Edgar Filing: Small Cap Premium & Dividend Income Fund, Inc.

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES

Investment Company Act file number 811-21746

Name of Fund: Small Cap Premium & Dividend Income Fund Inc. (RCC)

Fund Address: 2 World Financial Center, 7^th Floor, New York, New York 10281.

Name and address of agent for service: Justin C. Ferri, Chief Executive Officer, Small Cap Premium & Dividend Income Fund Inc., 2 World Financial Center, 7th Floor, New York, New York 10281.

Registrant’s telephone number, including area code: (877) 449-4742

Date of fiscal year end: December 31, 2009

Date of reporting period: June 30, 2009

Item 1 – Report to Stockholders

(FRONT COVER)

Small Cap Premium &

Dividend Income Fund Inc.

Semi-Annual Report

(Unaudited)
June 30, 2009

Small Cap Premium & Dividend Income Fund Inc.

Directors and Officers

Paul Glasserman, Director and Chairman of the Board

Steven W. Kohlhagen, Director and Chairman of the Audit Committee

Laura S. Unger, Director and Chairperson of the Nominating and Corporate Governance Committee

William J. Rainer, Director

Justin C. Ferri, President

James E. Hillman, Vice President and Treasurer

Colleen R. Rusch, Vice President and Secretary

Michelle H. Rhee, Chief Legal Officer

Robert M. Zakem, Chief Compliance Officer

Jeff E. McGoey, Vice President

Custodian

State Street Bank and Trust Company

P.O. Box 351

Boston, MA 02101

Transfer Agent

BNY Mellon Shareowner Services

480 Washington Boulevard

Jersey City, NJ 07310

Proxy Results

During the six-month period ended June 30, 2009, the stockholders of Small Cap Premium & Dividend Income Fund Inc. voted on the following proposal, which was approved at the annual meeting of stockholders on April 24, 2009. A description of the proposal and number of shares voted are as follows:



		Shares Voted For	Shares Withheld From Voting

To elect the Fund’s Board of Directors:	Paul Glasserman	9,422,107	499,005
	Steven W. Kohlhagen	9,427,391	493,721
	William J. Rainer	9,428,589	492,523
	Laura S. Unger	9,420,599	500,513



2	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009

Fund Profile as of June 30, 2009 (Unaudited)

Fund Information

The investment objectives of Small Cap Premium & Dividend Income Fund Inc. (the “Fund”) are to provide stockholders with a high level of income, with a secondary goal of capital appreciation. The Fund pursues its investment objectives principally through a two-part strategy. First, the Fund will invest in a statistically selected sample of stocks included in the Russell 2000^®Index (the “Index”) and/or other investments that have economic characteristics similar to the securities that comprise the Index, which may include futures, forward, swap and option contracts based on the Index, as well as other investment funds with a composition similar to that of the Index. Second, the Fund will write (sell) call options on the Index or on exchange-traded funds (“ETFs”) which seek to track the performance of the Index with respect to some or all of the value of its assets. There can be no assurance that the Fund will achieve its investment objectives.



Symbol on New York Stock Exchange (“NYSE”)		RCC
Initial Offering Date		July 29, 2005
Yield on Closing Market Price as of June 30, 2009 ($9.29)*		21.53%
Current Semi-Annual Distribution per share of Common Stock**		$1.00
Current Annualized Distribution per share of Common Stock**		$2.00


*	Yield on closing market price is calculated by dividing the current annualized distribution per share by the closing market price as of June 30, 2009. Past performance does not guarantee future results.

**	The distribution is not constant and is subject to change. A substantial portion of the distribution may be deemed a tax return of capital at fiscal year end.

The table below summarizes the changes in the Fund’s market price and net asset value for the six-month period:



	6/30/09 (a)	12/31/08	Change (b)		High	Low

Market Price (c)	$9.29	$8.67	7.15	%	$11.40	$6.35
Net Asset Value	$9.06	$9.55	(5.13	%)	$10.26	$7.05


(a)	For the six-month period, the Common Stock of the Fund had a total investment return of 5.34% based on net asset value per share and 18.98% based on market price per share, assuming reinvestment of dividends. For the same period, the Fund’s unmanaged reference index, the Russell 2000^®Index, had a total investment return of 2.64%. The reference index has no expenses associated with performance.

(b)	Does not include reinvestment of dividends.

(c)	Primary Exchange Price, NYSE.


Portfolio Information


Ten Largest Equity Holdings	Percent of Net Assets

Palm, Inc.	0.3	%
3Com Corp.	0.3
Owens & Minor, Inc.	0.2
VistaPrint Ltd.	0.2
Piedmont Natural Gas Co.	0.2
Solera Holdings, Inc.	0.2
Jack Henry & Associates, Inc.	0.2
Polycom, Inc.	0.2
Tetra Tech, Inc.	0.2
Tupperware Corp.	0.2


Five Largest Industries	Percent of Net Assets

Computer Services Software & Systems	6.6	%
Banks: Diversified	5.9
Real Estate Investment Trusts (REITs)	5.1
Biotechnology	4.1
Diversified Retail	3.8


Sector Representation	Percent of Long-Term Investments

Financial Services	20.4	%
Technology	17.4
Health Care	15.1
Consumer Discretionary & Services	14.6
Producer Durables	14.1
Materials & Processing	6.4
Utilities	5.0
Energy	3.9
Consumer Staples	3.1

For Fund portfolio compliance purposes, the Fund’s industry and sector classifications refer to any one or more of the industry and sector sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry and sector sub-classifications for reporting ease.

Russell 2000 is a registered trademark of the Frank Russell Company.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	3

Summary Schedule of Investments as of June 30, 2009 (Unaudited)

This summary schedule of investments is presented to help investors focus on the Fund’s principal holdings. It includes the Fund’s 50 largest holdings and each investment of any issuer that exceeds 1% of the Fund’s net assets. “Other Securities” represent all issues not required to be disclosed under the rules adopted by the Securities and Exchange Commission. In addition, the summary schedule of investments allows the adviser certain efficiencies. As such, any cost savings in report production or printing are passed on to the Fund and, ultimately to Fund stockholders. A complete schedule of investments is available without charge, upon request, by calling 1-877-449-4742 or on the Securities and Exchange Commission’s website at http://www.sec.gov.



Industry	Common Stocks	Shares	Value		Percent of Net Assets

Advertising Agencies	Other Securities		$	547,249	0.4	%

Aerospace	Other Securities			1,698,474	1.4

Agriculture, Fishing & Ranching	Other Securities			550,777	0.5

Air Transport	Other Securities			1,019,219	0.8

Alternative Energy	Other Securities			285,521	0.2

Aluminum	Other Securities			132,535	0.1

Asset Management & Custodian	Other Securities			1,023,247	0.8

Auto Parts	Other Securities			449,980	0.4

Auto Services	Other Securities			132,723	0.1

Banks: Diversified	FirstMerit Corp.	12,796		217,276	0.2
	Prosperity Bancshares, Inc.	7,200		214,776	0.2
	Westamerica Bancorp.	4,600		228,206	0.2
	Other Securities			6,568,168	5.3

				7,228,426	5.9

Banks: Savings, Thrift & Mortgage Lending	Other Securities			1,366,243	1.1

Beverage: Brewers & Distillers	Other Securities			41,426	0.0

Beverage: Soft Drinks	Other Securities			178,177	0.1

Biotechnology	Onyx Pharmaceuticals, Inc. (a)	8,820		249,253	0.2
	Other Securities			4,742,530	3.9

				4,991,783	4.1

Building Materials	Other Securities			1,012,878	0.8

Building: Climate Control	Other Securities			172,133	0.1

Building: Roofing, Wallboard & Plumbing	Other Securities			102,666	0.1

Cable Television Services	Other Securities			68,280	0.1

Casinos & Gambling	Bally Technologies, Inc. (a)	8,500		254,320	0.2
	Other Securities			319,183	0.3

				573,503	0.5

Cement	Other Securities			10,296	0.0

Chemicals: Diversified	Other Securities			1,794,992	1.5

Coal	Other Securities			182,915	0.2

Commercial Finance & Mortgage Companies	Other Securities			106,289	0.1

Commercial Services	Tetra Tech, Inc. (a)	9,400		269,310	0.2
	Watson Wyatt Worldwide, Inc.	6,600		247,698	0.2
	Other Securities			3,398,681	2.8

				3,915,689	3.2

Commercial Services: Rental & Leasing	Other Securities			428,116	0.4

Commercial Vehicles & Parts	Other Securities			194,845	0.2

Communications Technology	3Com Corp. (a)	61,200		288,252	0.3
	Polycom, Inc. (a)	13,300		269,591	0.2
	Other Securities			3,444,682	2.8

				4,002,525	3.3



4	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009




Summary Schedule of Investments (continued)


Industry	Common Stocks	Shares	Value		Percent of Net Assets

Computer Services Software & Systems	Digital River, Inc. (a)	5,900	$	214,288	0.2	%
	Informatica Corp. (a)	13,600		233,784	0.2
	Parametric Technology Corp. (a)	18,020		210,654	0.2
	Solera Holdings, Inc. (a)	10,800		274,320	0.2
	Other Securities			7,197,824	5.8

				8,130,870	6.6

Computer Technology	Data Domain, Inc. (a)	7,400		246,790	0.2
	Palm, Inc. (a)	21,500		356,255	0.3
	Other Securities			849,568	0.7

				1,452,613	1.2

Construction	Other Securities			678,641	0.6

Consumer Electronics	Other Securities			243,728	0.2

Consumer Lending	Other Securities			645,328	0.5

Consumer Services: Miscellaneous	Other Securities			732,253	0.6

Containers & Packaging	Rock-Tenn Co. Class A	6,000		228,960	0.2
	Other Securities			321,716	0.3

				550,676	0.5

Cosmetics	Other Securities			153,883	0.1

Diversified Financial Services	Other Securities			586,609	0.5

Diversified Manufacturing Operations	Other Securities			267,917	0.2

Diversified Materials & Processing	Clarcor, Inc.	8,100		236,439	0.2
	Other Securities			964,264	0.8

				1,200,703	1.0

Diversified Media	Other Securities			44,480	0.0

Diversified Retail	Tractor Supply Co. (a)	5,600		231,392	0.2
	Other Securities			4,432,740	3.6

				4,664,132	3.8

Drug & Grocery Store Chains	Other Securities			799,853	0.7

Education Services	Other Securities			845,741	0.7

Electronic Components	Other Securities			687,952	0.6

Electronic Entertainment	Other Securities			282,921	0.2

Electronics	Other Securities			546,704	0.4

Energy Equipment	Other Securities			290,279	0.2

Engineering & Contracting Services	Other Securities			336,054	0.3

Entertainment	Other Securities			348,269	0.3

Financial Data & Systems	Jack Henry & Associates, Inc.	13,095		271,721	0.2
	Other Securities			1,105,808	0.9

				1,377,529	1.1

Foods	Other Securities			1,401,517	1.1

Forest Products	Other Securities			162,878	0.1

Forms & Bulk Printing Services	Other Securities			286,646	0.2

Funeral Parlors & Cemeteries	Other Securities			210,108	0.2

Gas Pipeline	Other Securities			26,208	0.0

Glass	Other Securities			54,120	0.0

Gold	Other Securities			222,156	0.2

Health Care Facilities	Other Securities			730,126	0.6



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	5




Summary Schedule of Investments (continued)


Industry	Common Stocks	Shares	Value		Percent of Net Assets

Health Care Management Services	AMERIGROUP Corp. (a)	8,300	$	222,855	0.2	%
	Other Securities			984,103	0.8

				1,206,958	1.0

Health Care Services	Quality Systems, Inc.	3,700		210,752	0.2
	Other Securities			1,975,270	1.6

				2,186,022	1.8

Health Care: Miscellaneous	Other Securities			140,545	0.1

Homebuilding	Other Securities			304,611	0.2

Hotel/Motel	Other Securities			230,190	0.2

Household Appliances	Other Securities			53,270	0.0

Household Equipment & Products	Tupperware Corp.	9,900		257,598	0.2
	Other Securities			131,278	0.1

				388,876	0.3

Household Furnishings	Other Securities			360,955	0.3

Insurance: Life	Other Securities			427,167	0.4

Insurance: Multi-Line	Platinum Underwriters Holdings Ltd.	8,000		228,720	0.2
	Other Securities			665,922	0.5

				894,642	0.7

Insurance: Property-Casualty	IPC Holdings Ltd.	8,900		243,326	0.2
	ProAssurance Corp. (a)	5,200		240,292	0.2
	Other Securities			2,157,758	1.8

				2,641,376	2.2

Leisure Time	Other Securities			725,027	0.6

Luxury Items	Other Securities			235,607	0.2

Machinery & Engineering	Other Securities			132,975	0.1

Machinery: Agricultural	Other Securities			76,300	0.1

Machinery: Construction & Handling	Other Securities			106,108	0.1

Machinery: Engines	Other Securities			136,436	0.1

Machinery: Industrial	Other Securities			1,129,076	0.9

Machinery: Specialty	Other Securities			120,734	0.1

Manufactured Housing	Other Securities			49,255	0.0

Medical & Dental	NuVasive, Inc. (a)	5,700		254,220	0.2
Instruments & Supplies	Owens & Minor, Inc.	6,500		284,830	0.2
	Steris Corp.	9,100		237,328	0.2
	Other Securities			2,830,882	2.3

				3,607,260	2.9

Medical Equipment	Haemonetics Corp. (a)	4,000		228,000	0.2
	Thoratec Corp. (a)	8,800		235,664	0.2
	Other Securities			1,773,977	1.4

				2,237,641	1.8

Medical Services	Other Securities			388,873	0.3

Metal Fabricating	Other Securities			857,355	0.7

Metals & Minerals: Diversified	Other Securities			399,035	0.3

Office Supplies & Equipment	Other Securities			513,458	0.4

Offshore Drilling & Other Services	Other Securities			64,101	0.1

Oil Well Equipment & Services	Other Securities			1,568,836	1.3



6	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009

Summary Schedule of Investments (continued)



Industry	Common Stocks	Shares		Value		Percent of Net Assets

Oil: Crude Producers	Other Securities			$	2,115,417	1.7	%

Oil: Integrated	Other Securities				87,746	0.1

Paints & Coatings	Other Securities				182,832	0.2

Paper	Other Securities				396,250	0.3

Personal Care	Other Securities				421,538	0.3

Pharmaceuticals	Isis Pharmaceuticals, Inc. (a)		14,500		239,250	0.2
	Other Securities				1,911,142	1.6

					2,150,392	1.8

Photography	Other Securities				137,989	0.1

Plastics	Other Securities				42,274	0.0

Power Transmission Equipment	Regal-Beloit Corp.		5,600		222,432	0.2
	Other Securities				165,726	0.1

					388,158	0.3

Precious Metals & Minerals	Other Securities				75,458	0.1

Printing & Copying Services	VistaPrint Ltd. (a)		6,600		281,490	0.2
	Other Securities				32,148	0.1

					313,638	0.3

Producer Durables: Miscellaneous	Other Securities				78,434	0.1

Production Technology Equipment	Other Securities				1,137,351	0.9

Publishing	Other Securities				185,561	0.2

Radio & TV Broadcasters	Other Securities				50,477	0.0

Railroad Equipment	Other Securities				73,032	0.1

Railroads	Other Securities				136,527	0.1

Real Estate	Other Securities				206,254	0.2

Real Estate Investment Trusts (REITs)	Anthracite Capital, Inc. (b)		9,500		5,890	0.0
	Highwoods Properties, Inc.		11,200		250,544	0.2
	MFA Financial, Inc.		34,700		240,124	0.2
	National Retail Properties, Inc.		12,400		215,140	0.2
	Other Securities				5,506,620	4.5

					6,218,318	5.1

Recreational Vehicles & Boats	Other Securities				284,190	0.2

Rental & Leasing Services: Consumer	Other Securities				375,749	0.3

Restaurants	Other Securities				1,814,791	1.5

Scientific Instruments: Control & Filter	Other Securities				832,802	0.7

Scientific Instruments: Electrical	GrafTech International Ltd. (a)		19,000		214,890	0.2
	Other Securities				1,059,063	0.8

					1,273,953	1.0

Scientific Instruments:
Gauges & Meters	Other Securities				168,258	0.1

Scientific Instruments:
Pollution Control	Other Securities				575,492	0.5

Securities Brokerage & Services	Knight Capital Group, Inc. Class A (a)		14,500		247,225	0.2
	Other Securities				781,456	0.6

					1,028,681	0.8

Semiconductors & Components	Skyworks Solutions, Inc. (a)		26,052		254,789	0.2
	Other Securities				2,845,325	2.3

					3,100,114	2.5

Shipping	Other Securities				816,351	0.7



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	7

Summary Schedule of Investments (continued)



Industry	Common Stocks	Shares		Value		Percent of Net Assets

Steel	Other Securities			$	77,658	0.1	%

Sugar	Other Securities				20,587	0.0

Synthetic Fibers & Chemicals	Other Securities				41,796	0.0

Technology: Miscellaneous	Other Securities				377,436	0.3

Telecommunications Equipment	Arris Group, Inc. (a)		19,346		235,247	0.2
	Other Securities				403,459	0.3

					638,706	0.5

Textile Products	Other Securities				60,160	0.1

Textiles Apparel & Shoes	Carter’s, Inc. (a)		8,800		216,568	0.2
	J. Crew Group, Inc. (a)		7,870		212,647	0.2
	The Warnaco Group, Inc. (a)		7,100		230,040	0.2
	Other Securities				1,537,178	1.2

					2,196,433	1.8

Tobacco	Other Securities				276,118	0.2

Toys	Other Securities				103,623	0.1

Transportation Miscellaneous	Other Securities				195,569	0.2

Truckers	Other Securities				907,863	0.7

Utilities: Electrical	Cleco Corp.		9,500		212,990	0.2
	Portland General Electric Co.		11,700		227,916	0.2
	Other Securities				1,770,379	1.4

					2,211,285	1.8

Utilities: Gas Distributors	New Jersey Resources Corp.		6,600		244,464	0.2
	Nicor, Inc.		7,000		242,340	0.2
	Piedmont Natural Gas Co.		11,500		277,265	0.2
	WGL Holdings, Inc.		7,800		249,756	0.2
	Other Securities				675,449	0.6

					1,689,274	1.4

Utilities: Telecommunications	Other Securities				1,489,147	1.2

Utilities: Water	Other Securities				428,063	0.4

Wholesale & International Trade	Other Securities				295,546	0.2

	Total Common Stocks (Cost — $169,295,814)				117,031,781	95.5




	Investment Companies

	BlackRock Kelso Capital Corp. (b)		1,800		11,214	0.0
	Other Securities				173,169	0.1

	Total Investment Companies (Cost — $329,680)				184,383	0.1




	Warrants (c)

Alternative Energy	Other Securities		60		—	0.0

	Total Warrants (Cost — $0)				—	0.0



8	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009

Summary Schedule of Investments (continued)



Short-Term Securities	Maturity Date	Yield			Face Amount		Value		Percent Net Assets

Time Deposits
State Street Bank & Trust Co.	7/01/09		0.01	%	$	7,585,945	$	7,585,945	6.2	%

	Total Short-Term Securities (Cost — $7,585,945)							7,585,945	6.2

	Total Investments Before Options Written (Cost — $177,211,439*)							124,802,109	101.8



	Options Written	Number of Contracts

Call Options Written	Russell 2000 Index, expiring July 2009 at USD 520		1,000		(725,000	)	(0.6	)
	Russell 2000 Index, expiring August 2009 at USD 530		200		(251,000	)	(0.2	)

	Total Options Written (Premiums Received — $1,739,293)				(976,000	)	(0.8	)

Total Investments, Net of Options Written (Net Cost — $175,472,146)					123,826,109		101.0
Liabilities in Excess of Other Assets					(1,277,617	)	(1.0	)

Net Assets				$	122,548,492		100.0	%


*	The cost and unrealized appreciation (depreciation) of investments as of June 30, 2009, as computed for federal income tax purposes, were as follows:


Aggregate cost	$	109,912,067

Gross unrealized appreciation	$	17,887,408
Gross unrealized depreciation		(2,997,366	)

Net unrealized appreciation	$	14,890,042


(a)	Non-income producing security.

(b)	Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:



Affiliate	Purchase Cost			Sales Cost		Realized Loss			Dividend Income

Anthracite Capital, Inc.		$	608	$	10,821	$	(10,002	)		—
BlackRock Kelso Capital Corp.			—		—		—		$	576


(c)	Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date.

•	Financial futures contracts purchased as of June 30, 2009 were as follows:



Number of Contracts	Issue	Expiration Date	Face Value		Depreciation

90	E-Mini Russell 2000	September 2009	$	4,659,534	$	(94,734	)



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	9

Summary Schedule of Investments (concluded)


•	For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

•	Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

	•	Level 1 — price quotations in active markets/exchanges for identical securities

	•	Level 2 — other observable inputs (including, but not limited to: 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)

	•	Level 3 — unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used 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. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1(a) of the Notes to Financial Statements.

	The following table summarizes the inputs used as of June 30, 2009 in determining the fair valuation of the Fund’s investments:



Valuation Inputs	Investments in Securities		Other Financial Instruments†

	Assets		Liabilities

Level 1	$	117,216,118	$	(1,070,734	)
Level 2		7,585,991		—
Level 3		—		—

Total	$	124,802,109	$	(1,070,734	)

† Other financial instruments are futures and options.

See Notes to Financial Statements.



