Eaton Vance Tax-Advantaged Dividend Income Fund
 
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, 2010
Date of Reporting Period
 

 

 
Item 1. Schedule of Investments
 

 

Eaton Vance Tax-Advantaged Dividend Income Fund as of May 31, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
Common Stocks — 88.3%
 
                 
Security   Shares     Value  
Aerospace & Defense — 3.0%
               
General Dynamics Corp.(1)
    175,000     $ 11,882,500  
Honeywell International, Inc.(1)
    300,000       12,831,000  
Lockheed Martin Corp.(1)
    120,000       9,590,400  
                 
            $ 34,303,900  
                 
Capital Markets — 3.2%
               
Credit Suisse Group AG(1)
    564,000     $ 21,768,960  
Goldman Sachs Group, Inc.(1)
    95,000       13,704,700  
                 
            $ 35,473,660  
                 
Commercial Banks — 2.8%
               
Banco Santander Brasil SA ADR(1)
    565,300     $ 5,890,426  
BNP Paribas SA(1)
    310,000       17,564,625  
DnB NOR ASA(1)
    102,222       1,015,584  
Intesa Sanpaolo SpA(1)
    2,500,000       6,511,806  
                 
            $ 30,982,441  
                 
Communications Equipment — 0.9%
               
Nokia Oyj(1)
    1,000,000     $ 10,045,616  
                 
            $ 10,045,616  
                 
Computers & Peripherals — 3.4%
               
International Business Machines Corp.(1)
    304,000     $ 38,079,040  
                 
            $ 38,079,040  
                 
Diversified Financial Services — 2.4%
               
Bank of America Corp.(1)
    1,325,000     $ 20,855,500  
Deutsche Boerse AG(1)
    105,000       6,424,553  
                 
            $ 27,280,053  
                 
Diversified Telecommunication Services — 9.0%
               
AT&T, Inc.(1)
    728,750     $ 17,708,625  
Deutsche Telekom AG(1)
    2,370,000       26,561,423  
France Telecom SA(1)
    1,660,000       31,378,601  
Tele2 AB(1)
    1,100,000       15,961,966  
Telefonos de Mexico SA de CV ADR(1)
    650,000       9,145,500  
                 
            $ 100,756,115  
                 
Electric Utilities — 8.4%
               
Edison International(1)
    677,000     $ 21,907,720  
Enel SpA(1)
    6,270,000       28,617,324  
Exelon Corp.(1)
    75,000       2,895,000  
Fortum Oyj(1)
    940,000       21,088,441  
FPL Group, Inc.(1)
    400,000       19,972,000  
                 
            $ 94,480,485  
                 
Electrical Equipment — 1.2%
               
Emerson Electric Co.(1)
    300,000     $ 13,932,000  
                 
            $ 13,932,000  
                 
Food Products — 4.1%
               
Kraft Foods, Inc., Class A(1)
    622,821     $ 17,812,681  
Nestle SA(1)
    636,000       28,702,553  
                 
            $ 46,515,234  
                 
 
1

 

                 
Security   Shares     Value  
Household Durables — 2.5%
               
Stanley Black & Decker, Inc.(1)
    400,000     $ 22,316,000  
Whirlpool Corp.(1)
    54,000       5,639,760  
                 
            $ 27,955,760  
                 
Insurance — 1.5%
               
Allianz SE(1)
    168,000     $ 16,783,671  
                 
            $ 16,783,671  
                 
Media — 4.0%
               
Vivendi SA(1)
    800,000     $ 17,205,894  
Wolters Kluwer NV(1)
    1,490,000       27,340,984  
                 
            $ 44,546,878  
                 
Metals & Mining — 6.6%
               
BHP Billiton, Ltd. ADR(1)
    481,000     $ 31,188,040  
Vale SA ADR(1)
    1,580,000       42,960,200  
                 
            $ 74,148,240  
                 
Multi-Utilities — 6.1%
               
National Grid PLC(1)
    3,580,000     $ 25,849,852  
Sempra Energy(1)
    500,000       23,000,000  
United Utilities Group PLC(1)
    2,550,000       19,802,680  
                 
