERRED STOCK- 4.97% Banking, Finance & Insurance - 1.43% Chubb 7.00% 15,000 446,850 Lehman Brothers Holdings 6.25% 16,000 452,000 National Australia Bank Units 7.875% 40,000 1,532,000 ----------- 2,430,850 ----------- Consumer Products - 1.45% Newell Financial Trust I 5.25% 52,600 2,452,475 ----------- 2,452,475 ----------- Environmental Services - 0.45% Allied Waste Industries 6.25% 16,200 771,768 ----------- 771,768 ----------- Diversified REIT's - 0.82% Crescent Real Estate 6.75% 62,600 1,392,850 ----------- 1,392,850 -----------
Telecommunications - 0.82% Lucent Technologies Capital Trust I 7.75% 1,300 1,392,463 ---------- 1,392,463 ---------- TOTAL CONVERTIBLE PREFERRED STOCK (COST $8,895,050) 8,440,406 ========== PREFERRED STOCKS- 6.29% Leisure, Lodging & Entertainment - 0.91% WestCoast Hospitality Capital Trust 9.50% 58,000 1,548,600 ---------- 1,548,600 ---------- Lodging REIT's - 2.40% Equity Inns Series B 8.75% 35,700 946,050 LaSalle Hotel Properties 10.25% 113,200 3,129,980 ---------- 4,076,030 ---------- Office REIT's - 1.21% SL Green Realty 7.625% 80,000 2,050,000 ---------- 2,050,000 ---------- Retail Strip Center REIT's - 0.66% Ramco-Gershenson Properties 9.50% 40,000 1,126,200 ---------- 1,126,200 ---------- Utilities - 1.11% Public Service Enterprise Group 10.25% 27,200 1,879,520 ---------- 1,879,520 ---------- TOTAL PREFERRED STOCKS (COST $9,564,868) 10,680,350 ========== PRINCIPAL AMOUNT COMMERCIAL MORTGAGE-BACKED SECURITIES - 0.26% #Meristar Commercial Mortgage Trust Series 1999-C1 C 144A 8.29% 3/3/16 $400,000 438,262 ---------- TOTAL COMMERCIAL MORTGAGE-BACKED SECURITIES (COST $445,969) 438,262 ========== CONVERTIBLE BONDS- 4.42% Capital Goods - Manufacturing - 0.22% #Tyco International Group 144A 2.75% 1/15/18 250,000 371,563 ---------- 371,563 ---------- Consumer Cyclical - 2.92% #Gap 144A 5.75% 3/15/09 1,825,000 2,429,530 Meristar Hospitality 9.50% 4/1/10 1,100,000 1,401,125 #Regal Entertainment Group 144A 3.75% 5/15/08 550,000 715,000 #Saks 144A 2.00% 3/15/24 425,000 419,688 ---------- 4,965,343 ---------- Computers & Technology - 0.63% #Mercury Interactive 144A 4.75% 7/1/07 550,000 557,563 #Sybase Convertible 144A 1.75% 2/22/25 500,000 505,000 ---------- 1,062,563 ---------- Transportation & Shipping - 0.11% #ExpressJet Holdings 144A 4.25% 8/1/23 200,000 189,250 ---------- 189,250 ---------- Utilities - 0.54% *#CenterPoint Energy 144A 3.75% 5/15/23 800,000 916,000 ---------- 916,000 ---------- TOTAL CONVERTIBLE BONDS (COST $6,205,188) 7,504,719 ========== CORPORATE BONDS- 36.81% Basic Materials - 4.85% Abitibi-Consolidated 6.95% 12/15/06 400,000 414,000 *#BCP Caylux Holdings 144A 9.625% 6/15/14 200,000 232,000 #Boise Cascade 144A 7.125% 10/15/14 495,000 525,938 Bowater 9.50% 10/15/12 295,000 344,916 Fort James 7.75% 11/15/23 925,000 1,105,374 *#Huntsman 144A 7.375% 1/1/15 425,000 453,688 *Lyondell Chemical 9.875% 5/1/07 250,000 261,250 MDP Acquisitions 9.625% 10/1/12 555,000 617,437 *Nalco 8.875% 11/15/13 275,000 305,250 #Novelis 144A 7.25% 2/15/15 300,000 312,000 #Port Townsend Paper 144A 11.00% 4/15/11 450,000 454,500 Potlatch 12.50% 12/1/09 475,000 575,908 #PQ 144A 7.50% 2/15/13 160,000 166,600 *Rhodia 8.875% 6/1/11 545,000 568,163 Smurfit Capital Funding 7.50% 11/20/25 500,000 507,500 +Solutia 6.72% 10/15/37 700,000 551,250 Tembec Industries 8.50% 2/1/11 600,000 603,000 Witco 6.875% 2/1/26 250,000 238,750 ---------- 8,237,524 ----------
