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)
August 31
Date of Fiscal Year End
November 30, 2010
Date of Reporting Period
 
 

 

 

Item 1. Schedule of Investments

 

 

Eaton Vance Tax-Advantaged Dividend Income Fund as of November 30, 2010
 
PORTFOLIO OF INVESTMENTS (Unaudited)
 
Common Stocks(1) — 90.9%
 
                 
Security   Shares     Value  
Aerospace & Defense — 2.9%
               
General Dynamics Corp. 
    175,000     $ 11,565,750  
Honeywell International, Inc. 
    300,000       14,913,000  
United Technologies Corp. 
    130,000       9,785,100  
                 
            $ 36,263,850  
                 
Beverages — 1.2%
               
Coca-Cola Co. (The)
    241,000     $ 15,223,970  
                 
            $ 15,223,970  
                 
Capital Markets — 1.9%
               
Goldman Sachs Group, Inc. (The)
    149,000     $ 23,264,860  
                 
            $ 23,264,860  
                 
Commercial Banks — 1.3%
               
Banco Santander Brasil SA ADR
    240,000     $ 3,132,000  
HSBC Holdings PLC
    1,250,000       12,649,368  
                 
            $ 15,781,368  
                 
Computers & Peripherals — 3.4%
               
International Business Machines Corp. 
    304,000     $ 43,003,840  
                 
            $ 43,003,840  
                 
Diversified Financial Services — 0.6%
               
JPMorgan Chase & Co. 
    210,000     $ 7,849,800  
                 
            $ 7,849,800  
                 
Diversified Telecommunication Services — 3.2%
               
AT&T, Inc. 
    728,750     $ 20,251,962  
Frontier Communications Corp. 
    1,050,000       9,555,000  
Telefonos de Mexico SA de CV ADR
    650,000       10,400,000  
                 
            $ 40,206,962  
                 
Electric Utilities — 8.1%
               
Edison International
    677,000     $ 25,008,380  
Exelon Corp. 
    75,000       2,952,750  
Fortum Oyj
    940,000       24,797,523  
NextEra Energy, Inc. 
    400,000       20,248,000  
Scottish and Southern Energy PLC
    1,600,000       27,889,987  
                 
            $ 100,896,640  
                 
Electrical Equipment — 1.3%
               
Emerson Electric Co. 
    300,000     $ 16,521,000  
                 
            $ 16,521,000  
                 
Food Products — 5.9%
               
Kellogg Co. 
    340,000     $ 16,738,200  
Kraft Foods, Inc., Class A
    622,821       18,840,335  
Nestle SA
    636,000       34,553,524  
Tate & Lyle PLC
    500,000       3,966,452  
                 
            $ 74,098,511  
                 
Hotels, Restaurants & Leisure — 1.4%
               
McDonald’s Corp. 
    230,000     $ 18,009,000  
                 
            $ 18,009,000  
                 
 
1

 

                 
Security   Shares     Value  
Household Durables — 2.3%
               
Stanley Black & Decker, Inc. 
    400,000     $ 23,812,000  
Whirlpool Corp. 
    67,000       4,891,000  
                 
            $ 28,703,000  
                 
Household Products — 0.8%
               
Clorox Co. (The)
    151,000     $ 9,333,310  
                 
            $ 9,333,310  
                 
Independent Power Producers & Energy Traders — 2.4%
               
International Power PLC
    4,800,000     $ 30,471,262  
                 
            $ 30,471,262  
                 
Insurance — 0.8%
               
Assured Guaranty, Ltd. 
    270,000     $ 4,592,700  
Lancashire Holdings, Ltd. 
    500,000       4,776,347  
                 
            $ 9,369,047  
                 
Machinery — 1.1%
               
Parker Hannifin Corp. 
    170,000     $ 13,639,100  
                 
            $ 13,639,100  
                 
Metals & Mining — 7.2%
               
BHP Billiton, Ltd. ADR
    481,000     $ 39,634,400  
Vale SA ADR
    1,580,000       50,054,400  
                 
