nvq
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)
The Eaton Vance Building, 255 State Street, Boston, Massachusetts 02109
(Address of Principal Executive Offices)
Maureen A. Gemma
Eaton Vance Management, 255 State Street, Boston, Massachusetts 02109
(Name and Address of Agent for Services)
(617) 482-8260
(Registrant’s Telephone Number, Including Area Code)
August 31
Date of Fiscal Year End
November 30, 2008
Date of Reporting Period
 
 

 

TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Signatures
Certifications

Table of Contents

Item 1. Schedule of Investments

 

Table of Contents

Eaton Vance Tax-Advantaged Dividend Income Fund   as of November 30, 2008
 
PORTFOLIO OF INVESTMENTS (Unaudited)    
 
Common Stocks — 102.2%(1)                        
 
Security       Shares   Value
 
Aerospace & Defense — 6.3%
                          
Honeywell International, Inc.
             300,000     $ 8,358,000  
Lockheed Martin Corp.
             309,000       23,826,990  
Raytheon Co.
             634,000       30,939,200  
                     
 
                     $ 63,124,190  
                     
Auto Components — 0.7%
                          
Johnson Controls, Inc.
             372,900     $ 6,585,414  
                     
 
                     $ 6,585,414  
                     
Chemicals — 0.4%
                          
Potash Corp. of Saskatchewan, Inc.
             72,000     $ 4,438,080  
                     
 
                     $ 4,438,080  
                     
Commercial Banks — 2.3%
                          
Bank of Nova Scotia
             206,600     $ 5,737,282  
Canadian Imperial Bank of Commerce
             200,000       7,429,907  
HSBC Holdings PLC
             925,000       10,068,323  
                     
 
                     $ 23,235,512  
                     
Computers & Peripherals — 2.5%
                          
International Business Machines Corp.
             304,000     $ 24,806,400  
                     
 
                     $ 24,806,400  
                     
Diversified Financial Services — 0.5%
                          
JPMorgan Chase & Co.
             151,400     $ 4,793,324  
                     
 
                     $ 4,793,324  
                     
Diversified Telecommunication Services — 5.8%     
                          
AT&T, Inc.
             1,658,750     $ 47,373,900  
Telefonos de Mexico SA de CV ADR
             650,000       11,284,000  
                     
 
                     $ 58,657,900  
                     
Electric Utilities — 10.5%
                          
E.ON AG
             554,000     $ 19,352,781  
Edison International
             677,000       22,611,800  
Exelon Corp.
             75,000       4,215,750  
FirstEnergy Corp.
             350,000       20,503,000  
Fortum Oyj
             940,000       18,867,861  
FPL Group, Inc.
             400,000       19,504,000  
                     
 
                     $ 105,055,192  
                     
Electrical Equipment — 2.2%
                          
Cooper Industries, Ltd., Class A
             450,000     $ 10,863,000  
Emerson Electric Co.
             300,000       10,767,000  
                     
 
                     $ 21,630,000  
                     
Energy Equipment & Services — 1.1%
                          
Transocean, Inc.(2)
            160,000     $ 10,700,800  
                     
 
                     $ 10,700,800  
                     

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Table of Contents

                         
Security       Shares   Value
 
Food Products — 5.2%
                          
Kraft Foods, Inc., Class A
             622,821     $ 16,946,959  
Nestle SA
             981,000       35,510,651  
                     
 
                     $ 52,457,610  
                     
Health Care Providers & Services — 3.0%
                          
UnitedHealth Group, Inc.
             1,453,500     $ 30,538,035  
                     
 
                     $ 30,538,035  
                     
Household Durables — 1.3%
                          
Stanley Works
             400,000     $ 12,716,000  
                     
 
                     $ 12,716,000  
                     
Household Products — 0.8%
                          
Kimberly-Clark Corp.
             135,000     $ 7,801,650  
                     
 
                     $ 7,801,650  
                     
Insurance — 3.3%
                          
Aflac, Inc.
             316,000     $ 14,630,800  
MetLife, Inc.
             642,000       18,463,920  
                     
