UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number:         811-07460
 
Exact name of registrant as specified in charter: Delaware Investments® Dividend and
Income Fund, Inc.
 
Address of principal executive offices:   2005 Market Street
  Philadelphia, PA 19103
 
Name and address of agent for service: David F. Connor, Esq.
  2005 Market Street
Philadelphia, PA 19103
 
Registrant’s telephone number, including area code: (800) 523-1918
 
Date of fiscal year end: November 30
 
Date of reporting period: August 31, 2016


Item 1. Schedule of Investments.

Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc.
August 31, 2016 (Unaudited)

      Number of       Value
shares (U.S. $)
Common Stock – 92.99%
Consumer Discretionary – 3.26%
JC Penney † 100,000 $ 943,000
Lowe’s 26,000 1,990,560
2,933,560
Consumer Staples – 9.13%
Archer-Daniels-Midland 48,200 2,109,232
CVS Health 21,200 1,980,080
Kraft Heinz 23,233 2,079,121
Mondelez International 45,600 2,052,912
8,221,345
Diversified REITs – 2.63%
Fibra Uno Administracion 104,000 201,291
Gramercy Property Trust 60,845 588,980
Intervest Offices &
     Warehouses 14,738 407,042
Lexington Realty Trust 55,700 601,003
Vornado Realty Trust 2,965 306,314
Wereldhave 5,500 263,620
2,368,250
Energy – 10.13%
Chevron 20,100 2,021,658
ConocoPhillips 50,500 2,073,025
Halliburton 46,800 2,012,868
Marathon Oil 61,400 922,228
Occidental Petroleum 27,200 2,090,320
9,120,099
Financials – 9.85%
Allstate 30,000 2,068,800
Bank of New York Mellon 51,800 2,158,506
BB&T 56,800 2,186,800
Marsh & McLennan 32,100 2,170,923
Solar Capital 13,828 284,027
8,869,056
Healthcare – 15.90%
Abbott Laboratories 46,500 1,953,930
Cardinal Health 24,900 1,983,783
Express Scripts Holding † 26,770 1,946,179
Johnson & Johnson 17,300 2,064,582
Merck 35,200 2,210,208
Pfizer 58,189 2,024,977
Quest Diagnostics @ 25,700 2,128,474
14,312,133
Healthcare REITs – 0.43%
Healthcare Trust of America
     Class A 6,200 209,188
Welltower 2,300 176,525
385,713
Hotel REITs – 1.27%
Ashford Hospitality Prime 1,790 27,763
Ashford Hospitality Trust 7,100 49,487
DiamondRock Hospitality 14,100 149,319
Hospitality Properties Trust 5,500 167,695
Host Hotels & Resorts 8,800 156,816
Pebblebrook Hotel Trust 5,400 162,216
Summit Hotel Properties @ 30,200 431,860
1,145,156
Industrial REITs – 0.62%
Duke Realty 6,600 185,592
Prologis 680 36,115
Terreno Realty 12,500 334,500
556,207
Industrials – 6.86%
Northrop Grumman 9,700 2,057,079
Raytheon 14,900 2,087,937
Waste Management 31,700 2,026,898
6,171,914
Information Technology – 9.23%
CA @ 62,386 2,115,509
Cisco Systems 71,300 2,241,672
Intel 60,900 2,185,701
Xerox @ 179,200 1,765,120
8,308,002
Mall REITs – 2.02%
General Growth Properties 5,871 171,081
Simon Property Group 7,647 1,647,699
1,818,780
Materials – 2.74%
EI du Pont de Nemours 31,300 2,178,480
Tarkett 8,063 283,127
2,461,607
Mixed REITs – 0.16%
PS Business Parks 1,300 144,014
144,014
Mortgage REITs – 0.48%
Colony Capital 9,700 179,159
Starwood Property Trust 10,900 249,610
428,769

(continues)      NQ-DDF [8/16] 10/16 (17657) 1


Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

      Number of       Value
shares (U.S. $)
Common Stock (continued)
Multifamily REITs – 2.95%
ADO Properties 144A # 11,797 $ 517,542
American Homes 4 Rent 9,080 198,580
Apartment Investment &
     Management 20,819 940,602
Equity Residential 5,600 363,272
Gecina 1,794 280,657
Post Properties 3,600 238,608
Vonovia 2,930 114,014
2,653,275
Office REITs – 2.91%
alstria office REIT 18,775 261,782
Easterly Government
     Properties 53,600 1,044,664
Equity Commonwealth † 15,800 494,382
Hudson Pacific Properties 3,300 110,451
Mack-Cali Realty 7,000 194,320
Parkway Properties 8,200 147,600
SL Green Realty 3,100 364,932
2,618,131
Retail REITs – 0.26%
Klepierre 2,210 103,561
Wheeler Real Estate
     Investment Trust 72,456 127,523
231,084
Self-Storage REITs – 0.39%
Extra Space Storage 3,200 257,760
Jernigan Capital 5,900 95,521
353,281
Shopping Center REITs – 2.50%
Brixmor Property Group 16,700 476,952
DDR 16,300 308,233
First Capital Realty 9,381 158,734
Kimco Realty 11,030 331,451
Kite Realty Group Trust 16,600 479,408
Ramco-Gershenson Properties
     Trust @ 10,500 204,015
Retail Properties of America 7,900 134,300
Urban Edge Properties 5,532 158,547
2,251,640
Single Tenant REIT – 1.31%
STORE Capital 39,800 1,179,274
1,179,274
Specialty REITs – 1.11%
GEO Group 50,000 1,002,000
1,002,000
Telecommunications – 4.38%
AT&T 49,200 2,011,296
Century Communications @=† 500,000 0
Verizon Communications 36,900 1,930,977
3,942,273
Utilities – 2.47%
American Water Works 2,900 214,571
Edison International 27,600 2,007,072
2,221,643
 