10	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009

Statement of Assets, Liabilities and Capital

As of June 30, 2009 (Unaudited)


Assets

Investments in unaffiliated securities, at value (identified cost — $177,090,186)				$	124,785,005
Investments in affiliated securities, at value (identified cost — $121,253)					17,104
Receivables:
Securities sold	$	13,887,255
Dividends		126,335
Interest		2			14,013,592

Prepaid expenses					450

Total assets					138,816,151



Liabilities

Options written, at value (premiums received — $1,739,293)					976,000
Payables:
Securities purchased		15,109,512
Investment advisory fees		96,565
Variation margin		7,200			15,213,277

Accrued expenses					78,382

Total liabilities					16,267,659



Net Assets

Net assets				$	122,548,492



Capital

Common Stock, par value $.001 per share, 100,000,000 shares authorized				$	13,528
Paid-in capital in excess of par					217,088,317
Accumulated distributions in excess of investment income — net	$	(13,268,247	)
Accumulated realized capital losses — net		(29,544,335	)
Unrealized depreciation — net		(51,740,771	)

Total accumulated losses — net					(94,553,353	)

Total capital — Equivalent to $9.06 per share based on 13,528,336 shares of Common Stock outstanding (market price — $9.29)				$	122,548,492


See Notes to Financial Statements.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	11

Statement of Operations

For the Six Months Ended June 30, 2009 (Unaudited)


Investment Income

Dividends (including $576 from affiliates and net of $261 foreign withholding tax)				$	580,221
Interest					576

Total income					580,797



Expenses

Investment advisory fees	$	544,201
Professional fees		41,732
Directors’ fees and expenses		29,540
Accounting services		26,007
Printing and stockholder reports		20,925
Transfer agent fees		19,892
Repurchase offer		16,291
Listing fees		11,394
Insurance expenses		9,959
Custodian fees		8,337
Licensing fees		5,199
Other		6,162

Total expenses					739,639

Investment loss — net					(158,842	)



Realized & Unrealized Gain (Loss) — Net

Realized gain (loss) on:
Investments — net (including $10,002 loss from affiliates)		(15,137,432	)
Financial futures contracts — net		(282,485	)
Options written — net		4,424,455			(10,995,462	)

Change in unrealized appreciation/depreciation on:
Investments — net		18,013,919
Financial futures contracts — net		(156,672	)
Options written — net		74,180			17,931,427

Total realized and unrealized gain — net					6,935,965

Net Increase in Net Assets Resulting from Operations				$	6,777,123


See Notes to Financial Statements.



12	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009

Statements of Changes in Net Assets


Increase (Decrease) in Net Assets:	For the Six Months Ended June 30, 2009 (Unaudited)			For the Year Ended December 31, 2008

Operations

Investment income (loss) — net	$	(158,842	)	$	488,414
Realized loss — net		(10,995,462	)		(2,301,840	)
Change in unrealized appreciation/depreciation — net		17,931,427			(74,212,875	)

Net increase (decrease) in net assets resulting from operations		6,777,123			(76,026,301	)



Dividends & Distributions to Stockholders

Investment income — net		(13,437,785	)†		(926,191	)
Tax return of capital		—			(26,156,104	)

Net decrease in net assets resulting from dividends and distributions to stockholders		(13,437,785	)		(27,082,295	)



Common Stock Transactions

Net redemption of Common Stock resulting from a repurchase offer (includes $62,348 of repurchase fees for the prior year)		—			(3,055,064	)
Value of shares issued to stockholders in reinvestment of dividends		820,394			—

Net increase (decrease) in net assets resulting from Common Stock transactions		820,394			(3,055,064	)



Net Assets

Total decrease in net assets		(5,840,268	)		(106,163,660	)
Beginning of period		128,388,760			234,552,420

End of period*	$	122,548,492		$	128,388,760

* Undistributed (accumulated distributions in excess of) investment income — net	$	(13,268,247	)	$	328,380


† A substantial portion of the dividends from net investment income may be deemed a tax return of capital at fiscal year end.

See Notes to Financial Statements.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	13

Financial Highlights


	For the Six Months Ended June 30, 2009 (Unaudited)												For the Period July 29, 2005^(a)to December 31, 2005
				For the Year Ended December 31,
The following per share data and ratios have been derived from information provided in the financial statements.				For the Year Ended December 31,

				2008			2007			2006

Per Share Operating Performance

Net asset value, beginning of period	$	9.55		$	17.19		$	18.80		$	18.16		$	19.10

Investment income (loss)— net^(b)		(.01	)		.04			.09			.08			.04
Realized and unrealized gain (loss) — net		.52			(5.68	)^(c)		.29	^(c)		2.56	^(c)		(.12	)

Total from investment operations		.51			(5.64	)		.38			2.64			(.08	)

Less dividends and distributions from:
Investment income — net		(1.00	)^(d)		(.07	)		(.08	)		(.23	)		(.03	)
Realized gain — net		—			—			(1.59	)		(1.67	)		—
Tax return of capital		—			(1.93	)		(.33	)		(.10	)		(.80	)

Total dividends and distributions		(1.00	)		(2.00	)		(2.00	)		(2.00	)		(.83	)

Offering costs resulting from the issuance of Common Stock		—			—			.01			—			(.03	)

Net asset value, end of period	$	9.06		$	9.55		$	17.19		$	18.80		$	18.16

Market price per share, end of period	$	9.29		$	8.67		$	15.74		$	19.49		$	16.09



Total Investment Return^(e)

Based on net asset value per share		5.34	%^(f)		(34.04	%)		2.63	%		15.40	%		(.14	%)^(f)

Based on market price per share		18.98	%^(f)		(34.60	%)		(9.36	%)		35.03	%		(15.51	%)^(f)



Ratios to Average Net Assets

Expenses, net of reimbursement		1.22	%^(g)		1.12	%		1.03	%		1.09	%		1.07	%^(g)

Expenses		1.22	%^(g)		1.12	%		1.05	%		1.09	%		1.07	%^(g)

Investment income (loss) — net		(.26	%)^(g)		.25	%		.49	%		.41	%		.56	%^(g)



Supplemental Data

Net assets, end of period (in thousands)	$	122,548		$	128,389		$	234,552		$	255,853		$	327,008

Portfolio turnover		15	%		21	%		15	%		26	%		3	%


	^(a)	Commencement of operations.

	^(b)	Based on average shares outstanding.

	^(c)	Includes repurchase fees, which are less than $.01 per share.

	^(d)	A substantial portion of the dividends from net investment income may be deemed a tax return of capital at fiscal year end.

	^(e)	Total investment returns based on market value, which can be significantly greater or less than the net asset value, may result in substantially different returns. Total investment returns exclude the effects of sales charges.

	^(f)	Aggregate total investment return.

	^(g)	Annualized.

		See Notes to Financial Statements.



14	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009

Notes to Financial Statements (Unaudited)

1. Significant Accounting Policies:

Small Cap Premium & Dividend Income Fund Inc. (the “Fund”) is registered under the Investment Company Act of 1940, as amended (the “1940 Act”), as a diversified, closed-end management investment company with a fixed term of approximately five years. The expected termination date of the Fund is on or about July 21, 2010.The Fund’s financial statements are prepared in conformity with U.S. generally accepted accounting principles, which may require the use of management accruals and estimates. Actual results may differ from these estimates. These unaudited financial statements reflect all adjustments, which are, in the opinion of management, necessary to present a fair statement of the results for the interim period. All such adjustments are of a normal, recurring nature. The Fund determines and makes available for publication the net asset value of its Common Stock on a daily basis. The Fund’s Common Stock shares are listed on the New York Stock Exchange (“NYSE”) under the symbol RCC.

Investing in the Fund involves certain risks and the Fund may not be able to achieve its intended results for a variety of reasons, including, among others, the possibility that the Fund may not be able to structure derivative investments as defined below as anticipated. Because the value of your investment in the Fund will fluctuate, there is a risk that you will lose money. The following is a summary of significant accounting policies followed by the Fund.

(a) Valuation of investments — Equity securities that are held by the Fund that are traded on stock exchanges or the NASDAQ Global Market are valued at the last sale price or official close price on the exchange, as of the close of business on the day the securities are being valued or, lacking any sales, at the last available bid price for long positions, and at the last available asked price for short positions. In cases where equity securities are traded on more than one exchange, the securities are valued on the exchange designated as the primary market by or under the authority of the Board of Directors of the Fund. Long positions traded in the over-the-counter (“OTC”) market, NASDAQ Capital Market or Bulletin Board are valued at the last available bid price or yield equivalent obtained from one or more dealers or pricing services approved by the Board of Directors of the Fund. Short positions traded in the OTC market are valued at the last available asked price. Portfolio securities that are traded both in the OTC market and on an exchange are valued according to the broadest and most representative market.

Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. Options traded in the OTC market are valued at the last asked price (options written) or the last bid price (options purchased).The value of swaps, including interest rate swaps, caps and floors, will be determined by reference to the value of the components when such components consist of securities for which market quotations are available. In the absence of obtainable quotations, swaps will be valued by obtaining dealer quotations. Financial futures contracts and options thereon, which are traded on exchanges, are valued at their last sale price as of the close of such exchanges. Obligations with remaining maturities of 60 days or less are valued at amortized cost unless the investment adviser believes that this method no longer produces fair valuations.

Repurchase agreements are valued at cost plus accrued interest. The Fund employs pricing services to provide certain securities prices for the Fund. Securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith by or under the direction of the Board of Directors of the Fund, including valuations furnished by the pricing services retained by the Fund, which may use a matrix system for valuations. The procedures of a pricing service and its valuations are reviewed by the officers of the Fund under the general supervision of the Fund’s Board of Directors. Such valuations and procedures will be reviewed periodically by the Board of Directors of the Fund.

Generally, trading in U.S. government securities, money market instruments and certain fixed income securities, is substantially completed each day at various times prior to the close of business on the NYSE.The values of such securities used in computing the net asset value of the Fund’s shares are determined as of such times. Overnight Time Deposits are valued at the amount deposited each day. Occasionally, events affecting the values of such securities and such exchange rates may occur between the times at which they are determined and the close of business on the NYSE that may not be reflected in the computation of the Fund’s net asset value. If events (for example, a company announcement, market volatility or a natural disaster) occur during such periods that are expected to materially affect the value of such securities, those securities may be valued at their fair value as determined in good faith by the Fund’s Board of Directors or by the investment adviser using a pricing service and/or procedures approved by the Fund’s Board of Directors.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	15

Notes to Financial Statements (continued)

(b) Real Estate Investment Trusts (“REITs”) — A portion of distributions received from REITs may constitute a return of capital. During the year an amount, based upon prior experience and guidance from the REITs is reclassified from dividend income and recorded as an adjustment to basis of the REIT holdings. The adjustment is a reduction in basis and is reflected in either unrealized appreciation (depreciation) or realized gain (loss).

(c) Derivative financial instruments — The Fund may engage in various portfolio investment strategies both to enhance its returns or as a proxy for a direct investment in securities underlying the Fund’s index. Losses may arise due to changes in the value of the contract due to an unfavorable change in the price of the underlying security or index, or if the counterparty does not perform under the contract. The counterparty, for certain instruments, may pledge cash or securities as collateral.

Financial Accounting Standards Board (“FASB”) Statement of Financial Accounting Standards No.161, “Disclosures about Derivative Instruments and Hedging Activities — an amendment of FASB Statement no.133” (“FAS 161”) has been implemented by the Fund. The Fund utilizes derivatives to enhance return and management has determined the use of derivative instruments is not designed to hedge security positions. The Fund’s use of derivatives involves risks different from, and possibly greater than, the risks associated with investing directly in the investments underlying these derivatives.

Derivatives may be volatile and involve significant risk, such as, among other things, credit risk, currency risk, leverage risk and liquidity risk.They also involve the risk of mispricing or improper valuation and correlation risk (i.e., the risk that changes in the value of the derivative may not correlate perfectly, or to any degree, with the underlying asset, interest rate or index). Using derivatives can disproportionately increase losses and reduce opportunities for gains when security prices, indices, currency rates or interest rates are changing in unexpected ways.The Fund may suffer disproportionately heavy losses relative to the amount of its investments in derivative contracts.

Derivative instruments utilized by the Fund are defined below and delineated in the statement of assets, liabilities and capital and statement of operations of the Fund. As the Fund utilized more than one type of derivative in the period covered by this report, the following table summarizes the use of derivative investments in the current period:



Statement of Assets, Liabilities and Capital as of June 30, 2009


Derivatives not accounted for as hedging instruments pursuant to FASB Statement 133(a)	Liabilities	Amount

Equity Options	Options written, at value	$	976,000
Futures Contracts	Variation margin payable	$	7,200



Statement of Operations for the six months ended June 30, 2009


Derivatives not accounted for as hedging instruments pursuant to FASB Statement 133(a)	Realized gain (loss)			Change in unrealized appreciation (depreciation)

Written Equity Options	$	4,424,455		$	74,180
Futures Contracts	$	(282,485	)	$	(156,672	)


•	Options — The Fund writes call options. When the Fund writes an option, an amount equal to the premium received by the Fund is reflected as an asset and an equivalent liability.The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Fund enters into a closing transaction), the Fund realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). Written options are non-income producing investments.

	Writing (selling) covered call options subjects the Fund to certain additional risks. The Fund, by writing covered call options, will forgo the opportunity to benefit from



16	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009

Notes to Financial Statements (continued)


	potential increases in the value of the equity investments above the exercise prices of the options, but will continue to bear the risk of declines in the value of the equity investments. The premiums received from the options may not be sufficient to offset any losses sustained from the volatility of the equity securities over time.

	The premium received from writing options and amounts available for distribution from the Fund’s options may decrease in declining interest rate environments. The value of the equity investments also may be influenced by changes in interest rates. Higher yielding equity investments and those issuers whose businesses are substantially affected by changes in interest rates may be particularly sensitive to interest rate risk. A summary of option transactions is found in Note 3, Investments.

•	Financial futures contracts — The Fund may purchase or sell financial futures contracts and options on such financial futures contracts. Financial futures contracts are contracts for delayed delivery of securities at a specific future date and at a specific price or yield. Upon entering into a contract, the Fund deposits, and maintains as collateral, such initial margin as required by the exchange on which the transaction is effected. Pursuant to the contract, the Fund agrees to receive from or pay to the broker an amount of cash equal to the daily fluctuation in value of the contract. Such receipts or payments are known as variation margin and are recorded by the Fund as unrealized gains or losses. When the contract is closed, the Fund records a realized gain or loss equal to the difference between the value of the contract at the time it was opened and the value at the time it was closed. With futures, there is minimal counterparty credit risk to the Fund since futures are exchange traded and the exchange’s clearinghouse, as counterparty to all exchange traded futures, guarantees the futures against default.

(d) Income taxes — It is the Fund’s policy to comply with the requirements of the Internal Revenue Code applicable to regulated investment companies and to distribute substantially all of its taxable income to its stockholders. Therefore, no federal income tax provision is required.

FASB Interpretation No. 48, “Accounting for Uncertainty in Income Taxes” (“FIN 48”) requires an analysis of tax positions taken or to be taken on a tax return and whether such positions are “more likely than not” to be sustained upon examination based on their technical merit. To the extent they would not be sustained, tax expense (and related interest and penalties) would be recognized for financial statement reporting purposes. Management has evaluated the application of FIN 48 to the Fund, and has determined that FIN 48 does not have a material impact on the Fund’s financial statements. The Fund files U.S. and various state tax returns. To the best of the Fund’s knowledge, no income tax returns are currently under examination. All tax years of the Fund are open at this time.

(e) Security transactions and investment income — Security transactions are recorded on the dates the transactions are entered into (the trade dates). Realized gains and losses on security transactions are determined on the identified cost basis. Dividend income is recorded on the ex-dividend dates. Interest income is recognized on the accrual basis.

(f) Dividends and distributions — Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. For the current period ended June 30, 2009, Fund management believes it is likely total dividends and distributions may exceed net investment income and accumulated realized capital gains, resulting in a portion of the total distribution treated as a tax return of capital. A portion of the distributions paid by the Fund during the year ended December 31, 2008 was characterized as a tax return of capital.

2. Investment Advisory Agreement and Transactions with Affiliates:

The Fund has entered into an Investment Advisory and Management Agreement with IQ Investment Advisors LLC (“IQ Advisors”), an indirect, wholly owned subsidiary of Merrill Lynch & Co., Inc. (“ML & Co.”), which is a wholly owned subsidiary of Bank of America Corporation (“Bank of America”). IQ Advisors is responsible for the investment advisory, management and administrative services to the Fund. In addition, IQ Advisors provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. For such services, the Fund pays a monthly fee at an annual rate equal to .90% of the average daily value of the Fund’s net assets plus borrowings for leverage and other investment purposes.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	17

Notes to Financial Statements (concluded)

In addition, IQ Advisors has entered into a Subadvisory Agreement with BlackRock Investment Management, LLC (the “Subadviser”), an indirect, wholly owned subsidiary of BlackRock, Inc. (“BlackRock”). Pursuant to the agreement, the Subadviser provides certain investment advisory services to IQ Advisors with respect to the Fund. For such services, IQ Advisors pays the Subadviser a monthly fee at an annual rate of .39% of the average daily value of the Fund’s net assets plus borrowings for leverage and other investment purposes. There is no increase in the aggregate fees paid by the Fund for these services.

IQ Advisors has entered into an Administration Agreement with Princeton Administrators, LLC (the “Administrator”). The Administration Agreement provides that IQ Advisors pays the Administrator a fee from its investment advisory fee at an annual rate equal to .12% of the average daily value of the Fund’s net assets plus borrowings for leverage and other investment purposes for the performance of administrative and other services necessary for the operation of the Fund. There is no increase in the aggregate fees paid by the Fund for these services. The Administrator is an indirect, wholly owned subsidiary of BlackRock. ML & Co. has a substantial financial interest in BlackRock.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, an affiliate of IQ Advisors, received $4,223 in commissions on the execution of portfolio security transactions for the Fund for the six months ended June 30, 2009.

Certain officers of the Fund are officers and/or directors of IQ Advisors and/or ML & Co. or their affiliates.

3. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended June 30, 2009 were $17,467,335 and $27,131,163, respectively.

Transactions in options written for the six months ended June 30, 2009 were as follows:



	Number of Contracts			Premiums Received

Outstanding call options written, at beginning of period		1,250		$	3,635,363
Options written		8,035			13,727,084
Options expired		(2,830	)		(5,479,815	)
Options closed		(5,255	)		(10,143,339	)

Outstanding call options written, at end of period		1,200		$	1,739,293

4. Common Stock Transactions:

The Fund is authorized to issue 100,000,000 shares of stock, par value $.001 per share, all of which were initially classified as Common Stock.The Board of Directors is authorized, however, to classify and reclassify any unissued shares of Common Stock without approval of the holders of Common Stock.

Shares issued and outstanding during the six months ended June 30, 2009 increased by 90,551 as a result of dividend investments. Shares issued and outstanding during the year ended December 31,2008 decreased by 206,725 as a result of a repurchase offer.

Subject to the approval of the Board of Directors, the Fund will make offers to repurchase its shares at annual (approximately 12-month) intervals. The shares tendered in the repurchase offer will be subject to a repurchase fee retained by the Fund to compensate the Fund for expenses directly related to the repurchase offer.

With regard to repurchase fees, IQ Advisors will reimburse the Fund for the cost of expenses paid in excess of 2% of the value of the shares that are repurchased.

5. Capital Loss Carryforward:

As of December 31, 2008, the Fund had a net capital loss carryforward of $55,567,793, all of which expires in 2016. This amount will be available to offset like amounts of any future taxable gains.



18	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009

Fundamental Periodic Repurchase Policy

The Board of Directors approved a fundamental policy whereby the Fund would adopt an “interval fund” structure pursuant to Rule 23c-3 under the Investment Company Act of 1940, as amended (the “1940 Act”). As an interval fund, the Fund will make annual repurchase offers at net asset value (less repurchase fee not to exceed 2%) to all Fund stockholders. The percentage of outstanding shares that the Fund can repurchase in each offer will be established by the Fund’s Board of Directors shortly before the commencement of each offer, and will be between 5% and 25% of the Fund’s then outstanding shares.

The Fund has adopted the following fundamental policy regarding periodic repurchases:

a) The Fund will make offers to repurchase its shares at annual (approximately 12-month) intervals pursuant to Rule 23c-3 under the 1940 Act (“Offers”). The Board of Directors may place such conditions and limitations on an Offer, as may be permitted under Rule 23c-3.

b) The repurchase request deadline for each Offer, by which the Fund must receive repurchase requests submitted by stockholders in response to the most recent Offer, will be on approximately the anniversary of the prior year’s repurchase request deadline; and will be the fourteenth day prior to such exercise date; provided, that in the event that such day is not a business day, the repurchase request deadline will be the business day subsequent to the fourteenth day prior to the exercise date of the call spreads and written call options (the “Repurchase Request Deadline”).

c) The maximum number of days between a Repurchase Request Deadline and the next repurchase pricing date will be fourteen days; provided that if the fourteenth day after a Repurchase Request Deadline is not a business day, the repurchase pricing date shall be the next business day (the “Repurchase Pricing Date”).

d) Offers may be suspended or postponed under certain circumstances, as provided for in Rule 23c-3. (For further details, see Note 4 to the Financial Statements.)

Availability of Quarterly Schedule of Investments

The Fund files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The Fund’s Forms N-Q are available on the SEC’s website at http://www.sec.gov. The Fund’s Forms N-Q may also be reviewed and copied at the SEC’s Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 1-800-SEC-0330.

Electronic Delivery

The Fund offers electronic delivery of communications to its stockholders. In order to receive this service, you must register your account and provide us with e-mail information. To sign up for this service, simply access this website at http://www.icsdelivery.com/live and follow the instructions.

When you visit this site, you will obtain a personal identification number (PIN). You will need this PIN should you wish to update your e-mail address, choose to discontinue this service and/or make any other changes to the service. This service is not available for certain retirement accounts at this time.

