UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED MANAGEMENT INVESTMENT
COMPANY
Investment Company Act file number 811-21381
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FIRST TRUST VALUE LINE(R) DIVIDEND FUND
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(Exact name of registrant as specified in charter)
1001 Warrenville Road, Suite 300
LISLE, IL 60532
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(Address of principal executive offices) (Zip code)
W. Scott Jardine
First Trust Portfolios L.P.
1001 Warrenville Road, Suite 300
LISLE, IL 60532
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-241-4141
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Date of fiscal year end: MAY 31
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Date of reporting period: AUGUST 31, 2005
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington,
DC 20549-0609. The OMB has reviewed this collection of information under the
clearance requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - 98.8%
AUTO COMPONENTS - 0.6%
43,378 Magna International, Inc. ....................... $ 3,186,548
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BEVERAGES - 1.7%
73,240 Anheuser-Busch Companies, Inc. .................. 3,245,264
59,651 PepsiCo, Inc. ................................... 3,271,857
73,775 The Coca-Cola Company ........................... 3,246,100
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9,763,221
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CAPITAL MARKETS - 1.1%
111,605 Allied Capital Corp. ............................ 3,230,965
104,433 Federated Investors, Inc., Class B .............. 3,243,689
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6,474,654
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CHEMICALS - 2.8%
56,902 Air Products & Chemicals, Inc. .................. 3,152,371
55,363 Ashland Inc. .................................... 3,365,517
81,162 E. I. du Pont de Nemours and Company ............ 3,211,580
89,892 International Flavors & Fragrances, Inc. ........ 3,245,101
51,799 PPG Industries, Inc. ............................ 3,262,301
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16,236,870
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COMMERCIAL BANKS - 16.9%
123,872 AmSouth Bancorp ................................. 3,260,311
99,395 Associated Banc-Corp ............................ 3,234,313
75,321 Bank of America Corp. ........................... 3,241,063
66,673 Bank of Montreal ................................ 3,252,309
93,802 Bank of Nova Scotia ............................. 3,238,983
80,375 BB&T Corp. ...................................... 3,260,814
54,977 Canadian Imperial Bank of Commerce .............. 3,246,942
45,605 City National Corp. ............................. 3,285,384
53,806 Comerica, Inc. .................................. 3,254,725
69,916 Compass Bancshares, Inc. ........................ 3,272,768
77,487 Fifth Third Bancorp ............................. 3,208,737
85,631 First Midwest Bancorp, Inc. ..................... 3,248,840
91,571 Hancock Holding Company ......................... 3,012,686
95,916 Hibernia Corp., Class A ......................... 3,045,333
73,944 Marshall & Ilsley Corp. ......................... 3,236,529
60,364 Mercantile Bankshares Corp. ..................... 3,249,394
69,190 National Bank of Canada ......................... 3,344,527
89,842 National City Corp. ............................. 3,290,912
120,773 North Fork Bancorporation, Inc. ................. 3,320,050
146,282 Old National Bancorp ............................ 3,278,180
58,297 PNC Financial Services Group, Inc. .............. 3,278,040
119,098 Popular, Inc. ................................... 3,258,521
99,732 Regions Financial Corp. ......................... 3,263,231
49,500 Royal Bank of Canada ............................ 3,370,950
45,805 SunTrust Banks, Inc. ............................ 3,219,175
113,684 Synovus Financial Corp. ......................... 3,270,689
69,301 Toronto-Dominion Bank ........................... 3,270,314
54,633 Wells Fargo & Company ........................... 3,257,219
87,437 Wilmington Trust Corp. .......................... 3,187,953
45,942 Zions Bancorporation ............................ 3,209,508
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97,368,400
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See Notes to Quarterly Portfolio of Investments Page 1
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
COMMERCIAL SERVICES & SUPPLIES - 1.7%
59,607 Avery Dennison Corp. ............................ $ 3,185,398
76,263 Pitney Bowes, Inc. .............................. 3,298,375
87,178 R.R. Donnelley & Sons Company ................... 3,256,970
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9,740,743
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CONTAINERS & PACKAGING - 1.1%
124,732 Bemis Company ................................... 3,261,742
117,868 Sonoco Products Company ......................... 3,350,987
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6,612,729
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DISTRIBUTORS - 0.6%
72,665 Genuine Parts Company ........................... 3,329,510
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DIVERSIFIED TELECOMMUNICATION SERVICES - 2.3%
123,399 BellSouth Corp. ................................. 3,244,160
136,526 SBC Communications, Inc. ........................ 3,287,546
96,546 Telecom Corp. of New Zealand Ltd.,
Sponsored ADR ................................ 3,275,806