Total Common Stock
(cost $63,823,760) 83,697,206
 
Convertible Preferred Stock – 1.90%
A Schulman 6.00% exercise
     price $52.33, expiration
     date 12/31/49 @ 72 51,025
Bank of America 7.25%
     exercise price $50.00,
     expiration date 12/31/49 155 192,353
Crown Castle International
     4.50% exercise price
     $85.77, expiration date
     11/1/16 2,000 225,420
El Paso Energy Capital Trust I
     4.75% exercise price
     $50.00, expiration date
     3/31/28 @ 5,250 272,947
Exelon 6.50% exercise price
     $43.75, expiration date
     6/1/17 3,650 173,047
Halcon Resources 5.75%
     exercise price $30.78,
     expiration date 12/31/49 92 4,232
Huntington Bancshares
     8.50% exercise price
     $11.95, expiration date
     12/31/49 @ 182 258,804
Maiden Holdings 7.25%
     exercise price $15.05,
     expiration date 9/15/16 3,693 186,386
Wells Fargo 7.50% exercise
     price $156.71, expiration
     date 12/31/49 259 350,297
Total Convertible Preferred
Stock (cost $1,598,588) 1,714,511

2 NQ-DDF [8/16] 10/16 (17657)


(Unaudited)

            Principal       Value
amount° (U.S. $)
Convertible Bonds – 7.20%
Brokerage – 0.30%
Jefferies Group 3.875%
     exercise price $44.19,
     maturity date 11/1/29 267,000 $ 271,839
271,839
Communications – 1.18%
Alaska Communications
     Systems Group 6.25%
     exercise price $10.28,
     maturity date 5/1/18 @ 351,000 345,296
Clearwire Communications
     144A 8.25% exercise price
     $7.08, maturity date
     12/1/40 # 385,000 402,566
Liberty Interactive 144A
     1.00% exercise price
     $64.18, maturity date
     9/30/43 # 364,000 314,725
1,062,587
Consumer Cyclical – 0.48%
Huron Consulting Group
     1.25% exercise price
     $79.89, maturity date
     10/1/19 146,000 151,840
Meritor 4.00% exercise price
     $26.73, maturity date
     2/15/27 ϕ 276,000 277,035
428,875
Consumer Non-Cyclical – 1.48%
Brookdale Senior Living
     2.75% exercise price
     $29.33, maturity date
     6/15/18 265,000 265,497
HealthSouth 2.00% exercise
     price $37.59, maturity date
     12/1/43 188,000 222,427
Hologic 2.00% exercise price
     $31.18, maturity date
     3/1/42 ϕ 101,000 138,054
NuVasive 144A 2.25%
     exercise price $59.82,
     maturity date 3/15/21 # 72,000 90,495
Spectrum Pharmaceuticals
     2.75% exercise price
     $10.53, maturity date
     12/15/18 @ 283,000 262,836
Vector Group
     1.75% exercise price
     $24.64, maturity date
     4/15/20 ● 223,000 249,621
Vector Group
     2.50% exercise price
     $15.98, maturity date
     1/15/19 ● 72,000 103,895
1,332,825
Energy – 0.15%
Helix Energy Solutions Group
     3.25% exercise price
     $25.02, maturity date
     3/15/32 140,000 131,250
131,250
Financials – 0.49%
GAIN Capital Holdings
     4.125% exercise price
     $12.00, maturity date
     12/1/18 @ 234,000 224,786
New Mountain Finance
     5.00% exercise price
     $15.93, maturity date
     6/15/19 @ 214,000 219,885
444,671
Industrials – 0.28%
Chart Industries 2.00%
     exercise price $69.03,
     maturity date 8/1/18 @ 262,000 255,614
255,614
REITs – 0.89%
Blackstone Mortgage Trust
     5.25% exercise price
     $28.36, maturity date
     12/1/18 326,000 355,340
Spirit Realty Capital 3.75%
     exercise price $13.10,
     maturity date 5/15/21 @ 172,000 195,651
VEREIT 3.75% exercise price
     $14.99, maturity date
     12/15/20 @ 242,000 247,295
798,286
Technology – 1.78%
Cardtronics 1.00% exercise
     price $52.35, maturity date
     12/1/20 254,000 270,193
Ciena 144A 3.75% exercise
     price $20.17, maturity date
     10/15/18 # 126,000 158,839