Contact Information

For more information regarding the Fund, please visit www.IQIAFunds.com or contact us at 1-877-449-4742.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2009	19

(GO PAPERLESS LOGO)


	www.IQIAFunds.com

Small Cap Premium & Dividend Income Fund Inc. seeks to provide stockholders with a high level of income, with a secondary goal of capital appreciation.

This report, including the financial information herein, is transmitted to stockholders of Small Cap Premium & Dividend Income Fund Inc. for their information. It is not a prospectus. Past performance results shown in this report should not be considered a representation of future performance. Statements and other information herein are as dated and are subject to change.

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available without charge at www.IQIAFunds.com/proxyvoting.asp; or upon request by calling toll-free 1-877-449-4742 or through the Securities and Exchange Commission’s website at http://www.sec.gov. Information about how the Fund voted proxies relating to securities held in the Fund’s portfolio during the most recent 12-month period ended June 30 is available (1) at www.IQIAFunds.com/proxyvoting.asp; and (2) on the Securities and Exchange Commission’s website at http://www.sec.gov.

Small Cap Premium & Dividend Income Fund Inc.
2 World Financial Center, 7th Floor
New York, NY 10281

#IQRCC — 6/09

Item 2 –	Code of Ethics – Not Applicable to this semi-annual report

Item 3 –	Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 –	Principal Accountant Fees and Services – Not Applicable to this semi-annual report

Item 5 –	Audit Committee of Listed Registrants – Not Applicable to this semi-annual report

Item 6 –	Investments
	(a) Small Cap Premium & Dividend Fund Inc. - Schedule of Investments


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

Advertising Agencies - 0.4%	AMREP Corp. (a)		200	$	2,206
	Arbitron, Inc.		4,100		65,149
	Constant Contact, Inc. (a)		3,700		73,408
	DG FastChannel, Inc. (a)		2,800		51,240
	Harte-Hanks, Inc.		5,700		52,725
	Marchex, Inc. Class B		3,100		10,447
	National CineMedia, Inc.		6,600		90,816
	Travelzoo, Inc. (a)		1,100		12,045
	Valassis Communications, Inc. (a)		7,500		45,825
	ValueClick, Inc. (a)		13,630		143,388

					547,249

Aerospace - 1.4%	AAR Corp. (a)(b)		6,100		97,905
	AeroVironment, Inc. (a)(b)		2,000		61,720
	Argon ST, Inc. (a)		2,100		43,197
	Astronics Corp. (a)		1,500		15,585
	Axsys Technologies, Inc. (a)		1,500		80,460
	Ceradyne, Inc. (a)		4,000		70,640
	Cubic Corp.		2,400		85,896
	Curtiss-Wright Corp.		7,000		208,110
	Ducommun, Inc.		1,600		30,064
	Esterline Technologies Corp. (a)		4,700		127,229
	GenCorp, Inc. (a)		8,600		16,426
	Heico Corp.		3,700		134,162
	Herley Industries, Inc. (a)		2,000		21,940
	Kaman Corp. Class A		4,000		66,800
	LMI Aerospace, Inc. (a)		1,300		13,156
	Ladish Co., Inc. (a)		2,500		32,425
	Moog, Inc. Class A (a)		6,600		170,346
	Orbital Sciences Corp. (a)		8,900		135,013
	Teledyne Technologies, Inc. (a)		5,600		183,400
	Triumph Group, Inc.		2,600		104,000

					1,698,474

Agriculture, Fishing & Ranching - 0.5%	AgFeed Industries, Inc. (a)		4,300		25,499
	Alico, Inc.		500		15,010
	The Andersons, Inc.		2,800		83,832
	Cadiz, Inc. (a)		1,800		17,334
	Cal-Maine Foods, Inc.		2,100		52,416
	Calavo Growers, Inc.		1,600		31,728
	China Green Agriculture, Inc. (a)		1,100		8,899
	Fresh Del Monte Produce, Inc. (a)		6,400		104,064
	HQ Sustainable Maritime Industries, Inc. (a)		1,300		11,895
	Sanderson Farms, Inc.		3,200		144,000
	Seaboard Corp.		50		56,100

					550,777

Air Transport - 0.8%	Air Transport Services Group, Inc. (a)		8,100		18,792
	AirTran Holdings, Inc. (a)		18,800		116,372


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Alaska Air Group, Inc. (a)(b)		5,700	$	104,082
	Allegiant Travel Co. (a)		2,400		95,136
	Atlas Air Worldwide Holdings, Inc. (a)		2,800		64,932
	Bristow Group, Inc. (a)		4,500		133,335
	Hawaiian Holdings, Inc. (a)		8,400		50,568
	JetBlue Airways Corp. (a)		35,700		152,439
	PHI, Inc. (a)		2,200		37,708
	Republic Airways Holdings, Inc. (a)		5,400		35,262
	SkyWest, Inc.		8,900		90,780
	UAL Corp. (a)		22,400		71,456
	US Airways Group, Inc. (a)		19,900		48,357

					1,019,219

Alternative Energy - 0.2%	Clean Energy Fuels Corp. (a)		4,700		40,467
	Comverge, Inc. (a)		2,800		33,880
	EnerNOC, Inc. (a)		1,945		42,148
	Evergreen Energy, Inc. (a)		18,300		17,934
	Green Plains Renewable Energy (a)		1,200		7,860
	Syntroleum Corp. (a)		10,200		22,542
	TGC Industries Inc. (a)		2,400		11,688
	US Geothermal, Inc. (a)		9,700		13,774
	USEC, Inc. (a)		17,900		95,228

					285,521

Aluminum - 0.1%	Century Aluminum Co. (a)		7,440		46,351
	Kaiser Aluminum Corp.		2,400		86,184

					132,535

Asset Management & Custodian - 0.8%	Allied Capital Corp.		28,588		99,486
	American Capital Ltd.		34,300		110,103
	Ampal-American Israel Corp. Class A (a)		2,200		5,368
	Apollo Investment Corp.		22,576		135,456
	Ares Capital Corp.		15,478		124,753
	Calamos Asset Management, Inc. Class A		3,100		43,741
	Capital Southwest Corp.		500		36,175
	Cohen & Steers, Inc.		2,700		40,365
	Diamond Hill Investments Group		300		12,054
	Epoch Holding Corp.		1,700		14,688
	Fifth Street Finance Corp.		3,300		33,132
	GAMCO Investors, Inc. Class A		1,100		53,350
	Harris & Harris Group, Inc. (a)		4,000		23,320
	JMP Group, Inc.		2,400		18,456
	Kohlberg Capital Corp.		2,700		17,064
	MCG Capital Corp. (a)		11,100		26,973
	MVC Capital, Inc.		3,400		28,764
	NGP Capital Resources Co.		3,300		19,371
	National Financial Partners Corp.		6,200		45,384
	Oppenheimer Holdings, Inc.		1,600		33,872
	Pzena Investment Management, Inc. Class A		700		5,306


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Resource America, Inc. Class A		1,900	$	10,222
	TICC Capital Corp.		4,700		20,727
	Teton Advisors, Inc. (a)		20		46
	U.S. Global Investors, Inc.		1,900		17,594
	Virtus Investment Partners, Inc. (a)		955		14,029
	Westwood Holdings Group, Inc.		800		33,448

					1,023,247

Auto Parts: 0.4%	ATC Technology Corp. (a)		3,100		44,950
	American Axle & Manufacturing Holdings, Inc.		6,900		23,736
	Amerigon, Inc. (a)		3,100		18,910
	ArvinMeritor, Inc.		11,500		50,485
	China Automotive Systems. Inc. (a)		1,000		5,450
	Dana Holding Corp. (a)		14,900		19,072
	Dorman Products, Inc. (a)		1,600		22,128
	Exide Technologies (a)		7,300		27,229
	Fuel Systems Solutions, Inc. (a)		2,000		40,380
	Lear Corp. (a)		8,670		4,335
	Standard Motor Products, Inc.		2,700		22,329
	Stoneridge, Inc. (a)		2,200		10,560
	Superior Industries International, Inc.		3,600		50,760
	Tenneco, Inc. (a)		7,400		78,440
	U.S. Auto Parts Network, Inc. (a)		2,100		7,917
	Wonder Auto Technology, Inc. (a)		2,300		23,299

					449,980

Auto Services - 0.1%	Cooper Tire & Rubber Co.		9,200		91,264
	Titan International, Inc.		5,550		41,459

					132,723

Banks: Diversified - 5.9%	1st Source Corp.		2,300		39,721
	Alliance Financial Corp.		700		19,852
	American National Bankshares, Inc.		900		17,352
	Ameris Bancorp		2,100		13,272
	Ames National Corp.		1,000		24,410
	Arrow Financial Corp.		1,400		37,800
	Auburn National Bancorporation		500		14,250
	Bancfirst Corp.		900		31,122
	Banco Latinoamericana De Comercio Exterior SA		4,300		53,449
	The Bancorp, Inc. (a)		2,000		12,000
	Bancorp Rhode Island, Inc.		700		13,797
	Bank of Kentucky Financial Corp.		600		16,800
	Bank of Marin Bancorp		900		24,084
	Bank of the Ozarks, Inc.		1,900		41,097
	Banner Corp.		2,400		9,168
	Bar Harbor Bankshares		400		12,340
	Boston Private Financial Holdings, Inc.		11,000		49,280
	Bridge Bancorp, Inc.		1,100		29,942
	Bryn Mawr Bank Corp.		1,100		20,757


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	CNB Financial Corporation		1,500	$	21,255
	CVB Financial Corp.		10,442		62,339
	California First National Bancorp		200		2,280
	Camden National Corp.		1,200		40,836
	Cape Bancorp, Inc. (a)		1,700		14,671
	Capital City Bank Group, Inc.		1,800		30,330
	Cardinal Financial Corp.		4,300		33,669
	Cathay General Bancorp		7,800		74,178
	Center Bancorp, Inc.		1,600		13,040
	Centerstate Banks, Inc.		1,400		10,388
	Central Pacific Financial Corp.		4,400		16,500
	Century Bancorp, Inc. Class A		700		12,908
	Chemical Financial Corp.		3,200		63,712
	Chicopee Bancorp, Inc. (a)		900		11,673
	Citizens & Northern Corp.		1,400		28,756
	Citizens Banking Corp. (a)		19,300		13,703
	Citizens Holding Co.		600		18,720
	City Holding Co.		2,500		75,900
	CoBiz Financial, Inc.		2,800		17,948
	The Colonial BancGroup, Inc.		31,700		19,654
	Columbia Banking System, Inc.		2,900		29,667
	Community Bank System, Inc.		5,100		74,256
	Community Trust Bancorp, Inc.		2,400		64,200
	Danvers Bancorp, Inc.		2,700		36,315
	Eagle Bancorp, Inc.		1,400		12,320
	East-West Bancorp, Inc.		10,000		64,900
	Enterprise Bancorp, Inc.		700		8,260
	Enterprise Financial Services Corp.		1,700		15,453
	F.N.B. Corp.		14,446		89,421
	Farmers Capital Bank Corp.		1,000		25,170
	Financial Institutions, Inc.		1,700		23,222
	First Bancorp, Inc.		1,300		25,311
	First Bancorp, North Carolina		2,100		32,928
	First BanCorp, Puerto Rico		13,000		51,350
	First Busey Corp.		3,900		28,665
	First Commonwealth Financial Corp.		13,200		83,688
	First Community Bancshares, Inc.		1,400		17,976
	First Financial Bancorp		5,900		44,368
	First Financial Bankshares, Inc.		3,200		161,152
	First Financial Corp.		1,900		60,002
	First Merchants Corp.		3,300		26,499
	First Midwest Bancorp, Inc.		7,600		55,556
	The First of Long Island Corp.		1,000		23,160
	First South Bancorp, Inc.		1,250		14,500
	FirstMerit Corp.		12,796		217,276
	German American Bancorp, Inc.		1,900		27,379


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Glacier Bancorp, Inc.		9,850	$	145,485
	Guaranty Bancorp (a)		8,200		15,662
	Hampton Roads Bankshares, Inc.		3,100		25,575
	Hancock Holding Co.		3,600		116,964
	Harleysville National Corp.		6,703		31,504
	Heartland Financial USA, Inc.		2,100		29,988
	Home Bancshares, Inc.		2,226		42,383
	IBERIABANK Corp.		2,600		102,466
	Independent Bank Corp./MA		3,200		63,040
	International Bancshares Corp.		8,326		85,841
	Investors Bancorp, Inc. (a)		7,400		67,784
	Lakeland Bancorp, Inc.		2,966		26,664
	Lakeland Financial Corp.		1,900		36,100
	MB Financial, Inc.		5,577		56,830
	MainSource Financial Group, Inc.		3,180		23,596
	Merchants Bancshares, Inc.		900		19,971
	Meridian Interstate Bancorp, Inc. (a)		1,500		11,175
	Metro Bancorp, Inc. (a)		800		15,408
	Midsouth Bancorp, Inc.		800		13,440
	NASB Financial, Inc.		500		13,950
	NBT Bancorp, Inc.		5,300		115,063
	Nara Bancorp, Inc.		3,500		18,130
	National Bankshares, Inc.		1,200		28,788
	National Penn Bancshares, Inc.		12,835		59,169
	Northeast Community Bancorp		800		6,488
	Northrim Bancorp Inc		1,100		15,312
	Norwood Financial Corp.		300		9,408
	Ohio Valley Banc Corp.		600		17,604
	Old National Bancorp		10,400		102,128
	Old Point Finl Corp		300		5,550
	Old Second Bancorp, Inc.		2,053		12,113
	Oriental Financial Group		3,800		36,860
	Orrstown Financial Service, Inc.		900		33,273
	Pacific Capital Bancorp		7,300		15,622
	Pacific Continental Corp.		1,800		21,834
	PacWest Bancorp		3,629		47,758
	Park National Corp.		1,700		96,016
	Peapack-Gladstone Financial Corp.		1,300		25,077
	Penns Woods Bancorp, Inc.		600		17,484
	Peoples Bancorp, Inc.		1,600		27,280
	Peoples Financial Corp.		500		9,500
	Pinnacle Financial Partners, Inc. (a)		3,800		50,616
	Porter Bancorp, Inc.		600		9,090
	Premierwest Bancorp		3,390		11,357
	PrivateBancorp, Inc.		5,400		120,096
	Prosperity Bancshares, Inc.		7,200		214,776


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	Provident Financial Services, Inc.		9,300	$	84,630
	Renasant Corp.		3,250		48,815
	Republic Bancorp, Inc. Class A		1,411		31,874
	Republic First Bancorp, Inc. (a)		1,000		7,800
	Rockville Financial, Inc.		1,300		14,235
	Roma Financial Corp.		1,300		16,562
	S&T Bancorp, Inc.		3,700		44,992
	SCBT Financial Corp.		1,860		44,063
	SVB Financial Group (a)		5,200		141,544
	SY Bancorp, Inc.		1,685		40,726
	Sandy Spring Bancorp, Inc.		2,600		38,220
	Santander BanCorp (a)		613		4,266
	Shore Bancshares, Inc.		1,300		23,322
	Sierra Bancorp		1,100		13,893
	Signature Bank (a)		5,500		149,160
	Simmons First National Corp. Class A		2,200		58,784
	Smithtown Bancorp, Inc.		2,500		31,975
	The South Financial Group, Inc.		13,200		15,708
	Southside Bancshares, Inc.		1,964		44,917
	Southwest Bancorp, Inc.		2,200		21,472
	State Bancorp, Inc.		2,200		16,632
	StellarOne Corp.		3,600		46,620
	Sterling Bancorp		2,860		23,881
	Sterling Bancshares, Inc.		12,900		81,657
	Sterling Financial Corp.		8,160		23,746
	Suffolk Bancorp		1,500		38,460
	Sun Bancorp, Inc. (a)		2,134		11,054
	Susquehanna Bancshares, Inc.		13,474		65,888
	Texas Capital Bancshares, Inc. (a)		5,500		85,085
	Tompkins Trustco, Inc.		1,390		66,651
	Tower Bancorp, Inc.		600		21,090
	Towne Bank		3,300		46,200
	Trico Bancshares		2,100		32,550
	TrustCo Bank Corp. NY		11,900		70,329
	Trustmark Corp.		8,900		171,948
	UCBH Holdings, Inc.		18,100		22,806
	UMB Financial Corp.		5,000		190,050
	Umpqua Holdings Corp.		9,388		72,851
	Union Bankshares Corp.		2,050		30,689
	United Bankshares, Inc.		6,000		117,240
	United Community Banks, Inc.		6,692		40,085
	United Security Bancshares		1,100		24,090
	Univest Corp. of Pennsylvania		1,900		38,494
	Washington Banking Co.		1,800		16,956
	Washington Trust Bancorp, Inc.		2,200		39,226
	Webster Financial Corp.		8,093		65,149


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	WesBanco, Inc.		3,400	$	49,436
	West Bancorp., Inc.		2,600		13,000
	Westamerica Bancorp.		4,600		228,206
	Western Alliance Bancorp (a)		7,500		51,300
	Wilber Corp.		800		8,880
	Wilshire Bancorp, Inc.		2,900		16,675
	Wintrust Financial Corp.		3,800		61,104
	Yardkin Valley Financial Corp.		2,500		17,275

					7,228,426

Banks: Savings, Thrift & Mortgage Lending - 1.1%	Abington Bancorp, Inc.		3,400		27,064
	Astoria Financial Corp.		13,180		113,084
	Bank Mutual Corp.		7,300		63,656
	BankFinancial Corp.		3,100		27,466
	Beneficial Mutual Bancorp, Inc. (a)		5,000		48,000
	Berkshire Hills Bancorp, Inc.		2,100		43,638
	Brookline Bancorp, Inc.		9,600		89,472
	Brooklyn Federal Bancorp, Inc.		700		7,875
	Clifton Savings Bancorp, Inc.		1,300		13,988
	Dime Community Bancshares, Inc.		4,400		40,084
	Doral Financial Corp. (a)		800		2,000
	ESB Financial Corp.		1,400		18,368
	ESSA Bancorp, Inc.		2,400		32,808
	First Defiance Financial Corp.		1,400		18,200
	First Financial Holdings, Inc.		1,800		16,920
	First Financial Northwest, Inc.		3,100		24,242
	First Financial Service Corp.		600		10,446
	Flagstar Bancorp, Inc. (a)		10,500		7,140
	Flushing Financial Corp.		3,400		31,790
	Fox Chase Bancorp, Inc. (a)		800		7,672
	Great Southern Bancorp, Inc.		1,500		30,825
	Heritage Financial Corp.		1,100		12,716
	Heritage Financial Group		600		5,142
	Home Bancorp, Inc. (a)		1,600		19,104
	Home Federal Bancorp, Inc.		2,900		29,551
	K Fed Bancorp		900		8,262
	Kearny Financial Corp.		2,800		32,032
	Kentucky First Federal Banco		500		6,075
	Legacy Bancorp, Inc./MA		1,000		11,100
	NewAlliance Bancshares, Inc.		16,600		190,900
	Northfield Bancorp, Inc.		2,800		32,536
	Northwest Bancorp, Inc.		2,600		49,036
	OceanFirst Financial Corp.		1,600		19,152
	Ocwen Financial Corp. (a)		5,800		75,226
	Oritani Financial Corp.		1,400		19,194
	Provident New York Bancorp		5,000		40,600
	Prudential Bancorp, Inc. of Pennsylvania		500		5,905


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	United Financial Bancorp, Inc.	2,600	$	35,932
	ViewPoint Financial Group	1,600		24,368
	WSFS Financial Corp.	1,000		27,310
	Waterstone Financial, Inc. (a)	1,000		2,970
	Westfield Financial, Inc.	4,900		44,394

				1,366,243

Beverage: Brewers & Distillers - 0.0%	Boston Beer Co., Inc. Class A (a)	1,400		41,426

Beverage: Soft Drinks - 0.1%	Coca-Cola Bottling Co. Consolidated	700		38,591
	Diedrich Coffee Inc. (a)	400		9,512
	Farmer Bros. Co.	900		20,592
	Heckmann Corp. (a)	13,000		48,750
	National Beverage Corp. (a)	1,680		17,892
	Peet’s Coffee & Tea, Inc. (a)	1,700		42,840

				178,177

Biotechnology - 4.1%	AMAG Pharmaceuticals, Inc. (a)	2,690		147,062
	ARYx Therapeutics, Inc. (a)	3,000		12,390
	AVI BioPharma, Inc. (a)	13,300		21,014
	Accelrys, Inc. (a)	4,100		24,231
	Acorda Therapeutics, Inc. (a)	5,900		166,321
	Affymax, Inc. (a)	2,000		36,860
	Albany Molecular Research, Inc. (a)	3,700		31,043
	Allos Therapeutics, Inc. (a)	9,600		79,584
	Alnylam Pharmaceuticals, Inc. (a)	5,600		124,712
	Amicus Therapeutics, Inc. (a)	2,200		25,190
	Arena Pharmaceuticals, Inc. (a)	12,900		64,371
	Ariad Pharmaceuticals, Inc. (a)	13,600		21,624
	Arqule, Inc. (a)	6,000		36,840
	Array Biopharma, Inc. (a)	7,400		23,236
	Biodel, Inc. (a)	2,700		13,932
	BioDelivery Sciences International Inc (a)	1,800		12,006
	BioMimetic Therapeutics, Inc. (a)	1,923		17,768
	Cardium Therapeutics, Inc. (a)	7,100		13,135
	Celera Corp. (a)	13,100		99,953
	Cell Therapeutics, Inc. (a)	71,500		121,550
	Celldex Therapeutics, Inc. (a)	1,400		10,948
	Cepheid, Inc. (a)	9,300		87,606
	Chelsea Therapeutics International, Inc. (a)	4,100		17,302
	Clinical Data, Inc. (a)	1,800		19,836
	Cornerstone Therapeutics, Inc. (a)	900		9,882
	Cougar Biotechnology, Inc. (a)	2,300		98,808
	Cubist Pharmaceuticals, Inc. (a)(b)	9,200		168,636
	Curis, Inc. (a)	11,300		17,967
	Cypress Bioscience, Inc. (a)	6,000		56,520
	Cytokinetics, Inc. (a)	5,700		16,131
	Cytori Therapeutics, Inc. (a)	4,000		14,440
	Discovery Laboratories, Inc. (a)	17,700		18,231