Capital Goods - Manufacturing - 3.55% Aearo 8.25% 4/15/12 200,000 211,000 *AEP Industries 9.875% 11/15/07 375,000 382,969 Allied Waste North America 9.25% 9/1/12 375,000 416,250 Anchor Glass 11.00% 2/15/13 275,000 285,313 Armor Holdings 8.25% 8/15/13 400,000 446,000 #Buhrmann US 144A 7.875% 3/1/15 125,000 126,563 *Cenveo 7.875% 12/1/13 225,000 210,375 #DRS Technologies 144A 6.875% 11/1/13 100,000 105,500 *Foster Wheeler 10.359% 9/15/11 206,250 227,391 Geo Subordinate 11.00% 5/15/12 450,000 469,124 *#Graham Packaging 144A 9.875% 10/15/14 305,000 330,163 #Hydrochem Industrial Services 144A 9.25% 2/15/13 445,000 454,456 #IMCO Recycling 144A 9.00% 11/15/14 425,000 448,375 Interline Brands 11.50% 5/15/11 421,000 477,834 Moog 6.25% 1/15/15 200,000 206,000 @Mueller Holdings 14.75% 4/15/14 550,000 400,125 *#Owens-Brockway 144A 6.75% 12/1/14 200,000 206,000 #Park-Ohio Industries 144A 8.375% 11/15/14 225,000 225,000 Radnor Holdings [CHECK MARK]9.41% 4/15/09 235,000 241,463 *11.00% 3/15/10 175,000 154,875 ---------- 6,024,776 ---------- Consumer Cyclical - 6.42% #Accuride 144A 8.50% 2/1/15 300,000 310,500 Adesa 7.625% 6/15/12 250,000 266,875 @Advanced Accessory Holdings 13.25% 12/15/11 250,000 101,250 *Advanced Accessory Systems 10.75% 6/15/11 450,000 418,500 Ameristar Casinos 10.75% 2/15/09 670,000 747,887 Argosy Gaming 9.00% 9/1/11 75,000 83,813 +Avado Brands 9.75% 6/1/06 230,000 58,650 Boyd Gaming 9.25% 8/1/09 761,000 816,172 Caesars Entertainment 9.375% 2/15/07 150,000 164,250 *#Carrols 144A 9.00% 1/15/13 300,000 318,000 *Collins & Aikman Products 10.75% 12/31/11 360,000 343,800 *#Cooper-Standard 144A 7.00% 12/15/12 100,000 99,000 *#Denny's 144A 10.00% 10/1/12 300,000 327,750 Gaylord Entertainment 8.00% 11/15/13 325,000 353,844 Interface 10.375% 2/1/10 350,000 407,750 #Landry's Restaurant 144A 7.50% 12/15/14 520,000 522,600 #Loehmanns Capital 144A 13.00% 10/1/11 75,000 74,625 #Lone Star Industries 144A 8.85% 6/15/05 300,000 303,919 *Mandalay Resort Group 10.25% 8/1/07 35,000 39,550 MGM MIRAGE 9.75% 6/1/07 275,000 305,938 O'Charleys 9.00% 11/1/13 430,000 471,925 Penn National Gaming 8.875% 3/15/10 850,000 927,562 11.125% 3/1/08 600,000 636,359 Perkins Family Restaurants 10.125% 12/15/07 20,000 20,500 *Royal Caribbean Cruises 7.25% 3/15/18 350,000 393,750 #Six Flags 144A 9.625% 6/1/14 65,000 61,263 @Town Sports International 11.00% 2/1/14 320,000 184,000 #Uno Restaurant 144A 10.00% 2/15/11 300,000 307,500 +Venture Holdings 12.00% 6/1/09 425,000 531 Warnaco 8.875% 6/15/13 500,000 553,750 Wheeling Island Gaming 10.125% 12/15/09 525,000 572,250 #Wynn Las Vegas 144A 6.625% 12/1/14 700,000 701,749 ---------- 10,895,813 ---------- Consumer Non-Cyclical - 3.94% *Ameripath 10.50% 4/1/13 295,000 308,275 #Commonwealth Brands 144A 10.625% 9/1/08 460,000 492,200 Corrections Corporation of America 9.875% 5/1/09 175,000 193,594 Cott Beverages 8.00% 12/15/11 75,000 80,906 *Great Atlantic & Pacific Tea 7.75% 4/15/07 225,000 227,531