(continues)      NQ-DDF [8/16] 10/16 (17657) 3


Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

      Principal       Value
amount° (U.S. $)
Convertible Bonds (continued)
Technology (continued)
Electronics For Imaging
     0.75% exercise price
     $52.72, maturity date
     9/1/19 192,000 $ 208,200
Intel 3.25% exercise price
     $21.18, maturity date
     8/1/39 130,000 227,582
j2 Global 3.25% exercise
     price $69.08, maturity date
     6/15/29 140,000 166,425
Knowles 144A 3.25%
     exercise price $18.43,
     maturity date 11/1/21 # 63,000 66,386
Micron Technology 3.00%
     exercise price $29.16,
     maturity date 11/15/43 258,000 231,555
PROS Holdings 2.00%
     exercise price $33.79,
     maturity date 12/1/19 280,000 269,500
1,598,680
Transportation – 0.17%
Atlas Air Worldwide Holdings
     2.25% exercise price
     $74.05, maturity date
     6/1/22 165,000 153,966
153,966
Total Convertible Bonds
(cost $6,149,523) 6,478,593
 
Corporate Bonds – 38.45%
Banking – 1.50%
Credit Suisse Group 144A
     6.25% 12/29/49 #● 200,000 196,374
JPMorgan Chase
     6.75% 1/29/49 ● 335,000 378,202
Lloyds Banking Group
     7.50% 4/30/49 ● 330,000 336,188
Popular 7.00% 7/1/19 230,000 238,625
UBS Group
     6.875% 12/29/49 ● 200,000 199,369
1,348,758
Basic Industry – 4.30%
AerCap Global Aviation Trust
     144A 6.50% 6/15/45 #● 200,000 206,500
AK Steel 7.625% 5/15/20 124,000 121,520
ArcelorMittal 10.85% 6/1/19 130,000 155,675
Boise Cascade 144A
     5.625% 9/1/24 # 195,000 199,875
Builders FirstSource
     144A 5.625% 9/1/24 # 95,000 97,137
     144A 10.75% 8/15/23 # 270,000 307,800
Cemex
     144A 7.25% 1/15/21 # 200,000 215,000
     144A 7.75% 4/16/26 # 200,000 227,000
Chemours
     6.625% 5/15/23 100,000 96,500
     7.00% 5/15/25 58,000 55,789
CVR Partners 144A
     9.25% 6/15/23 # 105,000 104,475
FMG Resources August 2006
     Pty
     144A 6.875% 4/1/22 # 300,000 310,500
     144A 9.75% 3/1/22 # 35,000 40,600
James Hardie International
     Finance 144A
     5.875% 2/15/23 # 200,000 209,500
Joseph T Ryerson & Son 144A
     11.00% 5/15/22 # 80,000 88,200
Kraton Polymers 144A
     10.50% 4/15/23 # 90,000 100,800
NCI Building Systems 144A
     8.25% 1/15/23 # 155,000 170,500
New Gold
     144A 6.25% 11/15/22 # 66,000 68,475
     144A 7.00% 4/15/20 # 70,000 72,450
NOVA Chemicals 144A
     5.00% 5/1/25 # 130,000 134,550
PQ 144A 6.75% 11/15/22 # 185,000 196,563
Rayonier AM Products 144A
     5.50% 6/1/24 # 120,000 111,396
Steel Dynamics
     5.50% 10/1/24 110,000 116,325
Summit Materials
     6.125% 7/15/23 195,000 198,900
     144A 8.50% 4/15/22 # 60,000 65,850
U.S. Concrete 6.375% 6/1/24 190,000 198,550
3,870,430
Capital Goods – 3.22%
Ardagh Packaging Finance
     144A 6.00% 6/30/21 # 200,000 207,000
     144A 7.25% 5/15/24 # 200,000 213,750
Ball 5.25% 7/1/25 90,000 97,763
BWAY Holding 144A
     9.125% 8/15/21 # 220,000 226,050
Gardner Denver 144A
     6.875% 8/15/21 # 300,000 278,250

4 NQ-DDF [8/16] 10/16 (17657)


(Unaudited)

