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
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
(Exact name of registrant as specified in charter)
1001 WARRENVILLE ROAD
SUITE 300
LISLE, IL 60532
(Address of principal executive offices) (Zip code)
W. SCOTT JARDINE
FIRST TRUST PORTFOLIOS L.P.
1001 WARRENVILLE ROAD
SUITE 300
LISLE, IL 60532
(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: FEBRUARY 28, 2006
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, 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.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
------------- -------------
COMMON STOCKS - 98.8%
AIR FREIGHT & LOGISTICS - 0.5%
39,083 United Parcel Service, Inc., Class B .......... $ 2,919,891
-------------
AUTO COMPONENTS - 0.6%
40,182 Magna International, Inc. ..................... 2,990,344
-------------
BEVERAGES - 1.1%
70,349 Anheuser-Busch Companies, Inc. ................ 2,922,297
70,316 The Coca-Cola Company ......................... 2,951,163
-------------
5,873,460
-------------
CAPITAL MARKETS - 0.6%
101,337 Allied Capital Corp. .......................... 2,973,227
-------------
CHEMICALS - 2.2%
45,667 Air Products & Chemicals, Inc. ................ 2,929,995
73,019 E. I. du Pont de Nemours and Company .......... 2,938,285
86,111 International Flavors & Fragrances, Inc. ...... 2,982,024
49,514 PPG Industries, Inc. .......................... 3,002,034
-------------
11,852,338
-------------
COMMERCIAL BANKS - 16.5%
105,223 AmSouth Bancorporation ........................ 2,919,938
85,337 Associated Banc-Corp. ......................... 2,941,566
64,920 Bank of America Corp. ......................... 2,976,582
48,930 Bank of Montreal .............................. 2,971,519
70,755 Bank of Nova Scotia ........................... 2,968,172
73,640 BB&T Corp. .................................... 2,910,989
43,011 Canadian Imperial Bank of Commerce ............ 3,018,512
38,754 City National Corp. ........................... 2,943,754
51,282 Comerica, Inc. ................................ 2,939,484
52,012 Commerce Bancshares, Inc. ..................... 2,681,219
58,660 Compass Bancshares, Inc. ...................... 2,949,425
53,872 Cullen/Frost Bankers, Inc. .................... 2,969,425
74,705 Fifth Third Bancorp ........................... 2,887,348
86,924 First Midwest Bancorp, Inc. ................... 2,923,254
21,300 Hancock Holding Company ....................... 951,045
66,160 Marshall & Ilsley Corp. ....................... 2,911,040
77,172 Mercantile Bankshares Corp. ................... 2,947,970
53,191 National Bank of Canada ....................... 3,035,273
83,238 National City Corp. ........................... 2,896,682
113,279 North Fork Bancorporation, Inc. ............... 2,893,146
137,834 Old National Bancorp .......................... 2,928,973
41,566 PNC Financial Services Group, Inc. ............ 2,924,168
143,826 Popular, Inc. ................................. 2,938,365
84,359 Regions Financial Corp. ....................... 2,934,006
35,769 Royal Bank of Canada .......................... 2,983,850
40,375 SunTrust Banks, Inc. .......................... 2,921,939
103,593 Synovus Financial Corp. ....................... 2,936,861
52,275 Toronto-Dominion Bank ......................... 3,002,676
51,669 Wachovia Corp. ................................ 2,897,081
45,547 Wells Fargo & Company ......................... 2,924,117
68,230 Wilmington Trust Corp. ........................ 2,920,926
-------------
88,949,305
-------------
See Notes to Quarterly Portfolio of Investments. Page 1
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
------------- -------------
COMMON STOCKS - CONTINUED
COMMERCIAL SERVICES & SUPPLIES - 1.6%
48,399 Avery Dennison Corp. .......................... $ 2,903,940
68,724 Pitney Bowes, Inc. ............................ 2,937,264
86,847 R.R. Donnelley & Sons Company ................. 2,923,270
-------------
8,764,474
-------------
COMPUTERS & PERIPHERALS - 0.6%
74,838 Diebold, Inc. ................................. 2,993,520
-------------
CONSTRUCTION MATERIALS - 0.5%
37,126 Vulcan Materials Company ...................... 2,932,954
-------------
CONTAINERS & PACKAGING - 1.1%
