UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number 811-21381
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
Date of fiscal year end: MAY 31
Date of reporting period: NOVEMBER 30, 2006
Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the transmission to stockholders of
any report that is required to be transmitted to stockholders under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR,
and the Commission will make this information public. A registrant is not
required to respond to the collection of information contained in Form N-CSR
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 Secretary, Securities and Exchange Commission, 100 F Street, NE,
Washington, DC 20549. The OMB has reviewed this collection of information under
the clearance requirements of 44 U.S.C. ss. 3507.
10
ITEM 1. REPORTS TO STOCKHOLDERS.
The Report to Shareholders is attached herewith.
FIRST TRUST VALUE LINE (R) DIVIDEND FUND
SEMI-ANNUAL REPORT
NOVEMBER 30, 2006
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TABLE OF CONTENTS
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FIRST TRUST VALUE LINE(R) DIVIDEND FUND (FVD)
NOVEMBER 30, 2006
Shareholder Letter.................................................. 1
Portfolio Components................................................ 2
Portfolio of Investments............................................ 3
Statement of Assets and Liabilities................................. 9
Statement of Operations............................................. 10
Statements of Changes in Net Assets................................. 11
Financial Highlights................................................ 12
Notes to Financial Statements....................................... 13
Additional Information.............................................. 17
Dividend Reinvestment Plan
Proxy Voting Policies and Procedures
Portfolio Holdings
By-Law Amendments
Submission of Matters to a Vote of Shareholders
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
This Semi-Annual Report contains certain forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933. Forward-looking statements
include statements regarding the goals, beliefs, plans or current expectations
of First Trust Advisors L.P. (the "Advisor") and its representatives, taking
into account the information currently available to them. Forward-looking
statements include all statements that do not relate solely to current or
historical fact. For example, forward-looking statements include the use of
words such as "anticipate," "estimate," "intend," "expect," "believe," "plan,"
"may," "should," "would" or other words that convey uncertainty of future events
or outcomes.
Forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause the actual results, performance or achievements of
the First Trust Value Line(R) Dividend Fund (the "Fund") to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking statements. When evaluating the information
included in this Semi-Annual Report, you are cautioned not to place undue
reliance on these forward-looking statements, which reflect the judgment of the
Advisor and its representatives only as of the date hereof. We undertake no
obligation to publicly revise or update these forward-looking statements to
reflect events and circumstances that arise after the date hereof.
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SHAREHOLDER LETTER
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FIRST TRUST VALUE LINE(R) DIVIDEND FUND (FVD)
NOVEMBER 30, 2006
Dear Shareholders:
We are pleased to provide you with this final shareholder report for First Trust
Value Line(R) Dividend Fund (the "Fund"). In accordance with the terms of the
Agreement and Plan of Reorganization (the "Plan") adopted by the Fund's Board of
Trustees on July 26, 2006 and approved by the Fund's shareholders on December
11, 2006, the Fund has been reorganized with and into First Trust Value Line(R)
Dividend Index Fund ("FVDIF"), an exchange-traded fund. Pursuant to the Plan,
the shares of the Fund ceased trading on the American Stock Exchange ("AMEX") on
Friday, December 15, 2006, and FVDIF began trading on the AMEX on Monday,
December 18, 2006 under the ticker symbol "FVD," the same ticker symbol
previously used by the Fund. The assets of the Fund were transferred to, and the
liabilities of the Fund were assumed by, FVDIF in exchange for shares of FVDIF
on a one share for one share basis. FVDIF shares have been distributed to Fund
shareholders, on a tax-free basis for federal income tax purposes, and the Fund
has been terminated.
We appreciate your investment in the Fund and look forward to continuing to
provide products to meet your investment needs.
/S/ JAMES A. BOWEN
James A. Bowen
President of the First Trust Value Line(R) Dividend Fund
January 17, 2007
Page 1
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO COMPONENTS+
NOVEMBER 30, 2006 (UNAUDITED)
[GRAPHIC OMITTED]
EDGAR REPRESENTATION OF DATA POINTS USED IN PRINTED GRAPHIC AS FOLLOWS:
Commercial Banks 15.9%
Real Estate Investment Trusts (REITs) 10.4%
Multi-Utilities 8.9%
Food Products 7.3%
Electric Utilities 6.8%
Gas Utilities 5.2%
Insurance 5.1%
Oil, Gas & Consumable Fuels 4.3%
Pharmaceuticals 4.2%
Thrifts & Mortgage Finance 2.6%
Diversified Telecommunications Services 2.1%
Media 2.1%
Household Products 2.1%
Commercial Services & Supplies 2.1%
Chemicals 2%
Beverages 1.6%
Household Durables 1.6%
Machinery 1.6%
Electrical Equipment 1.6%
Food & Staples Retailing 1%
Containers & Packaging 1%
Industrial Congolmerates 1%
Health Care Equipment and Supplies 1%
Diversified Financial Services 1%
Personal Products 1%
Textiles, Apparel & Luxury Goods 0.5%
Independent Power Producers & Energy Traders 0.5%
Auto Components 0.5%
Specialty Retailing 0.5%
Tobacco 0.5%
Hotels, Restaurants & Leisure 0.5%
Consumer Finance 0.5%
Leisure Equipment & Products 0.5%
Distributors 0.5%
Computers & Periphials 0.5%
Air Freight & Logistics 0.5%
IT Services 0.5%
Capital Markets 0.5%
+ Percentages are based on total investments. Please note that the
percentages shown on the Portfolio of Investments are based on net
assets.