99,941 Verizon Communications, Inc. .................... 3,269,070
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13,076,582
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ELECTRIC UTILITIES - 6.2%
71,350 ALLETE, Inc. .................................... 3,228,588
74,300 Cinergy Corp. ................................... 3,272,172
41,545 Entergy Corp. ................................... 3,112,136
61,747 Exelon Corp. .................................... 3,327,546
75,024 FPL Group, Inc. ................................. 3,232,784
104,501 Great Plains Energy, Inc. ....................... 3,248,936
121,636 Hawaiian Electric Industries, Inc. .............. 3,224,570
71,825 Pinnacle West Capital Corp. ..................... 3,227,097
75,199 Progress Energy, Inc. ........................... 3,277,924
94,598 The Southern Company ............................ 3,254,171
137,396 Westar Energy, Inc. ............................ 3,300,252
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35,706,176
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ELECTRICAL EQUIPMENT - 1.1%
48,673 Emerson Electric Company ........................ 3,274,719
73,357 Hubbell, Inc., Class B .......................... 3,315,736
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6,590,455
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FOOD & STAPLES RETAILING - 0.6%
85,609 Weis Markets, Inc. .............................. 3,229,171
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FOOD PRODUCTS - 7.4%
81,469 Cadbury Schweppes PLC, Sponsored ADR ............ 3,248,984
110,085 Campbell Soup Company ........................... 3,236,499
144,453 ConAgra Foods, Inc. ............................. 3,297,862
68,830 General Mills, Inc. ............................. 3,174,440
90,470 H.J. Heinz Company .............................. 3,249,682
71,555 Kellogg Company ................................. 3,243,588
Page 2 See Notes to Quarterly Portfolio of Investments
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
FOOD PRODUCTS - (CONTINUED)
104,366 Kraft Foods, Inc. ............................... $ 3,235,346
73,741 Lancaster Colony Corp. .......................... 3,373,651
95,351 McCormick & Company, Inc. ....................... 3,233,352
167,667 Sara Lee Corp. .................................. 3,185,673
68,786 The J.M. Smucker Company ........................ 3,282,468
47,202 Unilever NV ..................................... 3,266,378
80,555 Unilever PLC, Sponsored ADR ..................... 3,273,755
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42,301,678
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GAS UTILITIES - 5.2%
90,445 AGL Resources, Inc. ............................. 3,378,121
44,734 Equitable Resources, Inc. ....................... 3,372,944
110,198 National Fuel Gas Company ....................... 3,318,062
71,382 New Jersey Resources Corp. ...................... 3,353,526
89,692 Northwest Natural Gas Company ................... 3,298,872
79,389 Peoples Energy Corp. ............................ 3,300,201
135,383 Piedmont Natural Gas Company, Inc. .............. 3,325,006
121,682 UGI Corp. ....................................... 3,364,507
101,072 WGL Holdings, Inc. .............................. 3,322,237
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30,033,476
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HEALTH CARE EQUIPMENT & SUPPLIES - 1.1%
107,954 Arrow International Inc. ........................ 3,195,438
65,247 Hillenbrand Industries, Inc. .................... 3,247,343
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6,442,781
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HOUSEHOLD DURABLES - 1.1%
132,445 Leggett & Platt, Inc. ........................... 3,206,493
92,198 Snap-On, Inc. ................................... 3,273,029
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6,479,522
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HOUSEHOLD PRODUCTS - 2.3%
61,984 Colgate-Palmolive Company ....................... 3,254,160
52,505 Kimberly-Clark Corp. ............................ 3,272,112
56,782 The Clorox Company .............................. 3,268,940
58,805 The Procter & Gamble Company .................... 3,262,501
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13,057,713
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INDEPENDENT POWER PRODUCERS
& ENERGY TRADERS - 0.6%
55,610 Constellation Energy Group, Inc. ................ 3,267,088
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INDUSTRIAL CONGLOMERATES - 1.1%
45,518 3M Company ...................................... 3,238,606
96,691 General Electric Company ........................ 3,249,785
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6,488,391
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INSURANCE - 6.2%
117,911 Arthur J. Gallagher & Company ................... 3,367,538
78,924 Cincinnati Financial Corp. ...................... 3,234,306
65,353 Jefferson-Pilot Corp. ........................... 3,250,005
See Notes to Quarterly Portfolio of Investments Page 3
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
INSURANCE - (CONTINUED)
64,842 Lincoln National Corp. .......................... $ 3,215,515
64,109 Manulife Financial Corp. ........................ 3,265,712
54,578 MBIA, Inc. ...................................... 3,163,887
55,278 Mercury General Corp. ........................... 3,246,477
78,350 Protective Life Corp. ........................... 3,214,701
55,563 The Allstate Corp. .............................. 3,123,196