      Principal       Value
amount° (U.S. $)
Corporate Bonds (continued)
Capital Goods (continued)
KLX 144A 5.875% 12/1/22 # 180,000 $ 189,810
Novelis 144A
     6.25% 8/15/24 # 235,000 245,575
Plastipak Holdings 144A
     6.50% 10/1/21 # 185,000 193,325
Reynolds Group Issuer
     8.25% 2/15/21 255,000 265,488
Signode Industrial Group
     144A 6.375% 5/1/22 # 175,000 179,375
StandardAero Aviation
     Holdings 144A
     10.00% 7/15/23 # 185,000 195,175
TransDigm 144A
     6.375% 6/15/26 # 305,000 312,625
Zekelman Industries 144A
     9.875% 6/15/23 # 275,000 294,937
2,899,123
Communications – 2.63%
CenturyLink
     6.75% 12/1/23 170,000 179,563
     7.50% 4/1/24 60,000 65,213
Cogent Communications
     Finance 144A
     5.625% 4/15/21 #@ 145,000 148,263
CommScope Technologies
     Finance 144A
     6.00% 6/15/25 # 115,000 122,619
DISH DBS
     5.875% 11/15/24 52,000 51,480
     144A 7.75% 7/1/26 # 215,000 229,940
DISH Network 144A
     3.375% 8/15/26 # 123,000 128,919
Frontier Communications
     10.50% 9/15/22 170,000 185,619
     11.00% 9/15/25 115,000 124,631
Lamar Media 144A
     5.75% 2/1/26 # 167,000 181,195
Level 3 Financing
     5.375% 1/15/24 20,000 21,025
     5.375% 5/1/25 160,000 168,600
Liberty Media 144A
     2.25% 9/30/46 # 49,000 50,562
Sprint 7.875% 9/15/23 125,000 122,124
Sprint Communications
     144A 7.00% 3/1/20 # 85,000 91,587
     7.00% 8/15/20 136,000 134,640
Virgin Media Secured Finance
     144A 5.25% 1/15/26 # 200,000 205,500
     Zayo Group 6.00% 4/1/23 145,000 151,525
2,363,005
Consumer Cyclical – 2.07%
American Builders &
     Contractors Supply 144A
     5.75% 12/15/23 # 100,000 106,000
American Tire Distributors
     144A 10.25% 3/1/22 # 210,000 187,295
Beacon Roofing Supply
     6.375% 10/1/23 135,000 145,800
Boyd Gaming 144A
     6.375% 4/1/26 # 70,000 74,900
Group 1 Automotive 144A
     5.25% 12/15/23 # 115,000 117,013
JC Penney 8.125% 10/1/19 185,000 200,031
L Brands
     6.75% 7/1/36 95,000 102,553
     6.875% 11/1/35 190,000 208,525
M/I Homes 6.75% 1/15/21 185,000 194,250
MGM Resorts International
     4.625% 9/1/26 70,000 69,650
Mohegan Tribal Gaming
     Authority 9.75% 9/1/21 342,000 368,077
Neiman Marcus Group 144A
     8.00% 10/15/21 # 105,000 90,373
1,864,467
Consumer Non-Cyclical – 2.78%
Albertsons 144A
     6.625% 6/15/24 # 185,000 199,079
Dean Foods 144A
     6.50% 3/15/23 # 145,000 154,425
Herc Rentals
     144A 7.50% 6/1/22 # 50,000 52,125
     144A 7.75% 6/1/24 # 135,000 141,413
JBS USA 144A
     5.75% 6/15/25 # 255,000 260,100
Kronos Acquisition Holdings
     144A 9.00% 8/15/23 # 265,000 276,925
Mallinckrodt International
     Finance 144A
     5.50% 4/15/25 # 35,000 34,650
NBTY 144A
     7.625% 5/15/21 # 275,000 281,875
NES Rentals Holdings 144A
     7.875% 5/1/18 # 115,000 112,700
Prestige Brands 144A
     5.375% 12/15/21 # 95,000 98,919