Page 2 See Notes to Financial Statements.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS
NOVEMBER 30, 2006 (UNAUDITED)
MARKET
SHARES VALUE
-------- --------
COMMON STOCKS - 99.5%
AIR FREIGHT & LOGISTICS - 0.5%
38,013 United Parcel Service, Inc., Class B................ $ 2,961,973
------------------
AUTO COMPONENTS - 0.5%
39,674 Magna International, Inc............................ 3,049,344
------------------
BEVERAGES - 1.6%
64,757 Anheuser-Busch Companies, Inc....................... 3,076,605
63,873 Coca-Cola (The) Company............................. 2,991,172
48,074 PepsiCo, Inc........................................ 2,979,146
------------------
9,046,923
------------------
CAPITAL MARKETS - 0.5%
88,119 Federated Investors, Inc., Class B.................. 2,923,788
------------------
CHEMICALS - 2.0%
42,003 Air Products & Chemicals, Inc....................... 2,904,087
61,882 E. I. du Pont de Nemours and Company................ 2,904,122
62,855 International Flavors & Fragrances, Inc............. 2,961,099
46,142 PPG Industries, Inc................................. 2,966,931
------------------
11,736,239
------------------
COMMERCIAL BANKS - 15.8%
89,301 Associated Banc-Corp................................ 2,968,365
56,857 Bank of Hawaii Corp................................. 2,935,527
47,308 Bank of Montreal.................................... 2,834,695
64,715 Bank of Nova Scotia................................. 2,943,238
69,422 BB&T Corp........................................... 2,985,840
36,628 Canadian Imperial Bank of Commerce.................. 2,885,920
44,021 City National Corp.................................. 2,985,504
51,212 Comerica, Inc....................................... 2,983,099
61,675 Commerce Bancshares, Inc............................ 2,996,776
52,212 Compass Bancshares, Inc............................. 2,983,394
54,018 Cullen/Frost Bankers, Inc........................... 2,943,981
75,055 Fifth Third Bancorp................................. 2,959,419
74,347 First Horizon National Corp......................... 2,963,471
79,179 First Midwest Bancorp, Inc.......................... 2,949,418
121,679 Huntington Bancshares, Inc.......................... 2,958,016
24,927 M&T Bank Corp....................................... 2,957,339
64,492 Marshall & Ilsley Corp.............................. 2,953,089
66,510 Mercantile Bankshares Corp.......................... 3,033,521
82,266 National City Corp.................................. 2,969,803
156,253 Old National Bancorp................................ 2,934,431
43,060 PNC Financial Services Group, Inc................... 3,043,911
168,557 Popular, Inc........................................ 2,983,459
81,461 Regions Financial Corp.............................. 2,985,546
62,332 Royal Bank of Canada................................ 2,910,281
36,086 SunTrust Banks, Inc................................. 2,946,422
100,704 Synovus Financial Corp.............................. 3,023,134
50,007 Toronto Dominion Bank............................... 2,930,910
55,192 Wachovia Corp....................................... 2,990,854
84,255 Wells Fargo & Company............................... 2,969,146
71,051 Wilmington Trust Corp............................... 2,952,880
37,840 Zions Bancorporation................................ 2,960,602
------------------
91,821,991
------------------
See Notes to Financial Statements. Page 3
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)
MARKET
SHARES VALUE
-------- --------
COMMON STOCKS - CONTINUED
COMMERCIAL SERVICES & SUPPLIES - 2.0%
44,112 Avery Dennison Corp................................. $ 2,976,237
64,078 Pitney Bowes, Inc................................... 2,953,355
85,165 R.R. Donnelley & Sons Company....................... 3,003,770
79,473 Waste Management, Inc............................... 2,909,507
------------------
11,842,869
------------------
COMPUTERS & PERIPHERALS - 0.5%
64,715 Diebold, Inc........................................ 2,976,890
------------------
CONSUMER FINANCE - 0.5%
65,151 SLM Corp............................................ 2,986,522
------------------
CONTAINERS & PACKAGING - 1.0%
88,145 Bemis Company....................................... 3,008,389
80,737 Sonoco Products Company............................. 2,986,462
------------------
5,994,851
------------------
DISTRIBUTORS - 0.5%
63,495 Genuine Parts Company............................... 2,977,280
------------------
DIVERSIFIED FINANCIAL SERVICES - 1.0%
54,929 Bank of America Corp................................ 2,957,927
59,570 Citigroup, Inc...................................... 2,954,076
------------------
5,912,003
------------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.1%
91,734 AT&T, Inc........................................... 3,110,700
70,202 BellSouth Corp...................................... 3,130,307
125,186 Telecom Corp. of New Zealand Ltd.,
Sponsored ADR.................................... 3,107,117
86,243 Verizon Communications, Inc......................... 3,013,330
------------------
12,361,454
------------------
ELECTRIC UTILITIES - 6.8%
65,080 ALLETE, Inc......................................... 3,034,680
33,557 Entergy Corp........................................ 3,064,425
50,242 Exelon Corp......................................... 3,051,197
50,821 FirstEnergy Corp.................................... 3,041,129
56,750 FPL Group, Inc...................................... 3,024,775
93,246 Great Plains Energy, Inc............................ 2,947,506
111,618 Hawaiian Electric Industries, Inc................... 3,020,383
62,514 Pinnacle West Capital Corp.......................... 3,084,441
107,800 Portland General Electric Company................... 2,995,762
85,383 PPL Corp............................................ 3,103,672
62,776 Progress Energy, Inc................................ 2,998,810
82,926 Southern (The) Company.............................. 3,006,068
112,709 Westar Energy, Inc.................................. 2,996,932
------------------
39,369,780
------------------
ELECTRICAL EQUIPMENT - 1.5%
84,089 Baldor Electric Company............................. 2,921,252
33,674 Emerson Electric Company............................ 2,919,536
59,111 Hubbell, Inc., Class B.............................. 3,100,372
------------------
8,941,160
------------------
Page 4 See Notes to Financial Statements.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)
MARKET
SHARES VALUE
-------- --------
COMMON STOCKS - CONTINUED
FOOD & STAPLES RETAILING - 1.0%
84,326 Sysco Corp.......................................... $ 3,023,087
73,980 Weis Markets, Inc................................... 2,990,272
------------------
6,013,359
------------------
FOOD PRODUCTS - 7.3%
71,783 Cadbury Schweppes PLC, Sponsored ADR................ 2,979,712