#Knowledge Learn 144A 7.75% 2/1/15 215,000 217,150 #Le-Natures 144A 10.00% 6/15/13 550,000 610,500 National Beef Packing 10.50% 8/1/11 325,000 341,250 Pilgrims Pride 9.625% 9/15/11 410,000 457,150 Province Healthcare 7.50% 6/1/13 875,000 979,999 #Rite Aid 144A 7.50% 1/15/15 350,000 348,250 Seminis Vegetable Seeds 10.25% 10/1/13 375,000 450,938 *True Temper Sports 8.375% 9/15/11 395,000 382,163 Universal Hospital Services 10.125% 11/1/11 420,000 436,800 #US Oncology 144A 10.75% 8/15/14 440,000 508,200 *@Vanguard Health 11.25% 10/1/15 545,000 399,213 #Warner Chilcott 144A 8.75% 2/1/15 250,000 261,250 ---------- 6,695,369 ---------- Energy - 2.88% Bluewater Finance 10.25% 2/15/12 390,000 432,900 CMS Energy 9.875% 10/15/07 250,000 280,625 #Dynegy Holdings 144A 10.125% 7/15/13 900,000 1,030,500 El Paso Natural Gas 7.625% 8/1/10 200,000 218,000 El Paso Production Holding 7.75% 6/1/13 550,000 592,625 #Hilcorp Energy 144A 10.50% 9/1/10 400,000 457,000 #Inergy Finance 144A 6.875% 12/15/14 250,000 255,000 Petroleum Geo-Services 8.00% 11/5/06 200,159 204,913 10.00% 11/5/10 524,909 608,894 [CHECK MARK]#Secunda International 144A 10.66% 9/1/12 245,000 245,000 #Stone Energy 144A 6.75% 12/15/14 150,000 151,500 Tennessee Gas Pipeline 8.375% 6/15/32 350,000 413,875 ---------- 4,890,832 ---------- Finance - 1.39% #America Real Estate 144A 7.125% 2/15/13 325,000 330,688 BF Saul REIT 7.50% 3/1/14 125,000 130,156 *#E*Trade Financial 144A 8.00% 6/15/11 475,000 515,374 #Farmers Exchange Capital 144A 7.20% 7/15/48 250,000 263,320 FINOVA Group 7.50% 11/15/09 835,500 373,886 LaBranche & Company 11.00% 5/15/12 275,000 297,688 Midland Funding II 11.75% 7/23/05 60,226 62,092 Tanger Properties 9.125% 2/15/08 350,000 393,750 ---------- 2,366,954 ---------- Media - 5.36% +Adelphia Communications 8.125% 7/15/06 525,000 446,250 American Media Operation 10.25% 5/1/09 200,000 209,000 Avalon Cable 11.875% 12/1/08 504,168 526,225 #Charter Communications 144A 5.875% 11/16/09 165,000 162,525 Charter Communications Holdings 10.75% 10/1/09 1,425,000 1,236,187 CSC Holdings 7.25% 7/15/08 245,000 262,456 8.125% 8/15/09 215,000 240,263 *10.50% 5/15/16 550,000 618,750 Dex Media West 9.875% 8/15/13 125,000 144,063 Insight Midwest 10.50% 11/1/10 850,000 928,624 *Lodgenet Entertainment 9.50% 6/15/13 425,000 473,875 Mediacom Capital *8.50% 4/15/08 750,000 766,875 9.50% 1/15/13 325,000 340,438 Nextmedia Operating 10.75% 7/1/11 275,000 307,313 PEI Holdings 11.00% 3/15/10 500,000 594,375 Rogers Cablesystems 10.00% 3/15/05 700,000 707,000 Sheridan Acquisition 10.25% 8/15/11 325,000 353,438 #Warner Music Group 144A 7.375% 4/15/14 190,000 202,350 XM Satellite Radio 12.00% 6/15/10 500,000 593,750 ---------- 9,113,756 ---------- Technology - 0.33% #Magnachip Semiconductor 144A 8.00% 12/15/14 300,000 317,250 Stratus Technologies 10.375% 12/1/08 250,000 250,000 ---------- 567,250 ---------- Telecommunications - 3.77% [CHECK MARK]#AirGate PCS 144A 6.41% 10/15/11 175,000 182,438 *Alaska Communications Systems Holdings 9.875% 8/15/11 324,000 352,350 Centennial Cellular Operating 10.125% 6/15/13 315,000 366,975 *Cincinnati Bell 8.375% 1/15/14 625,000 649,218
@Inmarsat Finance 10.375% 11/15/12 450,000 342,563 #Intelsat Bermuda 144A 8.625% 1/15/15 500,000 536,250 iPCS 11.50% 5/1/12 200,000 233,000 #Iwo Escrow 144A [CHECK MARK]6.32% 1/15/12 75,000 78,000 @10.75% 1/15/15 75,000 49,500 MCI 6.908% 5/1/07 250,000 256,250 7.688% 5/1/09 500,000 528,125 MetroPCS 10.75% 10/1/11 225,000 243,000 *#New Skies Satellite 144A 9.125% 11/1/12 325,000 339,625 #Qwest 144A 7.875% 9/1/11 115,000 126,213 #Qwest Services 144A 14.00% 12/15/10 525,000 626,062 Rural Cellular 9.875% 2/1/10 100,000 106,000 #Telcordia Technologies 144A 8.875% 3/1/13 200,000 207,500 *#UbiquiTel Operating 144A 9.875% 3/1/11 200,000 227,000 [CHECK MARK]US LEC 10.67% 10/1/09 225,000 226,688 US Unwired 10.00% 6/15/12 500,000 569,999 #Valor Telecom 144A 