 
                     $ 33,094,720  
                     
Machinery — 2.3%
                          
Caterpillar, Inc.
             575,000     $ 23,569,250  
                     
 
                     $ 23,569,250  
                     
Media — 1.3%
                          
Comcast Corp., Class A
             784,000     $ 13,594,560  
Reed Elsevier PLC
             1       8  
                     
 
                     $ 13,594,568  
                     
Metals & Mining — 3.6%
                          
BHP Billiton, Ltd. ADR
             331,000     $ 13,246,620  
Companhia Vale do Rio Doce ADR
             1,950,000       23,283,000  
                     
 
                     $ 36,529,620  
                     
Multi-Utilities — 4.8%
                          
RWE AG
             292,000     $ 24,483,882  
Sempra Energy
             500,000       23,335,000  
                     
 
                     $ 47,818,882  
                     
Oil, Gas & Consumable Fuels — 20.4%
                          
BP PLC ADR
             740,000     $ 36,030,600  
Chevron Corp.
             734,000       57,993,340  
ConocoPhillips
             720,000       37,814,400  
Husky Energy, Inc.
             772,000       19,200,483  
Marathon Oil Corp.
             1,296,000       33,929,280  
Peabody Energy Corp.
             500,000       11,715,000  
StatoilHydro ASA
             475,000       8,022,345  
                     
 
                     $ 204,705,448  
                     
Pharmaceuticals — 10.7%
                          
Johnson & Johnson
             146,000     $ 8,552,680  
Merck & Co., Inc.
             1,170,000       31,262,400  
Novartis AG
             657,000       30,641,977  
Schering-Plough Corp.
             2,174,000       36,544,940  
                     
 
                     $ 107,001,997  
                     
Real Estate Investment Trusts (REITs) — 1.4%
                          
Boston Properties, Inc.
             261,600     $ 13,969,440  
                     
 
                     $ 13,969,440  
                     
Road & Rail — 2.0%
                          
Canadian Pacific Railway, Ltd.
             620,000     $ 19,964,000  
                     
 
                     $ 19,964,000  
                     
Software — 2.0%
                          
Microsoft Corp.
             995,500     $ 20,129,010  
                     
 
                     $ 20,129,010  
                     

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Table of Contents

                         
Security       Shares   Value
 
Textiles, Apparel & Luxury Goods — 1.4%
                          
VF Corp.
             275,000     $ 14,379,750  
                     
 
                     $ 14,379,750  
                     
Tobacco — 6.4%
                          
Altria Group, Inc.
             900,000     $ 14,472,000  
Philip Morris International, Inc.
             1,047,000       44,141,520  
UST, Inc.
             86,145       5,922,469  
                     
 
                     $ 64,535,989  
                     
 
                        
Total Common Stocks
(identified cost $955,940,035)
                     $ 1,025,832,781  
                     
 
Preferred Stocks — 34.2%
                         
Security       Shares   Value
 
Commercial Banks — 13.4%
                         
Abbey National Capital Trust I, 8.963%(3)
            7,500     $ 6,218,827  
ABN AMRO North America Capital Funding Trust, 6.968%(3)(4)
            1,250       809,766  
Barclays Bank PLC, 6.86%(3)(4)
            3,500       2,310,227  
Barclays Bank PLC, 8.55%(3)(4)
            13,400       11,101,820  
BBVA International Preferred SA Unipersonal, 5.919%(1)(3)
            6,500       3,283,878  
BNP Paribas, 7.195%(3)(4)
            85       5,372,042  
BNP Paribas Capital Trust, 9.003%(3)(4)
            5,395       4,821,630  
Citigroup Inc., Series AA, 8.125% (1)
            100,000       1,400,000  
Credit Agricole SA/London, 6.637%(3)(4)
            9,950       5,379,836  
DB Capital Funding VIII, 6.375%
            310,600       4,460,216  
DB Contingent Capital Trust II, 6.55% (1)
            200,000       2,636,000  
Den Norske Bank, 7.729%(3)(4)
            16,000       12,669,808  
First Tennessee Bank, 5.374%(3)(4)
            2,775       845,508  
HBOS PLC, 6.657%(3)(4)
            18,750       8,766,337  
HSBC Capital Funding LP, 9.547%(3)(4)
            13,500       11,884,333  
JPMorgan Chase & Co., 7.90%(3)
            19,250       15,232,448  
Landsbanki Islands HF, 7.431%(3)(4)(6)
            20,750       285,313  
National City Corp., Series F, 9.875%(3)
            208,000       4,365,920  
Royal Bank of Scotland Group PLC, 7.64%(3)
            155       7,693,115  
Santander Finance Unipersonal, 6.50% (1)
            380,000       5,677,200  
Standard Chartered PLC, 6.409%(3)(4)
            128       7,429,986  
UBS Preferred Funding Trust I, 8.622%(3)
            15,000       11,549,010  
                     