            $ 89,688,800  
                 
Multi-Utilities — 2.0%
               
Sempra Energy
    500,000     $ 25,045,000  
                 
            $ 25,045,000  
                 
Oil, Gas & Consumable Fuels — 17.1%
               
Chevron Corp. 
    624,000     $ 50,525,280  
ConocoPhillips
    520,000       31,288,400  
ENI SpA
    1,794,000       36,098,320  
Marathon Oil Corp. 
    1,296,000       43,377,120  
Peabody Energy Corp. 
    500,000       29,405,000  
Repsol YPF SA
    980,000       23,622,944  
                 
            $ 214,317,064  
                 
Paper & Forest Products — 0.4%
               
Weyerhaeuser Co. 
    323,288     $ 5,395,677  
                 
            $ 5,395,677  
                 
Pharmaceuticals — 10.0%
               
Abbott Laboratories
    670,000     $ 31,161,700  
Johnson & Johnson
    546,000       33,606,300  
Merck & Co., Inc. 
    846,307       29,172,202  
Pfizer, Inc. 
    1,900,000       30,951,000  
                 
            $ 124,891,202  
                 
Road & Rail — 4.8%
               
Norfolk Southern Corp. 
    500,000     $ 30,085,000  
Union Pacific Corp. 
    325,000       29,285,750  
                 
            $ 59,370,750  
                 
Software — 2.7%
               
Microsoft Corp. 
    1,326,639     $ 33,444,569  
                 
            $ 33,444,569  
                 
Specialty Retail — 3.4%
               
Limited Brands, Inc. 
    1,270,000     $ 42,760,900  
                 
            $ 42,760,900  
                 
 
2

 

                 
Security   Shares     Value  
Textiles, Apparel & Luxury Goods — 1.8%
               
VF Corp. 
    275,000     $ 22,792,000  
                 
            $ 22,792,000  
                 
Tobacco — 2.9%
               
Philip Morris International, Inc. 
    630,000     $ 35,840,700  
                 
            $ 35,840,700  
                 
                 
Total Common Stocks
(identified cost $833,380,061)
          $ 1,136,182,182  
                 
 
Preferred Stocks — 29.7%
 
                 
Security   Shares     Value  
Commercial Banks — 17.0%
               
Abbey National Capital Trust I, 8.963%(2)
    8,190     $ 9,042,030  
Bank of America Corp., 8.125%(2)
    16,300       16,364,238  
Barclays Bank PLC, 6.86%(2)(3)
    3,500       3,470,866  
Barclays Bank PLC, 7.434%(2)(3)
    13,500       13,558,401  
BBVA International SA Unipersonal, 5.919%(2)
    6,500       5,283,349  
BNP Paribas, 7.195%(2)(3)
    149       15,318,192  
CoBank, ACB, 7.00%(3)
    400,000       17,812,520  
CoBank, ACB, 11.00%(3)
    170,000       9,265,000  
Credit Agricole SA/London, 6.637%(2)(3)
    8,525       7,460,935  
DB Contingent Capital Trust II, 6.55%
    366,077       8,738,258  
Farm Credit Bank of Texas, Series I, 10.00%
    1,405       15,560,375  
JPMorgan Chase & Co., 7.90%(2)
    21,750       23,368,918  
KeyCorp, Series A, 7.75%
    120,000       12,354,000  
Landsbanki Islands HF, 7.431%(2)(3)(4)(5)(6)
    20,750       0  
Lloyds Banking Group PLC, 6.657%(2)(3)(5)
    18,750       12,656,250  
National City Capital Trust II, 6.625%
    180,000       4,482,000  
Rabobank Nederland, 11.00%(2)(3)
    2,900       3,922,676  
Royal Bank of Scotland Group PLC, 7.648%(2)
    4,086       3,659,123  
Royal Bank of Scotland Group PLC, Series F, 7.65%
    134,739       3,004,680  
Royal Bank of Scotland Group PLC, Series H, 7.25%
    80,000       1,720,000  
Royal Bank of Scotland Group PLC, Series L, 5.75%
    277,725       4,771,316  
Standard Chartered PLC, 6.409%(2)(3)
    48       4,729,908  
Wells Fargo & Co., 7.98%(2)
    5,350       5,735,061  
Wells Fargo & Co., Class A, 7.50%
    9,890       9,761,430  
                 