7.75% 2/15/15 145,000 151,163 ----------- 6,397,919 ----------- Transportation - 1.59% @#H-Lines Finance Holding 144A 11.00% 4/1/13 395,000 297,731 #Horizon Lines 144A 9.00% 11/1/12 175,000 190,094 *Kansas City Southern Railway 9.50% 10/1/08 400,000 447,000 OMI 7.625% 12/1/13 430,000 446,125 Seabulk International 9.50% 8/15/13 500,000 553,750 Stena AB 9.625% 12/1/12 350,000 399,000 #Ultrapetrol 144A 9.00% 11/24/14 375,000 364,219 ----------- 2,697,919 ----------- Utilities - 2.73% Avista 9.75% 6/1/08 500,000 574,536 *Calpine 10.50% 5/15/06 365,000 361,350 [CHECK MARK]#Calpine 144A 8.41% 7/15/07 221,625 199,463 Elwood Energy 8.159% 7/5/26 219,203 249,259 Midwest Generation 8.30% 7/2/09 500,000 535,000 8.75% 5/1/34 425,000 489,813 +Mirant Americas Generation 7.625% 5/1/06 400,000 457,000 *#NRG Energy 144A 8.00% 12/15/13 430,000 477,300 Orion Power Holdings 12.00% 5/1/10 250,000 313,750 PSE&G Energy Holdings 7.75% 4/16/07 250,000 264,375 Reliant Energy 9.50% 7/15/13 250,000 282,500 #Texas Genco 144A 6.875% 12/15/14 250,000 268,125 +#USGen New England 144A 7.459% 1/2/15 250,000 169,375 ----------- 4,641,846 ----------- TOTAL CORPORATE BONDS (COST $60,441,620) 62,529,958 =========== MUNICIPAL BONDS- 0.08% New Jersey Economic Development Authority Special Facility Revenue (Continental Airlines Project) 6.25% 9/15/29 (AMT) 170,000 135,335 ----------- TOTAL MUNICIPAL BONDS (COST $144,267) 135,335 ----------- U.S. TREASURY OBLIGATIONS- 0.74% ^U.S. Treasury Bill 2.282% 3/24/05 1,265,000 1,263,046 ----------- TOTAL U.S. TREASURY OBLIGATIONS (COST $1,263,046) 1,263,046 =========== NUMBER OF SHARES WARRANTS- 0.00% +#Solutia144A, exercise price $7.59, expiration date 7/15/09 650 7 - TOTAL WARRANTS (COST $55,294) 7 - TOTAL MARKET VALUE OF SECURITIES BEFORE SECURITIES LENDING COLLATERAL - 131.17% (COST $193,003,067) 222,840,516 ===========
PRINCIPAL AMOUNT SECURITIES LENDING COLLATERAL - 14.40%*** Short-Term Investments Abbey National 2.64% 1/13/06 $598,806 599,172 ABN AMRO Amsterdam 2.55% 3/22/05 807,123 807,114 Bank of Nova Scotia 2.69% 3/29/05 242,126 242,118 Bank of the West 2.57% 3/2/06 807,240 807,114 Barclays London 2.54% 3/10/05 813,296 813,188 Barclays New York 2.62% 6/1/05 80,690 80,685 Bayerische Landesbank 2.61% 3/31/06 806,853 807,114 Bear Stearns 2.65% 1/17/06 161,406 161,532 2.68% 3/18/05 726,697 726,863 Beta Finance 2.51% 3/21/05 177,047 176,801 Calyon 2.57% 4/19/05 807,087 807,073 Citigroup Global Markets 2.70% 3/7/05 871,680 871,683 Credit Swiss First Boston New York 2.56% 12/29/05 169,456 169,507 Fortis Bank 2.54% 3/22/05 807,125 807,114 Goldman Sachs 2.77% 2/28/06 887,648 887,825 IXIS Corporate & Investment Bank 2.55% 3/22/05 807,123 807,114 Lehman Holdings 2.70% 12/23/05 807,184 808,079 Marshall & Ilsley Bank 2.51% 12/29/05 807,197 807,162 Merrill Lynch Mortgage Capital 2.73% 4/5/05 64,569 64,569 2.73% 4/12/05 807,114 807,114 Morgan Stanley 2.65% 3/1/05 2,144,412 2,144,412 2.71% 3/10/05 645,687 645,691 2.71% 3/31/06 161,145 161,423 2.81% 2/28/06 80,711 80,711 Nordea Bank New York 2.57% 5/13/05 807,097 807,059 Pfizer 2.55% 3/31/06 774,829 774,829 Proctor & Gamble 2.42% 3/31/06 807,114 807,114 Rabobank, New York 2.63% 3/2/05 807,064 807,064 Royal Bank of Canada 2.61% 6/27/05 807,150 807,033 Sigma Finance 2.57% 9/30/05 758,703 758,562 Societe Generale London 2.43% 3/7/05 161,424 161,423 Societe Generale New York 2.56% 6/14/05 729,049 728,954 Sun Trust Bank 2.61% 8/5/05 