79,918 Campbell Soup Company............................... 3,042,478
119,782 ConAgra Foods, Inc.................................. 3,078,397
52,903 General Mills, Inc.................................. 2,959,923
67,560 H.J. Heinz Company.................................. 3,003,042
56,429 Hershey (The) Company............................... 2,989,044
59,819 Kellogg Company..................................... 2,977,790
85,189 Kraft Foods, Inc., Class A.......................... 2,985,874
70,318 Lancaster Colony Corp............................... 3,005,391
77,621 McCormick & Company, Inc............................ 3,005,485
182,296 Sara Lee Corp....................................... 3,022,468
63,147 Smucker, J.M. (The) Company......................... 3,036,108
112,245 Unilever PLC, Sponsored ADR......................... 3,022,758
57,534 Wm. Wrigley Jr. Company............................ 3,017,083
------------------
42,125,553
------------------
GAS UTILITIES - 5.2%
79,410 AGL Resources, Inc.................................. 3,050,138
91,931 Atmos Energy Corp................................... 3,012,579
69,197 Equitable Resources, Inc............................ 3,001,766
80,715 National Fuel Gas Company........................... 3,059,098
57,656 New Jersey Resources Corp........................... 2,983,698
74,237 Northwest Natural Gas Company....................... 3,061,534
69,038 Peoples Energy Corp................................. 2,995,559
107,998 Piedmont Natural Gas Company, Inc................... 3,009,904
108,624 UGI Corp............................................ 3,061,024
90,079 WGL Holdings, Inc................................... 2,977,111
------------------
30,212,411
------------------
HEALTH CARE EQUIPMENT & SUPPLIES - 1.0%
86,020 Arrow International Inc............................. 3,005,539
50,960 Hillenbrand Industries, Inc......................... 2,948,546
------------------
5,954,085
------------------
HOTELS RESTAURANTS & LEISURE - 0.5%
71,560 McDonald's Corporation.............................. 3,003,373
------------------
HOUSEHOLD DURABLES - 1.6%
37,054 Fortune Brands, Inc................................. 2,997,669
125,500 Leggett & Platt, Inc................................ 2,984,390
62,776 Snap-On, Inc........................................ 2,981,860
------------------
8,963,919
------------------
HOUSEHOLD PRODUCTS - 2.1%
46,464 Clorox (The) Company................................ 2,973,696
45,429 Colgate-Palmolive Company........................... 2,955,156
45,210 Kimberly-Clark Corp................................. 3,005,109
47,174 Procter & Gamble (The) Company...................... 2,962,055
------------------
11,896,016
------------------
See Notes to Financial Statements. Page 5
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)
MARKET
SHARES VALUE
-------- --------
COMMON STOCKS - CONTINUED
INDEPENDENT POWER PRODUCERS &
ENERGY TRADERS - 0.5%
44,744 Constellation Energy Group, Inc..................... $ 3,069,886
------------------
INDUSTRIAL CONGLOMERATES - 1.0%
36,931 3M Company.......................................... 3,008,399
83,971 General Electric Company............................ 2,962,497
------------------
5,970,896
------------------
INSURANCE - 5.1%
46,171 Allstate (The) Corp................................. 2,930,935
100,805 Arthur J. Gallagher & Company....................... 2,952,578
57,633 Chubb (The) Corp.................................... 2,983,084
66,495 Cincinnati Financial Corp........................... 2,944,399
46,349 Lincoln National Corp............................... 2,947,333
88,877 Manulife Financial Corp............................. 2,943,606
44,724 MBIA Inc............................................ 3,115,027
54,253 Mercury General Corp................................ 2,899,823
130,245 Old Republic International Corp..................... 2,937,025
63,173 Protective Life Corp................................ 2,983,029
------------------
29,636,839
------------------
IT SERVICES - 0.5%
60,691 Automatic Data Processing, Inc...................... 2,927,127
------------------
LEISURE EQUIPMENT & PRODUCTS - 0.5%
66,231 Polaris Industries, Inc............................. 2,981,720
------------------
MACHINERY - 1.5%
47,669 Caterpillar, Inc.................................... 2,956,908
39,165 Eaton Corp.......................................... 3,018,838
76,394 Ingersoll-Rand Company Ltd., Class A................ 2,980,130
------------------
8,955,876
------------------
MEDIA - 2.1%
50,208 Gannett Co., Inc.................................... 2,988,380
1 Idearc, Inc. *...................................... 18
106,000 Lee Enterprises, Inc................................ 3,063,400
123,534 New York Times (The) Company........................ 2,982,111
93,713 Tribune Company..................................... 2,980,073
------------------
12,013,982
------------------
MULTI-UTILITIES - 8.8%
55,674 Ameren Corp......................................... 3,045,924
62,632 Consolidated Edison, Inc............................ 3,020,115
36,999 Dominion Resources, Inc............................. 2,987,299
95,657 Duke Energy Corp.................................... 3,034,240
122,725 Energy East Corp.................................... 2,998,172
73,400 KeySpan Corp........................................ 3,011,602
115,936 MDU Resources Group, Inc............................ 3,053,754
85,505 NSTAR............................................... 3,008,066
75,776 OGE Energy Corp..................................... 2,971,935
65,896 PG & E Corp......................................... 3,026,603
98,293 PNM Resources, Inc.................................. 3,017,595
71,938 SCANA Corp.......................................... 2,968,162
54,980 Sempra Energy....................................... 2,996,410
106,237 Vectren Corp........................................ 3,033,066
Page 6 See Notes to Financial Statements.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)
MARKET
SHARES VALUE
-------- --------
COMMON STOCKS - CONTINUED
MULTI-UTILITIES - CONTINUED
64,492 Wisconsin Energy Corp............................... $ 3,016,936
56,922 WPS Resources Corp.................................. 2,976,451
132,082 Xcel Energy, Inc.................................... 3,032,603
------------------
51,198,933
------------------
OIL, GAS & CONSUMABLE FUELS - 4.3%
45,067 BP PLC, Sponsored ADR............................... 3,068,161
43,535 Chevron Corp........................................ 3,148,451
46,616 ConocoPhillips...................................... 3,137,257
32,829 Marathon Oil Corp................................... 3,098,401
62,514 Occidental Petroleum Corp........................... 3,146,955
42,685 Royal Dutch Shell PLC, Class A, ADR................. 3,031,916