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	Dyax Corp. (a)		9,200	$	19,688
	Emergent Biosolutions, Inc. (a)		2,700		38,691
	Enzo Biochem, Inc. (a)		4,900		21,707
	Enzon Pharmaceuticals, Inc. (a)		7,100		55,877
	Exelixis, Inc. (a)		17,000		82,790
	Facet Biotech Corp. (a)		3,680		34,187
	GTx, Inc. (a)		2,800		25,844
	Genomic Health, Inc. (a)		2,100		36,393
	Geron Corp. (a)		14,200		108,914
	Halozyme Therapeutics, Inc. (a)		9,800		68,306
	Harvard Bioscience, Inc. (a)		3,500		13,825
	Hemispherx Biopharma, Inc. (a)		18,100		45,974
	Human Genome Sciences, Inc. (a)		21,300		60,918
	Idenix Pharmaceuticals, Inc. (a)		3,900		14,352
	Idera Pharmaceuticals, Inc. (a)		3,400		19,924
	ImmunoGen, Inc. (a)		8,000		68,880
	Immunomedics, Inc. (a)		9,800		24,892
	Incyte Corp. (a)		11,500		37,835
	Insmed, Inc. (a)		19,100		18,909
	InterMune, Inc. (a)		5,900		89,680
	Kensey Nash Corp. (a)		1,400		36,694
	Lexicon Genetics, Inc. (a)		12,600		15,624
	Life Sciences Research, Inc. (a)		1,300		9,321
	Ligand Pharmaceuticals, Inc. Class B (a)		18,400		52,624
	MannKind Corp. (a)		8,100		67,311
	Martek Biosciences Corp.		5,200		109,980
	Maxygen, Inc. (a)		3,700		24,864
	Medarex, Inc. (a)		20,100		167,835
	Medivation, Inc. (a)		4,400		98,604
	Metabolix, Inc. (a)		2,900		23,838
	Micromet, Inc. (a)		6,400		31,872
	Molecular Insight Pharmaceuticals, Inc. (a)		2,700		13,959
	Momenta Pharmaceuticals, Inc. (a)		5,700		68,571
	Myriad Pharmaceuticals, Inc. (a)		3,725		17,321
	NPS Pharmaceuticals, Inc. (a)		7,400		34,484
	Nabi Biopharmaceuticals (a)		8,000		19,360
	Nanosphere, Inc. (a)		1,600		7,856
	Nektar Therapeutics (a)		14,500		93,960
	Neurocrine Biosciences, Inc. (a)		6,100		19,703
	Neurogesx, Inc. (a)		1,700		9,588
	Novavax, Inc. (a)		9,300		30,504
	OncoGenex Pharmaceutical, Inc. (a)		600		13,128
	Onyx Pharmaceuticals, Inc. (a)		8,820		249,253
	Opko Health, Inc. (a)		6,800		12,036
	Orexigen Therapeutics, Inc. (a)		2,900		14,877
	Osiris Therapeutics, Inc. (a)		2,500		33,575


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	OxiGene, Inc. (a)		3,700	$	8,066
	PDL BioPharma, Inc.		18,700		147,730
	Pharmasset, Inc. (a)		3,100		34,875
	Poniard Pharmaceuticals, Inc. (a)		4,000		23,880
	Progenics Pharmaceuticals, Inc. (a)		4,200		21,630
	Protalix BioTherapeutics, Inc. (a)		5,860		26,487
	RTI Biologics, Inc. (a)		8,200		35,178
	Regeneron Pharmaceuticals, Inc. (a)		9,800		175,616
	Repligen Corp. (a)		4,600		25,300
	Repros Therapeutics, Inc. (a)		1,300		9,347
	Rigel Pharmaceuticals, Inc. (a)		5,700		69,084
	Sangamo Biosciences, Inc. (a)		6,900		34,086
	Savient Pharmaceuticals, Inc. (a)		9,504		131,725
	Seattle Genetics, Inc. (a)		11,100		107,892
	Sequenom, Inc. (a)		9,100		35,581
	StemCells, Inc. (a)		15,400		26,180
	Sucampo Pharmaceuticals, Inc. Class A (a)		1,700		10,489
	Synta Pharmaceuticals Corp. (a)		2,400		5,544
	Theravance, Inc. (a)		8,300		121,512
	Vanda Pharmaceuticals, Inc. (a)		4,300		50,611
	ViroPharma, Inc. (a)		12,100		71,753
	ZymoGenetics, Inc. (a)		5,600		25,760

					4,991,783

Building Materials - 0.8%	Acuity Brands, Inc.		6,400		179,520
	Ameron International Corp.		1,400		93,856
	BlueLinx Holdings, Inc. (a)		2,400		7,200
	Builders FirstSource, Inc. (a)		2,300		9,568
	Gibraltar Industries, Inc.		4,200		28,854
	Griffon Corp. (a)		6,574		54,696
	Headwaters, Inc. (a)		6,400		21,504
	LSI Industries, Inc.		2,900		15,805
	Louisiana-Pacific Corp. (a)		16,200		55,404
	NCI Building Systems, Inc. (a)		3,100		8,184
	Orion Energy Systems, Inc. (a)		3,300		12,375
	Quanex Building Products Corp.		5,900		66,198
	Simpson Manufacturing Co., Inc.		5,908		127,731
	Texas Industries, Inc.		3,790		118,854
	Trex Co., Inc. (a)		2,400		32,088
	Watsco, Inc.		3,700		181,041

					1,012,878

Building: Climate Control - 0.1%	Aaon, Inc. (b)		2,000		39,840
	Comfort Systems USA, Inc.		6,100		62,525
	Interline Brands, Inc. (a)		5,100		69,768

					172,133

Building: Roofing & Wallboard & Plumbing - 0.1%	Beacon Roofing Supply, Inc. (a)		7,100		102,666


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

Cable Television Services - 0.1%	Knology, Inc. (a)		4,300	$	37,109
	Mediacom Communications Corp. Class A (a)		6,100		31,171

					68,280

Casinos & Gambling - 0.5%	Ameristar Casinos, Inc.		4,000		76,120
	Bally Technologies, Inc. (a)		8,500		254,320
	Dover Downs Gaming & Entertainment, Inc.		2,250		10,462
	Isle of Capri Casinos, Inc. (a)		2,400		31,968
	Lakes Entertainment, Inc. (a)		3,500		10,185
	Monarch Casino & Resort, Inc. (a)		1,400		10,220
	Multimedia Games, Inc. (a)		4,600		22,816
	Pinnacle Entertainment, Inc. (a)		9,440		87,698
	Shuffle Master, Inc. (a)		8,400		55,524
	Youbet.com, Inc. (a)		4,300		14,190

					573,503

Cement - 0.0%	U.S. Concrete, Inc. (a)		5,200		10,296

Chemicals: Diversified - 1.5%	Aceto Corp.		3,900		26,013
	American Vanguard Corp.		2,900		32,770
	Arch Chemicals, Inc.		4,000		98,360
	Balchem Corp.		2,900		71,108
	Calgon Carbon Corp. (a)		8,700		120,843
	Hawkins, Inc.		1,500		33,870
	ICO, Inc. (a)		4,300		11,696
	Innophos Holdings, Inc.		2,800		47,292
	Innospec, Inc.		3,700		39,775
	LSB Industries, Inc. (a)		2,600		42,042
	Landec Corp. (a)		4,400		29,876
	NewMarket Corp.		1,500		100,995
	OM Group, Inc. (a)		4,900		142,198
	Olin Corp.		12,400		147,436
	Omnova Solutions, Inc. (a)		7,500		24,450
	PolyOne Corp. (a)		14,500		39,295
	Polypore International, Inc. (a)		3,400		37,808
	Quaker Chemical Corp.		1,700		22,593
	Rockwood Holdings, Inc. (a)		7,700		112,728
	Schulman A, Inc.		3,500		52,885
	Sensient Technologies Corp.		7,600		171,532
	ShengdaTech, Inc. (a)		4,400		16,588
	Solutia, Inc. (a)		14,400		82,944
	Stepan Co.		1,100		48,576
	W.R. Grace & Co. (a)(b)		11,300		139,781
	Westlake Chemical Corp.		3,000		61,170
	Zep, Inc.		3,350		40,368

					1,794,992

Coal - 0.2%	International Coal Group, Inc. (a)		13,700		39,182
	James River Coal Co. (a)		4,300		65,059
	Patriot Coal Corp. (a)		10,300		65,714


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	Westmoreland Coal Co. (a)		1,600	$	12,960

					182,915

Commercial Finance & Mortgage Companies - 0.1%	Financial Federal Corp.		4,000		82,200
	Medallion Financial Corp.		2,300		17,595
	NewStar Financial, Inc. (a)		3,400		6,494

					106,289

Commercial Services - 3.2%	ABM Industries, Inc.		7,100		128,297
	AMN Healthcare Services, Inc. (a)		5,100		32,538
	APAC Customer Services, Inc. (a)		4,300		22,059
	Administaff, Inc.		3,300		76,791
	The Advisory Board Co. (a)		2,400		61,680
	Barrett Business Services, Inc.		1,100		11,550
	CBIZ, Inc. (a)		6,900		49,128
	CDI Corp.		1,900		21,185
	COMSYS IT Partners, Inc. (a)		2,300		13,455
	CRA International, Inc. (a)		1,700		47,192
	Compass Diversified Holdings		3,600		29,124
	Cornell Cos., Inc. (a)		1,700		27,557
	Corporate Executive Board Co.		5,500		114,180
	CoStar Group, Inc. (a)		3,100		123,597
	Cross Country Healthcare, Inc. (a)		4,800		32,976
	Diamond Management & Technology Consultants, Inc.		3,400		14,280
	Dice Holdings, Inc. (a)		2,300		10,695
	DynCorp. International, Inc. (a)		3,800		63,802
	ExlService Holdings, Inc. (a)		2,400		26,904
	Exponent, Inc. (a)		2,100		51,471
	First Advantage Corp. Class A (a)		1,600		24,336
	Forrester Research, Inc. (a)		2,400		58,920
	G&K Services, Inc. Class A		2,900		61,335
	GP Strategies Corp. (a)		2,300		13,547
	The Geo Group, Inc. (a)		8,100		150,498
	Global Sources Ltd. (a)		2,477		17,859
	Health Grades, Inc. (a)		4,200		16,422
	Healthcare Services Group, Inc.		6,800		121,584
	Heidrick & Struggles International, Inc.		2,700		49,275
	Huron Consulting Group, Inc. (a)		3,400		157,182
	ICF International, Inc. (a)		1,420		39,178
	ICT Group, Inc. (a)		1,300		11,349
	Innodata Corp. (a)		3,100		13,578
	inVentiv Health, Inc. (a)		5,200		70,356
	Kelly Services, Inc. Class A		4,100		44,895
	Kforce, Inc. (a)		4,600		38,042
	Korn/Ferry International (a)		7,000		74,480
	Liquidity Services, Inc. (a)		2,300		22,678
	LoopNet, Inc. (a)		2,900		22,475


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	MAXIMUS, Inc.		2,700	$	111,375
	MPS Group, Inc. (a)		14,500		110,780
	Mac-Gray Corp. (a)		1,700		22,508
	Navigant Consulting, Inc. (a)		8,000		103,360
	On Assignment, Inc. (a)		5,300		20,723
	PHH Corp. (a)		8,500		154,530
	Primoris Services Corp.		1,100		8,162
	Resources Connection, Inc. (a)		7,000		120,190
	Rollins, Inc.		6,900		119,439
	SYKES Enterprises, Inc. (a)		5,600		101,304
	Schawk, Inc.		2,300		17,273
	Spherion Corp. (a)		8,100		33,372
	Standard Parking Corp. (a)		1,100		17,919
	Startek, Inc. (a)		2,100		16,842
	TeleTech Holdings, Inc. (a)		4,900		74,235
	Tetra Tech, Inc. (a)		9,400		269,310
	TrueBlue, Inc. (a)		6,900		57,960
	Unifirst Corp.		2,200		81,774
	Viad Corp.		3,200		55,104
	Volt Information Sciences, Inc. (a)		1,850		11,600
	Watson Wyatt Worldwide, Inc.		6,600		247,698
	World Fuel Services Corp.		4,700		193,781

					3,915,689

Commercial Services: Rental & Leasing- 0.4%	Aircastle Ltd.		7,300		53,655
	CAI International, Inc. (a)		1,400		7,140
	Electro Rent Corp.		2,800		26,572
	H&E Equipment Services, Inc. (a)		4,500		42,075
	McGrath RentCorp		3,700		70,522
	Mobile Mini, Inc. (a)		5,700		83,619
	RSC Holdings, Inc. (a)		7,400		49,728
	TAL International Group, Inc.		2,200		23,980
	United Rentals, Inc. (a)		9,700		62,953
	Willis Lease Finance Corp. (a)		600		7,872

					428,116

Commercial Vehicles & Parts - 0.2%	Force Protection, Inc. (a)		11,200		99,008
	Miller Industries, Inc. (a)		1,800		15,840
	Modine Manufacturing Co.		5,100		24,480
	Spartan Motors, Inc.		4,900		55,517

					194,845

Communications Technology - 3.3%	3Com Corp. (a)		61,200		288,252
	AboveNet, Inc. (a)		1,000		80,980
	Acme Packet, Inc. (a)		6,000		60,720
	Adtran, Inc.		8,600		184,642
	Airvana, Inc. (a)		3,700		23,569
	Anaren, Inc. (a)		2,300		40,664
	Anixter International, Inc. (a)(b)		4,600		172,914


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Aruba Networks, Inc. (a)		9,500	$	83,030
	Avocent Corp. (a)		6,980		97,441
	Bel Fuse, Inc.		1,600		25,664
	BigBand Networks, Inc. (a)		5,100		26,367
	Black Box Corp.		2,700		90,369
	Comtech Telecommunications Corp. (a)		4,400		140,272
	DigitalGlobe, Inc. (a)		2,200		42,240
	Digi International, Inc. (a)		3,900		38,025
	EMS Technologies, Inc. (a)		2,400		50,160
	Echelon Corp. (a)		5,300		44,944
	Emulex Corp. (a)		13,200		129,096
	Extreme Networks, Inc. (a)		13,900		27,800
	GSI Technology, Inc. (a)		2,500		9,650
	GeoEye, Inc. (a)		2,900		68,324
	Globecomm Systems, Inc. (a)		3,500		25,165
	Harmonic, Inc. (a)		15,300		90,117
	Harris Stratex Networks, Inc. Class A (a)		9,500		61,560
	Hughes Communications, Inc. (a)		1,300		29,679
	Infinera Corp. (a)		12,900		117,777
	InterDigital, Inc. (a)		6,900		168,636
	Ixia (a)		4,500		30,330
	KVH Industries, Inc. (a)		2,000		13,660
	Loral Space & Communications Ltd. (a)		1,700		43,775
	NETGEAR, Inc. (a)		5,400		77,814
	Network Equipment Technologies, Inc. (a)		4,300		18,318
	Novatel Wireless, Inc. (a)		4,800		43,296
	Oplink Communications, Inc. (a)		3,128		35,659
	PC-Tel, Inc. (a)		2,900		15,515
	Plantronics, Inc.		7,600		143,716
	Polycom, Inc. (a)		13,300		269,591
	Power-One, Inc. (a)		12,000		17,880
	Riverbed Technology, Inc. (a)		8,600		199,434
	SeaChange International, Inc. (a)		4,700		37,741
	Shoretel, Inc. (a)		6,600		52,800
	Sonus Networks, Inc. (a)		32,300		52,003
	Starent Networks Corp. (a)		6,100		148,901
	Switch and Data Facilities Co., Inc. (a)		3,100		36,363
	Sycamore Networks, Inc. (a)		30,900		96,717
	Syniverse Holdings, Inc. (a)		10,600		169,918
	Tekelec (a)		10,300		173,349
	Viasat, Inc. (a)		4,200		107,688

					4,002,525

Computer Services Software & Systems - 6.6%	3PAR, Inc. (a)		4,100		50,840
	ACI Worldwide, Inc. (a)(b)		5,700		79,572
	AMICAS, Inc. (a)		6,300		17,514
	ActivIdentity Corp. (a)		6,600		16,698


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Actuate Corp. (a)		6,800	$	32,504
	Acxiom Corp.		10,500		92,715
	American Reprographics Co. (a)		5,700		47,424
	American Software Class A		3,800		21,888
	ArcSight, Inc. (a)		3,000		53,310
	Ariba, Inc. (a)		13,900		136,776
	Art Technology Group, Inc. (a)		19,800		75,240
	AsiaInfo Holdings, Inc. (a)		4,500		77,445
	Avid Technology, Inc. (a)		4,600		61,686
	Blackbaud, Inc.		6,900		107,295
	Blackboard, Inc. (a)		4,900		141,414
	Blue Coat Systems, Inc. (a)		6,100		100,894
	Bottomline Technologies, Inc. (a)		4,200		37,842
	CACI International, Inc. Class A (a)		4,700		200,737
	CSG Systems International, Inc. (a)		5,500		72,820
	Callidus Software, Inc. (a)		4,500		12,825
	China Information Security Technology, Inc. (a)		4,200		12,012
	China Transinfo Technology (a)		1,900		8,854
	Chordiant Software, Inc. (a)		4,660		16,916
	Ciber, Inc. (a)		11,380		35,278
	CommVault Systems, Inc. (a)		6,500		107,770
	Compellent Technologies, Inc. (a)		2,800		42,700
	Computer Task Group, Inc. (a)		2,700		16,470
	ComScore, Inc. (a)		3,500		46,620
	Concur Technologies, Inc. (a)		6,200		192,696
	DealerTrack Holdings, Inc. (a)		6,000		102,000
	Delrek, Inc. (a)		1,533		6,653
	DemandTec, Inc. (a)		3,300		29,040
	Digital River, Inc. (a)		5,900		214,288
	DivX, Inc. (a)		5,400		29,646
	Double-Take Software, Inc. (a)		2,600		22,490
	eLoyalty Corp. (a)		1,300		10,244
	ePlus, Inc. (a)		500		7,285
	EPIQ Systems, Inc. (a)		4,900		75,215
	EarthLink, Inc. (a)		16,700		123,747
	Ebix, Inc. (a)		1,100		34,452
	Entrust, Inc. (a)		10,000		18,100
	Epicor Software Corp. (a)		7,000		37,100
	FalconStor Software, Inc. (a)		5,400		25,650
	GSE Systems, Inc. (a)		2,800		18,900
	GSI Commerce, Inc. (a)		3,900		55,575
	Gartner, Inc. Class A (a)		9,300		141,918
	The Hackett Group, Inc. (a)		6,500		15,145
	i2 Technologies, Inc. (a)		2,300		28,865
	iGate Corp.		3,300		21,846
	infoGROUP, Inc.		5,000		28,550


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Imergent, Inc.		1,500	$	10,500
	Informatica Corp. (a)		13,600		233,784
	Infospace, Inc. (a)		5,500		36,465
	Integral Systems, Inc. (a)		2,542		21,149
	Interactive Intelligence, Inc. (a)		1,900		23,294
	Internap Network Services Corp. (a)		7,910		27,606
	Internet Brands, Inc. Class A (a)		4,100		28,700
	Internet Capital Group, Inc. (a)		5,700		38,361
	JDA Software Group, Inc. (a)		4,100		61,336
	Kenexa Corp. (a)		3,500		40,495
	Keynote Systems, Inc. (a)		1,900		14,516
	Lawson Software, Inc. (a)		21,300		118,854
	Limelight Networks, Inc. (a)		4,317		18,995
	Lionbridge Technologies, Inc. (a)		10,100		18,584
	LivePerson, Inc. (a)		7,000		27,930
	MSC.Software Corp. (a)		7,100		47,286
	Manhattan Associates, Inc. (a)		3,600		65,592
	Mantech International Corp. Class A (a)		3,500		150,640
	Mentor Graphics Corp. (a)		15,100		82,597
	Mercury Computer Systems, Inc. (a)		3,500		32,375
	MicroStrategy, Inc. Class A (a)		1,400		70,308
	Moduslink Global Solutions, Inc. (a)		7,400		50,764
	Monotype Imaging Holdings, Inc. (a)		3,700		25,197
	NCI, Inc. Class A (a)		1,000		30,420
	NIC, Inc.		7,700		52,129
	Ness Technologies, Inc. (a)		5,900		23,069
	NetScout Systems, Inc. (a)		3,600		33,768
	NetSuite, Inc. (a)		2,800		33,068
	Omniture, Inc. (a)		10,713		134,555
	OpenTV Corp. (a)		12,300		16,236
	OpenTable, Inc. (a)		400		12,068
	Openwave Systems, Inc. (a)		13,800		30,912
	Opnet Technologies, Inc.		2,100		19,236
	PAR Technology Corp. (a)		1,600		10,224
	PROS Holdings, Inc. (a)		3,200		25,984
	Parametric Technology Corp. (a)		18,020		210,654
	Pegasystems, Inc.		2,300		60,674
	Perficient, Inc. (a)		4,500		31,455
	Perot Systems Corp. Class A (a)		13,600		194,888
	Pervasive Software Inc. (a)		2,200		13,398
	Phoenix Technologies Ltd. (a)		4,400		11,924
	Progress Software Corp. (a)		6,300		133,371
	QAD, Inc.		1,800		5,850
	Quest Software, Inc. (a)		10,500		146,370
	Rackspace Hosting, Inc. (a)		10,300		142,758
	Radiant Systems, Inc. (a)		4,200		34,860


