Edgar Filing: DIVIDEND & INCOME FUND, INC.

dninq110831.htm

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act File Number: 811-8747

DIVIDEND AND INCOME FUND, INC.

(Exact name of registrant as specified in charter)

11 Hanover Square, 12th Floor New York, NY	10005
(Address of principal executive offices)	(Zip Code)

John F. Ramírez, Esq.

Dividend and Income Fund, Inc.

11 Hanover Square

New York, NY 10005

(Name and address of agent for service)

Registrant's telephone number, including area code: 1-212-785-0400

Date of Fiscal Year End: 11/30

Date of Reporting Period: 08/31/2011

Item 1. Schedule of Investments

DIVIDEND AND INCOME FUND, INC.

SCHEDULE OF PORTFOLIO INVESTMENTS

August 31, 2011

(Unaudited)

Shares			Cost		Value
		COMMON STOCKS (71.93%)
		Aircraft Engines & Engine Parts (1.03%)
	10,000	United Technologies Corp.	$	727,426	$	742,500

		Beverages (2.37%)
	15,000	Coca-Cola Company		835,675		1,056,750
	10,000	PepsiCo, Inc.		529,400		644,300
				1,365,075		1,701,050

		Cigarettes (2.10%)
	30,000	Altria Group, Inc.		634,550		815,700
	10,000	Philip Morris International, Inc.		485,376		693,200
				1,119,926		1,508,900

		Computer & Office Equipment (1.39%)
	25,000	Hewlett-Packard Company		1,088,505		650,750
	2,000	International Business Machines Corporation		258,964		343,820
				1,347,469		994,570

		Crude Petroleum & Natural Gas (0.99%)
	8,160	Occidental Petroleum Corporation		527,752		707,799

		Deep Sea Foreign Transportation of Freight (0.96%)
	50,000	Seaspan Corp.		347,030		691,500

		Dolls & Stuffed Toys (0.94%)
	25,000	Mattel, Inc. (a)		610,742		671,750

		Electric Services (4.75%)
	11,000	Entergy Corp.		693,431		717,310
	65,000	Southern Company (a)		2,326,432		2,688,400
				3,019,863		3,405,710

		Electronic & Other Electrical Equipment (2.89%)
	20,000	Emerson Electric Company (a)		747,590		931,000
	70,000	General Electric Company		1,166,254		1,141,700
				1,913,844		2,072,700

		Electronic & Other Services Combined (1.02%)
	17,000	Exelon Corp.		715,134		733,040

		Fire, Marine & Casualty Insurance (1.80%)
	20,000	Ace Ltd.		829,324		1,291,600

		Food & Kindred Products (0.49%)
	10,000	Kraft Foods, Inc. Class A (a)		258,704		350,200

		Investment Advice (0.51%)
	20,000	Invesco Ltd.		437,950		366,000

		Life Insurance (2.74%)
	30,000	Lincoln National Corp.		670,430		622,500
	40,000	MetLife, Inc.		699,693		1,344,000
				1,370,123		1,966,500

		Malt Beverages (0.98%)
	16,000	Molson Coors Brewing Company		707,427		700,000

		Miscellaneous Business Credit Institution (1.35%)
	37,222	Solar Capital Ltd.		708,946		860,581
	46,169	Star Asia Financial Ltd. (a)(b)		686,145		107,343
				1,395,091		967,924

		Motor Vehicle Parts & Accessories (1.67%)
	25,000	Honeywell International, Inc.		889,529		1,195,250

		National Commercial Banks (1.93%)
	36,800	JPMorgan Chase & Co.		774,303		1,382,208

		Paints, Varnishes, Lacquers, Enamels & Allied Products (1.07%)
	10,000	PPG Industries, Inc. (a)		657,378		765,900

		Perfumes, Cosmetics & Other Preparations (1.57%)
	50,000	Avon Products, Inc. (a)		1,596,424		1,128,000

		Petroleum Refining (2.07%)
	11,000	ConocoPhillips		731,802		748,770
	10,000	Exxon Mobil Corp.		738,274		740,400
				1,470,076		1,489,170

		Pharmaceutical Preparations (8.52%)
	30,000	Abbott Laboratories		1,522,047		1,575,300
	55,000	Bristol-Myers Squibb Company (a)		1,241,872		1,636,250
	11,000	Johnson & Johnson		708,922		723,800
	20,000	Merck & Company, Inc.		680,994		662,400
	80,000	Pfizer, Inc. (a)		1,211,079		1,518,400
				5,364,914		6,116,150

		Plastic Materials, Resins & Nonvulcanelastomers (2.14%)
	20,000	E.I. du Pont de Nemours and Company (a)		751,716		965,400
	20,000	Dow Chemical Company (a)		580,754		569,000
				1,332,470		1,534,400

		Radio & TV Communications Equipment (1.75%)
	115,000	Nokia Corp.		715,012		740,600
	10,000	QUALCOMM, Inc.		383,189		514,600
				1,098,201		1,255,200

		Radio Telephone Communications (0.73%)
	20,000	Vodafone Group PLC ADR		453,234		526,800

		Real Estate Investment Trust (2.92%)
	53,400	Annaly Capital Management, Inc. (a)		922,335		968,142
	150,000	MFA Financial, Inc. (a)		1,201,341		1,123,500
				2,123,676		2,091,642

		Refuse Systems (0.69%)
	15,000	Waste Management, Inc.		532,822		495,600

		Retail-Variety Stores (1.15%)
	16,000	Target Corp.		660,150		826,720

		Retail-Women's Clothing Stores (2.84%)
	54,000	Limited Brands, Inc. (a)		475,950		2,037,960

		Savings Institution, Federally Chartered (0.98%)
	60,000	People's United Financial, Inc. (a)		826,108		705,000

		Security & Commodity Brokers, Dealers, Exchanges & Services (0.57%)
	15,000	NYSE Euronext		372,671		409,200

		Semiconductors & Related Devices (3.78%)
	23,000	Analog Devices, Inc.		726,742		759,460
	40,000	Intel Corp.		796,500		805,200
	35,000	Microchip Technology, Inc.		998,144		1,148,700
				2,521,386		2,713,360

		Services-Business Services (0.98%)
	40,000	Lender Processing Services, Inc.		733,684		705,600

		Services-Engineering, Accounting, Research, Management (0.38%)
	10,000	Paychex, Inc.		309,491		269,800

		Services-Prepackaged Software (1.11%)
	30,000	Microsoft Corp.		900,672		798,000

		Soap, Detergent, Cleaning Preparations, Perfumes, Cosmetics (1.07%)
	12,000	The Procter & Gamble Company		739,290		764,160

		Surgical & Medical Instruments & Apparatus (2.31%)
	20,000	3M Company (a)		1,133,436		1,659,600

		Telephone Communications (5.01%)
	45,000	AT&T, Inc. (a)		1,672,513		1,281,600
	140,000	Frontier Communications Corp. (a)		1,920,849		1,048,600
	35,000	Verizon Communications, Inc. (a)		1,206,032		1,265,950
				4,799,394		3,596,150

		Water Transportation (0.38%)
	15,000	Nordic American Tankers Limited (a)		448,115		269,250

		Total common stocks		46,906,254		51,606,863

Principal
Amount
		CORPORATE BONDS AND NOTES (42.53%)
		Accident & Health Insurance (0.73%)
	500,000	CNO Financial Group, Inc. 9%, 1/15/18 (a)		507,036		522,500

		Basic Industry (1.44%)
	1,000,000	WireCo WorldGroup, 9.50%, 5/15/17 (a) (c)		978,360		1,032,500

		Cable & Other Pay Television Services (1.76%)
	500,000	CCO Holdings LLC, 7%, 1/15/19 (a)		499,596		505,000
	750,000	Mediacom Broadband LLC, 8.50%, 10/15/15		757,702		761,250
				1,257,298		1,266,250

		Cable Television (1.46%)
	1,000,000	Cequel Communications Holdings I LLC and Cequel Capital Corp., 8.625%, 11/15/17 (a) (c)		1,011,532		1,045,000

		Cogeneration Services & Small Power Producers (0.64%)
	450,000	Covanta Holding Corp., 7.25%, 12/1/20 (a)		457,795		460,524

		Converted Paper & Paperboard Products (1.40%)
	1,000,000	Appleton Papers, Inc., 10.50%, 6/15/15 (a) (c)		996,453		1,007,500

		Crude Petroleum & Natural Gas (0.36%)
	250,000	Plains Exploration & Productions Company, 7.625%, 6/1/18 (a)		250,666		258,125

		Drawing & Insulating of Nonferrous Wire (0.70%)
	500,000	Belden, Inc., 7%, 3/15/17 (a)		482,943		502,500

		Drilling Oil & Gas Wells (0.75%)
	500,000	Offshore Group Investments Ltd., 11.50%, 8/1/15 (a) (c)		500,953		535,000

		Electric Services (1.64%)
	650,000	Edison Mission Energy, 7.00%, 5/15/17		650,840		458,250
	721,760	Elwood Energy LLC, 8.159%, 7/5/26 (a)		763,806		715,445
				1,414,646		1,173,695

		Fats & Oils (0.76%)
	500,000	Darling International Inc., 8.50%, 12/15/18 (a)		520,652		543,750

		Gaming (0.53%)
	360,000	Yonkers Racing Corp., 11.375%, 7/15/16 (c)		358,723		378,000

		Hospital & Medical Service Plans (0.36%)
	250,000	Health Net, Inc., 6.375%, 6/1/17 (a)		235,383		256,875

		Ice Cream & Frozen Desserts (0.72%)
	500,000	Dean Foods Company, 9.75%, 12/15/18 (a)		505,391		513,750

		Machinery (0.84%)
	600,000	Cleaver-Brooks, Inc., 12.25%, 5/1/16 (a) (c)		603,308		601,500

		Machine Tools, Metal Cutting Types (0.60%)
	425,000	Thermadyne Holdings Corp., 9%, 12/15/17 (a) (c)		427,804		433,500

		Metals & Mining (0.40%)
	300,000	Atkore International Inc., 9.875%, 1/1/18 (a)		305,988		293,250

		Metal Forgings & Stampings (0.25%)
	170,000	Trimas Corp., 9.75%, 12/15/17 (c)		167,037		183,600

		Miscellaneous Business Credit Institution (0.73%)
	500,000	PHH Corp., 9.25%, 3/1/16 (c)		506,483		521,250

		Miscellaneous Electrical Machinery, Equipment & Supplies (0.44%)
	55,000	Exide Technologies, 8.625%, 2/1/18		55,000		52,525
	240,000	Spectrum Brands Holdings, Inc., 9.50%, 6/15/18 (a) (c)		245,077		261,600
				300,077		314,125

		Mortgage Banks (0.70%)
	500,000	Provident Funding Associates, 10.25%, 4/15/17 (a) (c)		500,000		505,000

		Motor Vehicle Parts & Accessories (0.66%)
	460,000	Tower Automotive Holdings USA LLC, 10.625%, 9/1/17 (c)		466,797		477,250

		Natural Gas Transmission (1.91%)
	500,000	Energy Transfer Equity LP, 7.50%, 10/15/20 (a)		514,197		515,000
	500,000	Niska Gas Storage US LLC, 8.875%, 3/15/18 (a) (c)		510,680		507,500
	350,000	Southern Star Central Corp., 6.75%, 3/1/16 (a)		325,139		344,750
				1,350,016		1,367,250

		Oil & Gas Equipment & Services (1.10%)
	780,000	Complete Production Services, Inc., 8%, 12/15/16 (a)		790,861		791,700

		Oil & Gas Field Exploration Services (0.70%)
	500,000	CGG-Veritas, 7.75%, 5/15/17 (a)		511,144		505,000

		Paper Mills (0.87%)
	592,000	ABI Escrow Corp., 10.25%, 10/15/18 (a) (c)		598,597		624,560

		Papers & Allied Products (0.68%)
	500,000	Cascades, Inc., 7.75%, 12/15/17 (a)		491,148		487,500

		Paper & Forest Products (0.38%)
	250,000	PE Paper Escrow, 12%, 8/1/14 (a) (c)		241,850		271,250

		Personal Credit Institutions (1.05%)
	740,000	Credit Acceptance Corp., 9.125%, 2/1/17 (a) (c)		758,693		752,950

		Petroleum Refining (0.71%)
	272,000	Coffeyville Resources LLC, 9%, 4/1/15 (a) (c)		275,574		289,680
	200,000	Coffeyville Resources LLC, 10.875%, 4/1/17 (a) (c)		199,285		223,000
				474,859		512,680

		Pharmaceutical Preparations (1.33%)
	1,000,000	Patheon, Inc., 8.625%, 4/15/17 (a) (c)		1,023,567		955,000

		Radio Broadcasting Stations (0.23%)
	150,000	Citadel Broadcasting Corp., 7.75%, 12/15/18 (a)		152,782		162,000

		Radio & TV Broadcasting & Communications Equipment (0.69%)
	500,000	CommScope, Inc., 8.25%, 1/15/19 (a)		510,906		497,500

		Retail-Convenience Stores (0.73%)
	500,000	Susser Holdings LLC, 8.50%, 5/15/16		507,363		525,000

		Retail-Miscellaneous Retail (0.31%)
	250,000	Ferrellgas Partners, L.P., 6.50%, 5/1/21 (a)		245,067		225,625

		Rolling Drawing & Extruding of Nonferrous Metals (0.72%)
	500,000	Novelis, Inc., 8.375%, 12/15/17		505,911		518,750

		Security Brokers, Dealers & Flotation Companies (0.85%)
	750,000	Penson Worldwide, Inc., 12.50%, 5/15/17 (c)		758,509		611,250

		Semiconductors & Related Devices (0.36%)
	250,000	Advanced Micro Devices, 7.75%, 8/1/20 (a)		258,355		255,000

		Services-Business Services, NEC (0.67%)
	500,000	DynCorp International, Inc. 10.375%, 7/1/17 (c)		502,020		480,000

		Services-Computer Integrated Systems Design (0.58%)
	400,000	Scientific Games International, Inc., 9.25%, 6/15/19 (a)		430,287		414,000

		Services-Equipment Rental & Leasing, NEC (0.74%)
	500,000	Aircastle Ltd., 9.75%, 8/1/18 (a)		503,112		528,750

		Services-Miscellaneous Amusement & Recreation (1.11%)
	750,000	Cedar Fair LP, 9.125%, 8/1/18 (c)		753,813		795,000

		Services-Miscellaneous Equipment Rental & Leasing (0.94%)
	675,000	H&E Equipment Services, Inc., 8.375%, 7/15/16 (a)		680,769		673,313

		Services-Miscellaneous Repair Services (0.41%)
	500,000	Aquilex Holdings LLC, 11.125%, 12/15/16 (a)		496,117		292,500

		Services-Motion Picture Theaters (0.13%)
	95,000	Regal Entertainment Group, 9.125%, 8/15/18		96,182		96,425

		Steel Works, Blast Furnaces & Rolling & Finishing Mills (1.16%)
	840,000	Gibraltar Industries, Inc., 8%, 12/1/15 (a)		840,794		831,600

		Telephone Communications (2.06%)
	500,000	Cincinnati Bell, Inc., 8.75%, 3/15/18 (a)		509,549		532,500
	1,000,000	Equinix, Inc., 8.125%, 3/1/18 (a)		1,008,817		942,500
				1,518,366		1,475,000

		Textiles, Apparel & Luxury Goods (0.07%)
	50,000	Empire Today LLC, 11.375%, 2/1/17		49,497		47,000

		Transportation (0.55%)
	400,000	Marquette Transportation Company, 10.875%, 1/15/17 (c)		401,590		393,000

		Utilities (0.59%)
	400,000	North American Energy Alliance LLC, 10.875%, 6/1/16 (c)		409,093		428,000

		Water Transportation (2.20%)
	679,000	American Petroleum Tankers LLC, 10.25%, 5/1/15 (c)		668,138		679,849
	900,000	Hornbeck Offshore Services, Inc., 8%, 9/1/17 (a)		907,027		895,500
				1,575,165		1,575,349

		Wholesale-Electronic Parts & Equipment, NEC (0.43%)
	300,000	Brightstar Corp., 9.50%, 12/1/16 (a) (c)		300,000		310,500

		Wholesale-Petroleum & Petroleum Products (0.40%)
	275,000	Crosstex Energy LP, 8.875%, 2/15/18 (a)		275,603		286,000

		Total corporate bonds and notes		30,767,361		30,514,896

		MASTER LIMITED PARTNERSHIPS (3.62%)
		Natural Gas Transmission (3.62%)
	39,000	Energy Transfer Partners LP		1,979,798		1,757,340
	20,000	Enterprise Products Partners LP		374,214		843,000
				2,354,012		2,600,340

		INVESTEMENT COMPANIES (2.87%)
		Exchange Traded Fund (2.87%)
	15,000	iShares Dow Jones Select Dividend Index		699,712		764,400
	65,000	SPDR KBW Bank (a)		871,731		1,293,500
				1,571,443		2,057,900

		CLOSED END FUND BUSINESS DEVELOPMENT COMPANIES (2.33%)
		Miscellaneous Business Credit Institution (2.33%)
	112,958	Apollo Investment Corp. (a)		1,305,309		1,026,788
	40,837	Horizon Technology Finance Corp.		634,653		646,858
				1,939,962		1,673,646

		PREFERRED STOCK ( 0.01%)
		Financial (0.01%)
	80,000	Solar Cayman Ltd. (a) (b) (c) (d)		568,802		2,000

		Total investments (123.29%)	$	84,107,834		88,455,645

		Liabilities in excess of other assets (-23.29%)				(16,711,415	)

		Net assets (100.00%)			$	71,744,230

(a)			Fully or partially pledged as collateral on bank credit facility. As of August 31, 2011, the value of securities pledged as collateral was $39,699,775.
(b)			Illiquid and/or restricted security that has been fair valued.
(c)			These securities are exempt from registration under Rule 144A of the Securities Act of 1933, as amended. These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers.
(d)			Non-income producing.


ADR			American Depositary Receipt
LLC			Limited Liability Company
LP			Limited Partnership
PLC			Public Limited Company
SPDR			Standard & Poor’s Depositary Receipt
SPV			Special Purpose Vehicle

Notes to Schedule of Portfolio Investments (Unaudited)

Security Valuation

Portfolio securities are valued by various methods depending on the primary market or exchange on which they trade. Most equity securities for which the primary markets is in the United States are valued at the official closing price, last sale price or, if no sale has occurred, at the closing bid price. Most equity securities for which the primary market is outside the United States are valued using the official closing price or the last sale price in the principal market in which they are traded. If the last sale price on the local exchange is unavailable, the last evaluated quote or closing bid price normally is used. Debt obligations with remaining maturities of 60 days or less are valued at cost adjusted for amortization of premiums and accretion of discounts. Certain of the securities in which the Fund may invest are priced through pricing services that may utilize a matrix pricing system which takes into consideration factors such as yields, prices, maturities, call features, and ratings on comparable securities. Bonds may be valued according to prices quoted by a bond dealer that offers pricing services. Open end investment companies are valued at their net asset value. Securities for which quotations are not readily available or reliable and other assets may be valued as determined in good faith by Bexil Advisers LLC the Fund’s Investment Manager under the direction of or pursuant to procedures established by the Fund’s Board of Directors. Due to the inherent uncertainty of valuation, these values may differ from the value that would have been used had a readily available market for the securities existed. These differences in valuation could be material. A security’s valuation may differ depending on the method used for determining value. The use of fair value pricing by the Fund may cause the net asset value of its shares to differ from the net asset value that would be calculated using market prices.

Fair Value Measurements

GAAP establishes a hierarchy that prioritizes inputs to valuation methods. The three levels of inputs are:

·	Level 1 –	unadjusted quoted prices in active markets for identical assets or liabilities including securities actively traded on a securities exchange.
·	Level 2 –	observable inputs other than quoted prices included in level 1 that are observable for the asset or liability which may include quoted prices for similar instruments, interest rates, prepayment speeds, credit risk, yield curves, default rates, and similar data.
·	Level 3 –	unobservable inputs for the asset or liability including the Fund’s own assumptions about the assumptions a market participant would use in valuing the asset or liability.

The availability of observable inputs can vary from security to security and is affected by a wide variety of factors, including, for example the type of security, whether the security is new and not yet established in the marketplace, the liquidity of markets, and other characteristics particular to the security. To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised in determining fair value is greatest for investments categorized in level 3.

The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, the level in the fair value hierarchy within which the fair value measurement falls in its entirety is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

The inputs or methodology used for valuing investments are not an indication of the risk associated with investing in those securities.

The following is a description of the valuation techniques applied to the Fund’s major categories of assets and liabilities measured at fair value on a recurring basis:

Equity securities (common and preferred stock). Securities traded on a national securities exchange or reported on the Nasdaq national market generally are stated at the last reported sales price on the day of valuation. To the extent these securities are actively traded and valuation adjustments are not applied, they may be categorized in level 1 of the fair value hierarchy. Preferred stock and other equities on inactive markets or valued by reference to similar instruments may be categorized in level 2.

Corporate bonds. The fair value of corporate bonds is estimated using various techniques which may consider, among other things, recently executed transactions in securities of the issuer or comparable issuers, market price quotations (where observable), bond spreads, and fundamental data relating to the issuer. Although most corporate bonds may be categorized in level 2 of the fair value hierarchy, in instances where lower relative weight is place on transaction prices, quotations, or similar observable inputs, they may be categorized in level 3.

Restricted and/or illiquid securities. Restricted and/or illiquid securities for which quotations are not readily available or reliable may be valued as determined in good faith by the Investment Manager under the direction of or pursuant to procedures established by the Fund’s Board of Directors. Restricted securities issued by publicly traded companies are generally valued at a discount to similar publicly traded securities. Restricted or illiquid securities issued by nonpublic entities may be valued by reference to comparable public entities or fundamental data relating to the issuer or both or similar inputs. Depending on the relative significance of valuation inputs, these instruments may be classified in either level 2 or level 3 of the fair value hierarchy.

Derivative instruments. Exchange traded derivatives, such as equity option contracts, may be valued based on quoted prices from the exchange and may be categorized in level 1 of the fair value hierarchy.

The following is a summary of the inputs used as of August 31, 2011 in valuing the Fund’s assets carried at fair value. Refer to the Schedule of Portfolio Investments for detailed information on specific investments.

	Level 1		Level 2		Level 3		Total
Assets
Investments, at value
Common stock	$	51,499,520	$	-	$	107,343	$	51,606,863
Corporate bonds and notes		-		30,514,896		-		30,514,896
Master limited partnerships		2,600,340		-		-		2,600,340
Investment companies		2,057,900		-		-		2,057,900
Closed end fund business development companies		1,673,646		-		-		1,673,646
Preferred stock		-		-		2,000		2,000
Total investments, at value	$	57,831,406	$	30,514,896	$	109,343	$	88,455,645

There were no transfers between level 1 and level 2 during the nine months ended August 31, 2011.

The following is a reconciliation of level 3 investments for which significant unobservable inputs were used to determine fair value:

							Corporate
	Common			Preferred			Bonds and
	Stocks			Stocks			Notes			Total
Balance at November 30, 2010	$	200,256		$	26,400		$	950,000		$	1,176,656
Proceeds from sales		(12,900	)		-			(960,000	)		(972,900	)
Realized loss		(71,904	)		-			(40,000	)		(111,904	)
Change in unrealized appreciation (depreciation)		(8,109	)		(24,400	)		50,000			17,491
Transfers in or out of level 3		-			-			-			-
Balance at August 31, 2011	$	107,343		$	2,000		$	-		$	109,343

Cost for Federal Income Tax Purposes

At August 31, 2011, for federal income tax purposes the aggregate cost of securities was $84,107,834 and net unrealized appreciation was $4,347,811, comprised of gross unrealized appreciation of $9,807,648 and gross unrealized depreciation of $5,459,837.

Illiquid and Restricted Securities

The Fund owns securities which have a limited trading market and/or certain restrictions on trading and, therefore, may be illiquid and/or restricted. Such securities have been valued at fair value. Due to the inherent uncertainty of valuation, these values may differ from the values that would have been used had a readily available market for the securities existed. These differences in valuation could be material. Illiquid and/or restricted securities owned at August 31, 2011, were as follows:

	Acquisition
Security	Date	Cost			Value
Star Asia Financial Ltd.	2/22/07	$	686,145		$	107,343
Solar Cayman Ltd.	3/7/07		568,802			2,000
		$	1,254,947		$	109,343

Percent of net assets			1.75	%		0.15	%

Signatures

Pursuant to the requirements of the Securities Exchange Act of 1934 and the 1940 Act, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

Dividend and Income Fund, Inc.

By: /s/Thomas B. Winmill

Thomas B. Winmill, President

Date: October 28, 2011

Pursuant to the requirements of the Securities Exchange Act of 1934 and the 1940 Act, 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/Thomas B. Winmill

Thomas B. Winmill, President

Date: October 28, 2011

By: /s/Thomas O'Malley

Thomas O'Malley, Chief Financial Officer

Date: October 28, 2011

Exhibit Index

(a) Certifications of the registrant's principal executive and principal financial officer as required by Rule 30a-2(a) under the 1940 Act. (EX-99.CERT)