            $ 212,039,526  
                 
Diversified Financial Services — 0.4%
               
Heller Financial, Inc., Series D, 6.95%
    57,500     $ 5,633,206  
                 
            $ 5,633,206  
                 
Electric Utilities — 1.1%
               
Entergy Arkansas, Inc., 6.45%
    325,000     $ 8,013,297  
Entergy Louisiana, LLC, 6.95%
    24,400       2,356,528  
Southern California Edison Co., 6.00%
    37,000       3,592,471  
                 
            $ 13,962,296  
                 
Food Products — 0.8%
               
Dairy Farmers of America, 7.875%(3)
    73,750     $ 6,531,484  
Ocean Spray Cranberries, Inc., 6.25%(3)
    47,500       3,924,688  
                 
            $ 10,456,172  
                 
Insurance — 6.6%
               
Allianz SE, 8.375%
    51,757     $ 1,348,917  
Arch Capital Group, Ltd., Series A, 8.00%
    424,500       10,782,300  
AXA SA, 6.379%(2)(3)
    6,150       5,900,648  
AXA SA, 6.463%(2)(3)
    14,775       14,033,930  
Endurance Specialty Holdings, Ltd., Series A, 7.75%
    317,500       8,232,775  
 
3

 

                 
Security   Shares     Value  
ING Capital Funding Trust III, 8.439%(2)
    17,075     $ 16,229,924  
Prudential PLC, 6.50%
    11,400       10,742,459  
RAM Holdings, Ltd., Series A, 7.50%(2)
    13,000       4,550,813  
RenaissanceRe Holdings, Ltd., Series C, 6.08%
    199,100       4,555,408  
RenaissanceRe Holdings, Ltd., Series D, 6.60%
    245,400       6,095,736  
                 
            $ 82,472,910  
                 
Oil, Gas & Consumable Fuels — 1.0%
               
Kinder Morgan GP, Inc., 8.33%(2)(3)
    12,000     $ 12,507,000  
                 
            $ 12,507,000  
                 
Real Estate Investment Trusts (REITs) — 2.8%
               
CapLease, Inc., Series A, 8.125%
    400,000     $ 9,932,000  
Developers Diversified Realty Corp., Series G, 8.00%
    160,369       4,001,206  
Developers Diversified Realty Corp., Series I, 7.50%
    50,000       1,210,000  
ProLogis Trust, 6.75%
    622,790       14,772,579  
Regency Centers Corp., Series C, 7.45%
    199,395       4,954,966  
                 
            $ 34,870,751  
                 
                 
Total Preferred Stocks
(identified cost $400,677,080)
          $ 371,941,861  
                 
 
Corporate Bonds & Notes — 13.6%
 
                 
    Principal
 		       
    Amount
 		       
Security   (000’s omitted)     Value  
Commercial Banks — 3.4%
               
Banco Industriale Comercial SA, 8.50%, 4/27/20(3)
  $ 2,010     $ 2,080,350  
Citigroup Capital XXI, 8.30% to 12/21/37, 12/21/57, 12/21/77(7)(8)
    12,850       13,428,250  
Fifth Third Capital Trust IV, 6.50% to 4/15/17, 4/15/37, 4/15/67(7)(8)
    7,250       6,796,875  
Groupe BPCE, 12.50% to 9/30/19, 8/30/49(3)(8)
    4,150       4,784,925  
Northgroup Preferred Capital Corp., 6.378% to 10/15/17, 1/29/49(3)(8)
    16,700       15,683,805  
                 
            $ 42,774,205  
                 
Diversified Financial Services — 3.0%
               
GE Capital Trust I, 6.375% to 11/15/17, 11/15/67(8)
  $ 16,000     $ 15,900,000  
HSBC Finance Capital Trust IX, 5.911% to 11/30/15, 11/30/35(8)
    9,941       9,255,071  
PNC Preferred Funding Trust II, 6.113% to 3/15/12, 3/29/49(3)(8)
    2,150       1,578,392  
QBE Capital Funding II LP, 6.797% to 6/1/17, 6/29/49(3)(8)
    3,685       3,205,202  
SunTrust Capital VIII, 6.10% to 12/15/36, 12/1/66(8)
    7,500       6,864,945  
                 