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	RealNetworks, Inc. (a)		13,000	$	38,870
	RightNow Technologies, Inc. (a)		3,300		38,940
	SAVVIS, Inc. (a)		5,750		65,838
	SPSS, Inc. (a)		2,900		96,773
	SRA International, Inc. Class A (a)		6,500		114,140
	SYNNEX Corp. (a)		3,000		74,970
	Saba Software, Inc. (a)		4,400		16,940
	Sapient Corp. (a)		13,300		83,657
	Smith Micro Software, Inc. (a)		4,200		41,244
	SolarWinds, Inc. (a)		1,800		29,682
	Solera Holdings, Inc. (a)		10,800		274,320
	SonicWALL, Inc. (a)		8,400		46,032
	Sourcefire, Inc. (a)		3,600		44,604
	Stanley, Inc. (a)		1,800		59,184
	SuccessFactors, Inc. (a)		6,000		55,080
	SumTotal Systems, Inc. (a)		5,300		25,493
	Support.com Inc. (a)		7,800		17,004
	Synchronoss Technologies, Inc. (a)		3,100		38,037
	Syntel, Inc.		2,000		62,880
	TIBCO Software, Inc. (a)		27,600		197,892
	TNS, Inc. (a)		3,900		73,125
	Taleo Corp. Class A (a)		4,800		87,696
	TechTarget, Inc. (a)		1,800		7,200
	TeleCommunication Systems, Inc. Class A (a)		5,900		41,949
	Terremark Worldwide, Inc. (a)		8,000		46,240
	Tier Technologies, Inc. Class B (a)		2,600		19,968
	Tyler Technologies, Inc. (a)		4,700		73,414
	Ultimate Software Group, Inc. (a)		3,800		92,112
	Unica Corp. (a)		1,800		9,864
	Unisys Corp. (a)		59,500		89,845
	United Online, Inc.		12,844		83,614
	VASCO Data Security International, Inc. (a)		4,200		30,702
	VeriFone Holdings, Inc. (a)		11,500		86,365
	Vignette Corp. (a)		3,800		49,970
	Virtusa Corp. (a)		1,900		15,257
	Web.Com Group, Inc. (a)		4,200		23,646
	Websense, Inc. (a)		6,900		123,096
	Wind River Systems, Inc. (a)		10,900		124,914
	Zix Corp. (a)		9,100		13,650

					8,130,870

Computer Technology - 1.2%	Adaptec, Inc. (a)		19,100		50,615
	Cray, Inc. (a)		5,000		39,400
	Data Domain, Inc. (a)		7,400		246,790
	Dynamics Research Corp. (a)		1,200		12,012
	Imation Corp.		4,600		35,006
	Immersion Corp. (a)		4,100		20,254


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Intermec, Inc. (a)		9,700	$	125,130
	Isilon Systems, Inc. (a)		4,000		16,960
	Netezza Corp. (a)		7,600		63,232
	Palm, Inc. (a)		21,500		356,255
	Quantum Corp. (a)		31,900		26,477
	Radisys Corp. (a)		3,700		33,337
	Rimage Corp. (a)		1,500		24,915
	STEC, Inc. (a)		3,800		88,122
	Safeguard Scientifics, Inc. (a)		18,300		24,156
	Silicon Graphics International Corp. (a)		4,500		20,430
	Stratasys, Inc. (a)		3,200		35,168
	Super Micro Computer, Inc. (a)		3,600		27,576
	Synaptics, Inc. (a)		5,350		206,778

					1,452,613

Construction - 0.6%	EMCOR Group, Inc. (a)		10,300		207,236
	Granite Construction, Inc.		5,300		176,384
	Great Lakes Dredge & Dock Corp.		6,000		28,680
	Insituform Technologies, Inc. Class A (a)		6,100		103,517
	Orion Marine Group, Inc. (a)		3,400		64,600
	Sterling Construction Co., Inc. (a)		2,000		30,520
	Tutor Perini Corp. (a)		3,900		67,704

					678,641

Consumer Electronics - 0.2%	Audiovox Corp. Class A (a)		2,700		15,822
	Ipass, Inc. (a)		9,000		14,400
	TiVo, Inc. (a)		16,331		171,149
	Universal Electronics, Inc. (a)		2,100		42,357

					243,728

Consumer Lending - 0.5%	Advance America, Cash Advance Centers, Inc.		6,600		29,238
	Asset Acceptance Capital Corp. (a)		2,200		16,918
	Cash America International, Inc.		4,700		109,933
	Credit Acceptance Corp. (a)		878		19,184
	Dollar Financial Corp. (a)		3,700		51,023
	Encore Capital Group, Inc. (a)		2,100		27,825
	First Cash Financial Services, Inc. (a)		3,733		65,402
	The First Marblehead Corp. (a)		9,700		19,594
	MGIC Investment Corp.		19,300		84,920
	MoneyGram International, Inc. (a)		14,100		25,098
	Nelnet, Inc. Class A (a)		2,900		39,411
	Portfolio Recovery Associates, Inc. (a)		2,500		96,825
	QC Holdings, Inc.		300		1,542
	Tree.com, Inc. (a)		900		8,640
	World Acceptance Corp. (a)		2,500		49,775

					645,328

Consumer Services Miscellaneous - 0.6%	Coinstar, Inc. (a)		4,725		126,158
	Core-Mark Holdings Co., Inc. (a)		1,500		39,090
	Jackson Hewitt Tax Service, Inc.		4,400		27,544


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	The Knot, Inc. (a)		4,600	$	36,248
	Mercadolibre, Inc. (a)		4,000		107,520
	Move, Inc. (a)		25,000		54,000
	Nutri/System, Inc.		4,800		69,600
	Pre-Paid Legal Services, Inc. (a)		1,200		52,308
	Sotheby’s Holdings, Inc. Class A		10,600		149,566
	Steiner Leisure Ltd. (a)		2,300		70,219

					732,253

Containers & Packaging - 0.5%	AEP Industries, Inc. (a)		800		21,112
	Bway Holding Co. (a)		1,200		21,036
	Graphic Packaging Holding Co. (a)		16,600		30,378
	Myers Industries, Inc.		5,200		43,264
	Rock-Tenn Co. Class A		6,000		228,960
	Silgan Holdings, Inc.		4,200		205,926

					550,676

Cosmetics - 0.1%	Bare Escentuals, Inc. (a)		10,195		90,430
	Elizabeth Arden, Inc. (a)		3,800		33,174
	Inter Parfums, Inc.		2,050		15,047
	Revlon, Inc., Class A (a)		2,800		15,232

					153,883

Diversified Financial Services - 0.5%	American Physicians Service Group, Inc.		900		20,430
	Broadpoint Gleacher Securities, Inc. (a)		5,951		33,206
	Cheviot Financial Corp.		300		2,400
	CompuCredit Corp. (a)		2,500		5,750
	Duff & Phelps Corp.		2,500		44,450
	Evercore Partners, Inc. Class A		1,600		31,424
	FBR Capital Markets Corp. (a)		2,300		10,810
	FCStone Group, Inc. (a)		4,750		18,762
	First California Financial Group (a)		1,100		6,787
	Main Street Capital Corp.		1,200		16,428
	Piper Jaffray Cos. (a)		3,100		135,377
	Rewards Network, Inc. (a)		2,700		10,098
	Sanders Morris Harris Group, Inc.		3,000		16,500
	Stifel Financial Corp. (a)		4,252		204,479
	Thomas Weisel Partners Group, Inc. (a)		3,121		18,788
	Triangle Capital Corp.		1,000		10,920

					586,609

Diversified Manufacturing Operations - 0.2%	A.M. Castle & Co.		2,500		30,200
	Barnes Group, Inc.		7,300		86,797
	Federal Signal Corp.		7,600		58,140
	Raven Industries, Inc.		2,500		64,000
	Standex International Corp.		1,900		22,040
	Trimas Corp. (a)		2,000		6,740

					267,917

Diversified Materials & Processing - 1.0%	Belden, Inc.		7,400		123,580
	Brady Corp.		7,600		190,912


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Cabot Microelectronics Corp. (a)		3,700	$	104,673
	Clarcor, Inc.		8,100		236,439
	Encore Wire Corp.		2,800		59,780
	Fushi Copperweld, Inc. (a)		2,300		19,021
	GenTek, Inc. (a)		1,400		31,262
	Hexcel Corp. (a)		15,000		142,950
	Insteel Industries, Inc.		2,700		22,248
	Koppers Holdings, Inc.		3,200		84,384
	NL Industries, Inc.		1,200		8,856
	Rogers Corp. (a)		2,500		50,575
	Symyx Technologies, Inc. (a)		5,300		31,005
	Tredegar Corp.		4,800		63,936
	Uranium Energy Corp. (a)		7,900		22,910
	Zapata Corp. (a)		1,200		8,172

					1,200,703

Diversified Media - 0.0%	Belo Corp. Class A		13,800		24,702
	EW Scripps Co.		5,500		11,495
	Playboy Enterprises, Inc. Class B (a)		3,300		8,283

					44,480

Diversified Retail - 3.8%	1-800-FLOWERS.COM, Inc. Class A (a)		4,100		7,872
	99 Cents Only Stores (a)		7,300		99,134
	America’s Car Mart, Inc. (a)		1,400		28,700
	AnnTaylor Stores Corp. (a)		9,452		75,427
	Asbury Automotive Group, Inc.		4,800		49,152
	bebe Stores, Inc.		3,400		23,392
	Big 5 Sporting Goods Corp.		3,400		37,604
	Blue Nile, Inc. (a)		2,000		85,980
	Books-A-Million, Inc.		900		6,399
	Borders Group, Inc. (a)		7,100		26,128
	Brown Shoe Co., Inc.		6,525		47,241
	The Buckle, Inc.		4,000		127,080
	Build-A-Bear Workshop, Inc. (a)		2,500		11,175
	Cabela’s, Inc. Class A (a)		6,100		75,030
	The Cato Corp. Class A		4,300		74,992
	Central Garden & Pet Co. Class A (a)		9,769		96,225
	Charlotte Russe Holding, Inc. (a)		3,300		42,504
	Charming Shoppes, Inc. (a)		18,100		67,332
	The Children’s Place Retail Stores, Inc. (a)		3,800		100,434
	Christopher & Banks Corp.		5,600		37,576
	Citi Trends, Inc. (a)		2,300		59,524
	Coldwater Creek, Inc. (a)		8,900		53,934
	Collective Brands, Inc. (a)		10,000		145,700
	Conn’s, Inc. (a)		1,500		18,750
	DSW, Inc. Class A (a)		2,000		19,700
	drugstore.com, Inc. (a)		13,400		24,388
	Destination Maternity Corp. (a)		900		15,012


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Dillard’s, Inc. Class A		7,800	$	71,760
	Dress Barn, Inc. (a)		7,000		100,100
	Ezcorp, Inc. (a)		7,100		76,538
	The Finish Line, Inc. Class A		6,655		49,380
	Fred’s, Inc.		6,300		79,380
	Gaiam, Inc. (a)		2,500		13,675
	Gander Mountain Co. (a)		1,100		6,600
	Genesco, Inc. (a)		3,000		56,310
	Group 1 Automotive, Inc.		3,700		96,274
	Gymboree Corp. (a)		4,600		163,208
	HSN, Inc. (a)		6,400		67,648
	Haverty Furniture Cos., Inc.		2,700		24,705
	hhgregg, Inc. (a)		1,700		25,772
	Hibbett Sports, Inc. (a)		4,450		80,100
	Hot Topic, Inc. (a)		6,900		50,439
	Insight Enterprises, Inc. (a)		7,200		69,552
	Jo-Ann Stores, Inc. (a)		4,200		86,814
	Jos. A. Bank Clothiers, Inc. (a)		2,825		97,350
	Lawson Products, Inc.		679		9,649
	Lithia Motors, Inc. Class A		2,900		26,796
	Lumber Liquidators, Inc. (a)		2,300		36,248
	Men’s Wearhouse, Inc.		8,300		159,194
	Midas, Inc. (a)		2,200		23,056
	Monro Muffler, Inc.		2,600		66,846
	New York & Co. (a)		3,500		10,815
	Nu Skin Enterprises, Inc. Class A		7,700		117,810
	OfficeMax, Inc.		11,768		73,903
	Overstock.com, Inc. (a)		2,400		28,704
	PC Connection, Inc. (a)		1,400		7,350
	PC Mall, Inc. (a)		1,800		12,168
	Pacific Sunwear of California, Inc. (a)		10,300		34,711
	The Pep Boys - Manny, Moe & Jack		7,800		79,092
	PetMed Express, Inc. (a)		3,700		55,611
	Pier 1 Imports, Inc. (a)		13,400		26,666
	PriceSmart, Inc.		2,400		40,200
	Regis Corp.		7,000		121,870
	Retail Ventures, Inc. (a)		3,700		8,066
	Rex Stores Corp. (a)		1,100		11,066
	Rush Enterprises, Inc. Class A (a)		5,100		59,415
	Saks, Inc. (a)		19,100		84,613
	Sally Beauty Co., Inc. (a)		14,700		93,492
	School Specialty, Inc. (a)		2,900		58,609
	Shoe Carnival, Inc. (a)		1,400		16,702
	Shutterfly, Inc. (a)		3,200		44,640
	Sonic Automotive, Inc.		3,900		39,624
	Sport Supply Group, Inc.		1,700		14,603


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Stage Stores, Inc.	5,950	$	66,045
	Stamps.com, Inc. (a)	1,900		16,112
	Stein Mart, Inc. (a)	3,800		33,668
	Syms Corp. (a)	1,000		7,510
	Systemax, Inc. (a)	1,600		19,056
	The Talbots, Inc.	3,800		20,520
	Ticketmaster Entertainment (a)	6,200		39,804
	Titan Machinery, Inc. (a)	1,900		24,111
	Tractor Supply Co. (a)	5,600		231,392
	Tuesday Morning Corp. (a)	4,700		15,839
	Tween Brands, Inc. (a)	3,900		26,052
	Ulta Salon Cosmetics & Fragrance, Inc. (a)	4,500		50,040
	The Wet Seal, Inc. Class A (a)	14,800		45,436
	Zale Corp. (a)	3,200		11,008
	Zumiez, Inc. (a)	3,000		24,030

				4,664,132

Drug & Grocery Store Chains - 0.7%	Arden Group, Inc. Class A	200		25,020
	Casey’s General Stores, Inc.	8,000		205,520
	The Great Atlantic & Pacific Tea Co., Inc. (a)	5,307		22,555
	Ingles Markets, Inc. Class A	2,000		30,480
	Nash Finch Co.	2,000		54,120
	The Pantry, Inc. (a)	3,500		58,100
	Ruddick Corp.	6,700		156,981
	Spartan Stores, Inc.	3,500		43,435
	Susser Holdings Corp. (a)	1,300		14,547
	Village Super Market, Inc. Class A	900		26,775
	Weis Markets, Inc.	1,700		56,984
	Winn-Dixie Stores, Inc. (a)	8,400		105,336

				799,853

Education Services - 0.7%	Ambassadors Group, Inc.	2,900		39,933
	American Public Education, Inc. (a)	2,800		110,908
	Bridgepoint Education, Inc. (a)	2,200		37,400
	Capella Education Co. (a)	2,300		137,885
	Chinacast Education Corp. (a)	4,900		34,888
	Corinthian Colleges, Inc. (a)(b)	12,400		209,932
	Franklin Covey Co. (a)	1,800		11,214
	Grand Canyon Education, Inc. (a)	2,600		43,628
	K12, Inc. (a)	3,600		77,580
	Learning Tree International, Inc. (a)	1,200		12,360
	Lincoln Educational Services Corp. (a)	1,600		33,488
	Nobel Learning Communities, Inc. (a)	500		5,735
	The Princeton Review, Inc. (a)	2,300		12,443
	Renaissance Learning, Inc.	800		7,368
	Rosetta Stone, Inc. (a)	900		24,696
	Universal Technical Institute, Inc. (a)	3,100		46,283

				845,741


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

Electrical Components - 0.6%	3D Systems Corp. (a)		2,600	$	18,746
	Acacia Research - Acacia Technologies (a)		4,800		37,776
	Checkpoint Systems, Inc. (a)		6,100		95,709
	Cogent, Inc. (a)		6,900		74,037
	Methode Electronics, Inc.		5,900		41,418
	Microvision, Inc. (a)		10,700		32,849
	Multi-Fineline Electronix, Inc. (a)		1,500		32,100
	NVE Corp. (a)		700		34,020
	Park Electrochemical Corp.		3,200		68,896
	ScanSource, Inc. (a)		4,200		102,984
	Smart Modular Technologies WWH, Inc. (a)		5,700		12,939
	TTM Technologies, Inc. (a)		6,700		53,332
	Technitrol, Inc.		6,200		40,114
	Universal Display Corp. (a)		4,400		43,032

					687,952

Electronic Entertainment - 0.2%	DTS, Inc. (a)		2,700		73,089
	Memsic, Inc. (a)		3,000		12,720
	THQ, Inc. (a)		10,600		75,896
	Take-Two Interactive Software, Inc.		12,800		121,216

					282,921

Electronics - 0.4%	Agilysys, Inc.		2,000		9,360
	American Science & Engineering, Inc.		1,400		96,768
	CPI International, Inc. (a)		1,100		9,559
	Coherent, Inc. (a)		3,300		68,244
	Daktronics, Inc.		5,200		40,040
	II-VI, Inc. (a)		3,900		86,463
	IPG Photonics Corp. (a)		3,800		41,686
	iRobot Corp. (a)		3,200		41,536
	Newport Corp. (a)		5,700		33,003
	Rofin-Sinar Technologies, Inc. (a)		4,500		90,045
	SRS Labs Inc. (a)		1,600		10,640
	Spectrum Control, Inc. (a)		2,200		19,360

					546,704

Energy Equipment - 0.2%	Ascent Solar Technologies, Inc. (a)		2,700		21,114
	Energy Conversion Devices, Inc. (a)		7,300		103,295
	Evergreen Solar, Inc. (a)		30,200		65,534
	FuelCell Energy, Inc. (a)		10,300		43,054
	GT Solar International, Inc. (a)		4,500		23,940
	PowerSecure International, Inc. (a)		2,700		11,502
	Raser Technologies, Inc. (a)		7,800		21,840

					290,279

Engineering & Contracting Services - 0.3%	Argan, Inc. (a)		1,300		18,369
	Dycom Industries, Inc. (a)		6,100		67,527
	ENGlobal Corp. (a)		2,600		12,792
	Furmamite Corp. (a)		5,600		24,976
	Hill International, Inc. (a)		3,900		16,770


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Integrated Electrical Services, Inc. (a)		1,400	$	10,934
	Layne Christensen Co. (a)		3,000		61,350
	MYR Group, Inc. (a)		2,600		52,572
	Michael Baker Corp. (a)		1,300		55,068
	VSE Corp.		600		15,696

					336,054

Entertainment - 0.3%	Ascent Media Corp. Class A (a)		2,245		59,672
	CKX, Inc. (a)		9,100		64,519
	Carmike Cinemas, Inc.		1,900		15,922
	Cinemark Holdings, Inc.		4,900		55,468
	Live Nation, Inc. (a)		12,900		62,694
	LodgeNet Interactive Corp. (a)		3,600		12,240
	Reading International, Inc. Class A (a)		3,200		14,560
	Rentrak Corp. (a)		1,400		23,002
	World Wrestling Entertainment, Inc.		3,200		40,192

					348,269

Financial Data & Systems - 1.1%	Advent Software, Inc. (a)(b)		2,400		78,696
	Bankrate, Inc. (a)		2,000		50,480
	Cardtronics, Inc. (a)		1,700		6,477
	Cass Information Systems, Inc.		1,225		40,106
	CyberSource Corp. (a)		10,841		165,867
	Euronet Worldwide, Inc. (a)		7,700		149,303
	Fair Isaac Corp.		7,600		117,496
	Global Cash Access, Inc. (a)		6,100		48,556
	Heartland Payment Systems, Inc.		6,100		58,377
	Information Services Group, Inc. (a)		4,300		12,943
	Jack Henry & Associates, Inc.		13,095		271,721
	Net 1 UEPS Technologies, Inc. (a)		5,800		78,822
	Online Resources Corp. (a)		4,000		24,960
	RiskMetrics Group, Inc. (a)		3,300		58,278
	S1 Corp. (a)		8,600		59,340
	Value Line, Inc.		100		3,287
	Wright Express Corp. (a)		6,000		152,820

					1,377,529

Foods - 1.1%	American Dairy, Inc. (a)		1,200		47,592
	American Italian Pasta Co. Class A (a)		3,300		96,162
	B&G Foods, Inc. Class A		3,200		26,912
	China Biotics, Inc. (a)		1,300		14,014
	Chiquita Brands International, Inc. (a)		7,200		73,872
	Diamond Foods, Inc.		2,600		72,540
	Hain Celestial Group, Inc. (a)		6,500		101,465
	J&J Snack Foods Corp.		2,200		78,980
	Lancaster Colony Corp.		3,100		136,617
	Lance, Inc.		4,300		99,459
	Lifeway Foods, Inc. (a)		600		7,740
	Medifast, Inc. (a)		2,200		25,212


