Tax-Advantaged Dividend Income Fund
Table of Contents

 
UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
Form N-Q
 
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
 
811-21400
Investment Company Act File Number
 
Eaton Vance Tax-Advantaged Dividend Income Fund
(Exact Name of Registrant as Specified in Charter)
 
Two International Place, Boston, Massachusetts 02110
(Address of Principal Executive Offices)
 
Maureen A. Gemma
Two International Place, Boston, Massachusetts 02110
(Name and Address of Agent for Services)
 
(617) 482-8260
(Registrant’s Telephone Number, Including Area Code)
 
August 31
Date of Fiscal Year End
 
May 31, 2009
Date of Reporting Period
 

TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Signatures
EX-99.CERT Section 302 Certification

Table of Contents

 
Item 1. Schedule of Investments

Table of Contents

Eaton Vance Tax-Advantaged Dividend Income Fund as of May 31, 2009
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
Common Stocks(1) — 96.3%
 
                 
Security   Shares     Value  
Aerospace & Defense — 1.0%
               
Honeywell International, Inc. 
    300,000     $ 9,948,000  
                 
            $ 9,948,000  
                 
Chemicals — 1.9%
               
K+S AG
    148,906     $ 11,157,929  
Potash Corp. of Saskatchewan, Inc. 
    72,000       8,340,480  
                 
            $ 19,498,409  
                 
Communications Equipment — 0.9%
               
Nokia Oyj
    600,000     $ 9,207,933  
                 
            $ 9,207,933  
                 
Computers & Peripherals — 3.2%
               
International Business Machines Corp. 
    304,000     $ 32,309,120  
                 
            $ 32,309,120  
                 
Diversified Telecommunication Services — 9.7%
               
AT&T, Inc. 
    1,658,750     $ 41,120,413  
France Telecom SA
    780,000       19,021,324  
Koninklijke KPN NV
    375,000       4,934,408  
Telefonos de Mexico SA de CV ADR
    650,000       10,796,500  
TeliaSonera AB
    4,200,000       21,684,069  
                 
            $ 97,556,714  
                 
Electric Utilities — 10.6%
               
E.ON AG
    684,000     $ 24,278,980  
Edison International
    677,000       19,795,480  
Exelon Corp. 
    75,000       3,600,750  
FirstEnergy Corp. 
    350,000       13,226,500  
Fortum Oyj
    940,000       23,078,690  
FPL Group, Inc. 
    400,000       22,612,000  
                 
            $ 106,592,400  
                 
Electrical Equipment — 1.0%
               
Emerson Electric Co. 
    300,000     $ 9,627,000  
                 
            $ 9,627,000  
                 
Food Products — 7.0%
               
Danone
    375,000     $ 18,738,127  
Kraft Foods, Inc., Class A
    622,821       16,261,856  
Nestle SA
    981,000       35,721,020  
                 
            $ 70,721,003  
                 
Health Care Providers & Services — 0.6%
               
UnitedHealth Group, Inc. 
    230,000     $ 6,118,000  
                 
            $ 6,118,000  
                 
 
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Security   Shares     Value  
Household Durables — 1.4%
               
Stanley Works (The)
    400,000     $ 14,280,000  
                 
            $ 14,280,000  
                 
Household Products — 0.7%
               
Kimberly-Clark Corp. 
    135,000     $ 7,005,150  
                 
            $ 7,005,150  
                 
Industrial Conglomerates — 0.6%
               
Siemens AG
    85,000     $ 6,213,061  
                 
            $ 6,213,061  
                 
Insurance — 1.2%
               
Zurich Financial Services AG
    67,000     $ 12,539,225  
                 
            $ 12,539,225  
                 
Metals & Mining — 5.8%
               
BHP Billiton, Ltd. ADR
    481,000     $ 27,051,440  
Companhia Vale do Rio Doce ADR
    1,950,000       31,648,500  
                 
            $ 58,699,940  
                 
Multi-Utilities — 7.6%
               
GDF Suez
    265,000     $ 10,470,213  
National Grid PLC
    2,000,000       19,392,866  
RWE AG
    292,000       24,311,900  
Sempra Energy
    500,000       22,840,000  
                 