            $ 36,803,610  
                 
Electric Utilities — 2.6%
               
Integrys Energy Group, Inc., 6.11% to 12/1/16, 12/1/66(8)
  $ 8,310     $ 8,070,639  
PPL Capital Funding, Inc., Series A, 6.70% to 3/30/17, 3/30/67(8)
    15,500       15,170,454  
Wisconsin Energy Corp., 6.25% to 5/15/17, 5/15/67(8)
    9,600       9,420,288  
                 
            $ 32,661,381  
                 
Insurance — 2.4%
               
MetLife, Inc., 10.75% to 8/1/34, 8/1/39, 8/1/69(7)(8)
  $ 9,825     $ 13,273,349  
XL Capital, Ltd., 6.50% to 4/15/17, 12/29/49(8)
    18,570       16,016,625  
                 
            $ 29,289,974  
                 
Pipelines — 1.1%
               
Enbridge Energy Partners, LP, 8.05% to 10/1/17, 10/1/37, 10/1/77(7)(8)
  $ 4,585     $ 4,812,980  
Enterprise Products Operating, LLC, 7.00% to 6/1/17, 6/1/67(8)
    2,605       2,564,979  
Enterprise Products Operating, LLC, 7.034% to 1/15/18, 1/15/68(8)
    2,500       2,594,238  
Southern Union Co., 7.20% to 11/1/11, 11/1/66(8)
    1,865       1,715,800  
TransCanada Pipelines, Ltd., 6.35% to 5/15/17, 5/15/67(8)
    2,148       2,123,599  
                 
            $ 13,811,596  
                 
 
4

 

                 
    Principal
 		       
    Amount
 		       
Security   (000’s omitted)     Value  
Retail-Food and Drug — 1.1%
               
CVS Caremark Corp., 6.302% to 6/1/12, 6/1/37, 6/1/62(7)(8)
  $ 15,000     $ 14,236,170  
                 
                 
            $ 14,236,170  
                 
                 
Total Corporate Bonds & Notes
(identified cost $159,391,693)
          $ 169,576,936  
                 
                 
Total Investments — 134.2%
(identified cost $1,393,448,834)
          $ 1,677,700,979  
                 
                 
Other Assets, Less Liabilities — (34.2)%
          $ (427,633,897 )
                 
                 
Net Assets — 100.0%
          $ 1,250,067,082  
                 
 
             
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 November 30, 2010, the Fund held interests in Eaton Vance Cash Reserves Fund, LLC, an affiliated investment company available to Eaton Vance portfolios and funds which invests in high quality, U.S. dollar denominated money market instruments. Net income allocated from the investment in Eaton Vance Cash Reserves Fund, LLC for the fiscal year to date ended November 30, 2010 was $30,430.
         
(1)
      All or 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 November 30, 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 November 30, 2010, the aggregate value of these securities is $158,425,172 or 12.7% of the Fund’s net assets.
         
(4)
      Defaulted security.
         
(5)
      Non-income producing security.
         
(6)
      Security valued at fair value using methods determined in good faith by or at the direction of the Trustees.
         
(7)
      The maturity dates shown are the scheduled maturity date and final maturity date, respectively. The scheduled maturity date is earlier than the final maturity date due to the possibility of earlier repayment.
         
(8)
      Security converts to floating rate after the indicated fixed-rate coupon period.
 
Country Concentration of Portfolio
 
                 
    Percentage of
 		       
Country   Total Investments     Value  
United States
    76.2 %   $ 1,277,986,461  
United Kingdom
    5.8       97,129,315  
Brazil
    3.3       55,266,750  
Australia
    2.5       42,839,602  
Italy
    2.1       36,098,320  
Switzerland
    2.1       34,553,524  
Bermuda
    1.8       30,797,896  
Finland
    1.5       24,797,523  
France
    1.5       24,719,503  
Spain
    1.4       23,622,944  
Cayman Islands
    1.0       16,016,625  
Mexico
    0.6       10,400,000  
Canada
    0.1       2,123,599  
Germany
    0.1       1,348,917  
Iceland
    0.0       0  
                 
Total Investments
    100.0 %   $ 1,677,700,979  
                 
 
5

 