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Nutraceutical International Corp. (a)		1,600	$	16,624
	Omega Protein Corp. (a)		2,900		11,774
	Overhill Farms, Inc. (a)		2,800		14,756
	Schiff Nutrition International, Inc. (a)		1,800		9,162
	Seneca Foods Corp. (a)		1,100		36,762
	Smart Balance, Inc. (a)		9,800		66,738
	Synutra International, Inc. (a)		2,700		29,700
	Tootsie Roll Industries, Inc.		3,741		84,883
	TreeHouse Foods, Inc. (a)		4,900		140,973
	United Natural Foods, Inc. (a)		6,800		178,500
	Zhongpin, Inc. (a)		3,000		31,080

					1,401,517

Forest Products - 0.1%	Deltic Timber Corp.		1,700		60,299
	Universal Forest Products, Inc.		3,100		102,579

					162,878

Forms & Bulk Printing Services - 0.2%	Bowne & Co., Inc.		4,242		27,617
	Consolidated Graphics, Inc. (a)		1,500		26,130
	Deluxe Corp.		8,000		102,480
	Ennis, Inc.		4,000		49,840
	Innerworkings, Inc. (a)		3,600		17,100
	M&F Worldwide Corp. (a)		1,800		36,000
	Multi-Color Corp.		1,550		19,003
	The Standard Register Co.		2,600		8,476

					286,646

Funeral Parlors & Cemeteries - 0.2%	Matthews International Corp. Class A		4,800		149,376
	Stewart Enterprises, Inc. Class A		12,600		60,732

					210,108

Gas Pipeline - 0.0%	Crosstex Energy, Inc.		6,300		26,208

Glass - 0.0%	Apogee Enterprises, Inc.		4,400		54,120

Gold - 0.2%	Allied Nevada Gold Corp. (a)		6,900		55,614
	Coeur d’Alene Mines Corp. (a)(b)		10,900		134,070
	US Gold Corp. (a)		12,300		32,472

					222,156

Health Care Facilities - 0.6%	Amsurg Corp. (a)		4,800		102,912
	Assisted Living Concepts, Inc. (a)		1,520		22,116
	Capital Senior Living Corp. (a)		3,500		15,925
	Emeritus Corp. (a)		3,000		39,630
	The Ensign Group, Inc.		1,600		22,768
	Hanger Orthopedic Group, Inc. (a)		3,800		51,642
	Kindred Healthcare, Inc. (a)		5,980		73,973
	LCA-Vision, Inc. (a)		2,300		9,706
	MedCath Corp. (a)		2,300		27,048
	National Healthcare Corp.		1,200		45,528
	Psychiatric Solutions, Inc. (a)		8,900		202,386
	Skilled Healthcare Group, Inc. Class A (a)		2,800		21,000
	Sun Healthcare Group, Inc. (a)		6,800		57,392


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Sunrise Senior Living, Inc. (a)		7,000	$	11,550
	US Physical Therapy, Inc. (a)		1,800		26,550

					730,126

Health Care Management Services - 1.0%	AMERIGROUP Corp. (a)		8,300		222,855
	American Caresource Holdings, Inc. (a)		1,300		4,875
	American Dental Partners, Inc. (a)		1,900		17,233
	Bioscript, Inc. (a)		7,000		41,440
	Catalyst Health Solutions, Inc. (a)		5,900		147,146
	Centene Corp. (a)		6,700		133,866
	Computer Programs & Systems, Inc.		1,600		61,296
	Contiucare Corp. (a)		4,100		9,553
	HealthSpring, Inc. (a)		7,700		83,622
	Magellan Health Services, Inc. (a)		5,500		180,510
	MedQuist Inc.		1,800		10,944
	Metropolitan Health Networks, Inc. (a)		7,300		14,673
	Molina Healthcare, Inc. (a)		2,100		50,232
	National Research Corp.		200		4,880
	Transcend Services, Inc. (a)		1,100		17,358
	Triple-S Management Corp. (a)		3,300		51,447
	Universal American Financial Corp. (a)		4,000		34,880
	WellCare Health Plans, Inc. (a)		6,498		120,148

					1,206,958

Health Care Services - 1.8%	Air Methods Corp. (a)		1,700		46,512
	Alliance Healthcare Services, Inc. (a)		3,900		28,587
	Allied Healthcare International, Inc. (a)		6,400		13,888
	Almost Family, Inc. (a)		1,200		31,332
	Amedisys, Inc. (a)(b)		4,333		143,076
	athenahealth, Inc. (a)		5,200		192,452
	CardioNet, Inc. (a)		3,600		58,752
	Chemed Corp.		3,500		138,180
	Corvel Corp. (a)		1,350		30,739
	Eclipsys Corp. (a)		8,800		156,464
	Emergency Medical Services Corp. (a)		1,600		58,912
	Gentiva Health Services, Inc. (a)		4,500		74,070
	HMS Holdings Corp. (a)		4,100		166,952
	HealthSouth Corp. (a)		13,800		199,272
	Healthways, Inc. (a)		5,300		71,285
	IPC The Hospitalist Co., Inc. (a)		2,500		66,725
	LHC Group, Inc. (a)		2,400		53,304
	Novamed Eyecare, Inc. (a)		2,800		11,060
	Odyssey HealthCare, Inc. (a)		5,200		53,456
	Omnicell, Inc. (a)		4,900		52,675
	PharMerica Corp. (a)		4,786		93,949
	Phase Forward, Inc. (a)		6,700		101,237
	Quality Systems, Inc.		3,700		210,752
	RehabCare Group, Inc. (a)		2,900		69,397


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Res-Care, Inc. (a)		3,900	$	55,770
	Virtual Radiologic Corp. (a)		800		7,224

					2,186,022

Health Care: Miscellaneous - 0.1%	MedAssets, Inc. (a)		6,100		118,645
	The Providence Service Corp. (a)		2,000		21,900

					140,545

Homebuilding - 0.2%	Beazer Homes USA, Inc. (a)		5,700		10,431
	Brookfield Homes Corp.		1,763		7,052
	Hovnanian Enterprises, Inc. Class A (a)		8,000		18,880
	M/I Homes, Inc. (a)		2,700		26,433
	Meritage Homes Corp. (a)		5,000		94,300
	Ryland Group, Inc.		6,900		115,644
	Standard-Pacific Corp. (a)		15,700		31,871

					304,611

Hotel/Motel - 0.2%	Gaylord Entertainment Co. (a)		5,300		67,363
	Marcus Corp.		3,100		32,612
	Morgans Hotel Group Co. (a)		3,600		13,788
	Orient Express Hotels Ltd. Class A		12,300		104,427
	Red Lion Hotels Corp. (a)		2,500		12,000

					230,190

Household Appliances - 0.0%	National Presto Industries, Inc.		700		53,270

Household Equipment & Products - 0.3%	American Greetings Corp. Class A		6,200		72,416
	Blyth, Inc.		950		31,150
	CSS Industries, Inc.		1,200		24,456
	Nivs Intellimedia Technology (a)		1,100		3,256
	Tupperware Corp.		9,900		257,598

					388,876

Household Furnishings - 0.3%	American Woodmark Corp.		1,600		38,320
	Ethan Allen Interiors, Inc.		3,800		39,368
	Furniture Brands International, Inc.		6,500		19,695
	Hooker Furniture Corp.		1,600		18,368
	Kirkland’s, Inc. (a)		2,100		25,221
	La-Z-Boy, Inc.		8,000		37,760
	Sealy Corp. (a)		6,600		12,936
	Stanley Furniture Co., Inc.		1,500		16,185
	Tempur-Pedic International, Inc.		11,714		153,102

					360,955

Insurance: Life - 0.4%	American Equity Investment Life Holding Co.		8,300		46,314
	Citizens, Inc. (a)		4,900		29,792
	Conseco, Inc. (a)		29,857		70,761
	Delphi Financial Group, Inc. Class A		6,750		131,152
	FBL Financial Group, Inc. Class A		1,900		15,694
	Independence Holding Co.		500		3,180
	Kansas City Life Insurance Co.		700		18,830
	Life Partners Holdings, Inc.		1,150		16,307
	National Western Life Insurance Co. Class A		342		39,929


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	The Phoenix Cos., Inc. (a)		18,100	$	30,227
	Presidential Life Corp.		3,300		24,981

					427,167

Insurance: Multi-Line - 0.7%	AMBAC Financial Group, Inc.		45,000		41,400
	Assured Guaranty Ltd.		9,700		120,086
	Crawford & Co. Class B (a)		3,700		17,760
	Eastern Insurance Holdings, Inc.		1,400		13,174
	eHealth, Inc. (a)		3,900		68,874
	Flagstone Reinsurance Holdings Ltd.		6,200		63,860
	Horace Mann Educators Corp.		6,200		61,814
	Maiden Holdings Ltd.		7,800		51,168
	Max Capital Group Ltd.		7,100		131,066
	Pico Holdings, Inc. (a)		3,000		86,100
	Platinum Underwriters Holdings Ltd.		8,000		228,720
	Primus Guaranty Ltd. (a)		4,500		10,620

					894,642

Insurance: Property-Casualty - 2.2%	American Physicians Capital, Inc.		1,200		46,992
	American Safety Insurance Holdings Ltd. (a)		1,300		17,693
	Amerisafe, Inc. (a)(b)		3,000		46,680
	AmTrust Financial Services, Inc.		3,400		38,760
	Argo Group International Holdings Ltd. (a)		4,866		137,318
	Baldwin & Lyons, Inc. Class B		1,300		25,610
	CNA Surety Corp. (a)		2,500		33,725
	Donegal Group, Inc. Class A		1,700		25,857
	EMC Insurance Group, Inc.		800		16,648
	Employers Holdings, Inc.		7,310		99,050
	Enstar Group Ltd. (a)		1,100		64,735
	FPIC Insurance Group, Inc. (a)		1,200		36,744
	First Acceptance Corp. (a)		2,600		5,538
	First Mercury Financial Corp.		2,200		30,294
	Greenlight Capital Re Ltd. (a)		4,400		76,164
	Hallmark Financial Services, Inc. (a)		1,300		9,295
	Harleysville Group, Inc.		2,100		59,262
	Hilltop Holdings, Inc. (a)		5,952		70,650
	IPC Holdings, Ltd.		8,900		243,326
	Infinity Property & Casualty Corp.		2,200		80,212
	Meadowbrook Insurance Group, Inc.		9,017		58,881
	Mercer Insurance Group, Inc.		800		12,720
	Montpelier Re Holdings Ltd.		13,700		182,073
	NYMAGIC, Inc.		800		11,104
	National Interstate Corp.		1,000		15,180
	Navigators Group, Inc. (a)		2,000		88,860
	PMA Capital Corp. Class A (a)		4,800		21,840
	The PMI Group, Inc.		11,200		22,176
	ProAssurance Corp. (a)		5,200		240,292
	RLI Corp.		2,900		129,920


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Radian Group, Inc.		12,800	$	34,816
	Safety Insurance Group, Inc.		2,000		61,120
	SeaBright Insurance Holdings, Inc. (a)		3,200		32,416
	Selective Insurance Group, Inc.		8,300		105,991
	State Auto Financial Corp.		2,100		36,750
	Stewart Information Services Corp.		2,700		38,475
	Tower Group, Inc.		6,320		156,610
	United America Indemnity, Ltd. (a)		5,464		26,173
	United Fire & Casualty Co.		3,500		60,025
	Universal Insurance Holdings, Inc.		2,400		12,048
	Zenith National Insurance Corp.		5,950		129,353

					2,641,376

Leisure Time - 0.6%	Bluegreen Corp. (a)		2,200		5,544
	Callaway Golf Co.		10,100		51,207
	Churchill Downs, Inc.		1,500		50,490
	Great Wolf Resorts, Inc. (a)		4,300		8,772
	Interval Leisure Group, Inc. (a)		6,065		56,526
	Life Time Fitness, Inc. (a)		6,400		128,064
	Orbitz Worldwide, Inc. (a)		5,300		10,070
	Pool Corp.		7,600		125,856
	Smith & Wesson Holding Corp. (a)		8,600		48,848
	Speedway Motorsports, Inc.		2,000		27,520
	Steinway Musical Instruments, Inc. (a)		1,100		11,770
	Sturm Ruger & Co., Inc.		2,900		36,076
	Town Sports International Holdings, Inc. (a)		2,600		9,750
	Universal Travel Group (a)		1,800		20,142
	Vail Resorts, Inc. (a)		4,600		123,372
	West Marine, Inc. (a)		2,000		11,020

					725,027

Luxury Items - 0.2%	Fossil, Inc. (a)		7,400		178,192
	Fuqi International, Inc. (a)		1,500		31,065
	Movado Group, Inc.		2,500		26,350

					235,607

Machinery & Engineering - 0.1%	Applied Industrial Technologies, Inc.		6,750		132,975

Machinery: Agricultural - 0.1%	Alamo Group, Inc.		1,000		10,100
	Lindsay Manufacturing Co.		2,000		66,200

					76,300

Machinery: Construction & Handling - 0.1%	Astec Industries, Inc. (a)		2,800		83,132
	NACCO Industries, Inc. Class A		800		22,976

					106,108

Machinery: Engines - 0.1%	Briggs & Stratton Corp.		8,000		106,720
	Harbin Electric, Inc. (a)		1,900		29,716

					136,436

Machinery: Industrial - 0.9%	Actuant Corp. Class A (b)		9,000		109,800
	Altra Holdings, Inc. (a)		3,900		29,211
	Chart Industries, Inc. (a)		4,400		79,992


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Colfax Corp. (a)		3,700	$	28,564
	Columbus McKinnon Corp. (a)		3,000		37,950
	DXP Enterprises, Inc. (a)		1,200		13,764
	EnPro Industries, Inc. (a)		3,100		55,831
	Flow International Corp. (a)		5,600		13,160
	Graham Corp.		1,600		21,280
	John Bean Technologies Corp.		4,441		55,601
	Kadant, Inc. (a)		2,000		22,580
	MTS Systems Corp.		2,700		55,755
	Middleby Corp. (a)		2,474		108,658
	Nordson Corp.		5,300		204,898
	Sauer-Danfoss, Inc.		1,600		9,808
	Tecumseh Products Co. Class A (a)		3,100		30,101
	Tennant Co.		3,000		55,170
	Twin Disc, Inc.		1,300		8,853
	Woodward Governor Co. (b)		9,500		188,100

					1,129,076

Machinery: Specialty - 0.1%	Albany International Corp. Class A		4,500		51,210
	Cascade Corp.		1,400		22,022
	Hurco Companies, Inc. (a)		1,000		15,630
	K-Tron International, Inc. (a)		400		31,872

					120,734

Manufactured Housing - 0.0%	Cavco Industries, Inc. (a)		1,000		25,330
	Skyline Corp.		1,100		23,925

					49,255

Medical & Dental Instruments & Supplies - 2.9%	ATS Medical, Inc. (a)		8,100		26,649
	Abiomed, Inc. (a)		4,800		42,336
	Align Technology, Inc. (a)		9,100		96,460
	Alphatec Holdings, Inc. (a)		4,100		13,612
	American Medical Systems Holdings, Inc. (a)(b)		11,700		184,860
	AngioDynamics, Inc. (a)		3,800		50,426
	Atrion Corp.		200		26,818
	Bovie Medical Corp. (a)		2,900		25,259
	CONMED Corp. (a)		4,500		69,840
	Cantel Medical Corp. (a)		1,900		30,837
	Cardiovascular Systems, Inc. (a)		1,700		13,107
	Conceptus, Inc. (a)		4,800		81,120
	CryoLife, Inc. (a)		4,200		23,268
	Cutera, Inc. (a)		2,300		19,826
	Delcath Systems Inc. (a)		4,100		14,719
	Endologix, Inc. (a)		6,400		21,376
	ev3, Inc. (a)		11,046		118,413
	Exactech, Inc. (a)		1,200		17,400
	Hansen Medical, Inc. (a)		3,500		17,290
	Heartware International, Inc. (a)		800		22,328
	Home Diagnostics, Inc. (a)		1,600		9,824


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	I-Flow Corp. (a)		3,300	$	22,902
	ICU Medical, Inc. (a)		2,100		86,415
	Immucor, Inc. (a)		10,950		150,672
	Insulet Corp. (a)		4,400		33,880
	Integra LifeSciences Holdings Corp. (a)		3,000		79,530
	Invacare Corp.		4,400		77,660
	Landauer, Inc.		1,500		92,010
	MAKO Surgical Corp. (a)		2,300		20,746
	Matrixx Initiatives, Inc. (a)		1,900		10,621
	Medical Action Industries, Inc. (a)		2,100		24,045
	Meridian Bioscience, Inc.		6,375		143,948
	Merit Medical Systems, Inc. (a)		4,400		71,720
	Micrus Endovascular Corp. (a)		2,400		21,696
	Neogen Corp. (a)		2,200		63,756
	NuVasive, Inc. (a)		5,700		254,220
	OraSure Technologies, Inc. (a)		7,200		17,784
	Orthofix International NV (a)		2,700		67,527
	Orthovita, Inc. (a)		9,900		50,985
	Owens & Minor, Inc.		6,500		284,830
	PSS World Medical, Inc. (a)		9,400		173,994
	Quidel Corp. (a)		4,000		58,240
	Rochester Medical Corp. (a)		1,700		22,780
	Rockwell Medical Technologies, Inc. (a)		2,500		18,875
	Steris Corp.		9,100		237,328
	SurModics, Inc. (a)		2,400		54,312
	Symmetry Medical, Inc. (a)		5,600		52,192
	Synovis Life Technologies, Inc. (a)		1,800		37,386
	Trans1, Inc. (a)		2,100		13,083
	Utah Medical Products, Inc.		600		16,026
	Vascular Solutions, Inc. (a)		2,400		18,768
	Volcano Corp. (a)		7,500		104,850
	West Pharmaceutical Services, Inc.		5,100		177,735
	Wright Medical Group, Inc. (a)		6,100		99,186
	Young Innovations, Inc.		1,000		21,790

					3,607,260

Medical Equipment - 1.8%	Abaxis, Inc. (a)		3,400		69,836
	Accuray, Inc. (a)		6,000		40,020
	Affymetrix, Inc. (a)(b)		11,100		65,823
	Analogic Corp.		2,000		73,900
	Aspect Medical Systems, Inc. (a)		3,100		18,321
	Bruker BioSciences Corp. (a)		7,700		71,302
	Cardiac Science Corp. (a)		2,900		11,658
	Clarient, Inc. (a)		5,200		19,344
	Cyberonics, Inc. (a)		4,300		71,509
	Cynosure, Inc. Class A (a)		1,500		11,475
	DexCom, Inc. (a)		7,500		46,425


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	Dionex Corp. (a)		2,800	$	170,884
	Electro-Optical Sciences, Inc. (a)		3,000		23,370
	Enteromedics, Inc. (a)		2,900		9,657
	Greatbatch, Inc. (a)		3,600		81,396
	Haemonetics Corp. (a)		4,000		228,000
	IRIS International, Inc. (a)		2,800		33,040
	Luminex Corp. (a)		6,600		122,364
	Masimo Corp. (a)		7,900		190,469
	Merge Healthcare, Inc. (a)		4,500		19,350
	Natus Medical, Inc. (a)		4,300		49,622
	NxStage Medical, Inc. (a)		3,400		20,060
	OSI Systems, Inc. (a)		2,400		50,040
	Palomar Medical Technologies, Inc. (a)		2,800		41,048
	Sirona Dental Systems, Inc. (a)		2,700		53,973
	Somanetics Corp. (a)		1,900		31,369
	SonoSite, Inc. (a)		2,700		54,162
	Spectranetic Corp. (a)		5,000		24,650
	Stereotaxis, Inc. (a)		4,100		15,908
	Thoratec Corp. (a)		8,800		235,664
	Tomotherapy, Inc. (a)		6,100		16,775
	Varian, Inc. (a)		4,500		177,435
	Vital Images, Inc. (a)		2,200		24,970
	Zoll Medical Corp. (a)		3,300		63,822

					2,237,641

Medical Services - 0.3%	America Service Group, Inc. (a)		1,400		22,498
	Bio-Reference Labs, Inc. (a)		1,900		60,059
	eResearch Technology, Inc. (a)		6,700		41,607
	Genoptix, Inc. (a)		2,600		83,174
	Kendle International, Inc. (a)		2,500		30,600
	Nighthawk Radiology Holdings, Inc. (a)		3,200		11,840
	Parexel International Corp. (a)		9,000		129,420
	RadNet, Inc. (a)		4,300		9,675

					388,873

Metal Fabricating - 0.7%	Ampco-Pittsburgh Corp.		1,300		30,485
	Dynamic Materials Corp.		2,000		38,560
	The Eastern Co.		900		14,850
	Hawk Corp. Class A (a)		1,000		13,850
	Haynes International, Inc. (a)		1,900		45,030
	Kaydon Corp.		5,200		169,312
	L.B. Foster Co. Class A (a)		1,600		48,112
	Mueller Industries, Inc.		5,900		122,720
	Mueller Water Products, Inc. Series A		18,080		67,619
	Northwest Pipe Co. (a)		1,400		48,664
	Omega Flex, Inc.		400		6,064
	RBC Bearings, Inc. (a)		3,400		69,530
	RTI International Metals, Inc. (a)		3,600		63,612


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	Worthington Industries, Inc.		9,300	$	118,947

					857,355

Metals & Minerals:	AMCOL International Corp.		3,600		77,688
Diversified - 0.3%	Brush Engineered Materials, Inc. (a)		3,200		53,600
	General Moly, Inc. (a)		9,800		21,756
	Hecla Mining Co. (a)		33,200		88,976
	Minerals Technologies, Inc.		2,900		104,458
	Oil-Dri Corp. of America		700		10,395
	Paramount Gold and Silver Corp. (a)		9,100		13,832
	United States Lime & Minerals Inc. (a)		300		12,726
	Uranerz Energy Corp. (a)		8,300		15,604