37,404 The Chubb Corp. ................................. 3,252,652
68,800 Unitrin, Inc. ................................... 3,176,496
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35,510,485
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LEISURE EQUIPMENT & PRODUCTS - 0.6%
60,738 Polaris Industries, Inc. ........................ 3,199,678
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MACHINERY - 2.3%
60,407 Caterpillar, Inc. ............................... 3,351,984
50,822 Deere & Company ................................. 3,322,742
50,623 Eaton Corp. ..................................... 3,235,822
89,692 Lincoln Electric Holdings, Inc. ................. 3,379,595
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13,290,143
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MEDIA - 2.2%
79,350 Dow Jones & Company, Inc. ....................... 3,241,448
50,090 Knight-Ridder, Inc. ............................. 3,209,767
101,964 The New York Times Company ...................... 3,255,711
86,271 Tribune Company ................................. 3,241,201
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12,948,127
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MULTI-UTILITIES - 8.5%
59,585 Ameren Corp. .................................... 3,273,004
69,795 Consolidated Edison, Inc. ....................... 3,274,083
42,462 Dominion Resources, Inc. ........................ 3,247,494
124,205 Energy East Corp. ............................... 3,256,655
85,113 KeySpan Corp. ................................... 3,248,763
105,420 MDU Resources Group, Inc. ....................... 3,392,416
110,310 NSTAR ........................................... 3,260,764
113,206 OGE Energy Corp. ................................ 3,286,370
113,644 PNM Resources Inc. .............................. 3,361,590
77,841 SCANA Corp. ..................................... 3,299,680
73,457 Sempra Energy ................................... 3,292,343
117,397 Vectren Corp. ................................... 3,287,116
83,423 Wisconsin Energy Corp. .......................... 3,267,679
55,889 WPS Resources Corp. ............................. 3,221,442
169,070 Xcel Energy, Inc. ............................... 3,252,907
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49,222,306
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OIL, GAS & CONSUMABLE FUELS - 4.7%
48,790 BP PLC, Sponsored ADR ........................... 3,336,260
54,331 Chevron Corp. ................................... 3,335,923
51,650 ConocoPhillips .................................. 3,405,801
55,127 Exxon Mobil Corp. ............................... 3,302,107
54,349 Marathon Oil Corp. .............................. 3,495,184
Page 4 See Notes to Quarterly Portfolio of Investments
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
OIL, GAS & CONSUMABLE FUELS - (CONTINUED)
50,910 Royal Dutch Petroleum Company ................... $ 3,307,114
25,519 Total SA, Sponsored ADR ......................... 3,364,425
119,347 TransCanada Corp. ............................... 3,327,394
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26,874,208
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PERSONAL PRODUCTS - 0.6%
99,886 Avon Products, Inc. ............................. 3,278,259
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PHARMACEUTICALS - 3.4%
71,953 Abbott Laboratories ............................. 3,247,239
67,933 GlaxoSmithKline PLC, ADR ........................ 3,309,696
52,023 Johnson & Johnson ............................... 3,297,738
60,613 Lilly (Eli) & Company ........................... 3,334,927
129,527 Pfizer, Inc. .................................... 3,299,053
70,897 Wyeth ........................................... 3,246,374
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19,735,027
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REAL ESTATE (REITS) - 11.4%
81,840 Archstone-Smith Trust ........................... 3,298,152
39,337 Avalonbay Communities, Inc. ..................... 3,305,881
78,104 BRE Properties, Inc., Class A ................... 3,233,506
101,772 Duke Realty Corp. ............................... 3,332,015
98,337 Equity Office Properties Trust .................. 3,274,622
85,882 Equity Residential .............................. 3,243,763
53,091 Federal Realty Investment Trust ................. 3,287,395
121,911 Health Care Property Investors, Inc. ............ 3,312,322
84,491 Healthcare Realty Trust, Inc. ................... 3,269,802
103,830 Kimco Realty Corp. .............................. 3,283,105
75,286 Liberty Property Trust .......................... 3,267,412
72,812 Mack-Cali Realty Corp. .......................... 3,207,369
137,105 New Plan Excel Realty Trust ..................... 3,283,665
75,216 Pennsylvania Real Estate Investment Trust ....... 3,245,570
91,571 Plum Creek Timber Company, Inc. ................. 3,365,234
75,497 Prologis ........................................ 3,284,874
42,821 Simon Property Group, Inc. ...................... 3,257,393
138,041 United Dominion Realty Trust, Inc. .............. 3,268,811
106,884 Washington Real Estate Investment Trust ......... 3,315,542
84,095 Weingarten Realty Investors ..................... 3,241,862
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65,578,295
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THRIFTS & MORTGAGE FINANCE - 2.2%
93,234 Capitol Federal Financial ....................... 3,147,580
53,905 Freddie Mac ..................................... 3,254,784
138,990 Washington Federal, Inc. ........................ 3,256,536