403,608 403,514 UBS Securities 2.64% 3/1/05 1,614,228 1,614,228 Washington Mutual 2.60% 4/1/05 887,852 887,825 Wells Fargo 2.56% 3/31/06 807,157 807,114 ------------- TOTAL SECURITIES LENDING COLLATERAL (COST $24,455,897) 24,455,897 ============= TOTAL MARKET VALUE OF SECURITIES - 145.57% (COST $217,458,964) 247,296,413** OBLIGATION TO RETURN SECURITIES LENDING COLLATERAL - (14.40%)*** (24,455,897) COMMERCIAL PAPER PAYABLE (PAR $55,000,000) - (32.30%) (54,877,014) RECEIVABLES AND OTHER ASSETS NET OF LIABILITIES (SEE NOTES) - 1.13% 1,921,009 ------------ NET ASSETS APPLICABLE TO 12,876,300 SHARES OUTSTANDING; EQUIVALENT TO $13.19 PER SHARE - 100.00% $169,884,511 ============
@Step Coupon Bond. Indicates security that has a zero coupon that remains in effect until a predetermined date at which time the stated interest rate becomes effective. #Security exempt from registration under Rule 144A of the Securities Act of 1933. See Note #5 in "Notes." +Non-income producing security for the period ended February 28, 2005. ^Zero coupon bond. The interest rate shown is the yield at the time of purchase. *Fully or partially on loan. **Includes $24,010,320 of securities loaned. +Non-income producing security. Security is currently in default. [CHECK MARK]Variable Rate Notes. The interest rate shown is the rate as of February 28, 2005. ***See Note #4 in "Notes." SUMMARY OF ABBREVIATIONS: ADR - American Depositary Receipts AMT - Subject to Alternative Minimum Tax REIT - Real Estate Investment Trust - -------------------------------------------------------------------------------- NOTES 1. SIGNIFICANT ACCOUNTING POLICIES The following accounting policies are in accordance with U.S. generally accepted accounting principals and are consistently followed by the Delaware Investments Dividend and Income Fund, Inc. (the "Fund"). SECURITY VALUATION - Equity securities, except those traded on the Nasdaq Stock Market, Inc. (NASDAQ), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange (NYSE) on the valuation date. Securities traded on the NASDAQ are valued in accordance with the NASDAQ Official Closing Price, which may not be the last sales price. If on a particular day an equity security does not trade, then the mean between the bid and the asked prices will be used. U.S. Government and agency securities are valued at the mean between the bid and asked prices. Long-term debt securities are valued by an independent pricing service and such prices are believed to reflect the fair value of such securities. Short-term debt securities having less than 60 days to maturity are valued at amortized cost, which approximates market value. Other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund's Board of Directors. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures, or with respect to foreign securities, aftermarket trading or significant events after local market trading (e.g., government actions or pronouncements, trading volume or volatility on markets, exchanges among dealers, or news events). FEDERAL INCOME TAXES - The Fund intends to continue to qualify for federal income tax purposes as a regulated investment company and make the requisite distributions to shareholders. Accordingly, no provision for federal income taxes has been made in the financial statements. DISTRIBUTIONS - The Fund has a managed distribution policy. Under the policy, the Fund declares and pays monthly distributions