            $ 68,652,532  
                 
Oil, Gas & Consumable Fuels — 15.6%
               
Chevron Corp.(1)
    624,000     $ 46,094,880  
ConocoPhillips(1)
    520,000       26,967,200  
Marathon Oil Corp.(1)
    1,296,000       40,292,640  
Peabody Energy Corp.(1)
    500,000       19,480,000  
Statoil ASA(1)
    1,410,000       27,955,874  
Total SA(1)
    310,000       14,361,202  
                 
            $ 175,151,796  
                 
Pharmaceuticals — 5.3%
               
Johnson & Johnson(1)
    146,000     $ 8,511,800  
Merck & Co., Inc.(1)
    596,307       20,089,583  
Sanofi-Aventis(1)
    515,000       30,828,088  
                 
            $ 59,429,471  
                 
Software — 2.3%
               
Microsoft Corp.(1)
    1,020,000     $ 26,316,000  
                 
            $ 26,316,000  
                 
Specialty Retail — 1.3%
               
Limited Brands, Inc.(1)
    610,000     $ 15,164,600  
                 
            $ 15,164,600  
                 
Textiles, Apparel & Luxury Goods — 1.9%
               
VF Corp.(1)
    275,000     $ 21,271,250  
                 
            $ 21,271,250  
                 
Tobacco — 2.5%
               
Philip Morris International, Inc.(1)
    630,000     $ 27,795,600  
                 
            $ 27,795,600  
                 
Water Utilities — 0.2%
               
Severn Trent PLC
    153,212     $ 2,638,796  
                 
            $ 2,638,796  
                 
 
2

 

                 
Security   Shares     Value  
Wireless Telecommunication Services — 0.1%
               
Partner Communications Co., Ltd.(1)
    67,353     $ 1,198,227  
                 
            $ 1,198,227  
                 
                 
Total Common Stocks
(identified cost $825,395,598)
          $ 992,901,365  
                 
 
Preferred Stocks — 32.2%
 
                 
Security   Shares     Value  
Commercial Banks — 14.7%
               
Abbey National Capital Trust I, 8.963%(2)
    4,000     $ 4,080,144  
ABN AMRO North America Capital Funding Trust, 6.968%(2)(3)
    1,250       877,344  
Bank of America Corp., 6.70%
    81,450       1,671,354  
Bank of America Corp., Series I, 6.625%
    335,000       7,286,250  
Barclays Bank PLC, 6.86%(2)(3)
    3,500       2,838,836  
Barclays Bank PLC, 7.434%(2)(3)
    13,500       12,537,423  
BBVA International SA Unipersonal, 5.919%(2)
    6,500       4,645,582  
BNP Paribas, 7.195%(2)(3)
    85       7,570,423  
CoBank, ACB, 7.00%(3)
    400,000       16,287,520  
CoBank, ACB, 11.00%(3)
    170,000       9,286,250  
Credit Agricole SA/London, 6.637%(2)(3)
    13,950       10,860,103  
DB Capital Funding VIII, 6.375%
    167,824       3,364,871  
DB Contingent Capital Trust II, 6.55%
    251,077       5,069,245  
Den Norske Bank, 7.729%(2)(3)
    16,000       16,434,752  
JPMorgan Chase & Co., 7.90%(2)
    9,250       9,497,826  
Landsbanki Islands HF, 7.431%(2)(3)(4)(5)
    20,750       77,812  
Lloyds Banking Group PLC, 6.657%(2)(3)(5)
    18,750       10,031,250  
Royal Bank of Scotland Group PLC, 7.648%(2)
    4,086       3,135,306  
Royal Bank of Scotland Group PLC, Series F, 7.65%
    134,739       2,514,230  
Royal Bank of Scotland Group PLC, Series H, 7.25%
    80,000       1,410,400  
Royal Bank of Scotland Group PLC, Series L, 5.75%
    277,725       3,999,240  
Santander Finance SA Unipersonal, 10.50%
    81,390       2,095,792  
Standard Chartered PLC, 6.409%(2)(3)
    128       11,139,509  
UBS Preferred Funding Trust I, 8.622%(2)
    9,200       9,099,150  
Wells Fargo & Co., 7.98%(2)
    2,400       2,481,034  
Wells Fargo & Co., Class A, 7.50%
    6,890       6,476,600  
                 