42,480 Total SA, Sponsored ADR............................. 3,035,621
87,630 TransCanada Corp.................................... 2,979,420
------------------
24,646,182
------------------
PERSONAL PRODUCTS - 1.0%
144,710 Alberto-Culver Company.............................. 2,904,330
90,052 Avon Products, Inc.................................. 2,939,297
------------------
5,843,627
------------------
PHARMACEUTICALS - 4.2%
63,833 Abbott Laboratories................................. 2,978,448
122,474 Bristol-Myers Squibb Company........................ 3,041,029
58,024 GlaxoSmithKline PLC, ADR............................ 3,082,815
45,512 Johnson & Johnson................................... 2,999,696
55,602 Lilly (Eli) & Company............................... 2,979,711
111,452 Pfizer, Inc......................................... 3,063,815
69,454 Sanofi-Aventis, ADR................................. 3,056,671
62,371 Wyeth............................................... 3,011,272
------------------
24,213,457
------------------
REAL ESTATE INVESTMENT TRUSTS (REITS) - 10.4%
49,610 Archstone-Smith Trust............................... 2,975,608
22,486 AvalonBay Communities, Inc.......................... 2,992,437
47,181 BRE Properties, Inc., Class A....................... 3,049,780
68,190 Duke Realty Corp.................................... 2,967,629
61,162 Equity Office Properties Trust...................... 2,948,008
55,892 Equity Residential.................................. 2,976,808
35,475 Federal Realty Investment Trust..................... 3,021,761
85,774 Health Care Property Investors, Inc................. 3,111,023
64,645 Kimco Realty Corp................................... 2,998,235
59,700 Liberty Property Trust.............................. 3,057,237
54,719 Mack-Cali Realty Corp............................... 2,989,846
106,388 New Plan Excel Realty Trust......................... 3,030,994
73,816 Pennsylvania Real Estate Investment Trust........... 2,915,732
81,794 Plum Creek Timber Company, Inc...................... 3,047,644
46,135 Prologis............................................ 3,006,618
31,160 Public Storage, Inc................................. 3,000,085
29,405 Simon Property Group, Inc........................... 2,998,722
90,844 United Dominion Realty Trust, Inc................... 3,050,542
69,973 Washington Real Estate Investment Trust............. 2,999,743
62,658 Weingarten Realty Investors......................... 2,990,040
------------------
60,128,492
------------------
See Notes to Financial Statements. Page 7
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
NOVEMBER 30, 2006 (UNAUDITED)
MARKET
SHARES VALUE
-------- --------
COMMON STOCKS - CONTINUED
SPECIALTY RETAIL - 0.5%
79,452 Home Depot (The), Inc............................... $ 3,016,792
------------------
TEXTILES, APPAREL & LUXURY GOODS - 0.5%
39,237 VF Corp............................................. 3,075,788
------------------
THRIFTS & MORTGAGE FINANCE - 2.6%
100,266 Astoria Financial Corp.............................. 2,997,953
79,159 Capitol Federal Financial........................... 2,951,048
44,544 Freddie Mac......................................... 2,991,575
128,956 Washington Federal, Inc............................. 2,996,937
69,729 Washington Mutual, Inc.............................. 3,045,763
------------------
14,983,276
------------------
TOBACCO - 0.5%
64,575 Universal Corp...................................... 3,007,258
------------------
TOTAL COMMON STOCKS................................. 578,741,914
(Cost $493,640,060) ------------------
TOTAL INVESTMENTS - 99.5%........................... 578,741,914
(Cost $493,640,060)**
NET OTHER ASSETS & LIABILITIES - 0.5%............... 2,892,982
------------------
NET ASSETS - 100.0%................................. $ 581,634,896
==================
--------------------------------------------------------------------------------
* Non-income producing security.
** Aggregate cost for federal income tax and financial reporting purposes.
ADR American Depository Receipt
Page 8 See Notes to Financial Statements.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
STATEMENT OF ASSETS AND LIABILITIES
NOVEMBER 30, 2006 (UNAUDITED)
ASSETS:
Investments, at value
Cost ($493,640,060)........................................ $ 578,741,914
Cash......................................................... 3,605,009
Prepaid expenses............................................. 33,313
Receivables:
Interest................................................ 11,259
Dividends............................................... 1,932,565
------------------
Total Assets............................................ 584,324,060
------------------
LIABILITIES:
Payables:
Investment securities purchased......................... 2,015,573
Investment advisory fees................................ 306,490
Printing fees........................................... 99,510
License fees............................................ 95,889
Audit and legal fees.................................... 92,959
Administrative fees..................................... 41,001
Accrued expenses............................................. 37,742
------------------
Total Liabilities....................................... 2,689,164
------------------
NET ASSETS................................................... $ 581,634,896
==================
NET ASSETS CONSIST OF:
Accumulated net realized gain on investments sold............ $ 37,742,734
Net unrealized appreciation of investments................... 85,101,854
Par value.................................................... 320,880
Paid-in capital.............................................. 458,469,428
------------------
Total Net Assets........................................ $ 581,634,896
==================
NET ASSET VALUE, per Common Share
(par value $0.01 per Common Share)........................... $ 18.13
==================
Number of Common Shares outstanding (unlimited
number of Common Shares has been authorized)................. 32,088,000
==================
See Notes to Financial Statements. Page 9
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
STATEMENT OF OPERATIONS
FOR THE SIX MONTHS ENDED NOVEMBER 30, 2006 (UNAUDITED)
INVESTMENT INCOME:
Dividends.................................................... $ 9,123,096
------------------
Total investment income................................. 9,123,096
------------------
EXPENSES:
Investment advisory fees..................................... 1,793,927
License fees................................................. 282,002
Administration fees.......................................... 240,837
Audit and legal fees......................................... 93,239
Trustees' fees and expenses.................................. 26,164