78,847 Washington Mutual, Inc. ......................... 3,278,458
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12,937,358
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TOBACCO - 0.6%
78,982 Universal Corp. ................................. 3,287,231
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See Notes to Quarterly Portfolio of Investments Page 5
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2005 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
WIRELESS TELECOMMUNICATION SERVICES - 0.6%
53,013 ALLTEL Corp. .................................... $ 3,286,276
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TOTAL COMMON STOCKS ............................. 568,533,101
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(Cost $501,430,583)
TOTAL INVESTMENTS - 98.8% ....................... 568,533,101
(Cost $501,430,583)*
NET OTHER ASSETS & LIABILITIES - 1.2% ........... 6,967,273
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NET ASSETS - 100.0% ............................. $ 575,500,374
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* Aggregate cost for federal income tax and financial reporting
purposes
ADR American Depository Receipt
REIT Real Estate Investment Trust
Page 6 See Notes to Quarterly Portfolio of Investments
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NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (UNAUDITED)
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FIRST TRUST VALUE LINE(R) DIVIDEND FUND
AUGUST 31, 2005
1. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
First Trust Value Line(R) Dividend Fund (the "Fund") determines the net asset
value ("NAV") of its shares daily, as of the close of regular session trading on
the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern time, on each
day the NYSE is open for trading. The NAV is computed by dividing the value of
all assets of the Fund (including accrued interest and dividends), less all
liabilities (including accrued expenses and dividends declared but unpaid), by
the total number of shares outstanding.
The Fund's investments are valued at market value, or in the absence of market
value with respect to any portfolio securities, at fair value according to
procedures adopted by the Fund's Board of Trustees. Portfolio securities listed
on any exchange other than the NASDAQ National Market ("NASDAQ") are valued at
the last sale price on the business day as of which such value is being
determined. If there has been no sale on such day, the securities are valued at
the mean of the most recent bid and asked prices on such day. Securities traded
on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by
NASDAQ. Portfolio securities traded on more than one securities exchange are
valued at the last sale price on the business day as of which such value is
being determined at the close of the exchange representing the principal market
for such securities. Portfolio securities traded in the over-the-counter market,
but excluding securities traded on the NASDAQ, are valued at the closing bid
prices. Short-term investments that mature in 60 days or less are valued at
amortized cost.
Foreign securities traded outside the United States are generally valued as of
the time their trading is complete, which is usually different from the close of
the NYSE. Occasionally, events affecting the value of such securities may occur
between such times and the close of the NYSE that will not always be reflected
in such securities' value. If events materially affecting the value of such
securities occur during such period, these securities will be valued at their
fair value according to procedures adopted by the Fund's Board of Trustees. All
securities and other assets of the Fund denominated in foreign currencies will
be converted to U.S. dollars using exchange rates in effect at the time of
valuation.
B. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Securities purchased or sold on a when-issued or delayed-delivery basis may be
settled a month or more after the trade date; interest income on such securities
is not accrued until settlement date. The Fund instructs the custodian to
segregate assets of the Fund with a current value at least equal to the amount
of its when-issued purchase commitments.
2. UNREALIZED APPRECIATION/(DEPRECIATION)
As of August 31, 2005, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $74,796,153,
and the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $7,693,635.
Page 7
ITEM 2. CONTROLS AND PROCEDURES.
(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") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(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 (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
quarter that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) FIRST TRUST VALUE LINE(R) DIVIDEND FUND
By (Signature and Title)* /S/ JAMES A. BOWEN
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James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 26, 2005
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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 (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 26, 2005
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By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Treasurer, Controller, Chief
Financial Officer and Chief Accounting Officer
(principal financial officer)
Date OCTOBER 26, 2005
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* Print the name and title of each signing officer under his or her signature.