            $ 77,014,979  
                 
Oil, Gas & Consumable Fuels — 22.7%
               
BP PLC
    460,000     $ 3,802,515  
BP PLC ADR
    515,000       25,492,500  
Chevron Corp. 
    624,000       41,602,080  
ConocoPhillips
    720,000       33,004,800  
ENI SpA
    840,000       20,381,119  
Husky Energy, Inc. 
    772,000       23,695,644  
Marathon Oil Corp. 
    1,296,000       41,316,480  
Peabody Energy Corp. 
    500,000       16,990,000  
StatoilHydro ASA
    1,065,000       22,492,260  
                 
            $ 228,777,398  
                 
Pharmaceuticals — 7.0%
               
Johnson & Johnson
    146,000     $ 8,053,360  
Novartis AG
    425,000       17,006,864  
Sanofi-Aventis SA
    320,000       20,423,737  
Schering-Plough Corp. 
    1,034,000       25,229,600  
                 
            $ 70,713,561  
                 
Software — 1.3%
               
Microsoft Corp. 
    650,000     $ 13,578,500  
                 
            $ 13,578,500  
                 
 
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Security   Shares     Value  
Textiles, Apparel & Luxury Goods — 1.6%
               
VF Corp. 
    275,000     $ 15,625,500  
                 
            $ 15,625,500  
                 
Tobacco — 8.6%
               
Altria Group, Inc. 
    900,000     $ 15,381,000  
British American Tobacco PLC
    985,000       26,998,378  
Philip Morris International, Inc. 
    1,047,000       44,644,080  
                 
            $ 87,023,458  
                 
Wireless Telecommunication Services — 1.9%
               
Vodafone Group PLC
    10,000,000     $ 18,812,553  
                 
            $ 18,812,553  
                 
                 
Total Common Stocks
(identified cost $759,519,252)
          $ 971,861,904  
                 
 
Preferred Stocks — 33.2%
 
                 
Security   Shares     Value  
Commercial Banks — 11.6%
               
Abbey National Capital Trust I, 8.963%(2)
    6,000     $ 4,510,236  
ABN AMRO North America Capital Funding Trust, 6.968%(2)(3)
    1,250       503,906  
Barclays Bank PLC, 6.86%(2)(3)
    3,500       2,208,938  
Barclays Bank PLC, 8.55%(2)(3)
    9,400       6,335,525  
BBVA International Preferred, S.A. Unipersonal, 5.919%(2)
    6,500       3,949,504  
BNP Paribas, 7.195%(2)(3)
    85       6,472,138  
BNP Paribas Capital Trust, 9.003%(2)(3)
    5,395       3,481,874  
Credit Agricole SA/London, 6.637%(2)(3)
    9,950       6,461,381  
DB Capital Funding VIII, 6.375%
    310,600       5,236,716  
DB Contingent Capital Trust II, 6.55%
    200,000       3,398,000  
Den Norske Bank, 7.729%(2)(3)
    16,000       12,038,544  
First Tennessee Bank, 3.75%(2)(3)
    2,775       680,742  
JPMorgan Chase & Co., 7.90%(2)
    19,250       16,241,571  
Landsbanki Islands HF, 7.431%(2)(3)(4)
    20,750       12,450  
Lloyds Banking Group PLC, 6.657%(2)(3)
    18,750       7,448,100  
PNC Financial Services Group, Inc., Series F, 9.875%(2)
    208,000       5,179,200  
Royal Bank of Scotland Group PLC, 7.64%(2)
    155       6,229,264  
Santander Finance Unipersonal, 6.50%
    380,000       6,612,000  
Standard Chartered PLC, 6.409%(2)(3)
    128       9,080,384  
UBS Preferred Funding Trust I, 8.622%(2)
    13,000       8,642,582  
Wells Fargo Co., 7.98%(2)
    3,250       2,592,229  
                 
            $ 117,315,284  
                 
Diversified Financial Services — 2.4%
               
Bank of America Corp., 6.70%
    81,450     $ 1,295,055  
Bank of America Corp., Series I, 6.625%
    335,000       5,473,900  
CoBank, 7.00%(3)
    400,000       10,222,800  
CoBank, 11.00%(3)
    170,000       7,286,965  
                 
            $ 24,278,720  
                 
 
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Security   Shares     Value  
Food Products — 0.7%
               