            $ 164,768,246  
                 
Electric Utilities — 0.5%
               
Entergy Arkansas, Inc., 6.45%
    110,000     $ 2,622,818  
Southern California Edison Co., 6.00%
    37,000       3,442,850  
                 
            $ 6,065,668  
                 
Food Products — 0.8%
               
Dairy Farmers of America, 7.875%(3)
    73,750     $ 6,047,500  
Ocean Spray Cranberries, Inc., 6.25%(3)
    47,500       3,526,875  
                 
            $ 9,574,375  
                 
Insurance — 8.7%
               
Aegon NV, 6.375%
    330,000     $ 5,633,100  
Arch Capital Group, Ltd., Series A, 8.00%
    424,500       10,803,525  
Arch Capital Group, Ltd., Series B, 7.875%
    60,500       1,524,600  
AXA SA, 6.379%(2)(3)
    2,000       1,657,832  
AXA SA, 6.463%(2)(3)
    18,925       15,505,196  
Endurance Specialty Holdings, Ltd., Series A, 7.75%
    317,500       7,267,575  
ING Capital Funding Trust III, 8.439%(2)
    17,075       15,790,550  
PartnerRe, Ltd., 6.50%
    25,000       545,500  
Prudential PLC, 6.50%
    21,400       17,694,248  
 
3

 

                 
Security   Shares     Value  
RAM Holdings, Ltd., Series A, 7.50%(2)(4)
    13,000     $ 3,250,812  
RenaissanceRe Holdings, Ltd., Series C, 6.08%
    199,100       3,914,306  
RenaissanceRe Holdings, Ltd., Series D, 6.60%
    400,500       8,630,775  
Zurich Regcaps Fund Trust I, 6.58%(2)(3)
    6,000       5,137,500  
                 
            $ 97,355,519  
                 
Oil, Gas & Consumable Fuels — 1.1%
               
Kinder Morgan GP, Inc., 8.33%(2)(3)
    12,000     $ 12,128,250  
                 
            $ 12,128,250  
                 
Real Estate Investment Trusts (REITs) — 6.4%
               
CapLease, Inc., 8.125%
    400,000     $ 9,592,000  
ProLogis Trust, 6.75%
    670,700       13,440,828  
Public Storage, Inc., 6.85%
    400,000       9,862,520  
Regency Centers Corp., Series C, 7.45%
    159,395       3,866,923  
Vornado Realty Trust, 7.00%
    1,600,000       35,000,000  
                 
            $ 71,762,271  
                 
                 
Total Preferred Stocks
(identified cost $429,801,131)
          $ 361,654,329  
                 
 
Corporate Bonds & Notes — 6.8%
 
                 
    Principal
 		       
    Amount
 		       
Security   (000’s omitted)     Value  
Commercial Banks — 3.2%
               
American Express Co., 6.80% to 9/1/16, 9/1/66(6)(7)
  $ 7,330     $ 6,981,825  
Banco Industriale Comercial SA, 8.50%, 4/27/20(3)
    3,000       2,932,500  
Capital One Capital V, 10.25%, 8/15/39
    10,750       11,623,438  
Citigroup Capital XXI, 8.30% to 12/21/37, 12/21/57(6)(7)
    8,400       8,064,000  
Fifth Third Capital Trust IV, 6.50% to 4/15/17, 4/15/37(6)(7)
    7,250       5,854,375  
                 