					399,035

Office Supplies & Equipment - 0.4%	ACCO Brands Corp. (a)		8,364		23,586
	Electronics for Imaging, Inc. (a)		7,700		82,082
	HNI Corp.		7,000		126,420
	Herman Miller, Inc.		8,500		130,390
	Kimball International, Inc. Class B		5,000		31,200
	Knoll, Inc.		7,400		56,092
	Steelcase, Inc. Class A		10,943		63,688

					513,458

Offshore Drilling & Other Services- 0.1%	Hercules Offshore, Inc. (a)		14,339		56,926
	Vantage Drilling Co. (a)		4,100		7,175

					64,101

Oil Well Equipment & Services - 1.3%	Allis-Chalmers Energy, Inc. (a)		4,400		10,164
	Basic Energy Services, Inc. (a)		3,300		22,539
	Bolt Technology Corp. (a)		1,400		15,736
	Boots & Coots, Inc. (a)		13,600		18,904
	Bronco Drilling Co., Inc. (a)		3,700		15,836
	CARBO Ceramics, Inc.		2,950		100,890
	Cal Dive International, Inc. (a)		7,012		60,513
	Complete Production Services, Inc. (a)		9,400		59,784
	Dawson Geophysical Co. (a)		1,200		35,820
	Dril-Quip, Inc. (a)		4,500		171,450
	Geokinetics, Inc. (a)		700		9,555
	Global Industries Ltd. (a)		15,400		87,164
	Gulf Island Fabrication, Inc.		1,900		30,077
	Hornbeck Offshore Services, Inc. (a)		3,600		77,004
	ION Geophysical Corp. (a)		13,900		35,723
	Key Energy Services, Inc. (a)		19,700		113,472
	Lufkin Industries, Inc.		2,300		96,715
	Matrix Service Co. (a)		4,100		47,068
	NATCO Group, Inc. Class A (a)		3,200		105,344
	Natural Gas Services Group (a)		1,900		25,270
	Newpark Resources, Inc. (a)		13,900		39,615
	OYO Geospace Corp. (a)		600		15,396
	Parker Drilling Co. (a)		18,400		79,856


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)


Industry	Common Stocks	Shares Held		Value

	Pioneer Drilling Co. (a)		6,400	$	30,656
	RPC, Inc.		4,425		36,949
	Sulphco, Inc. (a)		7,600		6,992
	Superior Well Services, Inc. (a)		2,400		14,280
	T-3 Energy Services, Inc. (a)		1,900		22,629
	Tetra Technologies, Inc. (a)		11,970		95,281
	Union Drilling, Inc. (a)		1,600		10,592
	Willbros Group, Inc. (a)		6,200		77,562

					1,568,836

Oil: Crude Producers - 1.7%	APCO Argentina, Inc.		1,500		28,845
	ATP Oil & Gas Corp. (a)		4,500		31,320
	Approach Resources, Inc. (a)		2,000		13,800
	Arena Resources, Inc. (a)		6,100		194,285
	Atlas America, Inc.		5,500		98,285
	BPZ Resources, Inc. (a)		12,400		60,636
	Berry Petroleum Co. Class A		6,800		126,412
	Bill Barrett Corp. (a)		6,000		164,760
	Brigham Exploration Co. (a)		12,600		43,974
	CREDO Petroleum Corp. (a)		1,000		10,680
	Carrizo Oil & Gas, Inc. (a)		4,400		75,460
	Cheniere Energy, Inc. (a)		8,300		24,402
	Clayton Williams Energy, Inc. (a)		900		16,983
	Contango Oil & Gas Co. (a)		1,800		76,482
	Cubic Energy, Inc. (a)		3,300		3,564
	Delta Petroleum Corp. (a)		28,700		55,391
	Endeavour International Corp. (a)		17,800		24,208
	FX Energy, Inc. (a)		6,300		23,877
	GMX Resources Inc. (a)		3,700		39,368
	GeoResources, Inc. (a)		1,100		11,220
	Goodrich Petroleum Corp. (a)		3,800		93,442
	Gran Tierra Energy, Inc. (a)		31,300		107,985
	Gulfport Energy Corp. (a)		4,000		27,400
	Harvest Natural Resources, Inc. (a)		5,200		22,932
	Isramco Inc. (a)		200		21,260
	McMoRan Exploration Co. (a)		9,700		57,812
	Northern Oil And Gas, Inc. (a)		4,200		26,754
	Oilsands Quest, Inc. (a)		27,500		26,400
	Panhandle Oil & Gas, Inc.		1,100		21,593
	Parallel Petroleum Corp. (a)		6,500		12,610
	Penn Virginia Corp.		7,200		117,864
	Petroleum Development Corp. (a)		2,300		36,087
	Petroquest Energy, Inc. (a)		6,700		24,723
	PrimeEnergy Corp. (a)		100		3,525
	Rex Energy Corp. (a)		4,300		24,510
	Rosetta Resources, Inc. (a)		8,200		71,750
	Stone Energy Corp. (a)		5,328		39,534


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Swift Energy Co. (a)		4,900	$	81,585
	Toreador Resources Corp.		3,400		22,780
	Vaalco Energy, Inc. (a)		9,100		38,493
	Venoco, Inc. (a)		2,800		21,476
	W&T Offshore, Inc.		5,170		50,356
	Warren Resources, Inc. (a)		9,200		22,540
	Zion Oil & Gas, Inc. (a)		1,700		18,054

					2,115,417

Oil: Integrated - 0.1%	Alon USA Energy, Inc.		1,100		11,385
	CVR Energy, Inc. (a)		3,500		25,655
	Delek US Holdings, Inc.		1,900		16,112
	Western Refining, Inc. (a)		4,900		34,594

					87,746

Paints & Coatings - 0.2%	Chase Corp.		800		9,520
	Ferro Corp.		6,500		17,875
	H.B. Fuller Co.		7,700		144,529
	North American Galvanizing & Coatings (a)		1,800		10,908

					182,832

Paper - 0.3%	Boise, Inc. (a)		4,600		7,912
	Buckeye Technologies, Inc. (a)		5,900		26,491
	Clearwater Paper Corp. (a)		1,696		42,892
	Domtar Corp. (a)		6,604		109,494
	Kapstone Paper and Packaging Corp. (a)		3,200		15,008
	Neenah Paper, Inc.		2,300		20,263
	P.H. Glatfelter Co.		7,100		63,190
	Schweitzer-Mauduit International, Inc.		2,400		65,304
	Wausau Paper Corp.		6,800		45,696

					396,250

Personal Care - 0.3%	Chattem, Inc. (a)		3,000		204,300
	Female Health Co. (a)		2,200		10,560
	Helen of Troy Ltd. (a)		4,700		78,913
	Mannatech, Inc.		2,500		8,250
	Orchids Paper Products Co. (a)		700		14,385
	USANA Health Sciences, Inc. (a)		1,000		29,730
	WD-40 Co.		2,600		75,400

					421,538

Pharmaceuticals - 1.8%	Acura Pharmaceuticals, Inc. (a)		1,300		7,644
	Adolor Corp. (a)		7,300		12,848
	Akorn, Inc. (a)		8,400		10,080
	Alkermes, Inc. (a)		14,800		160,136
	Allion Healthcare, Inc. (a)		3,500		20,825
	American Oriental Bioengineering, Inc. (a)		9,700		51,313
	Ardea Biosciences, Inc. (a)		2,100		33,054
	Auxilium Pharmaceuticals, Inc. (a)(b)		6,600		207,108
	Avanir Pharmaceuticals, Inc. (a)		10,500		23,310
	BMP Sunstone Corp. (a)		4,800		22,752


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	BioCryst Pharmaceuticals, Inc. (a)		3,800	$	15,314
	Biospecifics Technologies (a)		700		16,681
	Cadence Pharmaceuticals, Inc. (a)		3,800		37,962
	Cambrex Corp. (a)		4,165		17,160
	Caraco Pharmaceutical Laboratories Ltd. (a)		1,600		4,912
	China Sky One Medical, Inc. (a)		1,800		24,264
	Depomed, Inc. (a)		8,000		26,000
	Durect Corp. (a)		12,600		29,988
	Hi-Tech Pharmacal Co., Inc. (a)		1,500		13,350
	Impax Laboratories, Inc. (a)		9,700		71,392
	Infinity Pharmaceuticals, Inc. (a)		3,200		18,688
	Inspire Pharmaceuticals, Inc. (a)		6,600		36,696
	Isis Pharmaceuticals, Inc. (a)		14,500		239,250
	Ista Pharmaceuticals, Inc. (a)		5,700		23,940
	Javelin Pharmaceuticals, Inc. (a)		7,400		9,102
	K-V Pharmaceutical Co. Class A (a)		4,700		15,087
	Lannett Co., Inc. (a)		1,900		13,015
	MAP Pharmaceuticals, Inc. (a)		1,000		12,220
	Medicines Co. (a)		8,300		69,637
	Medicis Pharmaceutical Corp. Class A		9,100		148,512
	MiddleBrook Pharmaceuticals, Inc. (a)		6,000		8,100
	Noven Pharmaceuticals, Inc. (a)		3,900		55,770
	Obagi Medical Products, Inc. (a)		2,700		19,683
	Optimer Pharmaceuticals, Inc. (a)		4,500		67,365
	Pain Therapeutics, Inc. (a)		5,400		28,998
	Par Pharmaceutical Cos., Inc. (a)		5,400		81,810
	Pozen, Inc. (a)		4,000		30,720
	Prestige Brands Holdings, Inc. (a)		5,100		31,365
	Questcor Pharmaceuticals, Inc. (a)		9,300		46,500
	SIGA Technologies, Inc. (a)		4,200		35,406
	Salix Pharmaceuticals Ltd. (a)		7,500		74,025
	Santarus, Inc. (a)		8,700		24,534
	Sciclone Pharmaceuticals, Inc. (a)		6,500		16,640
	Spectrum Pharmaceuticals, Inc. (a)		5,400		41,310
	SuperGen, Inc. (a)		8,600		17,286
	Vical, Inc. (a)		4,700		12,737
	Vivus, Inc. (a)		10,900		66,272
	Xenoport, Inc. (a)		4,300		99,631

					2,150,392

Photography - 0.1%	CPI Corp.		700		11,893
	Eastman Kodak Co.		42,600		126,096

					137,989

Plastics - 0.0%	Spartech Corp.		4,600		42,274

Power Transmission Equipment - 0.3%	Advanced Energy Industries, Inc. (a)		5,200		46,748
	Maxwell Technologies, Inc. (a)		3,500		48,405
	Powell Industries, Inc. (a)		1,300		48,191


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Regal-Beloit Corp.		5,600	$	222,432
	Vicor Corp.		3,100		22,382

					388,158

Precious Metals & Minerals - 0.1%	Horsehead Holding Corp. (a)		5,300		39,485
	Stillwater Mining Co. (a)		6,300		35,973

					75,458

Printing & Copying Services - 0.3%	Cenveo, Inc. (a)		7,600		32,148
	VistaPrint Ltd. (a)		6,600		281,490

					313,638

Producer Durables:	Blount International, Inc. (a)		6,000		51,660
Miscellaneous - 0.1%	China Fire & Security Group, Inc. (a)		2,200		26,774

					78,434

Production Technology Equipment - 0.9%	ATMI, Inc. (a)		4,900		76,097
	Brooks Automation, Inc. (a)		10,083		45,172
	Cognex Corp.		6,200		87,606
	Cohu, Inc.		3,700		33,226
	Cymer, Inc. (a)		4,600		136,758
	Electro Scientific Industries, Inc. (a)		4,300		48,074
	Entegris, Inc. (a)		17,595		47,858
	FEI Co. (a)		5,900		135,110
	Intevac, Inc. (a)		3,400		29,614
	Kulicke & Soffa Industries, Inc. (a)		9,600		32,928
	MKS Instruments, Inc. (a)		7,700		101,563
	Photronics, Inc. (a)		6,400		25,920
	Rudolph Technologies, Inc. (a)		4,713		26,016
	Semitool, Inc. (a)		3,400		15,708
	Tessera Technologies, Inc. (a)		7,600		192,204
	Ultratech, Inc. (a)		3,700		45,547
	Veeco Instruments, Inc. (a)		5,000		57,950

					1,137,351

Publishing - 0.2%	Courier Corp.		1,600		24,416
	Dolan Media Co. (a)		4,700		60,113
	Journal Communications, Inc. Class A		6,400		6,720
	Martha Stewart Living Omnimedia, Inc. Class A (a)		4,100		12,546
	Primedia, Inc.		4,250		8,543
	Scholastic Corp.		3,700		73,223

					185,561

Radio & TV Broadcasters - 0.0%	Crown Media Holdings, Inc. Class A (a)		2,200		3,674
	Fisher Communications, Inc.		900		11,511
	Lin TV Corp. Class A (a)		4,500		7,560
	Outdoor Channel Holdings, Inc. (a)		2,300		13,570
	Sinclair Broadcast Group, Inc. Class A		7,300		14,162

					50,477

Railroad Equipment - 0.1%	American Railcar Industries, Inc.		1,400		11,564
	Freightcar America, Inc.		1,900		31,939
	Greenbrier Cos., Inc.		2,600		18,694


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Portec Rail Products, Inc.	1,100	$	10,835

				73,032

Railroads - 0.1%	Genesee & Wyoming, Inc. Class A (a)	5,150		136,527

Real Estate - 0.2%	American Realty Investors, Inc. (a)	600		6,120
	Avatar Holdings, Inc. (a)	900		16,353
	China Housing & Land Development (a)	4,400		25,256
	Consolidated-Tomoka Land Co.	800		28,064
	Forestar Group, Inc. (a)	5,566		66,124
	Griffin Land & Nurseries, Inc.	500		15,640
	Tejon Ranch Co. (a)	1,700		45,033
	United Capital Corp. (a)	200		3,664

				206,254

Real Estate Investment Trusts (REITs) - 5.1%	Acadia Realty Trust	6,119		79,853
	Agree Realty Corp.	1,200		21,996
	Alexander’s, Inc.	300		80,880
	American Campus Communities, Inc.	8,158		180,944
	American Capital Agency Corp.	1,600		36,752
	Anthracite Capital, Inc. (c)	9,500		5,890
	Anworth Mortgage Asset Corp.	16,400		118,244
	Ashford Hospitality Trust, Inc.	10,950		30,770
	Associated Estates Realty Corp.	2,200		13,112
	BioMed Realty Trust, Inc.	15,600		159,588
	CBL & Associates Properties, Inc.	11,500		61,985
	CapLease, Inc.	7,000		19,320
	Capstead Mortgage Corp.	9,900		125,829
	Care Investment Trust, Inc.	1,900		9,880
	Cedar Shopping Centers, Inc.	6,100		27,572
	Cogdell Spencer, Inc.	4,100		17,589
	Colonial Properties Trust	7,600		56,240
	Cousins Properties, Inc.	5,827		49,530
	DCT Industrial Trust, Inc.	28,250		115,260
	Developers Diversified Realty Corp.	21,966		107,194
	DiamondRock Hospitality Co.	16,540		103,540
	Dupont Fabros Technology, Inc.	4,300		40,506
	Dynex Capital Corp.	1,600		13,120
	Eastgroup Properties, Inc.	3,900		128,778
	Education Realty Trust, Inc.	4,300		18,447
	Entertainment Properties Trust	5,400		111,240
	Equity Lifestyle Properties, Inc.	3,300		122,694
	Equity One, Inc.	4,900		64,974
	Extra Space Storage, Inc.	13,500		112,725
	FelCor Lodging Trust, Inc.	10,000		24,600
	First Industrial Realty Trust, Inc.	6,700		29,145
	First Potomac Realty Trust	4,300		41,925
	Franklin Street Properties Corp.	9,200		121,900
	Getty Realty Corp.	2,700		50,949


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Gladstone Commercial Corp.	1,300	$	16,848
	Glimcher Realty Trust	5,600		16,240
	Gramercy Capital Corp. (a)	6,661		10,724
	Hatteras Financial Corp.	5,600		160,104
	Healthcare Realty Trust, Inc.	9,500		159,885
	Hersha Hospitality Trust	6,700		16,616
	Highwoods Properties, Inc.	11,200		250,544
	Home Properties, Inc.	5,100		173,910
	Inland Real Estate Corp.	11,000		77,000
	Investors Real Estate Trust	9,600		85,344
	iStar Financial, Inc.	16,300		46,292
	Kilroy Realty Corp.	5,804		119,214
	Kite Realty Group Trust	6,000		17,520
	LTC Properties, Inc.	3,600		73,620
	LaSalle Hotel Properties	8,100		99,954
	Lexington Corporate Properties Trust	13,237		45,006
	MFA Financial, Inc.	34,700		240,124
	Medical Properties Trust, Inc.	12,500		75,875
	Mid-America Apartment Communities, Inc.	4,400		161,524
	Mission West Properties, Inc.	2,400		16,392
	Monmouth Real Estate Investment Corp. Class A	3,100		18,166
	National Health Investors, Inc.	4,000		106,840
	National Retail Properties, Inc.	12,400		215,140
	NorthStar Realty Finance Corp.	9,246		26,166
	Omega Healthcare Investors, Inc.	13,100		203,312
	PS Business Parks, Inc.	2,400		116,256
	Parkway Properties, Inc.	3,400		44,200
	Pennsylvania Real Estate Investment Trust	5,600		28,000
	Post Properties, Inc.	7,100		95,424
	Potlatch Corp.	6,139		149,116
	RAIT Investment Trust	10,140		13,892
	Ramco-Gershenson Properties Trust	2,500		25,025
	Redwood Trust, Inc.	12,000		177,120
	Resource Capital Corp.	3,100		9,920
	Saul Centers, Inc.	900		26,613
	Sovran Self Storage, Inc.	3,700		91,020
	Strategic Hotel Capital, Inc.	11,200		12,432
	Sun Communities, Inc.	2,600		35,828
	Sunstone Hotel Investors, Inc.	11,675		62,461
	Tanger Factory Outlet Centers, Inc.	5,700		184,851
	Transcontinental Realty Investors, Inc. (a)	400		4,828
	U-Store-It Trust	7,600		37,240
	UMH Properties, Inc.	1,700		13,549
	Universal Health Realty Income Trust	1,800		56,736
	Urstadt Biddle Properties, Inc. Class A	3,200		45,056
	Walter Investment Management Corp. (a)	2,705		35,922


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Washington Real Estate Investment Trust		9,100	$	203,567
	Winthrop Realty Trust		1,560		13,931

					6,218,318

Recreational Vehicles & Boats - 0.2%	Brunswick Corp.		13,800		59,616
	Drew Industries, Inc. (a)		2,900		35,293
	Marine Products Corp.		1,500		5,625
	Polaris Industries, Inc.		4,700		150,964
	Winnebago Industries, Inc.		4,400		32,692

					284,190

Rental & Leasing Services: Consumer - 0.3%	Amerco, Inc. (a)		1,400		52,010
	Avis Budget Group, Inc. (a)		16,400		92,660
	Dollar Thrifty Automotive Group, Inc. (a)		3,400		47,430
	Rent-A-Center, Inc. (a)(b)		10,300		183,649

					375,749

Restaurants - 1.5%	AFC Enterprises, Inc. (a)		3,700		24,975
	BJ’s Restaurants, Inc. (a)		3,200		53,984
	Benihana, Inc. Class A (a)		2,400		15,168
	Bob Evans Farms, Inc.		4,800		137,952
	Buffalo Wild Wings, Inc. (a)		2,800		91,056
	CEC Entertainment, Inc. (a)		3,600		106,128
	CKE Restaurants, Inc.		7,900		66,992
	California Pizza Kitchen, Inc. (a)		3,050		40,534
	Caribou Coffee Co., Inc. (a)		900		5,778
	Carrols Restaurant Group, Inc. (a)		2,000		13,320
	The Cheesecake Factory, Inc. (a)		9,400		162,620
	Cracker Barrel Old Country Store, Inc.		3,558		99,268
	Denny’s Corp. (a)		15,000		32,250
	DineEquity, Inc.		2,800		87,332
	Domino’s Pizza, Inc. (a)		6,000		44,940
	Einstein Noah Restaurant Group, Inc. (a)		700		6,055
	Frisch’s Restaurants, Inc.		300		8,862
	Jack in the Box, Inc. (a)		8,900		199,805
	Krispy Kreme Doughnuts, Inc. (a)		9,100		27,300
	Landry’s Restaurants, Inc. (a)		1,000		8,600
	Luby’s, Inc. (a)		3,200		12,992
	McCormick & Schmick’s Seafood Restaurants, Inc. (a)		2,100		15,981
	O’Charleys, Inc.		2,700		24,975
	P.F. Chang’s China Bistro, Inc. (a)		3,700		118,622
	Papa John’s International, Inc. (a)		3,400		84,286
	Red Robin Gourmet Burgers, Inc. (a)		2,400		45,000
	Ruby Tuesday, Inc. (a)		8,300		55,278
	Ruth’s Hospitality Group, Inc. (a)		3,000		11,010
	Sonic Corp. (a)		9,470		94,984
	The Steak n Shake Co.(a)		3,600		31,464


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Texas Roadhouse, Inc. Class A (a)		8,000	$	87,280