Dairy Farmers of America, 7.875%(3)
    73,750     $ 4,021,684  
Ocean Spray Cranberries, Inc., 6.25%(3)
    47,500       3,047,424  
                 
            $ 7,069,108  
                 
Insurance — 10.1%
               
Aegon NV, 6.375%
    330,000     $ 4,752,000  
Arch Capital Group, Ltd., Series A, 8.00%
    424,500       9,351,735  
Arch Capital Group, Ltd., Series B, 7.875%
    60,500       1,250,535  
AXA SA, 6.379%(2)(3)
    2,000       1,301,182  
AXA SA, 6.463%(2)(3)
    18,925       11,957,080  
Endurance Specialty Holdings, Ltd., 7.75%
    317,500       5,461,000  
ING Capital Funding Trust III, 8.439%(2)
    17,075       9,650,158  
ING Groep NV, 8.50%
    725,000       12,825,250  
PartnerRe, Ltd., 6.50%
    25,000       472,750  
Prudential PLC, 6.50%
    21,400       12,776,035  
RAM Holdings, Ltd., Series A, 7.50%(2)(3)
    13,000       589,875  
RenaissanceRe Holdings, Ltd., 6.08%
    199,100       3,420,538  
RenaissanceRe Holdings, Ltd., 6.60%
    400,500       7,729,650  
Zurich Regcaps Fund Trust I, 6.58%(2)(3)
    6,000       6,020,625  
Zurich Regcaps Fund Trust VI, 1.802%(2)(3)
    16,300       14,817,719  
                 
            $ 102,376,132  
                 
Oil, Gas & Consumable Fuels — 1.3%
               
Kinder Morgan GP, Inc., 8.33%(2)(3)
    12,000     $ 13,185,750  
                 
            $ 13,185,750  
                 
Real Estate Investment Trusts (REITs) — 7.1%
               
AMB Property Corp., 6.75%
    176,000     $ 2,858,240  
Health Care, Inc., 7.875%
    170,100       3,487,050  
ProLogis Trust, 6.75%
    1,310,000       20,305,000  
PS Business Parks, Inc., 7.95%
    215,000       4,540,800  
Public Storage, Inc., 6.85%
    400,000       8,750,000  
Regency Centers Corp., 7.45%
    44,720       860,860  
Vornado Realty Trust, 7.00%
    1,600,000       30,650,080  
                 
            $ 71,452,030  
                 
                 
Total Preferred Stocks
(identified cost $511,013,455)
          $ 335,677,024  
                 
 
Corporate Bonds & Notes — 1.0%
 
                 
    Principal
 		       
    Amount
 		       
Security   (000’s omitted)     Value  
Retail-Food and Drug — 1.0%
               
CVS Caremark Corp., 6.302%, 6/1/37(2)
  $ 15,000     $ 10,206,315  
                 
            $ 10,206,315  
                 
                 
Total Corporate Bonds & Notes
(identified cost $12,428,161)
          $ 10,206,315  
                 
 
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Short-Term Investments — 0.8%
 
                 
    Interest
 		       
Description   (000’s omitted)     Value  
Cash Management Portfolio, 0.03%, 6/1/09(5)
  $ 7,735     $ 7,734,749  
                 
                 
Total Short-Term Investments
(identified cost $7,734,749)
          $ 7,734,749  
                 
                 
Total Investments — 131.3%
(identified cost $1,290,695,617)
          $ 1,325,479,992  
                 
                 
Other Assets, Less Liabilities — (31.3)%
          $ (315,864,740 )
                 
                 
Net Assets — 100.0%
          $ 1,009,615,252  
                 
 
             
ADR
  -   American Depository Receipt
         
(1)
      Security has been segregated as collateral with the custodian for borrowings under the Committed Facility Agreement.
(2)
      Variable rate security. The stated interest rate represents the rate in effect at May 31, 2009.
(3)
      Security exempt from registration under Rule 144A of the Securities Act of 1933. These securities may be sold in transactions exempt from registration, normally to qualified institutional buyers. At May 31, 2009, the aggregate value of these securities is $127,175,086 or 12.6% of the Fund’s net assets.
(4)
      Defaulted security.
(5)
      Affiliated investment company available to Eaton Vance portfolios and funds which invests in high quality, U.S. dollar denominated money market instruments. The rate shown is the annualized seven-day yield as of May 31, 2009. Net income allocated from the investment in Cash Management Portfolio for the fiscal year to date ended May 31, 2009 was $372,058.
 