and is managed with a goal of generating as much of the distribution as possible from ordinary income (net investment income and short-term capital gains). The balance of the distribution then comes from long-term capital gains and if necessary, a return of capital. The current annualized rate is $0.96 per share. The Fund continues to evaluate its monthly distribution in light of ongoing economic and market conditions and may change the amount of the monthly distributions in the future. BORROWINGS - The Fund issues short-term commercial paper at a discount from par. The discount is amortized as interest expense over the life of the commercial paper using the straight-line method (See Note 3). USE OF ESTIMATES - The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. OTHER - Expenses common to all funds within the Delaware Investments Family of Funds are allocated amongst the funds on the basis of average net assets. Management fees and some other expenses are paid monthly. Security transactions are recorded on the date the securities are purchased or sold (trade date). Costs used in calculating realized gains and losses on the sale of investment securities are those of the specific securities sold. Dividend income is recorded on the ex-dividend date and interest income is recorded on the accrual basis. Discounts and premiums are amortized to interest income over the lives of the respective securities. Premiums and discounts on non-convertible debt securities are amortized to interest income over the lives of the respective securities. Distributions received from investments in Real Estate Investment Trusts are recorded as dividend income on ex-dividend date, subject to reclassification upon notice of the character of such distribution by the issuer. 2. INVESTMENTS At February 28, 2005, the cost of investments for federal income tax purposes has been estimated since the final tax characteristics cannot be determined until fiscal year end. At February 28, 2005, the aggregate cost of investments and gross unrealized appreciation (depreciation) for the Fund for federal income tax purposes was as follows: Aggregate cost of investments $193,040,057 ------------ Aggregate unrealized appreciation 36,183,087 Aggregate unrealized depreciation (6,382,628) ------------ Net unrealized appreciation $ 29,800,459 ------------ For federal income tax purposes, at November 30, 2004, capital loss carryforwards of $15,214,564 may be carried forward and applied against future capital gains. Such capital loss carryforwards expire as follows: $13,424,663 expires in 2010 and $1,789,901 expires in 2011. 3. COMMERCIAL PAPER As of February 28, 2005, $55,000,000 (par value) of commercial paper was outstanding with an amortized cost of $54,877,014. The weighted average discount rate of commercial paper outstanding at February 28, 2005, was 2.59%. The average daily balance of commercial paper outstanding during the period ended February 28, 2005, was $54,830,788 at a weighted discount rate of 1.69%. The maximum amount of commercial paper outstanding at any time during the period was $55,000,000. In conjunction with the issuance of the commercial paper, the Fund entered into a line of credit arrangement with J.P. Morgan Chase for $30,000,000 with a scheduled termination date of January 5, 2006. Interest on borrowings is based on market rates in effect at the time of borrowing. The commitment fee is computed at the rate of 0.15% per annum on the unused balance. During the period ended February 28, 2005 there were no borrowings under this arrangement. 4. SECURITIES LENDING The Fund, along with other funds in the Delaware Investments Family of Funds, may lend its securities pursuant to a security lending agreement (Lending Agreement) with J.P. Morgan Chase. Initial security loans made pursuant to the Lending Agreement are required to be secured by U.S. government obligations and/or cash collateral not less than 102% of the market value of the securities issued in the United States. With respect to each loan, if the aggregate market value of the collateral held on any business day is less than the aggregate market value of the securities which are the subject of such loan, the borrower will be notified to provide additional collateral not less than the applicable collateral requirements. Cash collateral received is invested in fixed income securities, with a weighted average maturity not to exceed 90 days, rated in one of the top two tiers by Standard & Poor's Ratings Group or Moody's Investors Service, Inc. or repurchase agreements collateralized by such securities. However, in the event of default or bankruptcy by the lending agent, realization and/or retention of the collateral may be subject to legal proceedings. In the event the borrower fails to return loaned securities and the collateral received is insufficient to cover the value of the loaned securities and provided such collateral shortfall is not the result of investment losses, the lending agent has agreed to pay the amount of the shortfall to the Fund, or at the discretion of the lending agent, replace the loaned securities. The Fund continues to record dividends on the securities loaned and is subject to change in fair value of the securities loaned that may occur during the term of the loan. The Fund has the right under the Lending Agreement to recover the securities from the borrower on demand. The security lending agent and the borrower retain a portion of the earnings from the collateral investments. The Fund records security lending income net of such allocation. At February 28, 2005, the market value of securities on loan was $24,010,320 for which cash collateral was received and invested in accordance with the Lending Agreement. Such investments are presented on the Schedule of Investments under the caption "Securities Lending Collateral." 5. CREDIT AND MARKET RISKS The Fund invests a portion of its assets in high-yield fixed income securities, which carry ratings of BB or lower by Standard & Poor's Ratings Group and Ba or lower by Moody's Investors Service, Inc. Investments in these higher yielding securities are generally accompanied by a greater degree of credit risk than higher rated securities. Additionally, lower rated securities may be more susceptible to adverse economic and competitive industry conditions than investment grade securities. The Fund may invest up to 10% of its total assets in illiquid securities, which may include securities with contractual restrictions on resale, securities exempt from registration under Rule 144A of the Securities Act of 1933, as amended, and other securities which may not be readily marketable. The relative illiquidity of these securities may impair the Fund from disposing of them in a timely manner and at a fair price when it is necessary or desirable to do so. At February 28, 2005, 144A securities represented approximately 16.78% of total assets. 