					1,814,791

Scientific Instruments: Control & Filter - 0.7%	CIRCOR International, Inc.		2,700		63,747
	China Security & Surveillance Technology, Inc. (a)		5,000		37,700
	ESCO Technologies, Inc. (a)		4,200		188,160
	Energy Recovery, Inc. (a)		5,600		39,648
	Flanders Corp. (a)		2,400		14,664
	The Gorman-Rupp Co.		2,218		44,737
	ICx Technologies, Inc. (a)		1,800		10,800
	L-1 Identity Solutions, Inc. (a)		11,998		92,865
	Mine Safety Appliances Co.		4,100		98,810
	PMFG, Inc. (a)		2,000		17,620
	RAE Systems, Inc. (a)		5,500		7,590
	Robbins & Myers, Inc.		4,300		82,775
	Sun Hydraulics, Inc.		1,800		29,106
	Watts Water Technologies, Inc. Class A		4,500		96,930
	X-Rite, Inc. (a)		5,100		7,650

					832,802

Scientific Instruments: Electrical - 1.0%	A.O. Smith Corp.		3,400		110,738
	AZZ, Inc. (a)		1,900		65,379
	Advanced Battery Technologies, Inc. (a)		7,300		29,346
	American Superconductor Corp. (a)		6,700		175,875
	Baldor Electric Co.		7,270		172,953
	Broadwind Energy, Inc. (a)		5,100		57,732
	China BAK Battery, Inc. (a)		5,900		17,405
	DDi Corp. (a)		2,700		12,231
	Ener1, Inc. (a)		7,300		39,858
	EnerSys (a)		6,300		114,597
	Franklin Electric Co., Inc.		3,600		93,312
	GrafTech International Ltd. (a)		19,000		214,890
	Littelfuse, Inc. (a)		3,400		67,864
	Preformed Line Products Co.		300		13,218
	SatCon Technology Corp. (a)		9,100		16,380
	Taser International, Inc. (a)		9,700		44,232
	Ultralife Batteries, Inc. (a)		1,900		13,623
	Valence Technology, Inc. (a)		8,000		14,320

					1,273,953

Scientific Instruments: Gauges & Meters - 0.1%	Badger Meter, Inc.		2,300		94,300
	Faro Technologies, Inc. (a)		2,500		38,825
	Measurement Specialties, Inc. (a)		2,200		15,510
	Smartheat, Inc. (a)		1,300		8,905
	Zygo Corp. (a)		2,300		10,718

					168,258

Scientific Instruments: Pollution Control - 0.5%	American Ecology Corp.		2,800		50,176
	Clean Harbors, Inc. (a)		3,200		172,768
	Darling International, Inc. (a)		12,900		85,140


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	EnergySolutions, Inc.		12,000	$	110,400
	Fuel Tech, Inc. (a)		2,900		28,130
	Heritage Crystal Clean, Inc. (a)		600		7,290
	Met-Pro Corp.		2,300		24,886
	Metalico, Inc. (a)		4,200		19,572
	Perma-Fix Environmental Services (a)		8,100		19,602
	Team, Inc. (a)		2,900		45,443
	Waste Services, Inc. (a)		2,333		12,085

					575,492

Securities Brokerage & Services - 0.8%	BGC Partners, Inc.		7,800		29,562
	E*Trade Financial Corp. (a)		77,204		98,821
	GFI Group, Inc.		10,000		67,400
	Gladstone Investment Corp.		3,500		16,905
	International Assets Holding Corp., Inc. (a)		700		10,409
	KBW, Inc. (a)		5,400		155,304
	Knight Capital Group, Inc. Class A (a)		14,500		247,225
	LaBranche & Co., Inc. (a)		8,400		36,120
	MF Global Ltd. (a)		15,500		91,915
	MarketAxess Holdings, Inc. (a)		5,000		47,650
	optionsXpress Holdings, Inc.		6,600		102,498
	Penson Worldwide, Inc. (a)		3,200		28,640
	SWS Group, Inc.		3,800		53,086
	TradeStation Group, Inc. (a)		5,100		43,146

					1,028,681

Semiconductors & Components - 2.5%	Actel Corp. (a)		4,100		43,993
	Advanced Analogic Technologies, Inc. (a)		6,400		29,376
	Amkor Technology, Inc. (a)		17,100		80,883
	Anadigics, Inc. (a)		9,900		41,481
	Applied Micro Circuits Corp. (a)		10,575		85,975
	Atheros Communications, Inc. (a)		9,500		182,780
	CSR Plc (a)		7,410		42,638
	Cavium Networks, Inc. (a)		5,800		97,498
	Ceva, Inc. (a)		3,100		26,908
	Cirrus Logic, Inc. (a)		10,200		45,900
	DSP Group, Inc. (a)		3,600		24,336
	Diodes, Inc. (a)		4,900		76,636
	Emcore Corp. (a)		11,800		14,868
	Entropic Communications, Inc. (a)		9,000		20,250
	Exar Corp. (a)		5,700		40,983
	Formfactor, Inc. (a)		7,900		136,196
	Hittite Microwave Corp. (a)		3,300		114,675
	IXYS Corp.		3,700		37,444
	Intellon Corp. (a)		3,700		15,725
	Kopin Corp. (a)		10,400		38,168
	Lattice Semiconductor Corp. (a)		17,800		33,464
	MIPS Technologies, Inc. (a)		6,600		19,800


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Micrel, Inc.		7,100	$	51,972
	Microsemi Corp. (a)		12,700		175,260
	Microtune, Inc. (a)		8,100		18,954
	Monolithic Power Systems, Inc. (a)		5,400		121,014
	Netlogic Microsystems, Inc. (a)		2,900		105,734
	Omnivision Technologies, Inc. (a)		7,800		81,042
	PLX Technology, Inc. (a)		4,500		16,965
	ParkerVision, Inc. (a)		4,500		13,770
	Pericom Semiconductor Corp. (a)		4,240		35,701
	Power Integrations, Inc.		3,600		85,644
	RF Micro Devices, Inc. (a)		41,637		156,555
	Rubicon Technology, Inc. (a)		2,000		28,560
	Semtech Corp. (a)		9,500		151,145
	Sigma Designs, Inc. (a)		4,200		67,368
	Silicon Image, Inc. (a)		11,700		26,910
	Silicon Storage Technology, Inc. (a)		12,800		23,936
	Skyworks Solutions, Inc. (a)		26,052		254,789
	Standard Microsystems Corp. (a)		3,400		69,530
	Supertex, Inc. (a)		1,700		42,687
	Techwell, Inc. (a)		2,300		19,550
	Trident Microsystems, Inc. (a)		9,800		17,052
	TriQuint Semiconductor, Inc. (a)		23,400		124,254
	Virage Logic Corp. (a)		3,000		13,500
	Volterra Semiconductor Corp. (a)		3,400		44,676
	White Electronic Designs Corp. (a)		3,300		15,279
	Zoran Corp. (a)		8,100		88,290

					3,100,114

Shipping - 0.7%	American Commerical Lines, Inc. (a)		1,450		22,446
	DHT Maritime, Inc.		7,300		38,033
	Eagle Bulk Shipping, Inc.		7,400		34,706
	Genco Shipping & Trading Ltd.		4,100		89,052
	General Maritime Corp.		7,630		75,461
	Golar LNG Ltd.		5,400		46,170
	Gulfmark Offshore, Inc. (a)		3,600		99,360
	Horizon Lines, Inc. Class A		4,700		18,142
	International Shipholding Corp.		900		24,264
	Knightsbridge Tankers Ltd.		2,600		35,464
	Nordic American Tanker Shipping Ltd.		6,600		210,012
	Ship Finance International Ltd.		7,000		77,210
	TBS International Ltd. (a)		2,300		17,963
	Teekay Tankers Ltd. Class A		1,400		13,006
	Ultrapetrol Bahamas Ltd. (a)		3,400		15,062

					816,351

Steel - 0.1%	China Precision Steel, Inc. (a)		5,600		13,888
	General Steel Holdings, Inc. (a)		2,100		8,337
	Olympic Steel, Inc.		1,400		34,258


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Sutor Technology Group Ltd. (a)		1,500	$	4,905
	Universal Stainless & Alloy Products, Inc. (a)		1,000		16,270

					77,658

Sugar - 0.0%	Imperial Sugar Co. New Shares		1,700		20,587

Synthetic Fibers & Chemicals - 0.0%	Zoltek Cos., Inc. (a)		4,300		41,796

Technology: Miscellaneous - 0.3%	Benchmark Electronics, Inc. (a)		10,200		146,880
	CTS Corp.		5,300		34,715
	LaBarge, Inc. (a)		1,900		17,613
	Plexus Corp. (a)		6,200		126,852
	Vocus, Inc. (a)		2,600		51,376

					377,436

Telecommunications Equipment - 0.5%	ADC Telecommunications, Inc. (a)		15,416		122,711
	Applied Signal Technology, Inc.		2,000		51,020
	Arris Group, Inc. (a)		19,346		235,247
	Cogo Group, Inc. (a)		3,700		22,089
	Communications System, Inc.		800		7,840
	Mastec, Inc. (a)		8,100		94,932
	OpNext, Inc. (a)		2,900		6,206
	Powerwave Technologies, Inc. (a)		19,800		31,878
	Symmetricom, Inc. (a)		6,800		39,236
	UTStarcom, Inc. (a)		16,900		27,547

					638,706

Textile Products - 0.1%	Interface, Inc. Class A		8,100		50,220
	Unifi, Inc. (a)		7,000		9,940

					60,160

Textiles Apparel & Shoes - 1.8%	American Apparel, Inc. (a)		5,500		20,020
	Carter’s, Inc. (a)		8,800		216,568
	Cherokee, Inc.		1,200		23,784
	Columbia Sportswear Co.		1,900		58,748
	Crocs, Inc. (a)		13,100		44,540
	Deckers Outdoor Corp. (a)		2,100		147,567
	FGX International Holdings Ltd. (a)		2,100		23,898
	G-III Apparel Group, Ltd. (a)		1,900		21,831
	Iconix Brand Group, Inc. (a)		9,400		144,572
	J. Crew Group, Inc. (a)		7,870		212,647
	Jones Apparel Group, Inc.		13,500		144,855
	K-Swiss, Inc. Class A		4,100		34,850
	Kenneth Cole Productions, Inc. Class A		1,200		8,436
	Liz Claiborne, Inc.		15,500		44,640
	lululemon athletica, inc. (a)		6,400		83,392
	Maidenform Brands, Inc. (a)		2,800		32,116
	Oxford Industries, Inc.		2,000		23,300
	Perry Ellis International, Inc. (a)		1,450		10,556
	Quiksilver, Inc. (a)		20,000		37,000
	Skechers U.S.A., Inc. Class A (a)		5,200		50,804
	Steven Madden Ltd. (a)		2,400		61,080


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	Timberland Co. Class A (a)		6,600	$	87,582
	True Religion Apparel, Inc. (a)		3,900		86,970
	Under Armour, Inc. Class A (a)		5,200		116,376
	Volcom, Inc. (a)		2,800		35,000
	The Warnaco Group, Inc. (a)		7,100		230,040
	Weyco Group, Inc.		1,100		25,399
	Wolverine World Wide, Inc.		7,700		169,862

					2,196,433

Tobacco - 0.2%	Alliance One International, Inc. (a)(b)		13,900		52,820
	Star Scientific, Inc. (a)		11,173		9,944
	Universal Corp.		3,900		129,129
	Vector Group Ltd.		5,894		84,225

					276,118

Toys - 0.1%	Jakks Pacific, Inc. (a)		4,400		56,452
	Leapfrog Enterprises, Inc. (a)		5,000		11,450
	RC2 Corp. (a)		2,700		35,721

					103,623

Transportation Miscellaneous - 0.2%	Dynamex, Inc. (a)		1,400		21,546
	HUB Group, Inc. Class A (a)		5,800		119,712
	Odyssey Marine Exploration, Inc. (a)		7,900		12,640
	Pacer International, Inc.		5,500		12,265
	Textainer Group Holdings Ltd.		1,400		16,086
	Todd Shipyards Corp.		800		13,320

					195,569

Truckers - 0.7%	Arkansas Best Corp.		3,900		102,765
	Celadon Group, Inc. (a)		3,500		29,365
	Forward Air Corp.		4,500		95,940
	Heartland Express, Inc.		8,000		117,760
	Knight Transportation, Inc.		8,850		146,468
	Marten Transport Ltd. (a)		2,400		49,824
	Old Dominion Freight Line, Inc. (a)		4,350		146,030
	Patriot Transportation Holding, Inc. (a)		200		14,586
	Saia, Inc. (a)		2,100		37,821
	USA Truck, Inc. (a)		1,100		14,883
	Universal Truckload Services, Inc.		900		14,085
	Werner Enterprises, Inc.		6,800		123,216
	YRC Worldwide, Inc. (a)		8,740		15,120

					907,863

Utilities: Electrical - 1.8%	Allete, Inc.		4,200		120,750
	Avista Corp.		8,500		151,385
	Black Hills Corp.		6,100		140,239
	CH Energy Group, Inc.		2,500		116,750
	Central Vermont Public Service Corp.		1,800		32,580
	Cleco Corp.		9,500		212,990
	El Paso Electric Co. (a)		7,000		97,720
	The Empire District Electric Co.		5,300		87,556


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	IDACORP, Inc.		7,300	$	190,822
	MGE Energy, Inc.		3,700		124,135
	NorthWestern Corp.		5,600		127,456
	Otter Tail Corp.		5,600		122,304
	PNM Resources, Inc.		13,900		148,869
	Pike Electric Corp. (a)		2,600		31,330
	Portland General Electric Co.		11,700		227,916
	UIL Holdings Corp.		4,433		99,521
	Unisource Energy Corp.		5,500		145,970
	Unitil Corp.		1,600		32,992

					2,211,285

Utilities: Gas Distributors - 1.4%	Chesapeake Utilities Corp.		1,100		35,783
	Florida Public Utilities Co.		1,200		16,836
	The Laclede Group, Inc.		3,500		115,955
	New Jersey Resources Corp.		6,600		244,464
	Nicor, Inc.		7,000		242,340
	Northwest Natural Gas Co.		4,100		181,712
	Piedmont Natural Gas Co.		11,500		277,265
	South Jersey Industries, Inc.		4,800		167,472
	Southwest Gas Corp.		7,100		157,691
	WGL Holdings, Inc.		7,800		249,756

					1,689,274

Utilities: Telecommunications - 1.2%	Alaska Communications Systems Group, Inc.		6,900		50,508
	Atlantic Tele-Network, Inc.		1,400		55,006
	Cbeyond Communications, Inc. (a)		3,600		51,660
	Centennial Communications Corp. (a)		13,200		110,352
	Cincinnati Bell, Inc. (a)		33,600		95,424
	Cogent Communications Group, Inc. (a)(b)		6,900		56,235
	Consolidated Communications Holdings, Inc.		3,619		42,378
	D&E Communications, Inc.		2,400		24,552
	FairPoint Communications, Inc.		14,050		8,430
	Fibernet Telecom Group, Inc. (a)		800		9,936
	General Communication, Inc. Class A (a)		6,900		47,817
	Global Crossing Ltd. (a)		4,500		41,310
	HickoryTech Corp.		1,900		14,592
	Ibasis, Inc. (a)		4,100		5,371
	Incontact, Inc. (a)		5,000		13,750
	Iowa Telecommunications Services, Inc.		5,100		63,801
	iPCS, Inc. (a)		2,700		40,392
	j2 Global Communications, Inc. (a)		7,000		157,920
	NTELOS Holdings Corp.		4,700		86,574
	Neutral Tandem, Inc. (a)		5,200		153,504
	PAETEC Holding Corp. (a)		19,105		51,584
	Premiere Global Services, Inc. (a)		9,500		102,980
	RCN Corp. (a)		5,700		34,029
	Shenandoah Telecom Co.		3,700		75,073


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



Industry	Common Stocks	Shares Held		Value

	SureWest Communications (a)		2,500	$	26,175
	USA Mobility, Inc.		3,800		48,488
	Virgin Mobile USA, Inc. (a)		5,300		21,306

					1,489,147

Utilities: Water - 0.4%	American States Water Co. (b)		2,800		96,992
	Artesian Resources Corp. Class A		1,200		19,116
	California Water Service Group		3,100		114,204
	Connecticut Water Service, Inc.		1,300		28,197
	Consolidated Water Co., Inc.		2,100		33,285
	Middlesex Water Co.		2,100		30,345
	Pennichuck Corp.		600		13,680
	SJW Corp.		2,000		45,400
	Southwest Water Co.		3,765		20,783
	York Water Co.		1,700		26,061

					428,063

Wholesale & International Trade - 0.2%	Brightpoint, Inc. (a)		7,830		49,094
	Chindex International, Inc. (a)		2,100		25,977
	Houston Wire & Cable Co.		2,700		32,157
	MWI Veterinary Supply, Inc. (a)		1,700		59,262
	United Stationers, Inc. (a)		3,700		129,056

					295,546

	Total Common Stocks (Cost - $169,295,814) - 95.5%				117,031,781

	Investment Companies

	BlackRock Kelso Capital Corp. (c)		1,800		11,214
	Gladstone Capital Corp.		3,200		24,096
	Hercules Technology Growth Capital, Inc.		5,313		44,417
	Kayne Anderson Energy Development Co.		1,600		21,216
	Pennantpark Investment Corp.		3,200		22,720
	Prospect Capital Corp.		6,600		60,720

	Total Investment Companies (Cost - $329,680) - 0.1%				184,383

	Warrants (d)

Alternative Energy - 0.0%	GreenHunter Energy, Inc. (expires 8/27/11)		60		—

	Total Warrants (Cost - $0) - 0.0%				—


	Short-Term Securities	Maturity Date	Yield		Face Amount

Time Deposits - 6.2%	State Street Bank & Trust Co.	7/01/09	0.01	%	$	7,585,945	7,585,945

	Total Short-Term Securities (Cost - $7,585,945) - 6.2%						7,585,945

	Total Investments Before Options Written (Cost - $177,211,439*) - 101.8%						124,802,109


Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)	(Percentages shown are based on Net Assets)



	Options Written	Number of Contracts		Value

Call Options Written	Russell 2000 Index, expiring July 2009 at USD 520		1,000		(725,000	)
	Russell 2000 Index, expiring August 2009 at USD 530		200	$	(251,000	)

	Total Options Written (Premiums Received - $1,739,293) - (0.8%)				(976,000	)

	Total Investments, Net of Options Written (Net Cost - $175,472,146) - 101.0%				123,826,109
	Liabilities in Excess of Other Assets - (1.0)%				(1,277,617	)

	Net Assets - 100.0%			$	122,548,492


*	The cost and unrealized appreciation (depreciation) of investments as of June 30, 2009, as computed for federal income tax purposes, were as follows:


Aggregate cost	$	109,912,067

Gross unrealized appreciation	$	17,887,408
Gross unrealized depreciation		(2,997,366	)

Net unrealized appreciation	$	14,890,042


(a)	Non-income producing security.

(b)	All or a portion of security held as collateral in connection with open financial futures contracts.

(c)	Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:



Affiliate	Purchase Cost		Sales Cost		Realized Loss			Dividend Income

Anthracite Capital, Inc.	$	608	$	10,821	$	(10,002	)		—
BlackRock Kelso Capital Corp.		—		—		—		$	576


(d)	Warrants entitle the Fund to purchase a predetermined number of shares of common stock and are non-income producing. The purchase price and number of shares are subject to adjustment under certain conditions until the expiration date.

•	Financial futures contracts purchased as of June 30, 2009 were as follows:



Number of Contracts	Issue	Expiration Date	Face Value		Depreciation

90	E-Mini Russell 2000	September 2009	$	4,659,534	$	(94,734)


•	For Fund portfolio compliance purposes, the Fund’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Fund management. This definition may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.

•	Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

	•	Level 1 - price quotations in active markets/exchanges for identical securities

	•	Level 2 - other observable inputs (including, but not limited to: 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)

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments as of June 30, 2009 (Unaudited)


	•	Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used 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. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1 (a) of the Notes to Financial Statements.


		The following table summarizes the inputs used as of June 30, 2009 in determining the fair valuation of the Fund’s investments:



Valuation Inputs	Investments in Securities		Other Financial Instruments+

	Assets		Liabilities

Level 1	$	117,216,118	$	(1,070,734	)
Level 2		7,585,991		—
Level 3		—		—

Total	$	124,802,109	$	(1,070,734	)

+ Other financial instruments are futures and options.

	(b) Not Applicable since no such divestments occurred during the semi-annual period covered since the last report on Form N-CSR.

Item 7 –	Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies – Not Applicable to this semi-annual report

Item 8 –	Portfolio Managers of Closed-End Management Investment Companies – Not Applicable to this semi-annual report

Item 9 –	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable

Item 10 –	Submission of Matters to a Vote of Security Holders – The registrant’s Nominating Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations that include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.

Item 11 –	Controls and Procedures

11(a) –	The registrant’s principal executive and principal financial officers or persons performing similar functions have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13a-15(b) under the Securities Exchange Act of 1934, as amended.

11(b) –	There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 12 –	Exhibits attached hereto

12(a)(1) –	Code of Ethics – Not Applicable to this semi-annual report

12(a)(2) –	Certifications – Attached hereto

12(a)(3) –	Not Applicable

12(b) –	Certifications – Attached hereto

	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.

	Small Cap Premium & Dividend Income Fund Inc.

	By:	/s/ Justin C. Ferri
		Justin C. Ferri
		Chief Executive Officer of
		Small Cap Premium & Dividend Income Fund Inc.

	Date: August 20, 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/ Justin C. Ferri
		Justin C. Ferri
		Chief Executive Officer (principal executive officer) of
		Small Cap Premium & Dividend Income Fund Inc.

	Date: August 20, 2009

	By:	/s/ James E. Hillman
		James E. Hillman
		Chief Financial Officer (principal financial officer) of
		Small Cap Premium & Dividend Income Fund Inc.

	Date: August 20, 2009