(continues)      NQ-DDF [8/16] 10/16 (17657) 5


Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

      Principal       Value
amount° (U.S. $)
Corporate Bonds (continued)
Consumer Non-Cyclical (continued)
Prime Security Services
     Borrower 144A
     9.25% 5/15/23 # 340,000 $ 371,025
Revlon Escrow 144A
     6.25% 8/1/24 # 105,000 109,463
SUPERVALU 7.75% 11/15/22 90,000 85,500
Team Health 144A
     7.25% 12/15/23 # 150,000 163,875
US Foods 144A
     5.875% 6/15/24 # 155,000 163,137
2,505,211
Energy – 4.32%
Antero Resources
     5.375% 11/1/21 70,000 70,437
     5.625% 6/1/23 110,000 110,825
     6.00% 12/1/20 35,000 36,006
Baytex Energy 144A
     5.625% 6/1/24 # 105,000 85,575
Cheniere Corpus Christi
     Holdings 144A
     7.00% 6/30/24 # 100,000 107,500
Continental Resources
     5.00% 9/15/22 100,000 97,250
Energy Transfer Equity
     7.50% 10/15/20 115,000 126,500
Freeport-McMoran Oil & Gas
     6.50% 11/15/20 200,000 201,500
     6.875% 2/15/23 90,000 87,975
Genesis Energy
     5.75% 2/15/21 165,000 164,587
     6.00% 5/15/23 40,000 40,000
     6.75% 8/1/22 114,000 116,850
Hilcorp Energy I
     144A 5.00% 12/1/24 # 97,000 94,575
     144A 5.75% 10/1/25 # 71,000 69,935
Holly Energy Partners 144A
     6.00% 8/1/24 # 105,000 107,625
Laredo Petroleum
     7.375% 5/1/22 200,000 203,000
Murphy Oil 6.875% 8/15/24 180,000 188,464
Murphy Oil USA
     6.00% 8/15/23 180,000 191,610
Noble Holding International
     5.00% 3/16/18 100,000 98,575
NuStar Logistics
     6.75% 2/1/21 165,000 176,137
Oasis Petroleum
     6.875% 3/15/22 255,000 238,425
QEP Resources
     5.25% 5/1/23 195,000 192,075
Sabine Pass Liquefaction
     144A 5.875% 6/30/26 # 80,000 85,900
Southwestern Energy
     6.70% 1/23/25 105,000 108,413
Targa Resources Partners
     144A 6.75% 3/15/24 # 175,000 186,813
     6.875% 2/1/21 155,000 161,200
Tesoro Logistics
     6.375% 5/1/24 145,000 155,513
Transocean 5.05% 10/15/22 245,000 196,613
WPX Energy 7.50% 8/1/20 180,000 185,737
3,885,615
Financials – 0.69%
Ally Financial
     5.75% 11/20/25 125,000 133,437
Ares Capital 4.75% 1/15/18 151,000 157,040
Blackhawk Network Holdings
     144A 1.50% 1/15/22 # 140,000 141,050
E*TRADE Financial
     5.875% 12/29/49 ● 180,000 187,200
618,727
Healthcare – 3.25%
Community Health Systems
     6.875% 2/1/22 89,000 74,315
DaVita HealthCare Partners
     5.00% 5/1/25 210,000 213,360
HCA
     5.375% 2/1/25 280,000 288,750
     5.875% 2/15/26 100,000 105,875
HealthSouth
     5.75% 11/1/24 195,000 203,190
     5.75% 9/15/25 90,000 94,613
Hill-Rom Holdings 144A
     5.75% 9/1/23 # 180,000 189,900
IASIS Healthcare
     8.375% 5/15/19 290,000 264,263
Immucor 11.125% 8/15/19 40,000 37,800
Kinetic Concepts
     10.50% 11/1/18 110,000 113,575
     12.50% 11/1/19 220,000 224,950
Mallinckrodt International
     Finance
     4.75% 4/15/23 90,000 83,981
     144A 5.625% 10/15/23 # 115,000 116,006
MPH Acquisition Holdings
     144A 7.125% 6/1/24 # 270,000 290,925

6 NQ-DDF [8/16] 10/16 (17657)


(Unaudited)

      Principal       Value
amount° (U.S. $)
Corporate Bonds (continued)
Healthcare (continued)
Tenet Healthcare
     8.125% 4/1/22 270,000 $ 274,725
Valeant Pharmaceuticals
     International
     144A 5.375% 3/15/20 # 105,000 99,487
     144A 6.125% 4/15/25 # 90,000 79,313
     144A 6.75% 8/15/18 # 165,000 166,303
2,921,331
Insurance – 0.67%
HUB International
     144A 7.875% 10/1/21 # 215,000 220,375
     144A 9.25% 2/15/21 # 50,000 53,000
USI 144A 7.75% 1/15/21 # 190,000 194,750
XLIT 6.50% 10/29/49 ● 175,000 131,425
599,550
Media – 3.80%
CCO Holdings
     144A 5.375% 5/1/25 # 75,000 79,219
     144A 5.50% 5/1/26 # 30,000 31,837
     144A 5.75% 2/15/26 # 120,000 128,700
     144A 5.875% 5/1/27 # 145,000 155,513
Cequel Communications
     Holdings I 144A
     7.75% 7/15/25 # 200,000 219,500
Columbus Cable Barbados
     144A 7.375% 3/30/21 # 200,000 214,750
CSC Holdings 5.25% 6/1/24 328,000 320,003
Gray Television 144A
     5.875% 7/15/26 # 210,000 219,450
Midcontinent
     Communications &
     Midcontinent Finance
     144A 6.875% 8/15/23 # 110,000 116,600
Nexstar Escrow 144A
     5.625% 8/1/24 # 320,000 327,200
RCN Telecom Services 144A
     8.50% 8/15/20 # 150,000 160,500
SFR Group 144A
     7.375% 5/1/26 # 400,000 413,500
Sirius XM Radio 144A
     5.375% 4/15/25 # 175,000 183,750
Tribune Media
     5.875% 7/15/22 200,000 205,500
Unitymedia 144A
     6.125% 1/15/25 # 200,000 215,500
VTR Finance 144A
     6.875% 1/15/24 # 200,000 210,440
WideOpenWest Finance
     10.25% 7/15/19 210,000 222,075
3,424,037
Services – 3.82%
Air Medical Merger Sub 144A
     6.375% 5/15/23 # 280,000 275,100
BlueLine Rental Finance 144A
     7.00% 2/1/19 # 185,000 160,950
Boyd Gaming
     6.875% 5/15/23 240,000 260,400
Communications Sales &
     Leasing
     144A 6.00% 4/15/23 # 75,000 78,187
     8.25% 10/15/23 80,000 83,800
ESH Hospitality 144A
     5.25% 5/1/25 # 265,000 266,243
GEO Group
     5.125% 4/1/23 80,000 71,800
     5.875% 1/15/22 500,000 475,000
     5.875% 10/15/24 100,000 90,500
     6.00% 4/15/26 130,000 117,163
GFL Environmental 144A
     9.875% 2/1/21 # 115,000 125,925
Golden Nugget Escrow 144A
     8.50% 12/1/21 # 55,000 57,750
Iron Mountain U.S. Holdings
     144A 5.375% 6/1/26 # 195,000 199,631
Mattamy Group 144A
     6.50% 11/15/20 # 130,000 129,025
OPE KAG Finance Sub 144A
     7.875% 7/31/23 # 155,000 148,025
Penske Automotive Group
     5.50% 5/15/26 185,000 185,577
Scientific Games
     8.125% 9/15/18 95,000 95,594
Scientific Games International
     10.00% 12/1/22 110,000 102,300
United Rentals North America
     5.75% 11/15/24 180,000 189,000
Vander Intermediate Holding
     II 144A PIK 9.75%
     2/1/19 #❆ 84,200 45,468
XPO Logistics
     144A 6.125% 9/1/23 # 70,000 72,100
     144A 6.50% 6/15/22 # 200,000 208,750
3,438,288
Technology – 2.14%
Diamond 1 Finance 144A PIK
     8.10% 7/15/36 #❆ 145,000 168,878