Country Concentration of Portfolio
 
                 
    Percentage of
 		       
Country   Total Investments     Value  
United States
    58.5 %   $ 775,322,424  
United Kingdom
    7.1       94,498,812  
France
    5.2       68,653,401  
Germany
    5.0       65,961,870  
Switzerland
    4.9       65,267,109  
Finland
    2.4       32,286,623  
Canada
    2.4       32,036,124  
Brazil
    2.4       31,648,500  
Bermuda
    2.1       28,276,083  
Australia
    2.1       27,051,440  
Netherlands
    1.7       22,511,658  
Norway
    1.7       22,492,260  
Sweden
    1.6       21,684,069  
Italy
    1.6       20,381,119  
Mexico
    0.8       10,796,500  
Spain
    0.5       6,612,000  
                 
Total Investments
    100.0 %   $ 1,325,479,992  
                 
 
The Fund did not have any open financial instruments at May 31, 2009.
 
The cost and unrealized appreciation (depreciation) of investments of the Fund at May 31, 2009, as determined on a federal income tax basis, were as follows:
 
         
Aggregate cost
  $ 1,295,291,627  
         
Gross unrealized appreciation
  $ 232,686,650  
Gross unrealized depreciation
    (202,498,285 )
         
Net unrealized appreciation
  $ 30,188,365  
         
 
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The Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157 (FAS 157), “Fair Value Measurements”, effective September 1, 2008. FAS 157 established a three-tier hierarchy to prioritize the assumptions, referred to as inputs, used in valuation techniques to measure fair value. The three-tier hierarchy of inputs is summarized in the three broad levels listed below.
 
  •   Level 1 — quoted prices in active markets for identical investments
 
  •   Level 2 — other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)
 
  •   Level 3 — significant unobservable inputs (including a fund’s own assumptions in determining the fair value of investments)
 
The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.
 
At May 31, 2009, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:
 
             
        Investments in
 		 
    Valuation Inputs   Securities  
Level 1
  Quoted Prices   $ 841,139,471  
Level 2
  Other Significant Observable Inputs     484,340,521  
Level 3
  Significant Unobservable Inputs     —  
             
Total
      $ 1,325,479,992  
             
 
The following is a reconciliation of Level 3 assets for which significant unobservable inputs were used to determine fair value:
 
         
    Investments in
 		 
    Securities  
Balance as of August 31, 2008
  $ 0 *
Realized gains (losses)
    0  
Change in net unrealized appreciation (depreciation)*
    0  
Net purchases (sales)
    (0 )
Net transfer to (from) Level 3
    —  
         
Balance as of May 31, 2009
  $ —  
         
 
* All Level 3 assets held at August 31, 2008 were valued at $0.
 
For information on the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements included in its semiannual or annual report to shareholders.
 
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Item 2. Controls and Procedures
 
(a) It is the conclusion of the registrant’s principal executive officer and principal financial officer that the effectiveness of the registrant’s current disclosure controls and procedures (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing) provide reasonable assurance that the information required to be disclosed by the registrant on this Form N-Q has been recorded, processed, summarized and reported within the time period specified in the Commission’s rules and forms and that the information required to be disclosed by the registrant on this Form N-Q has been accumulated and communicated to the registrant’s principal executive officer and principal financial officer in order to allow timely decisions regarding required disclosure.
 
(b) There have been no changes in the registrant’s internal controls over financial reporting during the fiscal quarter for which the report is being filed that have materially affected, or are reasonably likely to materially affect the registrant’s internal control over financial reporting.

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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.
 
Eaton Vance Tax-Advantaged Dividend Income Fund
 
         
By:
  /s/ Duncan W. Richardson    
         
    Duncan W. Richardson    
    President    
         
Date:
  July 24, 2009    
 
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/ Duncan W. Richardson    
         
    Duncan W. Richardson    
    President    
         
Date:
  July 24, 2009    
 
         
By:
  /s/ Barbara E. Campbell    
         
    Barbara E. Campbell    
    Treasurer    
         
Date:
  July 24, 2009