Printing fees................................................ 46,753
Transfer agent fees.......................................... 20,447
Custodian fees............................................... 49,758
Other........................................................ 69,254
------------------
Total expenseS.......................................... 2,622,381
------------------
NET INVESTMENT INCOME........................................ 6,500,715
------------------
NET REALIZED AND UNREALIZED GAIN ON INVESTMENTS:
Net realized gain on investments during the period........... 22,218,346
Net change in unrealized appreciation of
investments during the period.............................. 38,951,115
------------------
Net realized and unrealized gain on investments.............. 61,169,461
------------------
NET INCREASE IN NET ASSETS RESULTING FROM OPERATIONS......... $ 67,670,176
==================
Page 10 See Notes to Financial Statements.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
STATEMENTS OF CHANGES IN NET ASSETS
SIX MONTHS
ENDED YEAR
11/30/2006 ENDED
(UNAUDITED) 5/31/2006
-------------- ---------------
OPERATIONS:
Net investment income............................................ $ 6,500,715 $ 13,902,862
Net realized gain on investments during the period............... 22,218,346 48,450,270
Net change in unrealized appreciation of investments
during the period.............................................. 38,951,115 (16,192,745)
-------------- ---------------
Net increase in net assets resulting from operations............. 67,670,176 46,160,387
DISTRIBUTIONS TO SHAREHOLDERS FROM:
Net investment income............................................ (7,955,602) (13,527,000)
Net realized gains............................................... (9,651,069) (55,080,000)
-------------- ---------------
Total distributions to shareholders.............................. (17,606,671) (68,607,000)
CAPITAL TRANSACTIONS:
Cost of shares purchased (Note 4)................................ (4,686,987) --
-------------- ---------------
Total capital transactions....................................... (4,686,987) --
-------------- ---------------
Net increase (decrease) in net assets............................ 45,376,518 (22,446,613)
NET ASSETS:
Beginning of period.............................................. 536,258,378 558,704,991
-------------- ---------------
End of period.................................................... $581,634,896 $ 536,258,378
============ ===============
Undistributed net investment income at end of period............. $ -- $ 1,454,887
============ ===============
See Notes to Financial Statements. Page 11
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
FINANCIAL HIGHLIGHTS
FOR A COMMON SHARE OUTSTANDING THROUGHOUT EACH PERIOD
SIX MONTHS
ENDED YEAR YEAR PERIOD
11/30/2006 ENDED ENDED ENDED
(UNAUDITED) 5/31/2006 5/31/2005 5/31/2004*
---------- --------- --------- ----------
Net asset value, beginning of period.......................... $ 16.55 $ 17.24 $ 16.13 $ 14.33 (c)
---------- --------- --------- ---------
INCOME FROM INVESTMENT OPERATIONS:
Net investment income......................................... 0.21 0.43 0.41 0.27
Net realized and unrealized gain on investments............... 1.92 1.00 1.99 1.86
---------- --------- --------- ---------
Total from investment operations.............................. 2.13 1.43 2.40 2.13
---------- --------- --------- ---------
DISTRIBUTIONS PAID TO SHAREHOLDERS FROM:
Net investment income......................................... (0.25) (0.42) (0.37) (0.20)
Net realized gains............................................ (0.30) (1.70) (0.92) (0.11)
---------- --------- --------- ---------
Total from distributions...................................... (0.55) (2.12) (1.29) (0.31)
---------- --------- --------- ---------
Common Shares offering costs charged to paid-in capital....... -- -- (0.00)# (0.02)
---------- --------- --------- ---------
Net asset value, end of period................................ $ 18.13 $ 16.55 $ 17.24 $ 16.13
========== ========= ========= =========
Market value, end of period................................... $ 17.90 $ 14.26 $ 14.64 $ 13.76
========== ========= ========= =========
TOTAL RETURN BASED ON NET ASSET VALUE (A)+.................... 13.31% 10.26% 16.05% 15.09%
========== ========= ========= =========
TOTAL RETURN BASED ON MARKET VALUE (B)+....................... 29.84% 11.87% 15.52% (6.20)%
========== ========= ========= =========
RATIOS TO AVERAGE NET ASSETS/SUPPLEMENTAL DATA:
Net assets, end of period (in 000's).......................... $ 581,635 $ 536,258 $ 558,705 $ 522,731
Ratio of total expenses to average net assets................. 0.95%** 0.93% 0.93% 0.93%**
Ratio of net investment income to average net assets.......... 2.36%** 2.51% 2.45% 2.29%**
Portfolio turnover rate....................................... 27% 58% 57% 46%
--------------------------------------------------
* The Fund commenced operations on August 19, 2003.
** Annualized.
# Amount represents less than $0.01 per share.
(a) Total return based on net asset value is the combination of reinvested
dividend distributions and reinvested capital gains distributions, if
any, at prices obtained by the Dividend Reinvestment Plan and changes in
net asset value per share and does not reflect sales load.
(b) Total return based on market value is the combination of reinvested
dividend distributions and reinvested capital gains distributions, if
any, at prices obtained by the Dividend Reinvestment Plan and changes in
Common Share market price per share, all based on Common Share market
price per share.
(c) Net of sales load of $0.675 per Common Share on initial offering.
+ Total return is not annualized for periods less than one year.
Page 12 See Notes to Financial Statements.
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
NOVEMBER 30, 2006 (UNAUDITED)
1. FUND DESCRIPTION
First Trust Value Line(R) Dividend Fund (the "Fund") is a diversified closed-end
management investment company organized as a Massachusetts business trust on
June 11, 2003 and is registered with the Securities and Exchange Commission
("SEC") under the Investment Company Act of 1940, as amended (the "1940 Act").
The Fund trades under the ticker symbol FVD on the American Stock Exchange.
The Fund's investment objective is to provide total return through a combination
of current income and capital appreciation. The Fund seeks to accomplish its
objective by investing in common stocks that pay above-average dividends and
have the potential for capital appreciation. Such common stocks will be selected
through the application of a disciplined investment strategy implemented by the
Fund's investment advisor, First Trust Advisors L.P. ("First Trust"). There can
be no assurance that the Fund's investment objective will be achieved.
2. SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of significant accounting policies consistently
followed by the Fund in the preparation of its financial statements. The
preparation of financial statements in accordance with accounting principles
generally accepted in the United States of America requires management to make
estimates and assumptions that affect the reported amounts and disclosures in
the financial statements. Actual results could differ from those estimates.
A. PORTFOLIO VALUATION:
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 trading on the NASDAQ, are valued at the closing bid
prices. Short-term investments that mature in less than 60 days 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 AND INVESTMENT INCOME:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
Dividend income is recorded on the ex-dividend date. Interest income is recorded
on the accrual 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 maintains liquid assets with a
current value at least equal to the amount of its when-issued or delayed
delivery purchase commitments.
Page 13
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
NOVEMBER 30, 2006 (UNAUDITED)
C. DIVIDENDS AND DISTRIBUTIONS TO SHAREHOLDERS:
On June 26, 2006, the Fund announced the adoption of a policy to make regular
monthly distributions of $0.08786 per share. The Fund declared the first
distribution under the new policy, which was payable on July 17, 2006 to
shareholders of record on July 6, 2006.
Prior to June 26, 2006, dividends from net investment income of the Fund were
declared and paid quarterly or as the Board of Trustees determined from time to
time. Distributions of any net capital gains earned by the Fund are distributed
at least annually. Distributions will automatically be reinvested into
additional Common Shares pursuant to the Fund's Dividend Reinvestment Plan
unless cash distributions are elected by the shareholder.
Distributions from income and capital gains are determined in accordance with
income tax regulations, which may differ from accounting principles generally
accepted in the United States of America. These differences are primarily due to
differing treatments of income and gains on various investment securities held
by the Fund, timing differences and differing characterization of distributions
made by the Fund.
The tax character of distributions paid during the fiscal years ended May 31,
2006 and May 31, 2005 is as follows:
2006 2005
---- ----
Distributions paid from:
Ordinary Income ......................... $ 23,895,000 $ 38,151,000
Long-Term Capital Gains ................. 44,712,000 3,564,000
As of May 31, 2006, the components of distributable earnings on a tax basis are
as follows:
Undistributed Ordinary Income ........... $ 7,861,425
Undistributed Long-Term Capital Gains ... $ 20,595,332
Net Unrealized Appreciation ............. $ 44,324,326
D. INCOME TAXES:
The Fund intends to continue to qualify as a regulated investment company by
complying with the requirements under Subchapter M of the Internal Revenue Code
of 1986, as amended, and by distributing substantially all of its net investment
income and net realized gains to shareholders. Accordingly, no provision has
been made for federal or state income taxes.
E. EXPENSES:
The Fund pays all expenses directly related to its operations. First Trust has
entered into a non-exclusive license agreement with Value Line(R) Publishing,
Inc. which allows for the use by First Trust of the Value Line(R) SafetyTM
Ranking System and certain trademarks and trade names of Value Line(R)
Publishing, Inc. The Fund is a sub-licensee to this license agreement. In
exchange, Value Line(R) Publishing, Inc. receives an annual fee, payable on a
quarterly basis, equal to .10% of the Fund's gross daily assets. This license
fee is paid by the Fund to First Trust, which in turn, pays Value Line(R)
Publishing, Inc. The terms of the license agreement provide that it will be
automatically renewed for successive one-year terms unless either party elects
not to renew the agreement.
F. NEW ACCOUNTING PRONOUNCEMENTS:
In July 2006, the Financial Accounting Standards Board ("FASB") issued FASB
Interpretation No. 48 ("FIN 48"), "Accounting for Uncertainty in Income Taxes."
This pronouncement provides guidance on the recognition, measurement,
classification, and disclosures related to uncertain tax positions, along with
any related interest and penalties. FIN 48 is effective for fiscal years
beginning after December 15, 2006. At this time, management is evaluating the
implications of FIN 48 and its impact on the financial statements which has not
yet been determined.
In addition, in September 2006, Statement of Financial Accounting Standards No.
157 Fair Value Measurements ("SFAS 157") was issued by the FASB and is effective
for fiscal years beginning after November 15, 2007. SFAS 157 defines fair value,
establishes a framework for measuring fair value and expands disclosures about
fair value measurements. Management is currently evaluating the impact the
adoption of SFAS 157 will have on the Fund's financial statement disclosures.
Page 14
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
NOVEMBER 30, 2006 (UNAUDITED)
3. INVESTMENT ADVISORY FEE AND OTHER AFFILIATED TRANSACTIONS
First Trust is a limited partnership with one limited partner, Grace Partners of
DuPage L.P., and one general partner, The Charger Corporation. First Trust
serves as investment adviser to the Fund pursuant to an Investment Management
Agreement. First Trust is responsible for implementing the Fund's overall
investment strategy, including the allocation and periodic reallocation of the
portion of the Fund's assets to be invested in common stocks, managing the
Fund's business affairs and certain administrative services necessary for the
management of the Fund. For these services, First Trust is entitled to a monthly
fee calculated at an annual rate of 0.65% of the Fund's average daily net
assets.
PFPC Inc. ("PFPC"), an indirect, majority-owned subsidiary of The PNC Financial
Services Group Inc., serves as the Fund's Administrator and Transfer Agent in
accordance with certain fee arrangements. PFPC Trust Company, also an indirect,
majority-owned subsidiary of The PNC Financial Services Group Inc., serves as
the Fund's Custodian in accordance with certain fee arrangements.
The Fund pays each Trustee who is not an officer or employee of First Trust or
any of their affiliates an annual retainer of $10,000, which includes
compensation for all board and committee meetings. Trustees are also reimbursed
for travel and out-of-pocket expenses in connection with all meetings.