            $ 35,456,138  
                 
Diversified Financial Services — 0.8%
               
GE Capital Trust I, 6.375% to 11/15/17, 11/15/67(7)
  $ 10,000     $ 9,312,500  
                 
            $ 9,312,500  
                 
Insurance — 1.6%
               
Everest Reinsurance Holdings, Inc., 6.60% to 5/15/17, 5/15/37(6)(7)
  $ 12,900     $ 10,771,500  
MetLife, Inc., 10.75%, 8/1/39(6)
    6,000       7,184,898  
                 
            $ 17,956,398  
                 
Retail-Food and Drug — 1.2%
               
CVS Caremark Corp., 6.302% to 6/1/12, 6/1/37(6)(7)
  $ 15,000     $ 13,581,090  
                 
            $ 13,581,090  
                 
                 
Total Corporate Bonds & Notes
(identified cost $72,997,368)
          $ 76,306,126  
                 
 
4

 

                 
Total Investments — 127.3%
(identified cost $1,328,194,097)
          $ 1,430,861,820  
                 
                 
Other Assets, Less Liabilities — (27.3)%
          $ (306,704,997 )
                 
                 
Net Assets — 100.0%
          $ 1,124,156,823  
                 
 
             
 
The percentage shown for each investment category in the Portfolio of Investments is based on net assets.
         
ADR
  -   American Depositary Receipt
 
During the period ended May 31, 2010, the Fund held interests in Eaton Vance Cash Reserves Fund, LLC and, prior to its liquidation in February 2010, Cash Management Portfolio, affiliated investment companies available to Eaton Vance portfolios and funds which invest in high quality, U.S. dollar denominated money market instruments. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC and Cash Management Portfolio for the fiscal year to date ended May 31, 2010 was $11,030 and $0, respectively.
         
(1)
      All or a portion of this 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, 2010.
         
(3)
      Security exempt from registration pursuant to Rule 144A under the Securities Act of 1933. These securities may be sold in certain transactions (normally to qualified institutional buyers) and remain exempt from registration. At May 31, 2010, the aggregate value of these securities is $144,876,875 or 12.9% of the Fund’s net assets.
         
(4)
      Defaulted security.
         
(5)
      Non-income producing security.
         
(6)
      The maturity date shown is the scheduled maturity date which is earlier than the final maturity date due to the possibility of earlier repayment.
         
(7)
      Security converts to floating rate after the indicated fixed-rate coupon period.
 
Country Concentration of Portfolio
 
                 
    Percentage of
 		       
Country   Total Investments     Value  
United States
    57.0 %   $ 815,287,386  
France
    9.7       139,361,541  
United Kingdom
    5.9       83,940,696  
Brazil
    3.6       51,783,126  
Switzerland
    3.5       50,471,513  
Germany
    3.5       49,769,647  
Norway
    3.2       45,406,210  
Bermuda
    2.5       35,937,093  
Italy
    2.5       35,129,130  
Netherlands
    2.3       32,974,084  
Australia
    2.2       31,188,040  
Finland
    2.2       31,134,057  
Sweden
    1.1       15,961,966  
Mexico
    0.6       9,145,500  
Spain
    0.1       2,095,792  
Israel
    0.1       1,198,227  
Iceland
    0.0       77,812  
                 
Total Investments
    100.0 %   $ 1,430,861,820  
                 
 
5

 

A summary of financial instruments outstanding at May 31, 2010 is as follows:
 
Forward Foreign Currency Exchange Contracts
 
Sales
 
                 
Settlement
 		          Net Unrealized
 		 
Date   Deliver   In Exchange For   Appreciation  
6/3/10
  Euro
31,930,473 		  United States Dollar
42,247,209 		  $ 3,063,267  
6/3/10
  Euro
36,504,594 		  United States Dollar
48,390,489 		    3,593,350  
6/3/10
  Euro
34,226,429 		  United States Dollar
45,247,340 		    3,245,882  
6/3/10
  Euro
42,534,800 		  United States Dollar
56,256,952 		    4,059,757  
6/3/10
  Euro
32,070,447 		  United States Dollar
42,464,318 		    3,108,606  
                 
            $ 17,070,862  
                 
 
At May 31, 2010, the Fund had sufficient cash and/or securities to cover commitments under these contracts.
 