98,072 Bemis Company ................................. 2,940,199
91,575 Sonoco Products Company ....................... 2,996,334
-------------
5,936,533
-------------
DISTRIBUTORS - 0.5%
65,953 Genuine Parts Company ......................... 2,936,228
-------------
DIVERSIFIED TELECOMMUNICATION SERVICES - 2.2%
104,997 AT&T Inc. ..................................... 2,896,867
92,641 BellSouth Corp. ............................... 2,925,603
106,440 Telecom Corp. of New Zealand Ltd.,
Sponsored ADR .............................. 2,979,256
86,439 Verizon Communications, Inc. .................. 2,912,994
-------------
11,714,720
-------------
ELECTRIC UTILITIES - 5.5%
63,138 ALLETE, Inc. .................................. 2,946,650
66,775 Cinergy Corp. ................................. 2,943,442
51,399 Exelon Corp. .................................. 2,935,397
70,282 FPL Group, Inc. ............................... 2,946,924
102,547 Great Plains Energy, Inc. ..................... 2,912,335
110,226 Hawaiian Electric Industries, Inc. ............ 2,946,341
70,977 Pinnacle West Capital Corp. ................... 2,913,606
66,130 Progress Energy, Inc. ......................... 2,934,849
86,363 The Southern Company .......................... 2,938,933
136,936 Westar Energy, Inc. ........................... 2,946,863
-------------
29,365,340
-------------
ELECTRICAL EQUIPMENT - 1.5%
70,001 Baldor Electric Company ....................... 2,257,532
35,484 Emerson Electric Company ...................... 2,902,946
65,121 Hubbell, Inc., Class B ........................ 3,026,173
-------------
8,186,651
-------------
FOOD & STAPLES RETAILING - 1.1%
97,552 Sysco Corp. ................................... 2,935,340
68,788 Weis Markets, Inc. ............................ 3,072,072
-------------
6,007,412
-------------
Page 2 See Notes to Quarterly Portfolio of Investments.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
------------- -------------
COMMON STOCKS - CONTINUED
FOOD PRODUCTS - 8.2%
72,019 Cadbury Schweppes PLC, Sponsored ADR .......... $ 2,947,017
95,125 Campbell Soup Company ......................... 2,961,241
142,160 ConAgra Foods, Inc. ........................... 2,989,625
59,925 General Mills, Inc. ........................... 2,951,306
79,378 H.J. Heinz Company ............................ 3,006,045
65,425 Kellogg Company ............................... 2,898,982
97,166 Kraft Foods, Inc. ............................. 2,923,725
72,337 Lancaster Colony Corp. ........................ 2,903,607
88,679 McCormick & Company, Inc. ..................... 2,911,332
165,122 Sara Lee Corp. ................................ 2,917,706
56,229 The Hershey Company ........................... 2,876,113
75,086 The J.M. Smucker Company ...................... 2,967,399
42,107 Unilever NV ................................... 2,930,226
70,450 Unilever PLC, Sponsored ADR ................... 2,927,198
45,500 Wm. Wrigley Jr. Company ....................... 2,891,070
-------------
44,002,592
-------------
GAS UTILITIES - 5.0%
83,074 AGL Resources, Inc. ........................... 2,982,357
111,562 Atmos Energy Corp. ............................ 2,945,237
82,933 Equitable Resources, Inc. ..................... 3,015,444
90,644 National Fuel Gas Company ..................... 2,935,053
65,644 New Jersey Resources Corp. .................... 2,953,980
80,463 Peoples Energy Corp. .......................... 2,953,797
119,608 Piedmont Natural Gas Company, Inc. ............ 2,956,710
131,552 UGI Corp. ..................................... 2,953,342
95,341 WGL Holdings, Inc. ............................ 2,936,503
-------------
26,632,423
-------------
HEALTH CARE EQUIPMENT & SUPPLIES - 1.1%
94,152 Arrow International Inc. ...................... 2,913,063
56,957 Hillenbrand Industries, Inc. .................. 2,895,694
-------------
5,808,757
-------------
HOTELS, RESTAURANTS & LEISURE - 0.5%
83,074 McDonald's Corp. .............................. 2,900,113
-------------
HOUSEHOLD DURABLES - 1.1%
123,443 Leggett & Platt, Inc. ......................... 2,898,442
75,762 Snap-On, Inc. ................................. 2,948,657
-------------
5,847,099
-------------
HOUSEHOLD PRODUCTS - 1.6%