4.CAPITAL STOCK TRANSACTIONS - SHARE REPURCHASES
On June 26, 2006, the Fund announced that it had adopted an open-market share
repurchase program. The Fund management was given the discretion to purchase up
to 4,860,000 shares in open-market transactions. This limit represented
approximately 15% of the shares outstanding. Repurchases of FVD Common Stock
during the following periods are shown below:
SIX MONTHS ENDED 12 MONTHS ENDED
11/30/06 5/31/06
SHARES AMOUNT SHARES AMOUNT
------ ------ ------ ------
Shares purchased
(Weighted average
discount of 9.3%) .......... 312,000 $4,686,987 -- --
5.PURCHASES AND SALES OF SECURITIES
Cost of purchases and proceeds from sales of investment securities, excluding
short-term investments, for the six months ended November 30, 2006, were
$148,844,250 and $161,878,845, respectively.
As of November 30, 2006, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $89,507,515
and the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $4,405,661.
6. SUBSEQUENT EVENTS
On November 20, 2006, the Fund declared a dividend of $0.8786 per share, which
represents a dividend from net investment income to Common Shareholders of
record December 8, 2006, payable December 13, 2006.
On December 5, 2006, the Fund declared a long-term capital gains distribution of
$1.49 per share, to Common Shareholders of record December 8, 2006, payable
December 13, 2006.
In accordance with the terms of the Agreement and Plan of Reorganization (the
"Plan") adopted by the Fund's Board of Trustees on July 26, 2006 and approved by
the Fund's shareholders on December 11, 2006, the Fund has been reorganized with
and into First Trust Value Line(R) Dividend Index Fund ("FVDIF"), an
exchange-traded fund. Pursuant to the Plan, the shares of the Fund ceased
trading on the American Stock Exchange ("AMEX") on Friday, December 15, 2006,
and FVDIF began trading on the AMEX on Monday, December
Page 15
--------------------------------------------------------------------------------
NOTES TO FINANCIAL STATEMENTS - (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
NOVEMBER 30, 2006 (UNAUDITED)
6. SUBSEQUENT EVENTS (CONTINUED)
18, 2006 under the ticker symbol "FVD," the same ticker symbol previously used
by the Fund. The assets of the Fund were transferred to, and the liabilities of
the Fund were assumed by, FVDIF in exchange for shares of FVDIF on a one share
for one share basis. FVDIF shares have been distributed to Fund shareholders, on
a tax-free basis for federal income tax purposes, and the Fund has been
terminated.
Page 16
--------------------------------------------------------------------------------
ADDITIONAL INFORMATION
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
NOVEMBER 30, 2006 (UNAUDITED)
DIVIDEND REINVESTMENT PLAN
If your Common Shares are registered directly with the Fund or if you hold your
Common Shares with a brokerage firm that participates in the Fund's Dividend
Reinvestment Plan (the "Plan"), unless you elect, by written notice to the Fund,
to receive cash distributions, all dividends, including any capital gain
distributions, on your Common Shares will be automatically reinvested by PFPC
Inc. (the "Plan Agent"), in additional Common Shares under the Plan. If you
elect to receive cash distributions, you will receive all distributions in cash
paid by check mailed directly to you by PFPC Inc., as dividend paying agent.
If you decide to participate in the Plan, the number of Common Shares you will
receive will be determined as follows:
(1) If Common Shares are trading at or above net asset value ("NAV")
at the time of valuation, the Fund will issue new shares at a
price equal to the greater of (i) NAV per Common Share on that
date or (ii) 95% of the market price on that date.
(2) If Common Shares are trading below NAV at the time of valuation,
the Plan Agent will receive the dividend or distribution in cash
and will purchase Common Shares in the open market, on the
American Stock Exchange or elsewhere, for the participants'
accounts. It is possible that the market price for the Common
Shares may increase before the Plan Agent has completed its
purchases. Therefore, the average purchase price per share paid
by the Plan Agent may exceed the market price at the time of
valuation, resulting in the purchase of fewer shares than if the
dividend or distribution had been paid in Common Shares issued by
the Fund. The Plan Agent will use all dividends and distributions
received in cash to purchase Common Shares in the open market
within 30 days of the valuation date except where temporary
curtailment or suspension of purchases is necessary to comply
with federal securities laws. Interest will not be paid on any
uninvested cash payments.
You may elect to opt-out of or withdraw from the Plan at any time by giving
written notice to the Plan Agent, or by telephone at (800) 331-1710, in
accordance with such reasonable requirements as the Plan Agent and Fund may
agree upon. If you withdraw or the Plan is terminated, you will receive a
certificate for each whole share in your account under the Plan and you will
receive a cash payment for any fraction of a share in your account. If you wish,
the Plan Agent will sell your shares and send you the proceeds, minus brokerage
commissions.
The Plan Agent maintains all Common Shareholders' accounts in the Plan and gives
written confirmation of all transactions in the accounts, including information
you may need for tax records. Common Shares in your account will be held by the
Plan Agent in non-certificated form. The Plan Agent will forward to each
participant any proxy solicitation material and will vote any shares so held
only in accordance with proxies returned to the Fund. Any proxy you receive will
include all Common Shares you have received under the Plan.
There is no brokerage charge for reinvestment of your dividends or
distributions in Common Shares. However, all participants will pay a pro rata
share of brokerage commissions incurred by the Plan Agent when it makes open
market purchases.
Automatically reinvesting dividends and distributions does not mean that you do
not have to pay income taxes due upon receiving dividends and distributions.
Capital gains and income are realized, although cash is not received by you.
Consult your financial advisor for more information.
If you hold your Common Shares with a brokerage firm that does not participate
in the Plan, you will not be able to participate in the Plan and any dividend
reinvestment may be effected on different terms than those described above.
The Fund reserves the right to amend or terminate the Plan if in the judgment of
the Board of Trustees the change is warranted. There is no direct service charge
to participants in the Plan; however, the Fund reserves the right to amend the
Plan to include a service charge payable by the participants. Additional
information about the Plan may be obtained by writing PFPC Inc., 301 Bellevue
Parkway, Wilmington, Delaware 19809.