(continues)      NQ-DDF [8/16] 10/16 (17657) 7


Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

      Principal       Value
amount° (U.S. $)
Corporate Bonds (continued)
Technology (continued)
First Data 144A
     7.00% 12/1/23 # 461,000 $ 484,626
Infor U.S. 6.50% 5/15/22 240,000 244,500
Micron Technology 144A
     7.50% 9/15/23 # 85,000 93,925
Microsemi 144A
     9.125% 4/15/23 # 200,000 230,000
Sensata Technologies UK
     Financing 144A
     6.25% 2/15/26 # 200,000 220,250
Solera 144A
     10.50% 3/1/24 # 120,000 133,500
Verint Systems 1.50% 6/1/21 302,000 281,615
Western Digital 144A
     10.50% 4/1/24 # 65,000 73,613
1,930,907
Technology & Electronics – 0.28%
CommScope 144A
     5.50% 6/15/24 # 70,000 73,763
Entegris 144A
     6.00% 4/1/22 # 140,000 146,125
Infor Software Parent 144A
     PIK 7.125% 5/1/21 #❆ 35,000 32,987
252,875
Telecommunications – 1.33%
Cogent Communications
     Group 144A
     5.375% 3/1/22 # 60,000 62,100
Digicel 144A 6.75% 3/1/23 # 200,000 183,500
Digicel Group 144A
     8.25% 9/30/20 # 221,000 201,110
Sprint 7.125% 6/15/24 170,000 159,375
T-Mobile USA
     6.00% 3/1/23 100,000 106,379
     6.00% 4/15/24 40,000 42,700
     6.375% 3/1/25 75,000 80,906
     6.50% 1/15/26 140,000 153,737
Wind Acquisition Finance
     144A 7.375% 4/23/21 # 200,000 206,500
1,196,307
Utilities – 1.65%
AES
     5.50% 4/15/25 160,000 164,870
     6.00% 5/15/26 25,000 26,563
AmeriGas Partners
     5.875% 8/20/26 240,000 258,000
Calpine
     5.50% 2/1/24 100,000 100,250
Calpine
     5.75% 1/15/25 250,000 250,000
Dynegy
     7.375% 11/1/22 15,000 14,887
     7.625% 11/1/24 250,000 246,250
Emera 6.75% 6/15/76 ● 180,000 194,984
Enel 144A
     8.75% 9/24/73 #● 200,000 234,000
1,489,804
Total Corporate Bonds
(cost $33,510,125) 34,608,435
 