 
                  $ 134,193,220  
                     
Diversified Financial Services — 3.0%
                         
CoBank, 7.00%
            400,000     $ 19,757,200  
CoBank, 11.00% (4)
            170,000       8,889,045  
Merrill Lynch & Co., Inc., 6.70% (1)
            81,450       1,135,413  
                     
 
                  $ 29,781,658  
                     
Food Products — 0.9%
                         
Dairy Farmers of America, 7.875%(4)
            73,750     $ 4,074,688  
Ocean Spray Cranberries, Inc., 6.25%(4)
            47,500       5,075,081  
                     
 
                  $ 9,149,769  
                     
Insurance — 9.3%
                         
Aegon NV, 6.375% (1)
            330,000     $ 2,834,700  
Arch Capital Group, Ltd., Series A, 8.00% (1)
            424,500       7,263,195  
Arch Capital Group, Ltd., Series B, 7.875% (1)
            60,500       968,000  
AXA SA, 6.379%(3)(4)
            2,000       1,049,000  
AXA SA, 6.463%(3)(4)
            18,925       9,004,212  
Endurance Specialty Holdings, Ltd., 7.75% (1)
            317,500       4,060,825  
ING Capital Funding Trust III, 8.439%(3)
            17,075       12,717,340  
ING Groep NV, 8.50% (1)
            725,000       10,273,250  

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Table of Contents

                         
Security       Shares   Value
 
PartnerRe, Ltd., 6.50%(1)
            25,000     $ 415,500  
Prudential PLC, 6.50%
            21,400       10,332,327  
RAM Holdings, Ltd., Series A, 7.50%(3)
            13,000       8,759,563  
RenaissanceRe Holdings, Ltd., 6.08%(1)
            199,100       2,464,858  
RenaissanceRe Holdings, Ltd., 6.60%(1)
            400,500       5,607,000  
Zurich Regcaps Fund Trust I, 6.58%(3)(4)
            6,000       4,957,500  
Zurich Regcaps Fund Trust VI, 4.245%(3)(4)
            16,300       12,118,031  
                     
 
                  $ 92,825,301  
                     
Oil, Gas & Consumable Fuels — 1.3%
                         
Kinder Morgan GP, Inc., 8.33%(3)(4)
            12,000     $ 13,152,000  
                     
 
                  $ 13,152,000  
                     
Real Estate Investment Trusts (REITs) — 6.3%
                         
AMB Property Corp., 6.75%(1)
            176,000     $ 2,025,760  
Health Care, Inc., 7.875%(1)
            170,100       3,180,870  
ProLogis Trust, 6.75%(1)
            1,500,000       11,250,000  
PS Business Parks, Inc., 7.95%(1)
            400,000       7,396,000  
Public Storage, Inc., 6.85%
            800,000       14,200,000  
Regency Centers Corp., 7.45%(1)
            44,720       715,520  
Vornado Realty Trust, 7.00%
            1,600,000       24,800,000  
                     
 
                  $ 63,568,150  
                     
Thrifts & Mortgage Finance — 0.0%
                         
Federal National Mortgage Association, Series O, 7.00%(3)
            85,000     $ 209,848  
Indymac Bank FSB, 8.50%(4)(6)
            600,000       6,000  
                     
 
                  $ 215,848  
                     
 
                        
Total Preferred Stocks
(identified cost $569,428,229)
                  $ 342,885,946  
                     
 
Corporate Bonds & Notes — 0.8%
                         
            Principal Amount    
Security       (000’s omitted)   Value
 
Retail-Food and Drug — 0.8%
                          
CVS Caremark Corp., 6.302%, 6/1/37(3)
           $ 15,000     $ 8,255,625  
                     
 
                     $ 8,255,625  
                     
 
                        
Total Corporate Bonds & Notes
(identified cost $12,415,158)
                     $ 8,255,625  
                     
 
Short-Term Investments — 4.3%
                         
            Interest    
Description           (000’s omitted)   Value
 
Cash Management Portfolio, 0.99%(5)
           $ 43,535     $ 43,535,380  
                     
 
                        
Total Short-Term Investments
(identified cost $43,535,380)
                   $ 43,535,380  
                     
 
                        
Total Investments — 141.5%
(identified cost $1,581,318,802)
                   $ 1,420,509,732  
                     
 
Other Assets, Less Liabilities — (41.5)%
                   $ (416,460,959 )
                     
 
                        
Net Assets — 100.0%
                   $ 1,004,048,773  
                     
 
 
ADR   - American Depository Receipt
(1)   Security has been segregated as collateral with the custodian for borrowings under the Committed Facility Agreement.
 
(2)   Non-income producing security.
 
(3)   Variable rate security. The stated interest rate represents the rate in effect at November 30, 2008.
 
(4)   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 November 30, 2008, the aggregate value of the securities is $140,870,318 or 14.0% of the Fund’s net assets.
 
(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 November 30, 2008. Net income allocated from the investment in Cash Management Portfolio for the fiscal year to date ended November 30, 2008 was $287,153.
 
(6)   Defaulted security.

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Eaton Vance Tax-Advantaged Dividend Income Fund   as of November 30, 2008
PORTFOLIO OF INVESTMENTS (Unaudited)
Country Concentration of Portfolio
                 
    Percentage        
Country   of Total Investments     Value  
 
United States
     66.1 %   $ 939,514,370  
Switzerland
     6.7       94,777,170  
United Kingdom
     6.6       93,732,745  
Canada
     4.0       56,769,752  
Germany
     3.1       43,836,663  
Bermuda
     2.8       40,401,940  
France
     1.5       20,805,090  
Netherlands
     1.9       26,635,056  
Brazil
     1.6       23,283,000  
Norway
     1.5       20,692,153  
Finland
     1.3       18,867,861  
Australia
     0.9       13,246,620  
Mexico
     0.8       11,284,000  
Cayman Islands
     0.8       10,700,800  
Spain
     0.4       5,677,200  
Iceland
     0.0       285,312  
             
Total
     100.0 %   $ 1,420,509,732  
             

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Table of Contents

The Fund did not have any open financial instruments at November 30, 2008.
The cost and unrealized appreciation (depreciation) of investments of the Fund at November 30, 2008, as determined on a federal income tax basis, were as follows:
         
Aggregate cost
   $ 1,585,866,688  
       
Gross unrealized appreciation
   $ 204,973,248  
Gross unrealized depreciation
     (370,330,204 )
       
Net unrealized depreciation
   $ (165,356,956 )
       
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 November 30, 2008, 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   $ 1,120,950,162  
Level 2
   Other Significant Observable Inputs     299,559,570  
Level 3
  Significant Unobservable Inputs     —  
 
          
Total
       $ 1,420,509,732  
 
          
The following is a reconclliation 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)
     —  
Change in net unrealized appreciation (depreciation)
     —  
Net purchases (sales)
     (0 )
Net transfers to (from) level 3
     —  
 
      
Balance as of November 30, 2008
   $ —  
 
      
* All Level 3 assets held at August 31, 2008 were valued at $0.
The Fund may invest in Cash Management Portfolio (Cash Management), an affiliated investment company managed by Boston Management and Research, a subsidiary of Eaton Vance Management. Cash Management values its investment securities utilizing the amortized cost valuation technique permitted by Rule 2a-7 of the 1940 Act, pursuant to which Cash Management must comply with certain conditions. This technique involves initially valuing a portfolio security at its cost and thereafter assuming a constant amortization to maturity of any discount or premium. If amortized cost is determined not to approximate fair value, Cash Management may value its investment securities based on available market quotations provided by a pricing service.
For information on the Fund’s policy regarding the valuation of other 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:
  January 23, 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:
  January 23, 2009    
 
        
By:
  /s/ Barbara E. Campbell    
 
       
 
  Barbara E. Campbell    
 
  Treasurer    
 
        
Date:
  January 23, 2009