--------------------------------------------------------------------------------
PROXY VOTING POLICIES AND PROCEDURES
A description of the policies and procedures that the Fund uses to determine how
to vote proxies and information on how the Fund voted proxies relating to
portfolio securities during the most recent 12-month period ended June 30 is
available (1) without charge, upon request, by calling (800) 988-5891; (2) on
the Fund's website located at ; and (3) on the Securities and Exchange
Commission's website at http://www.sec.gov.
Page 17
--------------------------------------------------------------------------------
ADDITIONAL INFORMATION - (CONTINUED)
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
NOVEMBER 30, 2006 (UNAUDITED)
PORTFOLIO HOLDINGS
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 (1) by calling (800)
988-5891; (2) on the Fund's website located at http://www.ftportfolios.com; (3)
on the SEC's website at http://www.sec.gov; and (4) for review and copying at
the SEC's Public Reference Room ("PRR") in Washington, DC. Information regarding
the operation of the PRR may be obtained by calling 1-800-SEC-0330.
BY-LAW AMENDMENTS
On December 12, 2005 and again on June 12, 2006, the Board of
Trustees of the Fund approved certain changes to the By-Laws of the Fund which
may have the effect of delaying or preventing a change in control of the Fund.
The changes were not required to be, and were not, approved by the Fund's
Shareholders. To receive a copy of the revised By-Laws, investors may call the
Fund at (800) 988-5891.
SUBMISSION OF MATTERS TO A VOTE OF SHAREHOLDERS
A Special Meeting of Shareholders of First Trust Value Line(R) Dividend Fund was
held on December 11, 2006. At the Special Meeting, Shareholders were asked to
vote on the reorganization of First Trust Value Line(R) Dividend Fund into First
Trust Value Line(R) Dividend Index Fund, an exchange-traded fund and a
newly-created series of First Trust Exchange-Traded Fund. The number of votes
cast for the reorganization was 18,286,073, the number of votes cast against the
reorganization was 402,052 and the number of abstentions was 13,399,874.
Page 18
This Page Left Blank Intentionally.
This Page Left Blank Intentionally.
ITEM 2. CODE OF ETHICS.
Not applicable.
ITEM 3. AUDIT COMMITTEE FINANCIAL EXPERT.
Not applicable.
ITEM 4. PRINCIPAL ACCOUNTANT FEES AND SERVICES.
Not applicable.
ITEM 5. AUDIT COMMITTEE OF LISTED REGISTRANTS.
Not applicable.
ITEM 6. SCHEDULE OF INVESTMENTS.
Schedule of Investments in securities of unaffiliated issuers as of the close of
the reporting period is included as part of the report to shareholders filed
under Item 1 of this form.
ITEM 7. DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
MANAGEMENT INVESTMENT COMPANIES.
Not applicable.
ITEM 8. PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES.
(a) Not applicable.
2
(b) There has been no change, as of the date of this filing, in any of the
portfolio managers identified in response to paragraph (a)(1) of this Item in
the Registrant's most recently filed annual report on Form N-CSR.
ITEM 9. PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT
COMPANY AND AFFILIATED PURCHASERS.
REGISTRANT PURCHASES OF EQUITY SECURITIES*
(C) TOTAL NUMBER OF SHARES (D) MAXIMUM NUMBER (OR
(A) TOTAL NUMBER (A) AVERAGE PRICE (OR UNITS) PURCHASED AS PART APPROXIMATE DOLLAR VALUE) OF SHARES
OF SHARES (OR PAID PER OF PUBLICLY ANNOUNCED PLANS (OR UNITS) THAT MAY YET BE PURCHASED
PERIOD UNITS) PURCHASED SHARE (OR UNIT) OR PROGRAMS UNDER THE PLANS OR PROGRAMS
-----------------------------------------------------------------------------------------------------------------------------
June 1, 2006 NA NA NA NA
through June 30,
2006
-----------------------------------------------------------------------------------------------------------------------------
July 1, 2006 312,000 $15.02 312,000 0
through July 31,
2006
-----------------------------------------------------------------------------------------------------------------------------
August 1, 2006 NA NA NA NA
through August 31,
2006
-----------------------------------------------------------------------------------------------------------------------------
September 1, 2006 NA NA NA NA
through September
31, 2006
-----------------------------------------------------------------------------------------------------------------------------
October 1, 2006 NA NA NA NA
through October
31, 2006
-----------------------------------------------------------------------------------------------------------------------------
November 1, 2006 NA NA NA NA
through November
30, 2006
-----------------------------------------------------------------------------------------------------------------------------
Total 312,000 $15.02 312,000 0
-----------------------------------------------------------------------------------------------------------------------------
* All shares were repurchased through a publicly announced repurchase program,
announced on June 26, 2006. 4,860,000 shares were approved for repurchase, and
there was no expiration date of the repurchase program. The repurchase program
expired when the Registrant reorganized into an exchange-traded fund on December
15, 2006.
3
ITEM 10. SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS.
There have been no material changes to the procedures by which the shareholders
may recommend nominees to the Registrant's board of directors, where those
changes were implemented after the Registrant last provided disclosure in
response to the requirements of Item 407(c)(2)(iv) of Regulation S-K (17 CFR
229.407) (as required by Item 22(b)(15) of Schedule 14A (17 CFR 240.14a-101)),
or this Item.
ITEM 11. 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 second fiscal
quarter of the period covered by this report that has materially
affected, or is reasonably likely to materially affect, the
Registrant's internal control over financial reporting.
ITEM 12. EXHIBITS.
(a)(1) Not applicable.
(a)(2) Certifications pursuant to Rule 30a-2(a) under the 1940 Act
and Section 302 of the Sarbanes-Oxley Act of 2002 are
attached hereto.
(a)(3) Not applicable.
(b) Certifications pursuant to Rule 30a-2(b) under the 1940 Act
and Section 906 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
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date: JANUARY 18, 2007
----------------------------------------------------------------------------
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: JANUARY 18, 2007
----------------------------------------------------------------------------
By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Treasurer, Controller, Chief Financial
Officer and Chief Accounting Officer
(principal financial officer)
Date: JANUARY 18, 2007
-------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.