A summary of open financial instruments at November 30, 2010 is as follows:
 
Forward Foreign Currency Exchange Contracts
 
Sales
 
                     
Settlement
 		              Net Unrealized
 		 
Date   Deliver   In Exchange For   Counterparty   Appreciation  
12/8/10
  Euro
31,930,473 		  United States Dollar
45,477,583 		  Citibank N.A.   $ 4,030,992  
12/8/10
  Euro
42,534,800 		  United States Dollar
60,589,122 		  Goldman Sachs Group, Inc.     5,377,836  
12/8/10
  Euro
32,070,447 		  United States Dollar
45,731,174 		  JPMorgan Chase Co.     4,102,894  
12/8/10
  Euro
36,504,594 		  United States Dollar
52,091,142 		  Standard Chartered Bank     4,707,223  
12/8/10
  Euro
34,226,429 		  United States Dollar
48,824,002 		  State Street Bank and Trust Co.     4,397,199  
                     
                $ 22,616,144  
                     
 
At November 30, 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 enters into forward foreign currency exchange contracts. The Fund also enters into such contracts to hedge the currency risk of investments it anticipates purchasing.
 
At November 30, 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 $22,616,144.
 
The cost and unrealized appreciation (depreciation) of investments of the Fund at November 30, 2010, as determined on a federal income tax basis, were as follows:
 
         
Aggregate cost
  $ 1,393,671,021  
         
Gross unrealized appreciation
  $ 338,102,023  
Gross unrealized depreciation
    (54,072,065 )
         
Net unrealized appreciation
  $ 284,029,958  
         
 
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 November 30, 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
  $ 112,264,900     $ —     $ —     $ 112,264,900  
Consumer Staples
    95,976,515       38,519,976       —       134,496,491  
Energy
    154,595,800       59,721,264       —       214,317,064  
Financials
    44,235,036       17,425,715       —       61,660,751  
Health Care
    124,891,202       —       —       124,891,202  
Industrials
    125,794,700       —       —       125,794,700  
Information Technology
    76,448,409       —       —       76,448,409  
Materials
    89,688,800       —       —       89,688,800  
Telecommunication Services
    40,206,963       —       —       40,206,963  
Utilities
    73,254,130       83,158,772       —       156,412,902  
 
 
Total Common Stocks
  $ 937,356,455     $ 198,825,727 *   $ —     $ 1,136,182,182  
 
 
Preferred Stocks
                               
Consumer Staples
  $ —     $ 10,456,172     $ —     $ 10,456,172  
Energy
    —       12,507,000       —       12,507,000  
Financials
    109,368,654       225,647,739       0       335,016,393  
Utilities
    2,356,528       11,605,768       —       13,962,296  
 
 
Total Preferred Stocks
  $ 111,725,182     $ 260,216,679     $ 0     $ 371,941,861  
 
 
Corporate Bonds & Notes
  $ —     $ 169,576,936     $ —     $ 169,576,936  
 
 
Total Investments
  $ 1,049,081,637     $ 628,619,342     $ 0     $ 1,677,700,979  
 
 
Forward Foreign Currency Exchange Contracts
  $ —     $ 22,616,144     $ —     $ 22,616,144  
 
 
Total
  $ 1,049,081,637     $ 651,235,486     $ 0     $ 1,700,317,123  
 
 
 
* Includes foreign equity securities whose values were adjusted to reflect market trading of comparable securities or other correlated instruments that occurred after the close of trading in their applicable foreign markets.
 
During the period ended November 30, 2010, the Fund had a security transfer to Level 3 with a $0 net transfer value. Transfers are reflected at the value of the securities at the beginning of the period. There was no other activity in investments valued based on Level 3 inputs during the period ended November 30, 2010.
 
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/ Judith A. Saryan    
 
 
 
Judith A. Saryan 		   
 
  President    
 
        
Date:
  January 24, 2011    
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/ Judith A. Saryan    
 
 
 
Judith A. Saryan 		   
 
  President    
 
        
Date:
  January 24, 2011    
 
        
By:
  /s/ Barbara E. Campbell    
 
 
 
Barbara E. Campbell 		   
 
  Treasurer    
 
        
Date:
  January 24, 2011