53,823 Colgate-Palmolive Company ..................... 2,932,277
49,324 Kimberly-Clark Corp. .......................... 2,918,994
48,736 The Clorox Company ............................ 2,970,459
-------------
8,821,730
-------------
See Notes to Quarterly Portfolio of Investments. Page 3
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
------------- -------------
COMMON STOCKS - CONTINUED
INDEPENDENT POWER PRODUCERS &
ENERGY TRADERS - 1.1%
50,181 Constellation Energy Group, Inc. .............. $ 2,947,632
103,739 Duke Energy Corp. ............................. 2,946,188
-------------
5,893,820
-------------
INDUSTRIAL CONGLOMERATES - 1.1%
39,920 3M Company .................................... 2,937,713
88,812 General Electric Company ...................... 2,919,250
-------------
5,856,963
-------------
INSURANCE - 5.5%
99,564 Arthur J. Gallagher & Company ................. 2,936,142
66,594 Cincinnati Financial Corp. .................... 2,954,110
48,519 Jefferson-Pilot Corp. ......................... 2,923,270
51,211 Lincoln National Corp. ........................ 2,907,248
46,400 Manulife Financial Corp. ...................... 2,966,816
49,800 MBIA Inc. ..................................... 2,925,252
52,303 Mercury General Corp. ......................... 2,923,738
137,448 Old Republic International Corp. .............. 2,926,268
54,360 The Allstate Corp. ............................ 2,977,841
60,867 Unitrin, Inc. ................................. 2,942,919
-------------
29,383,604
-------------
LEISURE EQUIPMENT & PRODUCTS - 0.5%
58,220 Polaris Industries, Inc. ...................... 2,913,911
-------------
MACHINERY - 1.1%
38,340 Deere & Company ............................... 2,924,192
41,915 Eaton Corp. ................................... 2,920,218
-------------
5,844,410
-------------
MEDIA - 3.3%
74,516 Dow Jones & Company, Inc. ..................... 3,029,075
46,784 Gannett Co., Inc. ............................. 2,908,093
47,740 Knight-Ridder, Inc. ........................... 2,865,355
83,521 Lee Enterprises, Inc. ......................... 2,919,059
103,703 The New York Times Company .................... 2,926,499
95,620 Tribune Company ............................... 2,925,972
-------------
17,574,053
-------------
MULTI-UTILITIES - 8.2%
57,480 Ameren Corp. .................................. 2,912,512
64,045 Consolidated Edison, Inc. ..................... 2,937,744
39,540 Dominion Resources, Inc. ...................... 2,969,454
117,765 Energy East Corp. ............................. 2,951,191
72,036 KeySpan Corp. ................................. 2,935,467
82,261 MDU Resources Group, Inc. ..................... 2,899,700
100,516 NSTAR ......................................... 2,951,150
105,638 OGE Energy Corp. .............................. 3,037,092
119,195 PNM Resources Inc. ............................ 2,950,076
71,529 SCANA Corp. ................................... 2,916,953
60,554 Sempra Energy ................................. 2,896,903
Page 4 See Notes to Quarterly Portfolio of Investments.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
------------- -------------
COMMON STOCKS - CONTINUED
MULTI-UTILITIES - (CONTINUED)
111,099 Vectren Corp. ................................. $ 2,928,570
72,694 Wisconsin Energy Corp. ........................ 2,971,004
55,341 WPS Resources Corp. ........................... 2,908,169
155,199 Xcel Energy, Inc. ............................. 2,880,493
-------------
44,046,478
-------------
OIL, GAS & CONSUMABLE FUELS - 4.3%
43,341 BP PLC, Sponsored ADR ......................... 2,878,709
50,892 Chevron Corp. ................................. 2,874,380
47,189 ConocoPhillips ................................ 2,876,641
48,703 Exxon Mobil Corp. ............................. 2,891,497
40,592 Marathon Oil Corp. ............................ 2,865,795
48,122 Royal Dutch Shell PLC, ADR, Class A ........... 2,910,419
23,028 Total SA, Sponsored ADR ....................... 2,904,522
96,560 TransCanada Corp. ............................. 2,962,461
-------------
23,164,424
-------------
PERSONAL PRODUCTS - 0.6%
104,923 Avon Products, Inc. ........................... 3,027,029
-------------
PHARMACEUTICALS - 3.8%
67,806 Abbott Laboratories ........................... 2,995,669
126,957 Bristol-Myers Squibb Company .................. 2,932,707
57,604 GlaxoSmithKline PLC, ADR ...................... 2,927,435
50,569 Johnson & Johnson ............................. 2,915,303
52,471 Lilly (Eli) & Company ......................... 2,918,437
112,845 Pfizer, Inc. .................................. 2,955,410
60,232 Wyeth ......................................... 2,999,554
-------------
20,644,515
-------------
REAL ESTATE (REITS) - 10.9%
61,183 Archstone-Smith Trust ......................... 2,900,074
28,317 AvalonBay Communities, Inc. ................... 2,916,651
53,735 BRE Properties, Inc., Class A ................. 2,921,572
83,003 Duke Realty Corp. ............................. 2,913,405
95,651 Equity Office Properties Trust ................ 3,008,224
64,045 Equity Residential ............................ 2,899,958
42,023 Federal Realty Investment Trust ............... 2,928,583
106,401 Health Care Property Investors, Inc. .......... 2,922,835
81,352 Kimco Realty Corp. ............................ 2,922,977
65,791 Liberty Property Trust ........................ 2,946,121
64,142 Mack-Cali Realty Corp. ........................ 2,879,976
119,244 New Plan Excel Realty Trust ................... 2,987,062
72,089 Pennsylvania Real Estate Investment Trust ..... 2,912,396
77,908 Plum Creek Timber Company, Inc. ............... 2,894,282
55,739 Prologis ...................................... 2,927,412
37,871 Public Storage, Inc. .......................... 2,954,695
34,908 Simon Property Group, Inc. .................... 2,896,317
109,569 United Dominion Realty Trust, Inc. ............ 2,930,971
88,893 Washington Real Estate Investment Trust ....... 2,970,804
72,820 Weingarten Realty Investors ................... 2,867,652
-------------
58,501,967
-------------
See Notes to Quarterly Portfolio of Investments. Page 5
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - CONTINUED
FEBRUARY 28, 2006 (UNAUDITED)
MARKET
SHARES VALUE
------------- -------------
COMMON STOCKS - CONTINUED
SPECIALTY RETAIL - 0.6%
69,700 The Sherwin-Williams Company $ 3,174,835
-------------
TEXTILES, APPAREL & LUXURY GOODS - 0.5%
52,743 VF Corp. 2,890,316
-------------
THRIFTS & MORTGAGE FINANCE - 2.7%
102,476 Astoria Financial Corp. 2,937,987
89,842 Capitol Federal Financial 2,961,192
43,430 Freddie Mac 2,926,748
125,122 Washington Federal, Inc. 2,960,387
67,603 Washington Mutual, Inc. 2,886,648
-------------
14,672,962
-------------
TOBACCO - 0.5%
68,852 Universal Corp. 2,800,211
-------------
WIRELESS TELECOMMUNICATION SERVICES - 0.5%
46,474 ALLTEL Corp. 2,934,833
-------------
TOTAL COMMON STOCKS 531,733,442
-------------
(Cost $478,045,155)
TOTAL INVESTMENTS - 98.8% 531,733,442
(Cost $478,045,155)*
NET OTHER ASSETS & LIABILITIES - 1.2% 6,212,531
-------------
NET ASSETS - 100.0% $ 537,945,973
=============
--------------------------------------------------------------------
* 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.
--------------------------------------------------------------------------------
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (UNAUDITED)
--------------------------------------------------------------------------------
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
FEBRUARY 28, 2006
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 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:
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 February 28, 2006, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $62,636,394,
and the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $8,948,107.
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
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date APRIL 27, 2006
----------------------------------------------------------------------------
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 APRIL 27, 2006
----------------------------------------------------------------------------
By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Treasurer, Controller,
Chief Financial Officer and Chief Accounting Officer
(principal financial officer)
Date APRIL 27, 2006
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.