Senior Secured Loans – 2.50%«
Accudyne Industries Borrower
     1st Lien 4.00% 12/13/19 204,636 182,637
Amaya Holdings 1st Lien
     5.00% 8/1/21 169,146 167,677
Applied Systems Tranche 2nd
     Lien 7.50% 1/23/22 @ 275,854 277,578
BJ’s Wholesale Club 2nd Lien
     8.50% 3/31/20 196,062 196,960
Blue Ribbon Tranche 1st Lien
     5.00% 11/13/21 75,750 76,081
Chesapeake Energy Tranche
     1st Lien 8.50% 8/23/21 75,000 77,328
Flint Group 2nd Lien
     8.25% 9/7/22 @ 175,000 165,375
FMG Resources August 2006
     Pty 1st Lien
     3.75% 6/30/19 189,442 188,478
Frank Russell Tranche B 1st
     Lien 6.75% 6/1/23 108,000 101,858
Immucor 5.00% 8/17/18 154,599 150,734
KIK Custom Products 1st Lien
     6.00% 8/26/22 @ 124,162 124,084
KRATON Polymers Tranche B
     1st Lien 6.00% 1/6/22 35,000 35,003
Mohegan Tribal Gaming
     Authority Tranche B
     5.50% 6/15/18 119,370 119,501
Neiman Marcus Group
     Tranche 1st Lien
     4.25% 10/25/20 49,872 46,908
Solera Tranche B 1st Lien
     5.75% 3/3/23 64,838 65,349
Stardust Finance Holdings
     Tranche 2nd Lien
     10.50% 3/13/23 90,000 89,550

8 NQ-DDF [8/16] 10/16 (17657)


(Unaudited)

      Principal       Value
amount° (U.S. $)
Senior Secured Loans« (continued)
Stardust Finance Holdings
     Tranche B 1st Lien
     6.50% 3/13/22 @ 93,997 $ 93,527
Windstream Services Tranche
     B6 1st Lien
     5.75% 3/29/21 89,775 90,561
Total Senior Secured Loans
(cost $2,208,560) 2,249,189
 
Number of
shares
Master Limited Partnership – 0.75%
Ares Management 15,100 276,028
Brookfield Infrastructure
     Partners 8,400 402,696
Total Master Limited
Partnership (cost $479,230) 678,724
 
Preferred Stock – 0.94%
Bank of America 6.50% ● 220,000 240,097
GMAC Capital Trust I
     6.602% ● 8,000 202,080
Morgan Stanley 5.55% ● 185,000 189,856
Northstar Realty Finance
     8.50% 8,300 211,733
Total Preferred Stock
(cost $787,516) 843,766
 
Warrant – 0.00%
Wheeler Real Estate
     Investment Trust strike
     price $5.50, expiration
     date 4/29/19 @† 7,872 708
Total Warrant (cost $65) 708
  
Principal
amount°
Short-Term Investments – 0.41%
Discount Notes – 0.23%≠
Federal Home Loan Bank
     0.315% 11/1/16 167,123 167,038
     0.335% 9/19/16 9,807 9,806
     0.39% 9/23/16 14,917 14,915
     0.391% 9/21/16 12,229 12,227
203,986
U.S. Treasury Obligation – 0.18%≠
U.S. Treasury Bill
     0.256% 11/3/16 167,123 167,045
167,045
Total Short-Term
Investments
(cost $371,028) 371,031
 
Total Value of
Securities – 145.14%
(cost $108,928,395) 130,642,163
 
Number of
contracts
Options Written – (0.04%)
Equity Call Options – (0.04%)
GEO Group Strick price
     $22.50, expiration date
     9/16/16 (MSC) (500 ) (12,500 )
JC Penney Strick Price $9.50,
     expiration date 9/16/16
     (MSC) (1,000 ) (27,000 )
Total Options Written
(premium received $(96,082)) (39,500 )
               
Borrowing Under Line of
Credit – (44.44%) (40,000,000 )
Liabilities Net of
Receivables and Other
Assets – (0.66%) (591,438 )
Net Assets Applicable to
8,092,798 Shares
Outstanding – 100.00% $ 90,011,225
___________________

#

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Aug. 31, 2016, the aggregate value of Rule 144A securities was $20,641,369,which represents 22.93% of the Fund’s net assets.

@

Illiquid security. At Aug. 31, 2016, the aggregate value of illiquid securities was $9,788,652, which represents 10.87% of the Fund’s net assets.

❆

100% of the income received was in the form of cash.

=

Security is being fair valued in accordance with the Fund’s fair valuation policy. At Aug. 31, 2016, the aggregate value of fair valued securities was $0, which represents 0.00% of the Fund’s net assets.

≠

The rate shown is the effective yield at the time of purchase.

«

Senior secured loans generally pay interest at rates which are periodically redetermined by reference to a base lending rate plus a premium. These base lending rates are generally: (i) the prime rate offered by one or more U.S. banks, (ii) the lending rate offered by one or more European banks such as the London Interbank Offered Rate (LIBOR), and (iii) the certificate of deposit rate. Senior secured loans may be subject to restrictions on resale. Stated rate in effect at Aug. 31, 2016.


(continues)      NQ-DDF [8/16] 10/16 (17657) 9


Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

°

Principal amount shown is stated in U.S. dollars unless noted that the security is denominated in another currency.

†

Non-income-producing security.