144A securities comprising 0.00% of total assets have been determined to be illiquid securities under the Fund's Liquidity Procedures. While maintaining oversight, the Board of Trustees has delegated to the investment adviser the day-to-day functions of determining whether individual Rule 144A securities are liquid for purposes of a fund's limitation on investments in illiquid assets. Illiquid securities, if any, have been denoted on the Schedule of Investments. The Fund invests in real estate investment trusts (REITs) and is subject to some of the risks associated with that industry. If the Fund holds real estate directly as a result of defaults or receives rental income directly from real estate holdings, its tax status as a regulated investment company may be jeopardized. The Fund's REIT holdings are also affected by interest rate changes, particularly if the REITs it holds use floating rate debt to finance their ongoing operations. ITEM 2. CONTROLS AND PROCEDURES. The registrant's principal executive officer and principal financial officer have evaluated the registrant's disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. There were no significant changes in the registrant's internal control over financial reporting that occurred during the registrant's last fiscal quarter (the registrant's second fiscal half-year in the case of an annual report) that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting. ITEM 3. EXHIBITS. File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: CERTIFICATION I, Jude T. Driscoll, certify that: 1. I have reviewed this report on Form N-Q of Delaware Investments Dividend and Income Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. JUDE T. DRISCOLL - ----------------------- By: Jude T. Driscoll Title: Chairman Date: 4/26/05 CERTIFICATION I, Michael P. Bishof, certify that: 1. I have reviewed this report on Form N-Q of Delaware Investments Dividend and Income Fund, Inc.; 2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; 3. Based on my knowledge, the schedules of investments included in this report fairly present in all material respects the investments of the registrant as of the end of the fiscal quarter for which the report is filed; 4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have: (a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; (b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; (c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and (d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and 5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): (a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and (b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. MICHAEL P. BISHOF - -------------------------------- By: Michael P. Bishof Title: Chief Financial Officer Date: 4/25/05 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. DELAWARE INVESTMENTS DIVIDEND AND INCOME FUND, INC. JUDE T. DRISCOLL - ------------------------------ By: Jude T. Driscoll Title: Chairman Date: 4/26/05 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. JUDE T. DRISCOLL - ------------------------------ By: Jude T. Driscoll Title: Chairman Date: 4/26/05 MICHAEL P. BISHOF - ------------------------------ By: Michael P. Bishof Title: Chief Financial Officer Date: 4/25/05 -----END PRIVACY-ENHANCED MESSAGE-----