The Fund is subject to foreign exchange risk in the normal course of pursuing its investment objectives. Because the Fund holds foreign currency denominated investments, the value of these investments and related receivables and payables may change due to future changes in foreign currency exchange rates. To hedge against this risk, the Fund may enter into forward foreign currency exchange contracts. The Fund may also enter into such contracts to hedge the currency risk of investments it anticipates purchasing.
 
At May 31, 2010, the aggregate fair value of derivative instruments (not considered to be hedging instruments for accounting disclosure purposes) in an asset position and whose primary underlying risk exposure is foreign exchange risk was $17,070,862.
 
The cost and unrealized appreciation (depreciation) of investments of the Fund at May 31, 2010, as determined on a federal income tax basis, were as follows:
 
         
Aggregate cost
  $ 1,329,208,974  
         
Gross unrealized appreciation
  $ 226,876,525  
Gross unrealized depreciation
    (125,223,679 )
         
Net unrealized appreciation
  $ 101,652,846  
         
 
Under generally accepted accounting principles for fair value measurements, a three-tier hierarchy to prioritize the assumptions, referred to as inputs, is 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.
 
6

 

At May 31, 2010, the inputs used in valuing the Fund’s investments, which are carried at value, were as follows:
 
                                 
    Quoted Prices in
 		                   
    Active Markets for
 		    Significant Other
 		    Significant
 		       
    Identical Assets     Observable Inputs     Unobservable Inputs        
       
Asset Description   (Level 1)     (Level 2)     (Level 3)     Total  
   
Common Stocks
                               
Consumer Discretionary
  $ 64,391,610     $ 44,546,878     $ —     $ 108,938,488  
Consumer Staples
    45,608,281       28,702,553       —       74,310,834  
Energy
    132,834,720       42,317,076       —       175,151,796  
Financials
    40,450,626       70,069,199       —       110,519,825  
Health Care
    28,601,383       30,828,088       —       59,429,471  
Industrials
    48,235,900       —       —       48,235,900  
Information Technology
    64,395,040       10,045,616       —       74,440,656  
Materials
    74,148,240       —       —       74,148,240  
Telecommunication Services
    53,415,548       48,538,794       —       101,954,342  
Utilities
    67,774,720       97,997,093       —       165,771,813  
 
 
Total Common Stocks
  $ 619,856,068     $ 373,045,297 *   $ —     $ 992,901,365  
 
 
Preferred Stocks
                               
Consumer Staples
  $ —     $ 9,574,375     $ —     $ 9,574,375  
Energy
    —       12,128,250       —       12,128,250  
Financials
    99,107,114       234,778,922       —       333,886,036  
Utilities
    3,442,850       2,622,818       —       6,065,668  
 
 
Total Preferred Stocks
  $ 102,549,964     $ 259,104,365     $ —     $ 361,654,329  
 
 
Corporate Bonds & Notes
  $ —     $ 76,306,126     $ —     $ 76,306,126  
 
 
Total Investments
  $ 722,406,032     $ 708,455,788     $ —     $ 1,430,861,820  
 
 
Forward Foreign Currency Exchange Contracts
  $ —     $ 17,070,862     $ —     $ 17,070,862  
 
 
Total
  $ 722,406,032     $ 725,526,650     $ —     $ 1,447,932,682  
 
 
 
* Includes foreign equity securities whose values were adjusted to reflect market trading that occurred after the close of trading in their applicable foreign markets.
 
The Fund held no investments or other financial instruments as of August 31, 2009 whose fair value was determined using Level 3 inputs.
 
For information on the Fund’s policy regarding the 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.
 
7

 

 
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.

 

 
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 26, 2010    
 
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 26, 2010    
         
By:
  /s/ Barbara E. Campbell    
         
    Barbara E. Campbell    
    Treasurer    
         
Date:
  July 26, 2010