●

Variable rate security. The rate shown is the rate as of Aug. 31, 2016. Interest rates reset periodically.

ϕ

Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect atAug. 31, 2016.

Summary of abbreviations:
MSC – Morgan Stanley Capital
PIK – Payment-in-kind
REIT – Real Estate Investment Trust

10 NQ-DDF [8/16] 10/16 (17657)


Notes

Delaware Investments® Dividend and Income Fund, Inc.
August 31, 2016 (Unaudited)

1. Significant Accounting Policies

The following accounting policies are in accordance with U.S. generally accepted accounting principles (U.S. GAAP) and are consistently followed by Delaware Investments® Dividend and Income Fund, Inc. (Fund). This report covers the period of time since the Fund’s last fiscal year end.

Security Valuation — Equity securities and Exchange-Traded Funds (ETFs), except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities and ETFs traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security or ETF does not trade, the mean between the bid and ask prices will be used, which approximates fair value. Equity securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. U.S. government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Open-end investment company securities are valued at net asset value (NAV) per share, as reported by the underlying investment company. Debt securities are valued based upon valuations provided by an independent pricing service and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask prices, which approximates fair value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund’s Board of Directors (Board). In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. The Fund may use fair value pricing more frequently for securities traded primarily in non-U.S. markets because, among other things, most foreign markets close well before the Fund values its securities, generally as of 4:00 p.m. Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occured in the interim. Whenever such a significant event occurs, the Fund may value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing).

2. Investments

At Aug. 31, 2016, the cost of investments for federal income tax purposes has been estimated since final tax characteristics cannot be determined until fiscal year end. At Aug. 31, 2016, the cost and unrealized appreciation (depreciation) of investments were as follows:

Cost of investments $ 108,928,395
Aggregate unrealized appreciation of investments $ 25,354,282
Aggregate unrealized depreciation of investments (3,640,514 )
Net unrealized appreciation of investments $ 21,713,768

U.S. GAAP defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.

Level 1 –  inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, exchange-traded options contracts)
 
Level 2 –

other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

 
Level 3 –

Significant unobservable inputs, including the Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities, fair valued securities)


(continues)      NQ-DDF [8/16] 10/16 (17657) 11


(Unaudited)

2. Investments (continued)

Level 3 investments are valued using significant unobservable inputs. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of Aug. 31, 2016:

Securities       Level 1       Level 2       Level 3       Total
Common Stock $ 83,697,206 $ —     $ —     $ 83,697,206
Convertible Preferred Stock1 1,659,254 55,257 — 1,714,511
Convertible Bond — 6,478,593 — 6,478,593
Corporate Debt — 34,608,435 — 34,608,435
Senior Secured Loans — 2,249,189 — 2,249,189
Master Limited Partnership 678,724 — — 678,724
Preferred Stock1 413,813 429,953 — 843,766
Warrant 708 — — 708
Short-Term Investments — 371,031 — 371,031
Total Value of Securities $ 86,449,705 $ 44,192,458 $ — $ 130,642,163
 
Option Written $ (39,500 ) $ — $ — $ (39,500 )

The securities that have been valued at zero on the “Schedule of investments” are considered to be Level 3 investments in this table.

1Security type is valued across multiple levels. Level 1 investments represent exchange-traded investments, Level 2 investments represent investments with observable inputs or matrix-priced instruments, and Level 3 investments represent investments without observable inputs. The amounts attributed to Level 1 investments, Level 2 investments, and Level 3 investments represent the following percentages of the total market value of these security types:

      Level 1       Level 2       Level 3       Total
Convertible Preferred Stock 96.78% 3.22% — 100.00%
Preferred Stock 49.04% 50.96% — 100.00%

During the period ended Aug. 31, 2016, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to the Fund. This does not include transfers between Level 1 investments and Level 2 investments due to the Fund utilizing international fair value pricing during the period. In accordance with the fair valuation procedures described in Note 1, international fair value pricing of securities in the Fund occurs when market volatility exceeds an established rolling threshold. If the threshold is exceeded on a given date, then prices of international securities (those that traded on exchanges that close at a different time than the time that the Fund’s NAV is determined) are established using a separate pricing feed from a third party vendor designed to establish a price for each such security as of the time that the Fund’s NAV is determined. Further, international fair value pricing uses other observable market-based inputs in place of the closing exchange price due to the events occuring after the close of the exchange or market on which the investment is principally traded, causing a change in classification between levels. The Fund’s policy is to recognized transfers between levels at the beginning of the reporting period.

12 NQ-DDF [8/16] 10/16 (17657)


(Unaudited)

A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to net assets. Management has determined not to provide additional disclosure on Level 3 inputs since the Level 3 investments are not considered significant to the Fund’s net assets at the end of the period.

3. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to Aug. 31, 2016 that would require recognition or disclosure in the Fund’s ”Schedule of investments.“

NQ-DDF [8/16] 10/16 (17657) 13


Item 2. Controls and Procedures.

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: