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

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM N-CSRS

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act file number 811-21746

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

Fund Address:	P.O. Box 9011
	Princeton, NJ 08543-9011

Name and address of agent for service: Mitchell M. Cox, Chief Executive Officer, Small Cap Premium & Dividend Income Fund Inc., 4 World Financial Center, 6^th Floor, New York, New York 10080.

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

Date of fiscal year end: 12/31/2008

Date of reporting period: 01/01/2008 – 06/30/2008

Item 1 – Report to Stockholders

(COVER PAGE)

Small Cap Premium &

Dividend Income Fund Inc.

Semi-Annual Report

(Unaudited)

June 30, 2008

Small Cap Premium & Dividend Income Fund Inc.

Directors and Officers

William J. Rainer, Director and Chairman of the Board

Paul Glasserman, Director and Chairman of the Audit Committee

Steven W. Kohlhagen, Director and Chairman of the Nominating and Corporate Governance Committee

Laura S. Unger, Director

Mitchell M. Cox, President

James E. Hillman, Vice President and Treasurer

Colleen R. Rusch, Vice President and Secretary

Donald C. Burke, Vice President and Assistant Treasurer

Martin G. Byrne, Chief Legal Officer

Michael J. Fuccile, Chief Compliance Officer

Justin C. Ferri, Vice President

Michael M. Higuchi, Vice President

Custodian

State Street Bank and Trust Company

P.O. Box 351

Boston, MA 02101

Transfer Agent

BNY Mellon Shareowner Services

480 Washington Boulevard

Jersey City, NJ 07310



2	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Fund Summary as of June 30, 2008 (Unaudited)



Fund Information


Symbol on New York Stock Exchange			RCC
Initial Offering Date			July 29, 2005
Yield on Closing Market Price as of June 30, 2008 ($14.70)*			13.61%
Current Semi-Annual Distribution per share of Common Stock**			$1.00
Current Annualized Distribution per share of Common Stock**			$2.00


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

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

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



	6/30/08 (a)		12/31/07		Change†			High		Low

Market Price	$	14.70	$	15.74		(6.61	%)	$	17.07	$	12.81
Net Asset Value	$	15.02	$	17.19		(12.62	%)	$	17.20	$	14.99


(a)	For the six-month period, the Common Stock of the Fund had a total investment return of (6.55%) based on net asset value per share and (.11%) based on market price per share, assuming reinvestment of dividends. For the same period, the Fund’s unmanaged reference index, the Russell 2000^®Index, had a total investment return of (9.37%). The reference index has no expenses associated with performance.

†	Does not include reinvestment of dividends.

Portfolio Information as of June 30, 2008


Ten Largest Equity Holdings	Percent of Net Assets

Comstock Resources, Inc.		0.3	%
Penn Virginia Corp.		0.3
Energy Conversion Devices, Inc.		0.2
W-H Energy Services, Inc.		0.2
Alexion Pharmaceuticals, Inc.		0.2
GrafTech International Ltd.		0.2
EXCO Resources, Inc.		0.2
Compass Minerals International, Inc.		0.2
ITC Holdings Corp.		0.2
Berry Petroleum Co. Class A		0.2


Five Largest Industries	Percent of Net Assets

Computer Services Software & Systems		5.0	%
Real Estate Investment Trusts (REITs)		5.0
Banks: Outside New York City		4.3
Oil: Crude Producers		4.0
Services: Commercial		3.0


Sector Representation	Percent of Long-Term Investments

Financial Services		19.4	%
Consumer Discretionary		15.5
Technology		13.8
Health Care		13.0
Materials & Processing		9.7
Other Energy		8.4
Producer Durables		8.1
Utilities		4.7
Auto & Transportation		4.1
Consumer Staples		2.6
Other		0.4
Integrated Oils		0.3

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


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

	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	3

Summary Schedule of Investments as of June 30, 2008 (Unaudited)

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



Industry	Common Stocks	Shares	Value		Percent of Net Assets

Advertising Agencies	Other Securities		$	842,974		0.4	%

Aerospace	Curtiss-Wright Corp.	7,500		335,550		0.2
	Other Securities			1,331,569		0.6

				1,667,119		0.8

Agriculture, Fishing & Ranching	Other Securities			277,026		0.1

Air Transport	Other Securities			1,130,282		0.6

Aluminum	Other Securities			144,531		0.1

Auto Parts: After Market	Other Securities			188,509		0.1

Auto Parts: Original Equipment	Other Securities			922,922		0.5

Auto, Trucks & Parts	Other Securities			207,848		0.1

Banks: New York City	Other Securities			133,952		0.1

Banks: Outside New York City	Other Securities			8,817,690		4.3

Beverage: Brewers (Wineries)	Other Securities			65,088		0.0

Beverage: Soft Drinks	Other Securities			209,426		0.1

Biotechnology Research & Production	Alexion Pharmaceuticals, Inc. (a)	6,500		471,250		0.2
	Myriad Genetics, Inc. (a)	7,600		345,952		0.2
	OSI Pharmaceuticals, Inc. (a)	9,800		404,936		0.2
	Other Securities			4,822,552		2.3

				6,044,690		2.9

Building Materials	Other Securities			1,123,622		0.5

Building: Cement	Other Securities			26,180		0.0

Building: Heating & Plumbing	Other Securities			127,395		0.1

Building: Miscellaneous	Other Securities			259,051		0.1

Building: Roofing & Wallboard	Other Securities			113,770		0.1

Cable Television Services	Other Securities			197,477		0.1

Casinos & Gambling	Other Securities			858,105		0.4

Chemicals	Energy Conversion Devices, Inc. (a)	6,800		500,752		0.2
	Hercules, Inc.	19,000		321,670		0.2
	Other Securities			2,794,698		1.4

				3,617,120		1.8

Coal	Other Securities			615,239		0.3

Commercial Information Services	Other Securities			349,999		0.2

Communications & Media	Other Securities			91,558		0.0

Communications Technology	Other Securities			5,008,403		2.4

Computer Services Software & Systems	Micros Systems, Inc. (a)	13,800		420,762		0.2
	Parametric Technology Corp. (a)	19,320		322,064		0.1
	Sybase, Inc. (a)	13,400		394,228		0.2
	Other Securities			9,173,548		4.5

				10,310,602		5.0

Computer Technology	Other Securities			2,011,104		1.0

Construction	EMCOR Group, Inc. (a)	11,400		325,242		0.2
	Other Securities			438,047		0.2

				763,289		0.4



4	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Summary Schedule of Investments (continued)



Industry	Common Stocks	Shares		Value		Percent of Net Assets

Consumer Electronics	Take-Two Interactive Software, Inc. (a)		12,900	$	329,853		0.2	%
	Other Securities				1,026,168		0.5

					1,356,021		0.7

Consumer Products	Tupperware Corp.		10,400		355,888		0.2
	Other Securities				660,673		0.3

					1,016,561		0.5

Containers & Packaging: Metals & Glass	Other Securities				343,718		0.2

Containers & Packaging: Paper & Plastic	Other Securities				102,223		0.0

Copper	Other Securities				202,860		0.1

Cosmetics	Other Securities				338,006		0.2

Diversified Financial Services	Other Securities				1,054,466		0.5

Diversified Materials & Processing	Acuity Brands, Inc.		6,800		326,944		0.2
	Olin Corp.		12,800		335,104		0.2
	Other Securities				1,294,854		0.6

					1,956,902		1.0

Drug & Grocery Store Chains	Other Securities				1,258,864		0.6

Drugs & Pharmaceuticals	Onyx Pharmaceuticals, Inc. (a)		9,420		335,352		0.1
	United Therapeutics Corp. (a)		3,900		381,225		0.2
	Other Securities				3,865,551		1.9

					4,582,128		2.2

Education Services	Other Securities				567,102		0.3

Electrical & Electronics	Other Securities				763,577		0.4

Electrical Equipment & Components	Other Securities				1,767,798		0.9

Electrical: Household Appliance	Other Securities				72,134		0.0

Electronics	Other Securities				940,547		0.5

Electronics: Instruments, Gauges & Meters	Other Securities				174,474		0.1

Electronics: Medical Systems	Other Securities				1,899,483		0.9

Electronics: Other	Other Securities				14,600		0.0

Electronics: Semi-Conductors/	Microsemi Corp. (a)		13,200		332,376		0.1
Components	Other Securities				3,413,408		1.7

					3,745,784		1.8

Electronics: Technology	Other Securities				1,175,358		0.6

Energy Equipment	Other Securities				165,164		0.1

Energy Miscellaneous	Penn Virginia Corp.		7,000		527,940		0.3
	Other Securities				1,696,854		0.8

					2,224,794		1.1

Engineering & Contracting Services	Other Securities				723,604		0.3

Entertainment	Other Securities				419,770		0.2

Finance Companies	Other Securities				253,318		0.1

Finance: Small Loan	Other Securities				181,593		0.1

Financial Data Processing Services & Systems	Other Securities				1,473,402		0.7

Financial Information Services	Other Securities				377,679		0.2

Financial Miscellaneous	Other Securities				1,366,394		0.7

Foods	Flowers Foods, Inc.		13,000		368,420		0.2
	Other Securities				2,247,681		1.1

					2,616,101		1.3

Forest Products	Other Securities				326,234		0.2



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	5

Summary Schedule of Investments (continued)



Industry	Common Stocks	Shares		Value		Percent of Net Assets

Forms & Bulk Printing Services	Other Securities			$	160,053		0.1	%

Funeral Parlors & Cemeteries	Other Securities				104,400		0.0

Glass	Other Securities				79,184		0.0

Gold	Other Securities				475,823		0.2

Health Care Facilities	Psychiatric Solutions, Inc. (a)		9,400		355,696		0.2
	Other Securities				810,638		0.4

					1,166,334		0.6

Health Care Management Services	Other Securities				1,639,311		0.8

Health Care Services	Other Securities				1,359,255		0.6

Homebuilding	Other Securities				385,713		0.2

Hotel/Motel	Other Securities				122,441		0.1

Household Furnishings	Other Securities				520,534		0.2

Identification Control & Filter Devices	Other Securities				1,516,351		0.7

Industrial Products	Other Securities				56,850		0.0

Insurance: Life	Other Securities				674,410		0.3

Insurance: Multi-Line	Other Securities				1,979,305		1.0

Insurance: Property-Casualty	Aspen Insurance Holdings Ltd.		14,600		345,582		0.2
	Other Securities				3,148,310		1.5

					3,493,892		1.7

Investment Management Companies	Apollo Investment Corp.		23,876		342,143		0.2
	Other Securities				814,362		0.4

					1,156,505		0.6

Jewelry, Watches & Gemstones	Other Securities				303,170		0.1

Leisure Time	Other Securities				782,587		0.4

Machine Tools	Other Securities				61,928		0.0

Machinery & Engineering	Other Securities				175,233		0.1

Machinery: Agricultural	Other Securities				250,372		0.1

Machinery: Construction & Handling	Other Securities				163,335		0.1

Machinery: Engines	Other Securities				186,305		0.1

Machinery: Industrial/Specialty	Nordson Corp.		5,700		415,473		0.2
	Woodward Governor Co.		9,900		353,034		0.2
	Other Securities				1,386,673		0.7

					2,155,180		1.1

Machinery: Oil Well	Dril-Quip, Inc. (a)		5,200		327,600		0.2
Equipment & Services	W-H Energy Services, Inc. (a)		5,200		497,848		0.2
	Other Securities				2,923,084		1.4

					3,748,532		1.8

Machinery: Specialty	Other Securities				190,627		0.1

Manufactured Housing	Other Securities				152,959		0.1

Manufacturing	Other Securities				204,526		0.1

Medical & Dental	Owens & Minor, Inc.		6,900		315,261		0.1
Instruments & Supplies	Other Securities				5,093,384		2.5

					5,408,645		2.6

Medical Services	Other Securities				814,893		0.4

Metal Fabricating	Other Securities				1,530,668		0.7



6	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Summary Schedule of Investments (continued)



Industry	Common Stocks	Shares			Value	Percent of Net Assets

Metals & Minerals Miscellaneous	Compass Minerals International, Inc.		5,400	$	435,024		0.2	%
	GrafTech International Ltd. (a)		17,400		466,842		0.2
	Other Securities				1,008,094		0.5

					1,909,960		0.9

Miscellaneous Business & Consumer Discretionary	Other Securities				41,920		0.0

Miscellaneous Consumer Staples	Other Securities				41,040		0.0

Miscellaneous Health Care	Other Securities				35,805		0.0

Miscellaneous Materials & Commodities	Other Securities				315,832		0.2

Miscellaneous Materials & Processing	Other Securities				198,741		0.1

Miscellaneous Producer Durables	Other Securities				96,975		0.0

Miscellaneous Technology	Other Securities				201,582		0.1

Multi-Sector Companies	Other Securities				615,956		0.3

Office Furniture & Business Equipment	Other Securities				635,918		0.3

Offshore Drilling	Other Securities				77,792		0.0

Oil: Crude Producers	Berry Petroleum Co. Class A		7,200		423,936		0.2
	Bill Barrett Corp. (a)		6,100		362,401		0.2
	Carrizo Oil & Gas, Inc. (a)		4,600		313,214		0.2
	Comstock Resources, Inc. (a)		7,700		650,111		0.3
	EXCO Resources, Inc. (a)		12,500		461,375		0.2
	Stone Energy Corp. (a)		4,800		316,368		0.2
	Swift Energy Co. (a)		5,200		343,512		0.2
	Other Securities				5,204,126		2.5

					8,075,043		4.0

Oil: Integrated Domestic	Other Securities				503,530		0.2

Oil: Integrated International	Other Securities				85,547		0.0

Paints & Coatings	Other Securities				338,540		0.2

Paper	Other Securities				799,337		0.4

Plastics	Other Securities				49,036		0.0

Pollution Control & Environmental Services	Other Securities				791,512		0.4

Power Transmission Equipment	Other Securities				260,586		0.1

Printing & Copying Services	Other Securities				379,626		0.2

Production Technology Equipment	Other Securities				2,202,116		1.1

Publishing: Miscellaneous	Other Securities				380,006		0.2

Publishing: Newspapers	Other Securities				363,899		0.2

Radio & TV Broadcasters	Other Securities				462,240		0.2

Railroad Equipment	Westinghouse Air Brake Technologies Corp.		8,100		393,822		0.2
	Other Securities				149,654		0.1

					543,476		0.3

Railroads	Other Securities				168,399		0.1

Real Estate	Other Securities				518,089		0.2

Real Estate Investment Trusts (REITs)	Anthracite Capital, Inc. (b)		9,600		67,584		0.0
	Realty Income Corp.		17,100		389,196		0.2
	Senior Housing Properties Trust		16,300		318,339		0.2
	Other Securities				9,380,658		4.6

					10,155,777		5.0

Recreational Vehicles & Boats	Other Securities				318,196		0.2

Rental & Leasing Services: Commercial	Other Securities				240,846		0.1

Rental & Leasing Services: Consumer	Other Securities				586,566		0.3



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	7

Summary Schedule of Investments (continued)



Industry	Common Stocks	Shares			Value	Percent of Net Assets

Restaurants	Other Securities			$	2,091,853		1.0	%

Retail	Aéropostale, Inc. (a)		11,400		357,162		0.2
	Other Securities				5,056,825		2.4

					5,413,987		2.6

Savings & Loan	Other Securities				1,819,796		0.9

Scientific Equipment & Suppliers	Other Securities				328,196		0.2

Securities Brokerage & Services	Other Securities				962,835		0.5

Services: Commercial	Waste Connections, Inc. (a)		11,200		357,616		0.2
	Watson Wyatt Worldwide, Inc.		7,200		380,808		0.2
	Other Securities				5,314,921		2.6

					6,053,345		3.0

Shipping	Other Securities				1,752,843		0.9

Shoes	Other Securities				1,283,951		0.6

Steel	Other Securities				558,152		0.3

Sugar	Other Securities				29,507		0.0

Telecommunications Equipment	Polycom, Inc. (a)		14,800		360,528		0.2
	Other Securities				914,240		0.4

					1,274,768		0.6

Textile Products	Other Securities				135,198		0.1

Textiles Apparel Manufacturers	The Warnaco Group, Inc. (a)		7,600		334,932		0.2
	Other Securities				1,195,322		0.6

					1,530,254		0.8

Tires & Rubber	Other Securities				241,468		0.1

Tobacco	Other Securities				445,249		0.2

Toys	Other Securities				410,650		0.2

Transportation Miscellaneous	Other Securities				547,508		0.3

Truckers	Other Securities				1,164,481		0.6

Utilities: Cable TV & Radio	Other Securities				42,720		0.0

Utilities: Electrical	ITC Holdings Corp.		8,300		424,213		0.2
	Westar Energy, Inc.		17,900		385,029		0.2
	Other Securities				2,660,462		1.3

					3,469,704		1.7

Utilities: Gas Distributors	Nicor, Inc.		7,700		327,943		0.2
	Piedmont Natural Gas Co.		12,300		321,768		0.1
	Other Securities				1,369,395		0.7

					2,019,106		1.0

Utilities: Miscellaneous	Other Securities				237,510		0.1

Utilities: Telecommunications	TW Telecom, Inc. (a)		24,830		398,025		0.2
	Other Securities				1,726,477		0.8

					2,124,502		1.0

Utilities: Water	Other Securities				432,565		0.2

Wholesalers	Other Securities				425,365		0.2

	Total Common Stocks (Cost — $200,131,506)				176,794,352		86.3



8	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Summary Schedule of Investments (continued)



Industry	Investment Companies	Shares		Value		Percent of Net Assets

	BlackRock Kelso Capital Corp. (b)		1,400	$	13,244		0.0	%
	Other Securities				225,567		0.1

	Total Investment Companies (Cost — $360,552)				238,811		0.1


	Short-Term Securities	Face Amount

Time Deposits	State Street Bank & Trust Co., 1%, 7/01/08	$	27,559,147	27,559,147	13.5

	Total Short-Term Securities (Cost — $27,559,147)			27,559,147	13.5

	Total Investments Before Options Written (Cost — $228,051,205*)			204,592,310	99.9


	Options Written	Number of Contracts

Call Options Written	Russell 2000 Index, expiring July 2008 at USD 750	1,000		(82,500	)	(0.1	)
	Russell 2000 Index, expiring July 2008 at USD 760	750		(33,750	)	0.0

	Total Options Written (Premiums Received — $1,627,209)			(116,250	)	(0.1	)

Total Investments, Net of Options Written (Cost — $226,423,996)				204,476,060		99.8
Other Assets Less Liabilities				462,009		0.2

Net Assets			$	204,938,069		100.0	%


*	The cost and unrealized appreciation (depreciation) of investments, as of June 30, 2008, as computed for federal income tax purposes, were as follows:

	Aggregate cost	$	217,401,378

	Gross unrealized appreciation	$	3,215,812
	Gross unrealized depreciation		(16,024,880	)

	Net unrealized depreciation	$	(12,809,068	)


(a)	Non-income producing security.

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



Affiliate	Purchase Cost		Sales Cost		Realized Loss			Dividend Income

Anthracite Capital, Inc.	$	7,219	$	18,035	$	(6,680	)	$	6,500
BlackRock Kelso Capital Corp.	$	3,714		—		—		$	860


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

•	Financial futures contracts purchased as of June 30, 2008 were as follows:



Number of Contracts	Issue	Expiration Date		Face Value		Appreciation (Depreciation)

400	Russell	September
	2000 Index	2008	$	29,258,540	$	(1,590,540)




SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	9

Summary Schedule of Investments (concluded)


•	Effective January 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

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

	•	Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

	•	Level 3 — unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used in determining the fair value of investments)

	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1(a) of the Notes to Financial Statements.

	The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Fund’s investments:



Valuation Inputs	Investments in Securities		Other Financial Instruments†

Level 1	$	204,592,310	$	(1,706,790	)
Level 2		—		—
Level 3		—		—

Total	$	204,592,310	$	(1,706,790	)


†	Other financial instruments are futures and options.

See Notes to Financial Statements.



10	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Statement of Assets, Liabilities and Capital


As of June 30, 2008 (Unaudited)

Assets

Investments in unaffiliated securities, at value (identified cost — $227,922,426)				$	204,511,482
Investments in affiliated securities, at value (identified cost — $128,779)					80,828
Receivables:
Securities sold	$	30,160,488
Dividends		191,054
Interest		765			30,352,307

Total assets					234,944,617



Liabilities

Options written, at value (premiums received — $1,627,209)					116,250
Payables:
Securities purchased		28,367,145
Dividends and distributions to shareholders		972,327
Investment advisory fees		170,146
Variation margin		285,442			29,795,060

Accrued expenses					95,238

Total liabilities					30,006,548



Net Assets

Net assets				$	204,938,069



Capital

Common Stock, par value $.001 per share, 100,000,000 shares authorized				$	13,645
Paid-in capital in excess of par					245,512,932
Accumulated distributions in excess of investment income — net	$	(12,917,100	)
Undistributed realized capital losses — net		(4,132,932	)
Unrealized appreciation — net		(23,538,476	)

Total accumulated losses — net					(40,588,508	)

Total capital — Equivalent to $15.02 per share based on 13,644,510 shares of Common Stock outstanding (market price — $14.70)				$	204,938,069

See Notes to Financial Statements.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	11

Statement of Operations


For the Six Months Ended June 30, 2008 (Unaudited)

Investment Income

Dividends (including $7,360 from affiliates and net of $291 foreign withholding tax)				$	912,834
Interest					294,380

Total income					1,207,214



Expenses

Investment advisory fees	$	986,019
Accounting services		47,735
Professional fees		42,308
Directors’ fees and expenses		32,012
Transfer agent fees		19,490
Repurchase offer		18,592
Printing and shareholder reports		16,321
Custodian fees		16,199
Listing fees		11,879
Licensing fees		5,420
Other		16,028

Total expenses					1,212,003

Investment income — net					(4,789	)



Realized & Unrealized Gain (Loss) — Net

Realized gain (loss) on:
Investments (including $6,680 loss from affiliates) — net		6,752,526
Financial futures contracts — net		(844,290	)
Options written — net		6,205,865			12,114,101

Change in unrealized appreciation/depreciation on:
Investments — net		(26,704,661	)
Financial futures contracts — net		(1,663,701	)
Options written — net		289,209			(28,079,153	)

Total realized and unrealized loss — net					(15,965,052	)

Net Increase in Net Assets Resulting from Operations				$	(15,969,841	)

See Notes to Financial Statements.



12	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Statement of Changes in Net Assets


Increase (Decrease) in Net Assets:	For the Six Months Ended June 30, 2008 (Unaudited)			For the Year Ended December 31, 2007

Operations

Investment income (loss) — net	$	(4,789	)	$	1,245,783
Realized gain — net		12,114,101			20,192,200
Unrealized depreciation — net		(28,079,153	)		(16,220,844	)

Net increase (decrease) in net assets resulting from operations		(15,969,841	)		5,217,139



Dividends & Distributions to Shareholders

Investment income — net		(13,644,510	)†		(1,099,977	)
Realized gain — net		—			(21,655,076	)
Tax return of capital		—			(4,501,255	)

Net decrease in net assets resulting from dividends and distributions to shareholders		(13,644,510	)		(27,256,308	)



Common Stock Transactions

Adjustment of offering costs resulting from the issuance of Common Stock		—			135,048
Net redemption of Common Stock resulting from a repurchase offer (includes $3,451 of repurchase fees)		—			(924,375	)
Value of shares issued to Common Stock shareholders in reinvestment of dividends and distributions		—			1,527,886

Net increase in net assets resulting from Common Stock transactions		—			738,559



Net Assets

Total decrease in net assets		(29,614,351	)		(21,300,610	)
Beginning of period		234,552,420			255,853,030

End of period*	$	204,938,069		$	234,552,420

* Undistributed (accumulated distributions in excess of) investment income — net	$	(12,917,100	)	$	732,199


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

See Notes to Financial Statements.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	13

Financial Highlights


	For the Six Months Ended June 30, 2008 (Unaudited)									For the Period July 29, 2005† to December 31, 2005
The following per share data and ratios have been derived from information provided in the financial statements.				For the Year Ended December 31,

				2007			2006

Per Share Operating Performance

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

Investment income — net***		—	‡‡‡		.09			.08			.04
Realized and unrealized gain (loss) — net		(1.17	)		.29	††		2.56	††		(.12	)

Total from investment operations		(1.17	)		.38			2.64			(.08	)

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

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

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

Net asset value, end of period	$	15.02		$	17.19		$	18.80		$	18.16

Market price per share, end of period	$	14.70		$	15.74		$	19.49		$	16.09



Total Investment Return**

Based on net asset value per share		(6.55	%)‡		2.63	%		15.40	%		(.14	%)‡

Based on market price per share		(.11	%)‡		(9.36	%)		35.03	%		(15.51	%)‡



Ratios to Average Net Assets

Expenses		1.10	%*		1.05	%		1.09	%		1.07	%*

Expenses, net of reimbursement		1.10	%*		1.03	%		1.09	%		1.07	%*

Investment income (loss) — net		.00	%*‡‡		.49	%		.41	%		.56	%*



Supplemental Data

Net assets, end of period (in thousands)	$	204,938		$	234,552		$	255,853		$	327,008

Portfolio turnover		17	%		15	%		26	%		3	%


*		Annualized.

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

***		Based on average shares outstanding.

†		Commencement of operations.

††		Includes repurchase fees, which are less than $.01 per share.

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

‡		Aggregate total investment return.

‡‡		Amount is less than (.01%).

‡‡‡		Amount is less than $(.01).

		See Notes to Financial Statements.



14	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Notes to Financial Statements (Unaudited)

1. Significant Accounting Policies:

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

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

Exchange-traded options are valued at the mean between the last bid and ask prices at the close of the options market in which the options trade. Options traded in the OTC market are valued at the last asked price (options written) or the last bid price (options purchased). Swap agreements are valued based upon quoted fair valuations received daily by the Fund from a pricing service or counterparty. Financial futures contracts and options thereon, which are traded on exchanges, are valued at their last sale price as of the close of such exchanges. Obligations with remaining maturities of 60 days or less are valued at amortized cost unless the investment adviser believes that this method no longer produces fair valuations.

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

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

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


•	Options — The Fund writes call options. When the Fund writes an option, an amount equal to the premium received by the Fund is reflected as an asset and an equivalent liability. The amount of the liability is subsequently marked-to-market to reflect the current market



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	15

Notes to Financial Statements (continued)

value of the option written. When a security is purchased or sold through an exercise of an option, the related premium paid (or received) is added to (or deducted from) the basis of the security acquired or deducted from (or added to) the proceeds of the security sold. When an option expires (or the Fund enters into a closing transaction), the Fund realizes a gain or loss on the option to the extent of the premiums received or paid (or gain or loss to the extent the cost of the closing transaction exceeds the premium paid or received). Written options are non-income producing investments.

•

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

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

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

(e) Dividends and distributions — Dividends and distributions paid by the Fund are recorded on the ex-dividend dates. For the current period ended, June 30, 2008, Fund management believes it is likely total dividends and distributions may exceed net investment income and accumulated realized capital gains, resulting in a portion of the total distribution treated as a return of capital. Portions of the distributions paid by the Fund during the year ended December 31, 2007 were characterized as a tax return of capital.

(f) Offering expenses — Direct expenses relating to the public offering of the Fund’s Common Stock were charged to capital at the time of issuance of the shares. Any adjustments to estimates of offering costs were recorded to capital.

(g) Recent accounting pronouncement — Effective June 29, 2007, the Fund implemented Financial Accounting Standards Board (“FASB”) Interpretation No. 48,”Accounting for Uncertainty in Income Taxes — an interpretation of FASB Statement No. 109” (“FIN 48”). FIN 48 prescribes the minimum recognition threshold a tax position must meet in connection with accounting for uncertainties in income tax positions taken or expected to be taken by an entity, including investment companies, before being measured and recognized in the financial statements. Management has evaluated the application of FIN 48 to the Fund, and has determined that the adoption of FIN 48 does not have a material impact on the Fund’s financial statements. The Fund files U.S. and various state tax returns. To the best of our knowledge, no income tax returns are currently under examination. All tax years of the Fund are open at this time.

2. Investment Advisory Agreement and Transactions with Affiliates:

The Fund has entered into an Investment Advisory and Management Agreement with IQ Investment Advisors LLC (“IQ Advisors”), an indirect, wholly owned subsidiary of Merrill Lynch & Co., Inc. (“ML & Co.”). IQ Advisors is responsible for the investment advisory, management and administrative services to the Fund. In addition, IQ Advisors provides the necessary personnel, facilities, equipment and certain other services necessary to the operations of the Fund. For such services, the Fund pays a monthly fee at an annual rate equal to .90% of the average daily value of the Fund’s net assets plus borrowings for leverage and other investment purposes. In addition, IQ Advisors has entered into a Subadvisory Agreement with BlackRock Investment Management, LLC (the “Subadviser”), an indirect, wholly owned subsidiary of BlackRock, Inc. (“BlackRock”), pursuant to which the Subadviser provides certain investment advisory services to IQ Advisors with respect to the Fund. For such services, IQ Advisors pays the Subadviser a monthly fee at an annual rate of .39% of the average daily value of the Fund’s net assets plus borrowings for leverage and other investment purposes. There is no increase in the aggregate fees paid by the Fund for these services.

IQ Advisors has entered into an Administration Agreement with Princeton Administrators, LLC (the “Administrator”). The Administration Agreement provides that IQ Advisors pays the



16	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Notes to Financial Statements (concluded)

Administrator a fee from its investment advisory fee at an annual rate equal to .12% of the average daily value of the Fund’s net assets plus borrowings for leverage and other investment purposes for the performance of administrative and other services necessary for the operation of the Fund. There is no increase in the aggregate fees paid by the Fund for these services. The Administrator is an indirect, wholly owned subsidiary of BlackRock. ML & Co. is a principal owner of BlackRock.

Merrill Lynch, Pierce, Fenner & Smith Incorporated, an affiliate of IQ Advisors, received $4,791 in commissions on the execution of portfolio security transactions for the Fund for the six months ended June 30, 2008.

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

3. Investments:

Purchases and sales of investments, excluding short-term securities, for the six months ended June 30, 2008 were $31,114,314 and $39,272,731, respectively.

Transactions in options written for the six months ended June 30, 2008 were as follows:



	Number of Contracts			Premiums Received

Outstanding call options written, at beginning of period		1,500		$	3,235,500
Options written		11,735			20,018,903
Options closed		(11,485	)		(21,627,194	)

Outstanding call options written, at end of period		1,750		$	1,627,209

4. Common Stock Transactions:

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

Shares issued and outstanding during the six months ended June 30, 2008 remained constant. Shares issued and outstanding during the year ended December 31,2007 increased by 82,012 as a result of dividend and distribution reinvestments and decreased by 49,300 as a result of a repurchase offer.

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

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

5. Subsequent Event:

On July 18, 2008, 206,725 shares (1.52% of the shares outstanding) were repurchased by the Fund from its shareholders at $15.08 per share, (subject to a repurchase fee of $0.3016 per share) for $3,055,064, pursuant to the Fund’s repurchase offer.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	17

Renewal of Current Investment Advisory and Management Agreement

The Board of Directors of each of S&P 500^®GEARED^SMFund Inc. (“S&P GEARED”), Defined Strategy Fund Inc. (“Defined Strategy”), S&P 500^®Covered Call Fund Inc. (“Covered Call”), Dow 30^SMPremium & Dividend Income Fund Inc. (“Dow 30”), Small Cap Premium & Dividend Income Fund Inc. (“Small Cap”), Enhanced S&P 500^®Covered Call Fund Inc. (“Enhanced Covered Call”), Global Income & Currency Fund Inc. (“Global Income”), NASDAQ Premium Income & Growth Fund Inc. (“NASDAQ Premium”) and Dow 30^SMEnhanced Premium & Income Fund Inc. (“Dow 30 Enhanced”) (each, a “Fund” and collectively, the “Funds”), currently consisting solely of Independent Directors, as defined in Section 2(a)(19) of the Investment Company Act of 1940, as amended (the “Investment Company Act”), has the responsibility under the Investment Company Act to consider annually the Investment Advisory and Management Agreement of each Fund (each, a “Management Agreement” and together, the “Management Agreements”) with IQ Investment Advisors LLC (“IQ Advisors”).

At a Board meeting held on June 5, 2008, all of the Directors present at the meeting renewed the Management Agreement for each Fund for an additional one-year term. Each Management Agreement was considered separately by the relevant Fund’s Directors. In considering whether to approve the continuance of the Management Agreement, the Directors reviewed materials from counsel to the Funds and from IQ Advisors including: (i) information concerning the services rendered to the Funds by IQ Advisors and its affiliates; (ii) information concerning the revenues and expenses incurred by IQ Advisors and its affiliates from the operation of the Funds; (iii) a memorandum outlining the legal duties of the Directors under the Investment Company Act; and (iv) information from Lipper, Inc. (“Lipper”) comparing each Fund’s fee rate for advisory and administrative services to those of other closed-end funds chosen by Lipper. Each Management Agreement was considered separately by the relevant Fund’s Directors. The Directors were represented by independent legal counsel who assisted them in their deliberations. In voting to approve the continuation of each Fund’s Management Agreement, the Directors considered in particular the following factors:

(a) The nature, extent and quality of services provided by IQ Advisors and its affiliates — The Directors reviewed the services that IQ Advisors has provided to the Funds. They considered the size and experience of IQ Advisors’ staff, its use of technology, and the degree to which IQ Advisors exercises supervision over the actions of the Fund’s subadviser. In connection with the investment advisory services provided, the Directors took into account detailed discussions they had with officers of IQ Advisors regarding the management of each Fund’s investments in accordance with each Fund’s stated investment objective and policies and the types of transactions entered into on behalf of each Fund. During these discussions, the Directors asked detailed questions of, and received answers from, the officers of IQ Advisors regarding the implementation of each Fund’s investment strategy, its efficacy and risks.

In addition to the investment advisory services provided to the Funds, the Directors considered that IQ Advisors and its affiliates also provide administrative services, stockholder services, oversight of Fund accounting, marketing services, assistance in meeting legal and regulatory requirements and other services necessary for the operation of the Funds. In particular, the Directors reviewed the compliance and administrative services provided to the Funds by IQ Advisors, including its oversight of each Fund’s day-to-day operations and its oversight of Fund accounting. The Directors noted that IQ Advisors has access to administrative, legal and compliance resources that help ensure a high level of quality in the compliance and administrative services provided to the Funds. The Directors also considered each Fund’s compliance history. Following their consideration of this information, and based on the presentations at the Meeting and the Directors’ experience as Directors of other investment companies advised by IQ Advisors, the Directors concluded that the services provided to each Fund by IQ Advisors under the respective Management Agreement were of a high quality and benefited the Fund.

(b) Investment performance of each Fund and IQ Advisors — The Directors considered the history, experience, resources and strengths of IQ Advisors and its affiliates in developing and implementing the investment strategies used by each Fund. The Directors also considered the innovative nature of each Fund. The Directors noted the specialized nature of each Fund’s investment strategy and the inherent limitations in comparing a Fund’s investment performance to that of another investment company. The Directors reviewed each Fund’s investment performance and, where applicable, compared such performance to the performance of a relevant reference index. The Directors discussed the degree to which each Fund was achieving its investment objective. In particular, the Directors noted that the Funds generally performed as expected and met their respective investment objectives. As a result of their discussions and review, the Directors concluded that each Fund’s performance was satisfactory. Based on



18	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Renewal of Current Investment Advisory and Management Agreement (continued)

these factors, the Directors determined that IQ Advisors continued to be an appropriate investment adviser for the Funds.

(c) Cost of services provided and profits realized by IQ Advisors and its affiliates from the relationship with each of the Funds — The Directors reviewed and considered a memorandum from IQ Advisors regarding the methodology used by IQ Advisors in allocating its costs regarding the operations of the Funds and calculating each Fund’s profitability to IQ Advisors and its affiliates. The Directors also reviewed a report detailing IQ Advisors’ profitability. After considering their discussion with IQ Advisors and reviewing its memorandum and report, the Directors concluded that there was a reasonable basis for the allocation of costs and the determination of profitability. The Directors considered the cost of the services provided by IQ Advisors to each Fund and the revenue derived by IQ Advisors and its affiliates. The Directors took into account discussions that they had with representatives of IQ Advisors regarding its general level of profitability (if any), and the profits derived by its affiliate, BlackRock, Inc. (“BlackRock”) from operating the Funds. The Directors also considered the direct and indirect benefits derived by other IQ Advisors affiliates, including Merrill Lynch, Pierce, Fenner & Smith Incorporated (“MLPF&S”), from the establishment of the Funds, including the underwriting arrangements relating to the initial distribution of Fund shares. The Directors considered federal court decisions discussing an investment adviser’s profitability and profitability levels considered to be reasonable in those decisions. The Directors concluded that any profits made by IQ Advisors and its affiliates (including BlackRock and MLPF&S) are acceptable in relation to the nature, extent and quality of services provided. The Directors also concluded that each Fund benefited from such services provided by IQ Advisors’ affiliates.

(d) The extent to which economies of scale would be realized as a Fund grows and whether fee levels would reflect such economies of scale — The Directors considered the extent to which economies of scale might be realized if the assets of a Fund were to increase and whether there should be changes in the management fee rate or structure in order to enable a Fund to participate in these economies of scale. The Directors noted that, because each Fund is a closed-end fund, any increase in asset levels generally would have to come from appreciation through investment performance. The Directors also noted that each Fund, other than Dow 30, NASDAQ Premium, Dow 30 Enhanced and Covered Call, is an interval fund that periodically allows stockholders to tender their shares to the Fund and that such tender offers reduce the amount of Fund assets. In consideration of these and other factors, the Directors determined that no changes were currently necessary to each Fund’s fee structure. The Directors also discussed the renewal requirements for investment advisory agreements, and determined that they would revisit this issue no later than when they next review the investment advisory fees.

(e) Comparison of services rendered and fees paid to those under other investment advisory contracts, such as contracts of the same and other investment advisers or other clients — The Directors compared both the services rendered and the fees paid under the Management Agreements to the contracts of other investment advisers with respect to other closed-end registered investment companies. In particular, the Directors evaluated each Fund’s contractual fee rate for advisory and administrative services as compared to the contractual fee rate of other closed-end funds chosen by Lipper. In considering this information, the Directors took into account the nature of the investment strategies of the Funds and the fact that the relevant peer group of funds provided by Lipper for comparison have investment strategies and restrictions different from those of the Funds. The Directors did not consider compensation paid to IQ Advisors with respect to accounts other than registered investment companies because IQ Advisors utilizes each Fund’s strategy in connection with only registered funds. In particular, the Directors noted that each Fund’s contractual advisory fee rate at a common asset level was equal to or lower than the median fee rate of its Lipper comparison funds. The Directors concluded that the advisory fee rates were reasonable in comparison to the data reflected in the Lipper materials.

(f) Conclusion — No single factor was determinative to the decision of the Directors. Based on the foregoing and such other matters as were deemed relevant, all of the Directors concluded that the advisory fee rate of each Fund was reasonable in relation to the services provided by IQ Advisors to the Funds, as well as the costs incurred and benefits gained by IQ Advisors and its affiliates in providing such services, including the investment advisory and administrative components. The Directors also found the investment advisory fees to be reasonable in comparison to the fees charged by advisers to other funds in the Lipper comparison. As a result, the Board of Directors of each Fund approved the continuation of the Management Agreement for each Fund. The Directors were represented by independent legal counsel who assisted them in their deliberations.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	19

Renewal of Current Investment Advisory and Management Agreement (continued)

Continuation of Current Investment Subadvisory Agreements

In considering whether to approve the continuance of the current Investment Subadvisory Agreement of each Fund (each, a “Subadvisory Agreement” and, collectively, the “Subadvisory Agreements”) for an additional annual period, the Directors received, reviewed and evaluated information concerning the services and personnel of: BlackRock Investment Management, LLC, as subadviser to each of S&P GEARED and Small Cap; Oppenheimer Capital LLC, as subadviser to each of Covered Call and Enhanced Covered Call; Nuveen HydePark Group, LLC (“Nuveen HydePark”), as subadviser to Dow 30, Dow 30 Enhanced, NASDAQ Premium and Defined Strategy, and Nuveen Asset Management (“NAM”), as subadviser to Global Income (each, a “Subadviser” and, collectively, the “Subadvisers”). Each Subadvisory Agreement was considered separately by the relevant Fund’s Directors. In voting to approve the continuation of each Fund’s Subadvisory Agreement, the Directors considered the following:

(a) The nature, extent and quality of services provided by each Subadviser — The Directors reviewed the services that each Subadviser provides to each of their respective Funds. The Directors considered their detailed discussions with officers of IQ Advisors and members of each Subadviser’s portfolio management team, the management of each Fund’s investments in accordance with the Fund’s stated investment objective and policies and the types of transactions that have been entered into on behalf of the Funds. The Directors took into account the annual due diligence investment review of each Subadviser and the report that concluded that each such Subadviser has thus far executed its respective Fund’s investment strategies in accordance with the Fund’s objectives and general expectations. Drawing on their collective industry experience, the Directors noted that they had discussed each Fund’s investment strategy with representatives from the respective Subadviser, including discussions regarding the premises underlying the Fund’s investment strategy, its efficacy and potential risks. The Directors also considered the favorable history, reputation and background of each Subadviser and its personnel, and the substantial experience of such Subadviser’s portfolio management team. The Directors discussed the compliance program of each Subadviser and the report of the chief compliance officer of the Funds. Following consideration of this information, and based on management presentations during the Board meeting and their discussions in Executive Session, the Directors concluded that the nature, extent and quality of services provided to each Fund by the applicable Subadviser under its Subadvisory Agreement were of a high quality and would continue to benefit the respective Fund.

(b) Investment performance of each Fund and each Subadviser — The Directors received and considered information about each Fund’s investment performance in light of its stated investment objective and made the determinations discussed above under “Continuation of Current Investment Advisory and Management Agreements.” Based on these factors, the Directors determined that each Subadviser continued to be appropriate for each of its respective Funds.

(c) Cost of services provided and profits realized by each Subadviser from the relationship with each respective Fund — The Directors considered the profitability to BlackRock of serving as investment subadviser to two Funds and from its relationship with IQ Advisors based on the information discussed above under “Continuation of Current Investment Advisory and Management Agreements.” Based on such information, the Directors concluded that BlackRock’s profits were acceptable in relation to the nature, extent and quality of services provided. The Directors noted that profitability data was not provided with respect to the other Subadvisers of the Funds and concluded that such data was unnecessary because such subadvisory arrangements were entered into at “arm’s length” between IQ Advisors and each such Subadviser (including NAM and Nuveen HydePark, with which subadvisory arrangements were originally negotiated prior to the investment in their parent company by an affiliate of IQ Advisors). The Directors then considered the potential direct and indirect benefits to each Subadviser and its affiliates from their relationship with each of their respective Funds, including the reputational benefits from managing the Funds. The Directors of each Fund concluded that the potential benefits to each Subadviser were consistent with those obtained by other subadvisers in similar types of arrangements.



20	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Renewal of Current Investment Advisory and Management Agreement (concluded)

(d) The extent to which economies of scale would be realized as a Fund grows and whether fee levels would reflect such economies of scale — The Directors considered the extent to which economies of scale might be realized if the assets of a Fund were to increase and whether there should be changes in the subadvisory fee rate or structure in order to enable a Fund to participate in these economies of scale. The Directors noted that each Subadviser’s fees are paid by IQ Advisors out of its fees and not directly by the Funds. The Directors noted that, because each Fund is a closed-end fund, any increase in asset levels would have to come from appreciation due to investment performance. The Directors also noted that each Fund, other than Dow 30, NASDAQ Premium, Dow 30 Enhanced and Covered Call, is an interval fund that periodically allows stockholders to tender their shares to the Fund and that such tender offers reduce the amount of Fund assets. The Directors also discussed the renewal requirements for subadvisory agreements, and determined that they would revisit this issue no later than when they next review the subadvisory fee.

(e) Comparison of services rendered and fees paid to those under other subadvisory contracts, such as contracts of the same and other investment advisers or other clients — The Directors discussed the services rendered by each Subadviser and determined that such services were consistent with those provided by subadvisers generally and sufficient for the management of the Funds. Taking into account the totality of the information and materials provided to the Directors as noted above, including the fact that the subadvisory fee for each Fund was negotiated with IQ Advisors and not payable directly by the Fund, the Directors concluded that the subadvisory fee for each Fund was reasonable for the services being rendered.

Conclusion — No single factor was determinative to the decision of the Directors. Based on the foregoing and such other matters as were deemed relevant, all of the Directors concluded that the subadvisory fee rate of each Fund was reasonable in relation to the services provided by the respective Subadviser. As a result, all of the Directors approved the continuation of the Subadvisory Agreement for each Fund. The Directors were represented by independent legal counsel who assisted them in their deliberations.



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	21

Fundamental Periodic Repurchase Policy

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

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

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

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

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

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



22	SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008

Proxy Results

During the six-month period ended June 30, 2008, the shareholders of Small Cap Premium & Dividend Income Fund Inc. voted on the following proposal, which was approved at the annual meeting of shareholders held on April 25, 2008. A description of the proposal and number of shares voted are as follows:



		Shares Voted For	Shares Withheld From Voting

To elect the Fund’s Board of Directors:	Paul Glasserman	9,348,420	172,082
	Steven W. Kohlhagen	9,348,049	172,453
	William J. Rainer	9,349,049	171,453
	Laura S. Unger	9,347,910	172,592

Availability of Quarterly Schedule of Investments

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

Electronic Delivery

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

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

Contact Information

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



SMALL CAP PREMIUM & DIVIDEND INCOME FUND INC.	JUNE 30, 2008	23


		www.IQIAFunds.com

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

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

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

Small Cap Premium & Dividend Income Fund Inc. P.O. Box 9011 Princeton, NJ 08543-9011

#IQRCC — 6/08

Item 2 –	Code of Ethics – Not Applicable to this semi-annual report
Item 3 –	Audit Committee Financial Expert – Not Applicable to this semi-annual report

Item 4 –

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

Item 5 –

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

Item 6 –	Investments
	(a) Schedule of Investments – Attached hereto

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Advertising Agencies - 0.4%	DG FastChannel, Inc. (a)		2,600	$	44,850
	Greenfield Online, Inc. (a)		4,300		64,156
	Harte-Hanks, Inc.		6,000		68,700
	inVentiv Health, Inc. (a)		5,700		158,403
	Marchex, Inc. Class B		4,000		49,280
	National CineMedia, Inc.		6,800		72,488
	R.H. Donnelley Corp. (a)		12,600		37,800
	Valassis Communications, Inc. (a)		8,100		101,412
	ValueClick, Inc. (a)		16,230		245,885

					842,974

Aerospace - 0.8%	AeroVironment, Inc. (a)		1,600		43,488
	Argon ST, Inc. (a)		2,100		52,080
	Ascent Solar Technologies, Inc. (a)		1,500		15,525
	Curtiss-Wright Corp.		7,500		335,550
	Ducommun, Inc. (a)		1,900		43,624
	Heico Corp.		3,800		123,652
	LMI Aerospace, Inc. (a)		1,600		28,112
	Ladish Co., Inc. (a)		2,500		51,475
	Moog, Inc. Class A (a)		7,100		264,404
	Orbital Sciences Corp. (a)		9,900		233,244
	Teledyne Technologies, Inc. (a)		5,900		287,861
	TransDigm Group, Inc. (a)		5,600		188,104

					1,667,119

Agriculture, Fishing & Ranching - 0.1%	AgFeed Industries, Inc. (a)		3,600		53,892
	Alico, Inc.		600		20,796
	The Andersons, Inc.		3,200		130,272
	Cadiz, Inc. (a)		1,800		29,016
	Calavo Growers, Inc.		2,000		24,500
	HQ Sustainable Maritime Industries, Inc. (a)		1,400		18,550

					277,026

Air Transport - 0.6%	AAR Corp. (a)(b)		6,800		92,004
	AirTran Holdings, Inc. (a)		16,900		34,476
	Alaska Air Group, Inc. (a)		6,200		95,108
	Allegiant Travel Co. (a)		2,500		46,475
	Atlas Air Worldwide Holdings, Inc. (a)		2,200		108,812
	Bristow Group, Inc. (a)		3,400		168,266
	Hawaiian Holdings, Inc. (a)		7,200		50,040
	JetBlue Airways Corp. (a)		29,200		108,916
	PHI, Inc. (a)		2,400		96,408
	Republic Airways Holdings, Inc. (a)		5,600		48,496
	SkyWest, Inc.		9,900		125,235
	UAL Corp.		21,800		113,796
	US Airways Group, Inc. (a)		16,900		42,250

					1,130,282

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Aluminum - 0.1%	Kaiser Aluminum Corp.		2,700	$	144,531

Auto Parts: After Market - 0.1%	ATC Technology Corp. (a)		3,600		83,808
	Commercial Vehicle Group, Inc. (a)		3,500		32,725
	Dorman Products, Inc. (a)		1,600		12,896
	Superior Industries International, Inc.		3,500		59,080

					188,509

Auto Parts: Original Equipment - 0.5%	American Axle & Manufacturing Holdings, Inc.		7,300		58,327
	Amerigon Inc. (a)		3,100		21,979
	ArvinMeritor, Inc.		12,700		158,496
	Dana Holding Corp. (a)		16,400		87,740
	Fuel Systems Solutions, Inc. (a)		2,100		80,850
	Hayes Lemmerz International, Inc. (a)		17,100		48,564
	Lear Corp. (a)		10,970		155,555
	Quantum Fuel Systems Technologies Worldwide, Inc. (a)		13,100		40,348
	Sauer-Danfoss, Inc.		1,600		49,840
	Stoneridge, Inc. (a)		2,100		35,826
	Tenneco, Inc. (a)		7,900		106,887
	Visteon Corp. (a)		22,100		58,123
	Wonder Auto Technology, Inc. (a)		2,900		20,387

					922,922

Auto, Trucks & Parts - 0.1%	Accuride Corp. (a)		6,600		28,050
	Force Protection, Inc. (a)		11,500		38,065
	Modine Manufacturing Co.		5,200		64,324
	Spartan Motors, Inc.		5,100		38,097
	Wabash National Corp.		5,200		39,312

					207,848

Banks: New York City - 0.1%	Signature Bank (a)		5,200		133,952

Banks: Outside New York City - 4.3%	1st Source Corp.		2,100		33,810
	Abington Bancorp, Inc.		4,600		41,952
	Amcore Financial, Inc.		3,851		21,794
	Ameris Bancorp		2,200		19,140
	Ames National Corp.		1,000		16,580
	Arrow Financial Corp.		1,800		32,634
	Bancfirst Corp.		1,200		51,360
	Banco Latinoamericano de Exportaciones, SA (Class E)		4,300		69,617
	BancTrust Financial Group, Inc.		3,500		23,065
	BankFinancial Corp.		3,800		49,438
	Bank of the Ozarks, Inc.		2,000		29,720
	Banner Corp.		2,400		21,264
	Beneficial Mutual Bancorp, Inc. (a)		5,100		56,457
	Boston Private Financial Holdings, Inc.		6,500		36,855
	Bryn Mawr Bank Corp.		1,100		19,250
	CVB Financial Corp.		10,842		102,348

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Camden National Corp.		1,200	$	27,936
	Capital City Bank Group, Inc.		2,000		43,520
	Capitol Bancorp Ltd.		2,300		20,631
	Cardinal Financial Corp.		4,700		29,422
	Cascade Bancorp		3,800		29,146
	Cathay General Bancorp		8,300		90,221
	Centerstate Banks of Florida, Inc.		1,400		15,442
	Central Pacific Financial Corp.		5,000		53,300
	Chemical Financial Corp.		4,000		81,600
	Citizens Banking Corp.		12,800		36,096
	Citizens & Northern Corp.		1,400		23,114
	CityBank		2,200		18,920
	City Holding Co.		2,800		114,156
	Clifton Savings Bancorp, Inc.		900		8,766
	CoBiz Financial, Inc.		2,600		17,108
	The Colonial BancGroup, Inc.		34,900		154,258
	Columbia Banking System, Inc.		3,100		59,923
	Community Bank System, Inc.		5,100		105,162
	Community Trust Bancorp, Inc.		2,500		65,650
	Corus Bankshares, Inc.		6,300		26,208
	East-West Bancorp, Inc.		11,300		79,778
	Encore Bancshares, Inc. (a)		1,000		15,650
	Enterprise Financial Services Corp.		1,700		32,045
	Farmers Capital Bank Corp.		1,300		22,906
	Financial Institutions, Inc.		2,200		35,332
	First BanCorp		12,400		78,616
	First Bancorp		1,800		22,752
	First Bancorp, Inc.		1,300		17,745
	First Busey Corp.		3,700		48,914
	First Commonwealth Financial Corp.		12,000		111,960
	First Community Bancshares, Inc.		1,500		42,300
	First Financial Bancorp		6,800		62,560
	First Financial Bankshares, Inc.		3,500		160,335
	First Financial Corp.		2,200		67,342
	First Merchants Corp.		3,000		54,450
	FirstMerit Corp.		13,900		226,709
	First Midwest Bancorp, Inc.		8,100		151,065
	First South Bancorp, Inc.		1,350		17,388
	Fox Chase Bancorp, Inc. (a)		900		9,234
	Frontier Financial Corp.		8,450		71,994
	Glacier Bancorp, Inc.		8,950		143,110
	Greene County Bancshares, Inc.		1,700		23,834
	Guaranty Bancorp (a)		8,900		32,040
	Hancock Holding Co.		4,300		168,947
	Hanmi Financial Corp.		6,700		34,907

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Harleysville National Corp.		5,303	$	59,181
	Heartland Financial USA, Inc.		2,100		38,199
	Heritage Commerce Corp.		1,900		18,810
	Home Bancshares, Inc.		1,591		35,766
	Independent Bank Corp./MA		2,700		64,368
	Integra Bank Corp.		3,500		27,405
	International Bancshares Corp.		8,526		182,201
	Investors Bancorp, Inc. (a)		7,400		96,644
	Lakeland Bancorp, Inc.		2,866		34,908
	Lakeland Financial Corp.		2,000		38,160
	MASSBANK Corp.		800		31,664
	MB Financial, Inc.		5,777		129,809
	MainSource Financial Group, Inc.		3,080		47,740
	Midwest Banc Holdings, Inc.		3,000		14,610
	NBT Bancorp, Inc.		5,400		111,294
	Nara Bancorp, Inc.		3,800		40,774
	National Penn Bancshares, Inc.		13,786		183,078
	Northfield Bancorp, Inc. (a)		2,400		25,800
	Old National Bancorp		11,500		163,990
	Old Second Bancorp, Inc.		2,353		27,342
	Oriental Financial Group		4,300		61,318
	Pacific Capital Bancorp		7,800		107,484
	Pacific Continental Corp.		1,700		18,683
	PacWest Bancorp		4,129		61,439
	Park National Corp.		1,900		102,410
	Peapack-Gladstone Financial Corp.		1,300		28,561
	Pennsylvania Commerce Bancorp, Inc. (a)		1,100		26,455
	Peoples Bancorp, Inc.		1,700		32,266
	Pinnacle Financial Partners, Inc. (a)		3,800		76,342
	Piper Jaffray Cos. (a)		2,900		85,057
	Premierwest Bancorp		3,900		22,815
	PrivateBancorp, Inc.		3,200		97,216
	Prosperity Bancshares, Inc.		6,800		181,764
	Provident Bankshares Corp.		5,700		36,366
	Renasant Corp.		2,950		43,453
	Republic Bancorp, Inc. Class A		1,511		37,171
	S&T Bancorp, Inc.		4,100		119,146
	SCBT Financial Corp.		1,360		38,842
	SVB Financial Group (a)		5,200		250,172
	SY Bancorp, Inc.		2,485		53,080
	Sandy Spring Bancorp, Inc.		2,800		46,424
	Santander BanCorp		200		2,122
	Seacoast Banking Corp. of Florida		2,500		19,400
	Shore Bancshares, Inc.		1,600		29,952
	Sierra Bancorp		1,000		16,500
	Simmons First National Corp. Class A		2,300		64,331

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Smithtown Bancorp, Inc.		1,900	$	30,875
	The South Financial Group, Inc.		12,300		48,216
	Southside Bancshares, Inc.		1,871		34,501
	Southwest Bancorp, Inc.		2,500		28,750
	State Bancorp, Inc.		2,300		28,750
	StellarOne Corp.		3,700		54,020
	Sterling Bancshares, Inc.		12,400		112,716
	Suffolk Bancorp		1,800		52,884
	Sun Bancorp, Inc. (a)		2,509		25,466
	Susquehanna Bancshares, Inc.		14,874		203,625
	Texas Capital Bancshares, Inc. (a)		4,100		65,600
	Tompkins Trustco, Inc.		1,290		47,988
	Towne Bank		3,400		51,204
	Trico Bancshares		2,300		25,185
	TrustCo Bank Corp., NY		12,800		94,976
	Trustmark Corp.		8,700		153,555
	UCBH Holdings, Inc.		16,300		36,675
	UMB Financial Corp.		5,200		266,604
	Umpqua Holdings Corp.		10,188		123,580
	Union Bankshares Corp.		2,150		32,013
	United Bankshares, Inc.		6,400		146,880
	United Community Banks, Inc.		6,200		52,886
	United Financial Bancorp, Inc.		3,400		37,978
	United Security Bancshares		1,000		14,540
	Univest Corp. of Pennsylvania		2,000		39,720
	Washington Trust Bancorp, Inc.		2,200		43,340
	WesBanco, Inc.		4,800		82,320
	Westamerica Bancorp		4,900		257,691
	West Bancorp., Inc.		3,500		30,450
	West Coast Bancorp		2,600		22,542
	Western Alliance Bancorp (a)		2,300		17,848
	Wilshire Bancorp, Inc.		2,700		23,139
	Wintrust Financial Corp.		4,000		95,400
	Yardkin Valley Financial Corp.		2,300		27,485

					8,817,690

Beverage: Brewers (Wineries) - 0.0%	Boston Beer Co., Inc. Class A (a)		1,600		65,088

Beverage: Soft Drinks - 0.1%	Coca-Cola Bottling Co. Consolidated		700		25,886
	Farmer Bros. Co.		700		14,805
	Green Mountain Coffee Roasters, Inc. (a)		2,900		108,953
	National Beverage Corp.		1,680		12,214
	Peet’s Coffee & Tea, Inc. (a)		2,400		47,568

					209,426

Biotechnology Research & Production - 2.9%	AMAG Pharmaceuticals, Inc. (a)		2,890		98,549
	Acadia Pharmaceuticals, Inc. (a)		5,600		20,664
	Accelrys, Inc. (a)		5,200		25,116
	Acorda Therapeutics, Inc. (a)		5,600		183,848

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Albany Molecular Research, Inc. (a)		4,300	$	57,061
	Alexion Pharmaceuticals, Inc. (a)		6,500		471,250
	Allos Therapeutics, Inc. (a)		8,600		59,426
	Alnylam Pharmaceuticals, Inc. (a)		6,000		160,380
	American Oriental Bioengineering, Inc. (a)		10,200		100,674
	Amicus Therapeutics, Inc. (a)		800		8,544
	Applera Corp. - Celera Genomics Group (a)		13,300		151,088
	Arena Pharmaceuticals, Inc. (a)		12,500		64,875
	Ariad Pharmaceuticals, Inc. (a)		12,700		30,480
	Arqule, Inc. (a)		5,100		16,575
	Array Biopharma, Inc. (a)		7,800		36,660
	ArthroCare Corp. (a)		4,500		183,645
	Avant Immunotherapeutics, Inc. (a)		2,700		39,312
	Biodel, Inc. (a)		1,700		22,100
	Caliper Life Sciences, Inc. (a)		9,200		23,828
	Cell Genesys, Inc. (a)		14,200		36,920
	Cougar Biotechnology, Inc. (a)		2,400		57,192
	Cubist Pharmaceuticals, Inc. (a)(b)		9,800		175,028
	Cypress Bioscience, Inc. (a)		6,400		45,632
	Cytokinetics, Inc. (a)		4,100		15,211
	Cytori Therapeutics, Inc. (a)		3,800		24,624
	Discovery Laboratories, Inc. (a)		16,300		26,895
	Dyax Corp. (a)		8,800		27,280
	Enzon Pharmaceuticals, Inc. (a)		7,600		54,112
	Exelixis, Inc. (a)		17,800		89,000
	Genomic Health, Inc. (a)		2,000		38,300
	Geron Corp. (a)		13,200		45,540
	Halozyme Therapeutics, Inc. (a)		10,300		55,414
	Human Genome Sciences, Inc. (a)		23,500		122,435
	Idenix Pharmaceuticals, Inc. (a)		4,200		30,534
	Idera Pharmaceuticals, Inc. (a)		3,300		48,213
	Immunomedics, Inc. (a)		11,000		23,430
	Incyte Corp. (a)		11,500		87,515
	Integra LifeSciences Holdings Corp. (a)		3,000		133,440
	InterMune, Inc. (a)		5,600		73,472
	Kendle International, Inc. (a)		2,200		79,926
	Kensey Nash Corp. (a)		1,300		41,665
	Lexicon Genetics, Inc. (a)		12,600		20,160
	Life Sciences Research, Inc. (a)		1,300		36,712
	MannKind Corp. (a)		8,700		26,100
	Marshall Edwards, Inc. (a)		2,300		5,911
	Martek Biosciences Corp. (a)		5,700		192,147
	Maxygen, Inc. (a)		4,000		13,560
	Medivation, Inc. (a)		4,100		48,503
	Metabolix, Inc. (a)		3,500		34,300
	Momenta Pharmaceuticals, Inc. (a)		4,000		49,200

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Myriad Genetics, Inc. (a)		7,600	$	345,952
	NPS Pharmaceuticals, Inc. (a)		8,700		38,715
	Nabi Biopharmaceuticals (a)		9,700		38,218
	Nanosphere, Inc. (a)		1,900		14,934
	Neurocrine Biosciences, Inc. (a)		6,600		27,654
	OMRIX Biopharmaceuticals, Inc. (a)		2,400		37,776
	OSI Pharmaceuticals, Inc. (a)		9,800		404,936
	Opko Health, Inc. (a)		6,800		10,336
	Orexigen Therapeutics, Inc. (a)		3,800		29,982
	Osiris Therapeutics, Inc. (a)		2,500		32,125
	PDL BioPharma, Inc.		20,400		216,648
	PharmaNet Development Group, Inc. (a)		3,300		52,041
	Progenics Pharmaceuticals, Inc. (a)		4,500		71,415
	Protalix BioTherapeutics, Inc. (a)		1,860		5,041
	RTI Biologics, Inc. (a)		8,800		77,000
	Repligen Corp. (a)		5,900		27,848
	Rexahn Pharmaceuticals, Inc. (a)		4,300		13,932
	Rigel Pharmaceuticals, Inc. (a)		6,200		140,492
	Sangamo Biosciences, Inc. (a)		6,500		64,675
	Savient Pharmaceuticals, Inc. (a)		9,204		232,861
	Seattle Genetics, Inc. (a)		10,000		84,600
	Sequenom, Inc. (a)		7,900		126,084
	Sucampo Pharmaceuticals, Inc. Class A (a)		1,900		20,387
	Synta Pharmaceuticals Corp. (a)		3,300		20,130
	Targacept, Inc. (a)		2,800		20,356
	Tercica, Inc. (a)		3,100		27,373
	Third Wave Technologies, Inc. (a)		7,300		81,468
	ViroPharma, Inc. (a)		11,800		130,508
	Vnus Medical Technologies, Inc. (a)		2,400		48,024
	XOMA Ltd. (a)		22,300		37,687
	ZymoGenetics, Inc. (a)		6,300		53,046

					6,044,690

Building Materials - 0.5%	Ameron International Corp.		1,500		179,970
	LSI Industries, Inc.		3,000		24,360
	Lumber Liquidators, Inc. (a)		1,800		23,400
	NCI Building Systems, Inc. (a)		3,300		121,209
	Quanex Building Products Corp.		6,300		93,618
	Simpson Manufacturing Co., Inc.		6,200		147,188
	Texas Industries, Inc.		3,990		223,959
	Trex Co., Inc. (a)		2,600		30,498
	Watsco, Inc.		3,900		163,020
	Zoltek Cos., Inc. (a)		4,800		116,400

					1,123,622

Building: Cement - 0.0%	U.S. Concrete, Inc. (a)		5,500		26,180

Building: Heating & Plumbing - 0.1%	Aaon, Inc. (b)		1,900		36,594
	Interline Brands, Inc. (a)		5,700		90,801

					127,395

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Building: Miscellaneous - 0.1%	Builders FirstSource, Inc. (a)		2,500	$	13,275
	Comfort Systems USA, Inc.		7,100		95,424
	Drew Industries, Inc. (a)		3,500		55,825
	Griffon Corp. (a)		4,500		39,420
	Orion Marine Group, Inc. (a)		3,900		55,107

					259,051

Building: Roofing & Wallboard - 0.1%	Beacon Roofing Supply, Inc. (a)		7,500		79,575
	China Architectural Engineering, Inc. (a)		3,500		34,195

					113,770

Cable Television Services - 0.1%	Charter Communications, Inc. Class A (a)		70,300		73,815
	Crown Media Holdings, Inc. Class A (a)		3,700		17,538
	TiVo, Inc. (a)		17,200		106,124

					197,477

Casinos & Gambling - 0.4%	Ameristar Casinos, Inc.		4,300		59,426
	Bally Technologies, Inc. (a)		9,200		310,960
	Churchill Downs, Inc.		1,500		52,305
	Dover Downs Gaming & Entertainment, Inc.		2,350		15,087
	Elixir Gaming Technologies, Inc. (a)		13,700		16,440
	Isle of Capri Casinos, Inc. (a)		2,700		12,933
	Monarch Casino & Resort, Inc. (a)		1,600		18,880
	Pinnacle Entertainment, Inc. (a)		10,140		106,369
	Riviera Holdings Corp. (a)		1,700		17,255
	Shuffle Master, Inc. (a)		6,000		29,640
	WMS Industries, Inc. (a)		7,350		218,810

					858,105

Chemicals - 1.8%	Aceto Corp.		4,300		32,852
	American Vanguard Corp.		3,000		36,900
	Arch Chemicals, Inc.		4,100		135,915
	Balchem Corp.		2,900		67,077
	Cabot Microelectronics Corp. (a)		3,900		129,285
	Calgon Carbon Corp. (a)		6,900		106,674
	Cambrex Corp. (a)		4,500		26,415
	China BAK Battery, Inc. (a)		5,800		27,318
	Energy Conversion Devices, Inc. (a)		6,800		500,752
	EnerSys (a)		4,800		164,304
	Exide Technologies (a)		12,600		211,176
	Hercules, Inc.		19,000		321,670
	ICO Inc. (a)		5,200		31,304
	Innophos Holdings, Inc.		1,800		57,510
	Innospec, Inc.		3,900		73,398
	LSB Industries, Inc. (a)		3,100		61,380
	Landec Corp. (a)		3,000		19,410
	Medis Technologies Ltd. (a)		3,600		12,132
	NL Industries, Inc.		1,300		12,389
	NewMarket Corp.		2,300		152,329
	OM Group, Inc. (a)		5,200		170,508

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Penford Corp.		2,200	$	32,736
	PolyOne Corp. (a)		15,100		105,247
	Polypore International, Inc. (a)		2,400		60,792
	Quaker Chemical Corp.		1,900		50,654
	Rockwood Holdings, Inc. (a)		7,000		243,600
	Schulman A, Inc.		4,800		110,544
	ShengdaTech, Inc. (a)		4,400		43,692
	Solutia, Inc. (a)		10,100		129,482
	Stepan Co.		1,000		45,620
	Ultralife Batteries, Inc. (a)		2,400		25,656
	Valence Technology, Inc. (a)		8,000		35,280
	W.R. Grace & Co. (a)(b)		12,100		284,229
	Westlake Chemical Corp.		3,100		46,066
	Zep, Inc.		3,550		52,824

					3,617,120

Coal - 0.3%	International Coal Group, Inc. (a)		21,700		283,185
	James River Coal Co. (a)		4,300		252,367
	National Coal Corp. (a)		4,700		41,689
	Westmoreland Coal Co. (a)		1,800		37,998

					615,239

Commercial Information Services - 0.2%	Arbitron, Inc.		4,600		218,500
	HSW International, Inc. (a)		4,100		11,890
	infoGROUP, Inc.		5,300		23,267
	LECG Corp. (a)		4,300		37,582
	LoopNet, Inc. (a)		5,200		58,760

					349,999

Communications & Media - 0.0%	Entravision Communications Corp. Class A (a)		10,200		41,004
	Knology, Inc. (a)		4,600		50,554

					91,558

Communications Technology - 2.4%	3Com Corp. (a)		67,200		142,464
	Acme Packet, Inc. (a)		4,600		35,696
	Adtran, Inc.		9,700		231,248
	Anaren, Inc. (a)		3,000		31,710
	Anixter International, Inc. (a)(b)		5,000		297,450
	Aruba Networks, Inc. (a)		9,400		49,162
	Atheros Communications, Inc. (a)		10,000		300,000
	Avanex Corp. (a)		28,800		32,544
	Avocent Corp. (a)		7,580		140,988
	Bel Fuse, Inc.		1,800		44,478
	BigBand Networks, Inc. (a)		6,100		28,853
	Black Box Corp.		3,000		81,570
	CPI International, Inc. (a)		1,100		13,530
	CSG Systems International, Inc. (a)		5,900		65,018
	Cbeyond Communications, Inc. (a)		4,200		67,284
	Cogent Communications Group, Inc. (a)(b)		8,300		111,220
	Cogo Group, Inc. (a)		4,700		42,817

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Comtech Telecommunications Corp. (a)		4,200	$	205,800
	Digi International, Inc. (a)		4,100		32,185
	EMS Technologies, Inc. (a)		2,500		54,600
	Echelon Corp. (a)		5,100		55,590
	Entrust, Inc. (a)		11,300		33,222
	Extreme Networks, Inc. (a)		20,500		58,220
	Finisar Corp. (a)		54,700		65,093
	Foundry Networks, Inc. (a)		25,000		295,500
	GeoEye, Inc. (a)		3,000		53,130
	Harmonic, Inc. (a)		16,200		154,062
	Harris Stratex Networks, Inc. Class A (a)		4,100		38,909
	Hughes Communications, Inc. (a)		1,100		53,999
	Infinera Corp. (a)		15,400		135,828
	InterDigital, Inc. (a)		7,700		187,264
	InterVoice, Inc. (a)		6,600		37,620
	Ixia (a)		7,100		49,345
	j2 Global Communications, Inc. (a)		7,500		172,500
	Loral Space & Communications Ltd. (a)		1,900		33,478
	NETGEAR, Inc. (a)		5,800		80,388
	Nextwave Wireless, Inc. (a)		8,000		32,320
	Novatel Wireless, Inc. (a)		5,600		62,328
	Oplink Communications, Inc. (a)		3,428		32,909
	Optium Corp. (a)		2,300		16,744
	SeaChange International, Inc. (a)		4,300		30,788
	Secure Computing Corp. (a)		8,950		37,053
	Shoretel, Inc. (a)		8,000		35,360
	Sonus Networks, Inc. (a)		35,100		120,042
	Standard Microsystems Corp. (a)		3,900		105,885
	Starent Networks Corp. (a)		5,200		65,416
	Switch and Data Facilities Co., Inc. (a)		3,300		56,067
	Sycamore Networks, Inc. (a)		31,700		102,074
	Syniverse Holdings, Inc. (a)		8,600		139,320
	TIBCO Software, Inc. (a)		32,100		245,565
	Tekelec (a)		10,900		160,339
	Terremark Worldwide, Inc. (a)		7,900		43,134
	UTStarcom, Inc. (a)		19,300		105,571
	Viasat, Inc. (a)		4,500		90,945
	Vonage Holdings Corp. (a)		8,300		13,778

					5,008,403

Computer Services Software & Systems - 5.0%	3PAR, Inc. (a)		4,400		34,496
	ACI Worldwide, Inc. (a)(b)		5,800		102,022
	Actuate Corp. (a)(b)		9,900		38,709
	Acxiom Corp.		10,200		117,198
	American Reprographics Co. (a)		6,000		99,900
	American Software Class A		4,400		24,816

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


		Shares
Industry	Common Stocks	Held	Value

	Ansoft Corp. (a)	2,500	$	91,000
	ArcSight, Inc. (a)	400		3,520
	Ariba, Inc. (a)	14,600		214,766
	Art Technology Group, Inc. (a)	21,600		69,120
	AsiaInfo Holdings, Inc. (a)	5,300		62,646
	BearingPoint, Inc. (a)	35,300		28,593
	Blackbaud, Inc.	7,500		160,500
	Blackboard, Inc. (a)	5,200		198,796
	Blue Coat Systems, Inc. (a)	5,600		79,016
	Bottomline Technologies, Inc. (a)	3,500		34,055
	CACI International, Inc. Class A (a)	5,200		238,004
	CMGI, Inc. (a)	8,300		87,980
	COMSYS IT Partners, Inc. (a)	2,500		22,800
	Callidus Software Inc. (a)	5,700		28,500
	China Fire & Security Group, Inc. (a)	2,100		16,884
	China Information Security Technology, Inc. (a)	3,500		19,810
	Chordiant Software, Inc. (a)	5,060		25,300
	Ciber, Inc. (a)	9,500		58,995
	CommVault Systems, Inc. (a)	7,400		123,136
	Compellent Technologies, Inc. (a)	2,600		29,484
	ComScore, Inc. (a)	2,900		63,278
	Comverge, Inc. (a)	3,900		54,522
	Concur Technologies, Inc. (a)	7,300		242,579
	Constant Contact, Inc. (a)	3,300		62,205
	DealerTrack Holdings, Inc. (a)	7,400		104,414
	Delrek, Inc. (a)	1,400		10,612
	DemandTec, Inc. (a)	3,700		27,787
	Digimarc Corp. (a)	3,300		46,728
	Digital River, Inc. (a)	6,400		246,912
	DivX, Inc. (a)	3,700		27,158
	Double-Take Software, Inc. (a)	3,100		42,594
	EPIQ Systems, Inc. (a)	5,800		82,360
	Ebix, Inc. (a)	300		23,316
	Electronics for Imaging, Inc. (a)	9,000		131,400
	Ener1, Inc. (a)	5,800		43,036
	Epicor Software Corp. (a)	10,000		69,100
	Gartner, Inc. Class A (a)	10,100		209,272
	Guidance Software, Inc. (a)	1,900		18,145
	The Hackett Group, Inc. (a)	7,500		43,050
	i2 Technologies, Inc. (a)	2,500		31,075
	iGate Corp. (a)	2,800		22,764
	Informatica Corp. (a)	14,800		222,592
	Integral Systems, Inc.	1,421		54,993
	Interactive Intelligence, Inc. (a)	1,800		20,952
	Internet Brands, Inc. Class A (a)	4,200		27,846
	Internet Capital Group, Inc. (a)	6,300		48,699
	Interwoven, Inc. (a)	7,900		94,879

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


		Shares
Industry	Common Stocks	Held	Value

	JDA Software Group, Inc. (a)	4,500	$	81,450
	Kenexa Corp. (a)	4,100		77,244
	Keynote Systems, Inc. (a)	2,200		28,336
	Lawson Software, Inc. (a)	21,000		152,670
	Limelight Networks, Inc. (a)	3,200		12,224
	MSC.Software Corp. (a)	7,400		81,252
	Macrovision Solutions Corp. (a)	14,138		211,504
	Magma Design Automation, Inc. (a)	7,100		43,097
	Manhattan Associates, Inc. (a)	4,400		104,412
	Mantech International Corp. Class A (a)	3,400		163,608
	Mentor Graphics Corp. (a)	15,200		240,160
	Mercadolibre, Inc. (a)	4,200		144,858
	Mercury Computer Systems, Inc. (a)	3,800		28,614
	MicroStrategy, Inc. Class A (a)	1,600		103,600
	Micros Systems, Inc. (a)	13,800		420,762
	Monotype Imaging Holdings, Inc. (a)	2,800		34,104
	Ness Technologies, Inc. (a)	7,000		70,840
	NetScout Systems, Inc. (a)	4,800		51,264
	NetSuite, Inc. (a)	900		18,423
	Netezza Corp. (a)	6,500		74,620
	Omniture, Inc. (a)	10,413		193,369
	OpenTV Corp. (a)	11,300		14,803
	Opnet Technologies, Inc. (a)	2,600		23,400
	PC-Tel, Inc.	3,900		37,401
	PROS Holdings, Inc. (a)	2,400		26,952
	Parametric Technology Corp. (a)	19,320		322,064
	Pegasystems, Inc.	1,800		24,228
	Progress Software Corp. (a)	7,000		178,990
	QAD, Inc.	1,200		8,124
	Quest Software, Inc. (a)	12,100		179,201
	RealNetworks, Inc. (a)	15,500		102,300
	RightNow Technologies, Inc. (a)	4,500		61,515
	SAVVIS, Inc. (a)	6,150		79,335
	SI International, Inc. (a)	2,100		43,974
	SPSS, Inc. (a)	3,000		109,110
	SRA International, Inc. Class A (a)	7,100		159,466
	SYKES Enterprises, Inc. (a)	5,500		103,730
	SYNNEX Corp. (a)	3,100		77,779
	Sapient Corp. (a)	14,800		95,016
	Sigma Designs, Inc. (a)	4,600		63,894
	Smith Micro Software, Inc. (a)	5,100		29,070
	Solera Holdings, Inc. (a)	8,600		237,876
	SonicWALL, Inc. (a)	10,000		64,500
	Sourcefire, Inc. (a)	3,800		29,374
	Stanley, Inc. (a)	1,300		43,576
	SuccessFactors, Inc. (a)	3,700		40,515
	SupportSoft, Inc. (a)	8,700		28,275

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


		Shares
Industry	Common Stocks	Held	Value

	Sybase, Inc. (a)	13,400	$	394,228
	Synchronoss Technologies, Inc. (a)	4,000		36,120
	Syntel, Inc.	1,900		64,068
	Taleo Corp. Class A (a)	4,000		78,360
	TechTarget, Inc. (a)	2,200		23,232
	TeleCommunication Systems, Inc. Class A (a)	6,300		29,169
	The TriZetto Group, Inc. (a)	7,300		156,074
	Tyler Technologies, Inc. (a)	6,900		93,633
	Ultimate Software Group, Inc. (a)	4,200		149,646
	Unica Corp. (a)	1,600		12,864
	VASCO Data Security International, Inc. (a)	4,500		47,385
	VeriFone Holdings, Inc. (a)	11,500		137,425
	Vignette Corp. (a)	4,400		52,800
	Virtusa Corp. (a)	1,800		18,234
	Websense, Inc. (a)	7,800		131,352
	Website Pros, Inc. (a)	5,100		42,483
	Wind River Systems, Inc. (a)	12,400		135,036
	Zoran Corp. (a)	9,000		105,300

				10,310,602

Computer Technology - 1.0%	Adaptec, Inc. (a)	19,700		63,040
	Advanced Analogic Technologies, Inc. (a)	8,400		34,692
	Cray, Inc. (a)	5,600		25,984
	Data Domain, Inc. (a)	5,500		128,315
	Emulex Corp. (a)	14,100		164,265
	FalconStor Software, Inc. (a)	6,800		48,144
	Globecomm Systems Inc. (a)	3,800		31,388
	Hutchinson Technology, Inc. (a)	4,000		53,760
	Imation Corp.	5,100		116,892
	Immersion Corp. (a)	5,200		35,412
	Intermec, Inc. (a)	10,300		217,124
	Isilon Systems, Inc. (a)	4,900		21,756
	NCI, Inc. Class A (a)	1,300		29,744
	Palm, Inc.	18,600		100,254
	Perot Systems Corp. Class A (a)	14,500		217,645
	Phoenix Technologies Ltd. (a)	5,000		55,000
	Quantum Corp. (a)	31,900		43,065
	Rackable Systems, Inc. (a)	5,000		67,000
	Radiant Systems, Inc. (a)	4,400		47,212
	Radisys Corp. (a)	3,800		34,428
	Rimage Corp. (a)	1,600		19,824
	Riverbed Technology, Inc. (a)	9,700		133,084
	STEC, Inc. (a)	4,800		49,296
	Safeguard Scientifics, Inc. (a)	19,700		24,428
	Stratasys, Inc. (a)	3,500		64,610

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


		Shares
Industry	Common Stocks	Held	Value

	Synaptics, Inc. (a)	3,900	$	147,147
	Trident Microsystems, Inc. (a)	10,300		37,595

				2,011,104

Construction - 0.4%	Brookfield Homes Corp.	2,063		25,334
	EMCOR Group, Inc. (a)	11,400		325,242
	Granite Construction, Inc.	5,600		176,568
	Great Lakes Dredge & Dock Corp.	6,400		39,104
	Perini Corp. (a)	4,700		155,335
	Sterling Construction Co., Inc. (a)	2,100		41,706

				763,289

Consumer Electronics - 0.7%	DTS, Inc. (a)	3,000		93,960
	EarthLink, Inc. (a)	18,900		163,485
	InfoSpace, Inc.	5,800		48,314
	Internap Network Services Corp. (a)	8,510		39,827
	Midway Games, Inc. (a)	5,200		11,440
	NIC, Inc.	6,400		43,712
	NetFlix, Inc. (a)	6,900		179,883
	ParkerVision, Inc. (a)	4,200		41,706
	Protection One, Inc. (a)	400		3,360
	THQ, Inc. (a)	11,400		230,964
	Take-Two Interactive Software, Inc. (a)	12,900		329,853
	United Online, Inc.	11,900		119,357
	Universal Electronics, Inc. (a)	2,400		50,160

				1,356,021

Consumer Products - 0.5%	American Greetings Corp. Class A	8,500		104,890
	Blyth, Inc.	4,200		50,526
	CSS Industries, Inc.	1,300		31,486
	Citi Trends, Inc. (a)	2,500		56,650
	Mannatech, Inc.	2,700		14,688
	Matthews International Corp. Class A	5,200		235,352
	Nautilus, Inc.	5,000		25,400
	RC2 Corp. (a)	3,100		57,536
	Smith & Wesson Holding Corp. (a)	5,700		29,697
	Spectrum Brands, Inc. (a)	6,600		16,830
	Tupperware Corp.	10,400		355,888
	USANA Health Sciences, Inc. (a)	1,400		37,618

				1,016,561

Containers & Packaging: Metals & Glass - 0.2%	Bway Holding Co. (a)	1,000		8,610
	Mobile Mini, Inc. (a)	6,100		122,000
	Silgan Holdings, Inc.	4,200		213,108

				343,718

Containers & Packaging: Paper & Plastic - 0.0%	AEP Industries, Inc. (a)	900		15,633
	Graphic Packaging Holding Co. (a)	23,500		47,470
	Myers Industries, Inc.	4,800		39,120

				102,223

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


		Shares
Industry	Common Stocks	Held	Value

Copper - 0.1%	Mueller Industries, Inc.	6,300	$	202,860

Cosmetics - 0.2%	Elizabeth Arden, Inc. (a)	4,200		63,756
	Helen of Troy Ltd. (a)	5,100		82,212
	Inter Parfums, Inc.	1,950		29,250
	Nu Skin Enterprises, Inc. Class A	8,500		126,820
	Ulta Salon Cosmetics & Fragrance, Inc. (a)	3,200		35,968

				338,006

Diversified Financial Services - 0.5%	BGC Partners, Inc. (a)	1,400		10,570
	Broadpoint Securities Group, Inc. (a)	3,200		6,400
	Cardtronics, Inc. (a)	1,300		11,531
	China Direct, Inc. (a)	1,600		11,744
	Clayton Holdings, Inc. (a)	800		4,776
	Doral Financial Corp. (a)	800		10,832
	Duff & Phelps Corp. (a)	1,400		23,184
	Euronet Worldwide, Inc. (a)	8,200		138,580
	Evercore Partners, Inc. Class A	1,700		16,150
	F.N.B. Corp.	14,346		168,996
	FCStone Group, Inc. (a)	3,750		104,737
	Greenhill & Co., Inc.	2,900		156,194
	Huron Consulting Group, Inc. (a)	3,200		145,088
	Interactive Brokers Group, Inc. Class A (a)	6,800		218,484
	Oritani Financial Corp. (a)	1,700		27,200

				1,054,466

Diversified Materials & Processing - 1.0%	Acuity Brands, Inc.	6,800		326,944
	Barnes Group, Inc.	8,000		184,720
	Brady Corp.	8,400		290,052
	Clarcor, Inc.	8,500		298,350
	Hexcel Corp. (a)	16,100		310,730
	Koppers Holdings, Inc.	3,600		150,732
	Olin Corp.	12,800		335,104
	Tredegar Corp.	4,100		60,270

				1,956,902

Drug & Grocery Store Chains - 0.6%	Arden Group, Inc. Class A	100		12,674
	Casey’s General Stores, Inc.	8,800		203,896
	The Great Atlantic & Pacific Tea Co., Inc. (a)	5,907		134,798
	Ingles Markets, Inc. Class A	2,100		48,993
	Longs Drug Stores Corp.	5,200		218,972
	Nash Finch Co.	2,300		78,821
	Ruddick Corp.	7,000		240,170
	Spartan Stores, Inc.	3,500		80,500
	Susser Holdings Corp. (a)	1,600		15,488
	Village Super Market, Inc. Class A	400		15,432
	Weis Markets, Inc.	2,000		64,940
	Winn-Dixie Stores, Inc. (a)	9,000		144,180

				1,258,864

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Drugs & Pharmaceuticals - 2.2%	Acura Pharmaceuticals, Inc. (a)		1,100		8,712
	Adolor Corp. (a)		8,400		46,032
	Affymax, Inc. (a)		2,000		31,820
	Akorn, Inc. (a)		7,900		26,149
	Alexza Pharmaceuticals, Inc. (a)		2,500		9,850
	Alkermes, Inc. (a)		16,100		198,996
	Alpharma, Inc. Class A (a)		7,700		173,481
	Ardea Biosciences, Inc. (a)		1,700		21,794
	Auxilium Pharmaceuticals, Inc. (a)		6,900		231,978
	BMP Sunstone Corp. (a)		3,900		22,230
	Bentley Pharmaceuticals, Inc. (a)		3,100		50,065
	BioForm Medical, Inc. (a)		3,200		12,928
	CV Therapeutics, Inc. (a)		10,300		84,769
	Cadence Pharmaceuticals, Inc. (a)		3,200		19,488
	Caraco Pharmaceutical Laboratories Ltd. (a)		1,300		17,160
	Chattem, Inc. (a)		3,000		195,150
	China Sky One Medical, Inc. (a)		1,100		12,243
	Columbia Laboratories, Inc. (a)		8,800		29,040
	Dendreon Corp. (a)		15,700		69,865
	Depomed, Inc. (a)		9,000		28,890
	Durect Corp. (a)		12,500		45,875
	Emergent Biosolutions, Inc. (a)		2,600		25,818
	Enzo Biochem, Inc. (a)		4,900		54,978
	GTx, Inc. (a)		2,700		38,745
	ImmunoGen, Inc. (a)		8,300		25,398
	Indevus Pharmaceuticals, Inc. (a)		11,000		17,270
	Inspire Pharmaceuticals, Inc. (a)		7,800		33,384
	Isis Pharmaceuticals, Inc. (a)		15,200		207,176
	Javelin Pharmaceuticals, Inc. (a)		8,300		19,256
	Jazz Pharmaceuticals, Inc. (a)		1,100		8,151
	K-V Pharmaceutical Co. Class A (a)		5,600		108,248
	Ligand Pharmaceuticals, Inc. Class B (a)		12,300		31,980
	MAP Pharmaceuticals, Inc. (a)		800		8,264
	Medarex, Inc. (a)		21,300		140,793
	Medicines Co. (a)		9,000		178,380
	Medicis Pharmaceutical Corp. Class A		9,700		201,566
	MiddleBrook Pharmaceuticals, Inc. (a)		7,000		23,660
	Molecular Insight Pharmaceuticals, Inc. (a)		3,400		18,734
	Nektar Therapeutics (a)		15,600		52,260
	Novavax, Inc. (a)		10,100		25,149
	Noven Pharmaceuticals, Inc. (a)		4,200		44,898
	Obagi Medical Products, Inc. (a)		3,300		28,215
	Onyx Pharmaceuticals, Inc. (a)		9,420		335,352
	Optimer Pharmaceuticals, Inc. (a)		4,500		36,495
	Pain Therapeutics, Inc. (a)		6,200		48,980
	Par Pharmaceutical Cos., Inc. (a)		5,800		94,134

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Pharmasset, Inc. (a)		2,500	$	47,200
	Pozen, Inc. (a)		4,100		44,608
	Questcor Pharmaceuticals, Inc. (a)		8,700		40,368
	Quidel Corp. (a)		4,700		77,644
	Regeneron Pharmaceuticals, Inc. (a)		10,000		144,400
	Salix Pharmaceuticals Ltd. (a)		8,200		57,646
	Sciele Pharma, Inc.		5,900		114,165
	Theravance, Inc. (a)		8,600		102,082
	United Therapeutics Corp. (a)		3,900		381,225
	Valeant Pharmaceuticals International (a)		11,900		203,609
	Vivus, Inc. (a)		9,200		61,456
	Xenoport, Inc. (a)		4,200		163,926

					4,582,128

Education Services - 0.3%	American Public Education, Inc. (a)		2,000		78,080
	Capella Education Co. (a)		2,400		143,160
	Corinthian Colleges, Inc. (a)(b)		14,400		167,184
	K12, Inc. (a)		800		17,144
	Learning Tree International, Inc. (a)		1,400		23,940
	Lincoln Educational Services Corp. (a)		100		1,163
	The Princeton Review, Inc. (a)		2,400		16,224
	Renaissance Learning, Inc.		1,200		13,452
	Thinkorswim Group, Inc. (a)		8,780		61,899
	Universal Technical Institute, Inc. (a)		3,600		44,856

					567,102

Electrical & Electronics - 0.4%	Benchmark Electronics, Inc. (a)		11,300		184,642
	Coleman Cable, Inc. (a)		1,300		13,416
	OSI Systems, Inc. (a)		2,600		55,692
	Plexus Corp. (a)		7,200		199,296
	Power Integrations, Inc. (a)		5,100		161,211
	TTM Technologies, Inc. (a)		7,200		95,112
	Universal Display Corp. (a)		4,400		54,208

					763,577

Electrical Equipment & Components - 0.9%	A.O. Smith Corp.		3,400		111,622
	AZZ Inc. (a)		1,900		75,810
	American Superconductor Corp. (a)		7,000		250,950
	Axsys Technologies, Inc. (a)		1,400		72,856
	Baldor Electric Co.		7,770		271,795
	CTS Corp.		5,700		57,285
	Cohu, Inc.		4,000		58,720
	Franklin Electric Co., Inc.		3,800		147,364
	Littelfuse, Inc. (a)		3,700		116,735
	MKS Instruments, Inc. (a)		8,300		181,770
	Orion Energy Systems, Inc. (a)		900		9,000
	Powell Industries, Inc. (a)		1,300		65,533
	Power-One, Inc. (a)		12,600		23,814
	Sonic Solutions, Inc. (a)		3,900		23,244

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Taser International, Inc. (a)		10,600	$	52,576
	Technitrol, Inc.		6,600		112,134
	Triumph Group, Inc.		2,900		136,590

					1,767,798

Electrical: Household Appliance - 0.0%	National Presto Industries, Inc.		800		51,344
	Rex Stores Corp. (a)		1,800		20,790

					72,134

Electronics - 0.5%	Agilysys, Inc.		4,000		45,360
	Avid Technology, Inc. (a)		5,200		88,348
	Daktronics, Inc.		5,400		108,918
	II-VI, Inc. (a)		4,100		143,172
	Kopin Corp. (a)		11,000		31,570
	MRV Communications, Inc. (a)		22,300		26,537
	Methode Electronics, Inc.		6,400		66,880
	Multi-Fineline Electronix, Inc. (a)		1,400		38,738
	Park Electrochemical Corp.		3,500		85,085
	Sanmina-SCI Corp. (a)		91,900		117,632
	Semtech Corp. (a)		9,900		139,293
	Supertex, Inc. (a)		2,100		49,014

					940,547

Electronics: Instruments, Gauges & Meters - 0.1%	Faro Technologies, Inc. (a)		2,600		65,442
	Measurement Specialties, Inc. (a)		2,400		42,216
	OYO Geospace Corp. (a)		700		41,258
	Zygo Corp. (a)		2,600		25,558

					174,474

Electronics: Medical Systems - 0.9%	Accuray, Inc. (a)		6,500		47,385
	Affymetrix, Inc. (a)(b)		12,000		123,480
	Analogic Corp.		2,300		145,061
	Bruker BioSciences Corp. (a)		8,700		111,795
	Cynosure, Inc. Class A (a)		1,600		31,712
	Datascope Corp.		2,300		108,100
	eResearch Technology, Inc. (a)		7,300		127,312
	Greatbatch, Inc. (a)		3,900		67,470
	Haemonetics Corp. (a)		4,300		238,478
	Luminex Corp. (a)		6,200		127,410
	Masimo Corp. (a)		7,700		264,495
	Natus Medical, Inc. (a)		4,700		98,418
	NxStage Medical, Inc. (a)		3,300		12,672
	Quality Systems, Inc.		3,000		87,840
	Sirona Dental Systems, Inc. (a)		2,900		75,168
	Somanetics Corp. (a)		2,300		48,760
	Tomotherapy, Inc. (a)		7,400		66,082
	Zoll Medical Corp. (a)		3,500		117,845

					1,899,483

Electronics: Other - 0.0%	ICX Technologies, Inc. (a)		2,000		14,600

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Electronics: Semi- Conductors/Components - 1.8%	Actel Corp. (a)		4,500	$	75,825
	Advanced Battery Technologies, Inc. (a)		7,600		43,852
	Amkor Technology, Inc. (a)		18,200		189,462
	Anadigics, Inc. (a)		10,600		104,410
	Applied Micro Circuits Corp. (a)		11,175		95,658
	AuthenTec, Inc. (a)		4,000		41,680
	Bookham, Inc. (a)		18,700		31,603
	Cavium Networks, Inc. (a)		5,000		105,000
	Ceva, Inc. (a)		3,800		30,286
	Cirrus Logic, Inc. (a)		11,400		63,384
	DSP Group, Inc. (a)		4,100		28,700
	Diodes, Inc. (a)		4,800		132,672
	Entropic Communications, Inc. (a)		200		950
	Exar Corp. (a)		6,300		47,502
	Excel Technology, Inc. (a)		2,000		44,640
	Formfactor, Inc. (a)		8,100		149,283
	Hittite Microwave Corp. (a)		3,200		113,984
	IPG Photonics Corp. (a)		3,100		58,311
	IXYS Corp. (a)		4,100		48,954
	Lattice Semiconductor Corp. (a)		19,500		61,035
	MIPS Technologies, Inc. (a)		7,100		26,625
	Micrel, Inc.		9,000		82,350
	Microsemi Corp. (a)		13,200		332,376
	Microtune, Inc. (a)		8,700		30,102
	Monolithic Power Systems, Inc. (a)		4,600		99,452
	NVE Corp. (a)		900		28,431
	Netlogic Microsystems, Inc. (a)		3,000		99,600
	Omnivision Technologies, Inc. (a)		8,600		103,974
	PLX Technology, Inc. (a)		4,400		33,572
	PMC-Sierra, Inc. (a)		36,700		280,755
	Pericom Semiconductor Corp. (a)		4,200		62,328
	RF Micro Devices, Inc. (a)		44,437		128,867
	Rubicon Technology, Inc. (a)		2,400		48,768
	SiRF Technology Holdings, Inc. (a)		10,200		44,064
	Silicon Image, Inc. (a)		13,400		97,150
	Silicon Storage Technology, Inc. (a)		14,500		40,165
	Skyworks Solutions, Inc. (a)		27,300		269,451
	Spansion LLC Class A (a)		20,700		46,575
	Techwell, Inc. (a)		2,600		32,032
	Tessera Technologies, Inc. (a)		8,300		135,871
	Transmeta Corp. (a)		2,300		31,763
	TriQuint Semiconductor, Inc. (a)		24,200		146,652
	Volterra Semiconductor Corp. (a)		4,500		77,670

					3,745,784

Electronics: Technology - 0.6%	3D Systems Corp. (a)		2,400		22,800
	American Science & Engineering, Inc.		1,500		77,295

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Checkpoint Systems, Inc. (a)		6,700	$	139,896
	China Security & Surveillance Technology, Inc. (a)		4,400		59,312
	Cogent, Inc. (a)		6,900		78,453
	Coherent, Inc. (a)		3,900		116,571
	Cubic Corp.		2,500		55,700
	Eagle Test Systems, Inc. (a)		1,600		17,920
	Gerber Scientific, Inc. (a)		3,300		37,554
	Herley Industries, Inc. (a)		2,500		33,200
	ION Geophysical Corp. (a)		14,200		247,790
	Kemet Corp. (a)		14,200		46,008
	LaBarge, Inc. (a)		1,900		24,700
	Maxwell Technologies, Inc. (a)		3,400		36,108
	ScanSource, Inc. (a)		4,600		123,096
	Smart Modular Technologies WWH, Inc. (a)		7,300		27,959
	Super Micro Computer, Inc. (a)		4,200		30,996

					1,175,358

Energy Equipment - 0.1%	Capstone Turbine Corp. (a)		25,400		106,426
	Plug Power, Inc. (a)		14,800		34,780
	PowerSecure International, Inc. (a)		3,300		23,958

					165,164

Energy Miscellaneous - 1.1%	Akeena Solar, Inc. (a)		4,100		22,919
	Alon USA Energy, Inc.		1,800		21,528
	Approach Resources, Inc. (a)		1,200		32,148
	Aventine Renewable Energy Holdings, Inc. (a)		4,930		21,692
	CVR Energy, Inc. (a)		3,800		73,150
	Clean Energy Fuels Corp. (a)		3,500		40,215
	Concho Resources, Inc. (a)		8,300		309,590
	Crosstex Energy, Inc.		6,700		232,222
	Dawson Geophysical Co. (a)		1,400		83,244
	EnerNOC, Inc. (a)		1,800		32,310
	Evergreen Energy, Inc. (a)		14,300		24,882
	Evergreen Solar, Inc. (a)		18,100		175,389
	FuelCell Energy, Inc. (a)		11,600		82,360
	GeoMet, Inc. (a)		2,167		20,543
	GreenHunter Energy, Inc. (a)		600		8,196
	Matrix Service Co. (a)		4,500		103,770
	Ormat Technologies, Inc.		3,000		147,540
	Pacific Ethanol, Inc. (a)		7,500		13,500
	Penn Virginia Corp.		7,000		527,940
	Rentech, Inc. (a)		28,000		53,200
	Teekay Tankers Ltd. Class A		2,000		46,420
	USEC, Inc. (a)		19,300		117,344
	US Geothermal, Inc. (a)		11,800		34,692

					2,224,794

Engineering & Contracting Services - 0.3%	Clean Harbors, Inc. (a)		3,300		234,498
	Dycom Industries, Inc. (a)		6,800		98,736

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	ENGlobal Corp. (a)	4,800	$	68,352
	Furmamite Corp. (a)	5,900		47,082
	Hill International, Inc. (a)	3,800		62,472
	Integrated Electrical Services, Inc. (a)	1,400		24,080
	Layne Christensen Co. (a)	3,200		140,128
	Michael Baker Corp. (a)	1,200		26,256
	VSE Corp.	800		22,000

				723,604

Entertainment - 0.2%	Cinemark Holdings, Inc.	4,300		56,158
	Dover Motorsports, Inc.	2,200		11,198
	Gaylord Entertainment Co. (a)	7,100		170,116
	Live Nation, Inc. (a)	12,800		135,424
	Speedway Motorsports, Inc.	2,300		46,874

				419,770

Finance Companies - 0.1%	Credit Acceptance Corp. (a)	878		22,442
	MVC Capital, Inc.	3,500		47,915
	NewStar Financial, Inc. (a)	2,900		17,139
	Riskmetrics Group, Inc. (a)	3,300		64,812
	World Acceptance Corp. (a)	3,000		101,010

				253,318

Finance: Small Loan - 0.1%	Advance America, Cash Advance Centers, Inc.	7,500		38,100
	Dollar Financial Corp. (a)	4,300		64,973
	Encore Capital Group, Inc. (a)	2,300		20,309
	The First Marblehead Corp.	12,600		32,382
	Nelnet, Inc. Class A	2,300		25,829

				181,593

Financial Data Processing Services & Systems - 0.7%	Advent Software, Inc. (a)(b)	2,800		101,024
	Cass Information Systems, Inc.	860		27,546
	CompuCredit Corp. (a)	3,300		19,800
	CyberSource Corp. (a)	11,541		193,081
	Deluxe Corp.	8,900		158,598
	ExlService Holdings, Inc. (a)	2,500		35,075
	Fair Isaac Corp.	8,100		168,237
	Heartland Payment Systems, Inc.	4,000		94,400
	Hypercom Corp. (a)	9,400		41,360
	Jack Henry & Associates, Inc.	12,600		272,664
	Online Resources Corp. (a)	4,900		40,915
	TNS, Inc. (a)	4,200		100,632
	TradeStation Group, Inc. (a)	5,800		58,870
	Wright Express Corp. (a)	6,500		161,200

				1,473,402

Financial Information Services - 0.2%	Bankrate, Inc. (a)	2,100		82,047
	Interactive Data Corp.	6,100		153,293
	Move, Inc. (a)	21,700		50,561
	S1 Corp. (a)	9,200		69,644
	TheStreet.com, Inc.	3,400		22,134

				377,679

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Financial Miscellaneous - 0.7%	AMBAC Financial Group, Inc.	50,200	$	67,268
	Advanta Corp. Class B	6,200		38,998
	Asset Acceptance Capital Corp.	2,500		30,550
	Cash America International, Inc.	4,900		151,900
	Federal Agricultural Mortgage Corp. Class B	1,800		44,604
	Financial Federal Corp.	4,400		96,624
	First Cash Financial Services, Inc. (a)	3,500		52,465
	Global Cash Access, Inc. (a)	6,000		41,160
	Harris & Harris Group, Inc. (a)	4,500		27,000
	LandAmerica Financial Group, Inc.	2,600		57,694
	Medallion Financial Corp.	2,900		27,318
	Portfolio Recovery Associates, Inc. (a)	2,600		97,500
	Radian Group, Inc.	15,100		21,895
	Sanders Morris Harris Group, Inc.	3,000		20,340
	Sotheby’s Holdings, Inc. Class A	11,500		303,255
	Sterling Bancorp	3,260		38,957
	Stewart Information Services Corp.	2,900		56,086
	Stifel Financial Corp. (a)	4,000		137,560
	WSFS Financial Corp.	1,000		44,600
	Wauwatosa Holdings, Inc. (a)	1,000		10,620

				1,366,394

Foods - 1.3%	American Dairy, Inc. (a)	700		5,488
	B&G Foods, Inc. Class A	3,800		35,492
	Cal-Maine Foods, Inc.	2,200		72,578
	Chiquita Brands International, Inc. (a)	7,600		115,292
	Diamond Foods, Inc.	2,900		66,816
	Flowers Foods, Inc.	13,000		368,420
	Fresh Del Monte Produce, Inc. (a)	7,300		172,061
	Hain Celestial Group, Inc. (a)	6,800		159,664
	J&J Snack Foods Corp.	2,300		63,043
	Lance, Inc.	4,700		88,219
	Lifeway Foods, Inc. (a)	600		7,134
	M&F Worldwide Corp. (a)	2,300		90,413
	Maui Land & Pineapple Co., Inc. (a)	700		20,615
	Omega Protein Corp. (a)	3,300		49,335
	Pilgrim’s Pride Corp.	7,100		92,229
	Ralcorp Holdings, Inc. (a)	4,400		217,536
	Sanderson Farms, Inc.	3,500		120,820
	Schiff Nutrition International, Inc.	1,200		6,720
	Seaboard Corp.	60		93,060
	Sensient Technologies Corp.	8,100		228,096
	Smart Balance, Inc. (a)	10,300		74,263
	Synutra International, Inc. (a)	1,700		54,944
	Tootsie Roll Industries, Inc.	4,118		103,485
	TreeHouse Foods, Inc. (a)	5,100		123,726

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	United Natural Foods, Inc. (a)	7,400	$	144,152
	Zhongpin, Inc. (a)	3,400		42,500

				2,616,101

Forest Products - 0.2%	Deltic Timber Corp.	1,800		96,318
	Louisiana-Pacific Corp.	17,200		146,028
	Universal Forest Products, Inc.	2,800		83,888

				326,234

Forms & Bulk Printing Services - 0.1%	Ennis, Inc.	4,200		65,730
	Innerworkings, Inc. (a)	5,600		66,976
	The Standard Register Co.	2,900		27,347

				160,053

Funeral Parlors & Cemeteries - 0.0%	Stewart Enterprises, Inc. Class A	14,500		104,400

Glass - 0.0%	Apogee Enterprises, Inc.	4,900		79,184

Gold - 0.2%	Allied Nevada Gold Corp. (a)	7,300		42,997
	Coeur d’Alene Mines Corp. (a)(b)	94,100		272,890
	Royal Gold, Inc.	5,100		159,936

				475,823

Health Care Facilities - 0.6%	Assisted Living Concepts, Inc. (a)	8,600		47,300
	Capital Senior Living Corp. (a)	3,800		28,652
	Emeritus Corp. (a)	3,200		46,784
	The Ensign Group, Inc.	1,700		19,550
	Five Star Quality Care, Inc. (a)	6,000		28,380
	IPC The Hospitalist Co., Inc. (a)	600		11,292
	Kindred Healthcare, Inc. (a)	4,480		128,845
	MedCath Corp. (a)	2,900		52,142
	National Healthcare Corp.	1,400		64,162
	Psychiatric Solutions, Inc. (a)	9,400		355,696
	Res-Care, Inc. (a)	4,200		74,676
	Skilled Healthcare Group, Inc. Class A (a)	3,000		40,260
	Sun Healthcare Group, Inc. (a)	7,300		97,747
	Sunrise Senior Living, Inc. (a)	7,600		170,848

				1,166,334

Health Care Management Services - 0.8%	AMERIGROUP Corp. (a)	9,200		191,360
	Allscripts Healthcare Solutions, Inc. (a)	9,900		122,859
	Amsurg Corp. (a)	5,300		129,055
	athenahealth, Inc. (a)	3,400		104,584
	Centene Corp. (a)	7,300		122,567
	Computer Programs & Systems, Inc.	1,600		27,728
	Corvel Corp. (a)	1,350		45,724
	Eclipsys Corp. (a)	9,100		167,076
	HMS Holdings Corp. (a)	4,400		94,468
	HealthExtras, Inc. (a)	5,500		165,770
	HealthSpring, Inc. (a)	8,200		138,416
	Molina Healthcare, Inc. (a)	2,500		60,850
	National Research Corp.	200		5,294
	Omnicell, Inc. (a)	5,600		73,808
	Phase Forward, Inc. (a)	7,100		127,587

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Triple-S Management Corp. (a)	1,900	$	31,065
	Vital Images, Inc. (a)	2,500		31,100

				1,639,311

Health Care Services - 0.6%	Alliance Imaging, Inc. (a)	4,300		37,281
	Amedisys, Inc. (a)	4,533		228,554
	Apria Healthcare Group, Inc. (a)(b)	7,400		143,486
	Bio-Reference Labs, Inc. (a)	1,900		42,389
	CardioNet, Inc. (a)	700		18,641
	Emergency Medical Services Corp. (a)	1,300		29,419
	Gentiva Health Services, Inc. (a)	4,700		89,535
	Healthcare Services Group, Inc.	7,200		109,512
	HealthSouth Corp. (a)	13,200		219,516
	Healthways, Inc. (a)	6,000		177,600
	LHC Group, Inc. (a)	2,200		51,150
	Nighthawk Radiology Holdings, Inc. (a)	3,400		24,072
	Odyssey HealthCare, Inc. (a)	6,100		59,414
	PharMerica Corp. (a)	5,286		119,411
	Virtual Radiologic Corp. (a)	700		9,275

				1,359,255

Homebuilding - 0.2%	Beazer Homes USA, Inc.	5,800		32,306
	Hovnanian Enterprises, Inc. Class A (a)	7,800		42,744
	M/I Homes, Inc.	2,400		37,752
	Meritage Homes Corp. (a)	5,200		78,884
	Ryland Group, Inc.	7,300		159,213
	Standard-Pacific Corp.	10,300		34,814

				385,713

Hotel/Motel - 0.1%	Lodgian, Inc. (a)	2,700		21,141
	Marcus Corp.	3,400		50,830
	Morgans Hotel Group Co. (a)	4,900		50,470

				122,441

Household Furnishings - 0.2%	American Woodmark Corp.	1,900		40,147
	Ethan Allen Interiors, Inc.	4,200		103,320
	Furniture Brands International, Inc.	7,100		94,856
	Haverty Furniture Cos., Inc.	3,100		31,124
	hhgregg, Inc. (a)	1,400		14,000
	Hooker Furniture Corp.	1,700		29,444
	La-Z-Boy, Inc.	8,400		64,260
	Libbey, Inc.	1,800		13,392
	Sealy Corp.	6,300		36,162
	Tempur-Pedic International, Inc.	12,014		93,829

				520,534

Identification Control & Filter Devices - 0.7%	Advanced Energy Industries, Inc. (a)	5,800		79,460
	Asyst Technologies, Inc. (a)	8,400		29,988
	Badger Meter, Inc.	2,400		121,272

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Beacon Power Corp. (a)	16,800	$	35,280
	ESCO Technologies, Inc. (a)	4,400		206,448
	Flanders Corp. (a)	2,400		14,520
	The Gorman-Rupp Co.	2,218		88,365
	L-1 Identity Solutions, Inc. (a)	10,998		146,493
	Mine Safety Appliances Co.	5,200		207,948
	Peerless Manufacturing Co. (a)	1,000		46,870
	Robbins & Myers, Inc.	4,700		234,389
	Sun Hydraulics, Inc.	2,000		64,540
	Veeco Instruments, Inc. (a)	5,400		86,832
	Vicor Corp.	3,200		31,936
	Watts Water Technologies, Inc. Class A	4,900		122,010

				1,516,351

Industrial Products - 0.0%	TAL International Group, Inc.	2,500		56,850

Insurance: Life - 0.3%	American Equity Investment Life Holding Co.	9,500		77,425
	Citizens, Inc. (a)	5,300		32,489
	Delphi Financial Group, Inc. Class A	7,150		165,451
	Kansas City Life Insurance Co.	500		20,850
	Life Partners Holdings, Inc.	1,100		21,978
	National Western Life Insurance Co. Class A	400		87,400
	The Phoenix Cos., Inc.	19,100		145,351
	Presidential Life Corp.	3,500		53,970
	Universal American Financial Corp. (a)	6,800		69,496

				674,410

Insurance: Multi-Line - 1.0%	Assured Guaranty Ltd.	9,500		170,905
	CNA Surety Corp. (a)	2,200		27,808
	Crawford & Co. Class B (a)	5,100		40,749
	eHealth, Inc. (a)	4,300		75,938
	EMC Insurance Group, Inc.	1,000		24,080
	FBL Financial Group, Inc. Class A	2,200		43,736
	Flagstone Reinsurance Holdings Ltd.	4,900		57,771
	Hilb Rogal & Hobbs Co.	6,100		265,106
	Horace Mann Educators Corp.	7,100		99,542
	Independence Holding Co.	300		2,931
	Maiden Holdings Ltd.	8,000		50,720
	Max Capital Group Ltd.	9,800		209,034
	Meadowbrook Insurance Group, Inc.	4,800		25,440
	Montpelier Re Holdings Ltd.	15,700		231,575
	Pico Holdings, Inc. (a)	2,700		117,315
	Platinum Underwriters Holdings Ltd.	8,400		273,924
	Primus Guaranty Ltd. (a)	4,700		13,677
	Quanta Capital Holdings Ltd.	11,100		29,304
	Zenith National Insurance Corp.	6,250		219,750

				1,979,305

Insurance: Property-Casualty - 1.7%	AmCOMP, Inc. (a)	2,600		25,272
	AmTrust Financial Services, Inc.	2,800		35,280
	American Physicians Capital, Inc.	1,500		72,660


Small Cap Premium & Dividend Income Fund Inc. Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	American Safety Insurance Holdings Ltd. (a)		2,100	$	30,198
	Amerisafe, Inc. (a)(b)		3,200		51,008
	Argo Group International Holdings Ltd. (a)		5,166		173,371
	Aspen Insurance Holdings Ltd.		14,600		345,582
	Baldwin & Lyons, Inc. Class B		1,400		24,472
	CastlePoint Holdings, Ltd.		6,100		55,449
	Darwin Professional Underwriters, Inc. (a)		1,200		36,960
	Donegal Group, Inc. Class A		1,600		25,392
	Employers Holdings, Inc.		8,210		169,947
	Enstar Group Ltd. (a)		900		78,750
	FPIC Insurance Group, Inc. (a)		1,500		67,980
	First Acceptance Corp. (a)		2,800		8,960
	First Mercury Financial Corp. (a)		2,400		42,336
	Greenlight Capital Re Ltd. (a)		5,100		116,586
	Hallmark Financial Services, Inc. (a)		300		2,901
	Harleysville Group, Inc.		2,400		81,192
	IPC Holdings, Ltd.		9,100		241,605
	Infinity Property & Casualty Corp.		2,700		112,104
	NYMAGIC, Inc.		900		17,244
	National Interstate Corp.		1,000		18,380
	Navigators Group, Inc. (a)		2,200		118,910
	Odyssey Re Holdings Corp.		4,000		142,000
	PMA Capital Corp. Class A (a)		5,400		49,734
	The PMI Group, Inc.		14,700		28,665
	ProAssurance Corp. (a)		5,500		264,605
	Procentury Corp.		2,100		33,264
	RLI Corp.		3,200		158,304
	SCPIE Holdings, Inc. (a)		1,400		39,186
	Safety Insurance Group, Inc.		2,700		96,255
	SeaBright Insurance Holdings, Inc. (a)		3,600		52,128
	Selective Insurance Group, Inc.		9,100		170,716
	State Auto Financial Corp.		2,300		55,039
	Tower Group, Inc.		3,500		74,165
	United America Indemnity, Ltd. (a)		3,400		45,458
	United Fire & Casualty Co.		3,800		102,334
	Validus Holdings Ltd.		10,800		229,500

					3,493,892

Investment Management Companies - 0.6%	Ampal-American Israel Corp. Class A (a)		2,100		9,471
	Apollo Investment Corp.		23,876		342,143
	Ares Capital Corp.		16,878		170,130
	Calamos Asset Management, Inc. Class A		3,600		61,308
	Capital Southwest Corp.		400		41,692
	Cohen & Steers, Inc.		2,800		72,716
	Epoch Holding Corp.		1,700		15,504
	FBR Capital Markets Corp. (a)		4,100		20,623
	GAMCO Investors, Inc. Class A		1,400		69,468


Small Cap Premium & Dividend Income Fund Inc. Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Kohlberg Capital Corp.		2,300	$	23,000
	MCG Capital Corp.		11,200		44,576
	NGP Capital Resources Co.		3,100		47,771
	National Financial Partners Corp.		6,800		134,776
	Pzena Investment Management, Inc. Class A		1,000		12,760
	Resource America, Inc. Class A		2,100		19,572
	U.S. Global Investors, Inc.		2,100		35,175
	Westwood Holdings Group Inc.		900		35,820

					1,156,505

Jewelry, Watches & Gemstones - 0.1%	Bidz.com, Inc. (a)		1,300		11,258
	Fossil, Inc. (a)		7,600		220,932
	Fuqi International, Inc. (a)		2,000		17,520
	Movado Group, Inc.		2,700		53,460

					303,170

Leisure Time - 0.4%	Callaway Golf Co.		11,100		131,313
	Great Wolf Resorts, Inc. (a)		4,500		19,665
	Life Time Fitness, Inc. (a)		5,800		171,390
	Pool Corp.		8,300		147,408
	Rick’s Cabaret International, Inc. (a)		1,200		20,148
	Six Flags, Inc. (a)		12,300		14,145
	Steinway Musical Instruments, Inc. (a)		1,300		34,320
	Town Sports International Holdings, Inc. (a)		2,300		21,482
	Vail Resorts, Inc. (a)		5,200		222,716

					782,587

Machine Tools - 0.0%	Hurco Companies, Inc. (a)		1,000		30,890
	Thermadyne Holdings Corp. (a)		2,100		31,038

					61,928

Machinery & Engineering - 0.1%	Applied Industrial Technologies, Inc.		7,250		175,233

Machinery: Agricultural - 0.1%	Alamo Group, Inc.		1,200		24,708
	Gehl Co. (a)		1,650		24,404
	Lindsay Manufacturing Co.		2,000		169,940
	Titan Machinery, Inc. (a)		1,000		31,320

					250,372

Machinery: Construction & Handling - 0.1%	Astec Industries, Inc. (a)		3,000		96,420
	NACCO Industries, Inc. Class A		900		66,915

					163,335

Machinery: Engines - 0.1%	Briggs & Stratton Corp.		8,000		101,440
	Harbin Electric, Inc. (a)		900		12,789
	Raser Technologies, Inc. (a)		7,400		72,076

					186,305

Machinery: Industrial/Specialty - 1.1%	Actuant Corp. Class A		9,400		294,690
	Altra Holdings, Inc. (a)		4,700		79,007
	Chart Industries, Inc. (a)		4,700		228,608
	Colfax Corp. (a)		3,800		95,342
	Columbus McKinnon Corp. (a)		3,100		74,648
	DXP Enterprises, Inc. (a)		700		29,148


Small Cap Premium & Dividend Income Fund Inc. Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	EnPro Industries, Inc. (a)		3,500	$	130,690
	Graham Corp.		900		66,699
	Kadant, Inc. (a)		2,400		54,240
	Middleby Corp. (a)		2,800		122,948
	Nordson Corp.		5,700		415,473
	Tecumseh Products Co. Class A (a)		2,900		95,062
	Tennant Co.		2,800		84,196
	Twin Disc, Inc.		1,500		31,395
	Woodward Governor Co.		9,900		353,034

					2,155,180

Machinery: Oil Well Equipment & Services - 1.8%	Allis-Chalmers Energy, Inc. (a)		4,600		81,880
	Basic Energy Services, Inc. (a)(b)		6,900		217,350
	Bolt Technology Corp. (a)		1,600		36,112
	CARBO Ceramics, Inc.		3,450		201,308
	Cal Dive International, Inc. (a)		7,312		104,488
	Complete Production Services, Inc. (a)		8,000		291,360
	Dril-Quip, Inc. (a)		5,200		327,600
	Flotek Industries, Inc. (a)		3,800		78,356
	Gulf Island Fabrication, Inc.		2,100		102,753
	Hornbeck Offshore Services, Inc. (a)		4,000		226,040
	Lufkin Industries, Inc.		2,500		208,200
	Mitcham Industries, Inc. (a)		1,800		30,744
	NATCO Group, Inc. Class A (a)		3,400		185,402
	Natural Gas Services Group (a)		2,200		67,056
	Newpark Resources, Inc. (a)		15,600		122,616
	Parker Drilling Co. (a)		19,300		193,193
	RPC, Inc.		5,425		91,140
	Sulphco, Inc. (a)		7,600		17,252
	Superior Well Services, Inc. (a)		2,900		91,959
	T-3 Energy Services, Inc. (a)		2,100		166,887
	Trico Marine Services, Inc. (a)		2,100		76,482
	Union Drilling, Inc. (a)		2,000		43,360
	W-H Energy Services, Inc. (a)		5,200		497,848
	Willbros Group, Inc. (a)		6,600		289,146

					3,748,532

Machinery: Specialty - 0.1%	Cascade Corp.		1,600		67,712
	Flow International Corp. (a)		5,600		43,680
	Key Technology Inc. (a)		1,100		34,991
	Semitool, Inc. (a)		3,600		27,036
	TurboChef Technologies, Inc. (a)		3,600		17,208

					190,627

Manufactured Housing - 0.1%	Cavco Industries, Inc. (a)		1,200		39,276
	Champion Enterprises, Inc. (a)		13,100		76,635
	Palm Harbor Homes, Inc. (a)		1,600		8,848
	Skyline Corp.		1,200		28,200

					152,959


Small Cap Premium & Dividend Income Fund Inc. Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Manufacturing - 0.1%	Federal Signal Corp.		8,100	$	97,200
	Fushi Copperweld, Inc. (a)		2,600		61,698
	Standex International Corp.		2,200		45,628

					204,526

Medical & Dental Instruments & Supplies - 2.6%	Abaxis, Inc. (a)		3,600		86,868
	Abiomed, Inc. (a)		5,300		94,075
	Align Technology, Inc. (a)		10,500		110,145
	Alphatec Holdings, Inc. (a)		3,700		15,096
	American Medical Systems Holdings, Inc.		12,300		183,885
	AngioDynamics, Inc. (a)		4,300		58,566
	Atrion Corp.		200		19,164
	BioMimetic Therapeutics, Inc. (a)		2,200		26,224
	Bio-Rad Laboratories, Inc. Class A (a)		3,200		258,848
	CONMED Corp. (a)		4,800		127,440
	Cantel Medical Corp. (a)		1,600		16,192
	Cardiac Science Corp. (a)		3,000		24,600
	Cepheid, Inc. (a)		9,600		269,952
	Clinical Data, Inc. (a)		1,600		22,832
	Conceptus, Inc. (a)		5,300		97,997
	CryoLife, Inc. (a)		5,000		57,200
	Cyberonics, Inc. (a)		4,000		86,800
	DexCom, Inc. (a)		4,100		24,764
	ev3, Inc. (a)		11,646		110,404
	Exactech, Inc. (a)		1,400		35,994
	Hansen Medical, Inc. (a)		2,800		46,816
	ICU Medical, Inc. (a)		2,200		50,336
	I-Flow Corp. (a)		3,300		33,495
	IRIS International, Inc. (a)		3,300		51,645
	Immucor, Inc. (a)		11,750		304,090
	Insulet Corp. (a)		3,300		51,909
	Invacare Corp.		5,600		114,464
	Landauer, Inc.		1,500		84,360
	Medical Action Industries, Inc. (a)		1,900		19,703
	Mentor Corp.		5,900		164,138
	Meridian Bioscience, Inc.		6,675		179,691
	Merit Medical Systems, Inc. (a)		4,500		66,150
	Micrus Endovascular Corp. (a)		2,600		36,452
	Neogen Corp. (a)		2,400		54,936
	NuVasive, Inc. (a)		6,000		267,960
	OraSure Technologies, Inc. (a)		8,100		30,294
	Orthofix International NV (a)		2,900		83,955
	Orthovita, Inc. (a)		12,900		26,445
	Owens & Minor, Inc.		6,900		315,261
	PSS World Medical, Inc. (a)		10,800		176,040
	Palomar Medical Technologies, Inc. (a)		3,100		30,938
	SonoSite, Inc. (a)		2,900		81,229
	Spectranetic Corp. (a)		5,300		52,258


Small Cap Premium & Dividend Income Fund Inc. Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Stereotaxis, Inc. (a)		4,100	$	21,976
	Steris Corp.		10,000		287,600
	SurModics, Inc. (a)		2,600		116,584
	Symmetry Medical, Inc. (a)		6,000		97,320
	Synovis Life Technologies, Inc. (a)		2,300		43,309
	Thoratec Corp. (a)		9,200		159,988
	Trans1, Inc. (a)		2,300		34,661
	Vision-Sciences Inc. (a)		3,500		13,090
	Vital Signs, Inc.		1,400		79,492
	Volcano Corp. (a)		7,800		95,160
	West Pharmaceutical Services, Inc.		5,400		233,712
	Wright Medical Group, Inc. (a)		6,200		176,142

					5,408,645

Medical Services - 0.4%	Air Methods Corp. (a)		1,800		45,000
	Almost Family, Inc. (a)		1,200		31,920
	Genoptix, Inc. (a)		1,500		47,325
	Hanger Orthopedic Group, Inc. (a)		4,100		67,609
	Magellan Health Services, Inc. (a)		7,000		259,210
	Parexel International Corp. (a)		9,600		252,576
	RadNet, Inc. (a)		4,100		25,420
	RehabCare Group, Inc. (a)		3,000		48,090
	US Physical Therapy, Inc. (a)		2,300		37,743

					814,893

Metal Fabricating - 0.7%	Ampco-Pittsburgh Corp.		1,500		66,720
	CIRCOR International, Inc.		2,800		137,172
	Dynamic Materials Corp.		2,100		69,195
	Encore Wire Corp.		3,200		67,808
	Haynes International, Inc. (a)		2,100		120,855
	Insteel Industries, Inc.		2,800		51,268
	Kaydon Corp.		4,700		241,627
	L.B. Foster Co. Class A (a)		1,900		63,080
	Mueller Water Products, Inc. Series A		19,880		160,432
	NN, Inc.		3,000		41,820
	Northwest Pipe Co. (a)		1,400		78,120
	Omega Flex, Inc.		400		6,080
	RBC Bearings, Inc. (a)		3,700		123,284
	RTI International Metals, Inc. (a)		4,000		142,480
	Superior Essex, Inc. (a)		3,400		151,742
	Trimas Corp. (a)		1,500		8,985

					1,530,668

Metals & Minerals Miscellaneous - 0.9%	A.M. Castle & Co.		2,700		77,247
	AMCOL International Corp.		4,300		122,378
	Apex Silver Mines Ltd. (a)		10,000		49,100
	Brush Engineered Materials, Inc. (a)		3,300		80,586
	Compass Minerals International, Inc.		5,400		435,024


Small Cap Premium & Dividend Income Fund Inc. Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	General Moly, Inc. (a)		10,300	$	81,061
	GrafTech International Ltd. (a)		17,400		466,842
	Hecla Mining Co. (a)		21,900		202,794
	Horsehead Holding Corp. (a)		5,700		69,312
	Minerals Technologies, Inc.		3,200		203,488
	Stillwater Mining Co. (a)		6,700		79,261
	United States Lime & Minerals Inc. (a)		300		11,871
	Uranium Resources, Inc. (a)		8,400		30,996

					1,909,960

Miscellaneous Business & Consumer Discretionary - 0.0%	Core-Mark Holdings Co., Inc. (a)		1,600		41,920

Miscellaneous Consumer Staples - 0.0%	Reddy Ice Holdings, Inc.		3,000		41,040

Miscellaneous Health Care - 0.0%	MedAssets, Inc. (a)		2,100		35,805

Miscellaneous Materials & Commodities - 0.2%	Ceradyne, Inc. (a)		4,400		150,920
	Lydall, Inc. (a)		3,100		38,905
	Symyx Technologies Inc. (a)		5,900		41,182
	WD-40 Co.		2,900		84,825

					315,832

Miscellaneous Materials & Processing - 0.1%	Insituform Technologies, Inc. Class A (a)		4,800		73,104
	Rogers Corp. (a)		3,100		116,529
	Xerium Technologies, Inc.		2,300		9,108

					198,741

Miscellaneous Producer Durables - 0.0%	Blount International, Inc. (a)		6,700		77,787
	Park-Ohio Holdings Corp. (a)		1,300		19,188

					96,975

Miscellaneous Technology - 0.1%	iRobot Corp. (a)		3,300		45,342
	Microvision, Inc. (a)		10,600		29,150
	TerreStar Corp. (a)		9,300		37,014
	Vocus, Inc. (a)		2,800		90,076

					201,582

Multi-Sector Companies - 0.3%	Brunswick Corp.		15,100		160,060
	Compass Diversified Holdings		4,400		50,292
	GenCorp, Inc. (a)		9,600		68,736
	GenTek, Inc. (a)		1,400		37,646
	Kaman Corp. Class A		4,300		97,868
	Lancaster Colony Corp.		3,600		109,008
	Raven Industries, Inc.		2,700		88,506
	United Capital Corp. (a)		200		3,840

					615,956

Office Furniture & Business Equipment - 0.3%	ACCO Brands Corp. (a)		8,464		95,051
	HNI Corp.		7,500		132,450
	Herman Miller, Inc.		9,700		241,433
	Kimball International, Inc. Class B		5,900		48,852
	Knoll, Inc.		7,600		92,340
	Presstek, Inc. (a)		5,200		25,792

					635,918

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Offshore Drilling - 0.0%	Bois d’Arc Energy, Inc. (a)		3,200	$	77,792

Oil: Crude Producers - 4.0%	APCO Argentina, Inc.		700		20,265
	ATP Oil & Gas Corp. (a)		4,600		181,562
	Abraxas Petroleum Corp. (a)		7,700		41,657
	American Oil & Gas, Inc. (a)		6,900		27,048
	Arena Resources, Inc. (a)		5,900		311,638
	Atlas America, Inc.		5,800		261,290
	BMB Munai, Inc. (a)		6,900		40,986
	BPZ Resources, Inc. (a)		10,300		302,820
	Berry Petroleum Co. Class A		7,200		423,936
	Bill Barrett Corp. (a)		6,100		362,401
	Brigham Exploration Co. (a)		8,000		126,640
	Bronco Drilling Co., Inc. (a)		4,400		80,872
	Callon Petroleum Co. (a)		3,600		98,496
	Cano Petroleum, Inc. (a)		6,300		50,022
	Carrizo Oil & Gas, Inc. (a)		4,600		313,214
	Cheniere Energy, Inc. (a)		8,900		38,893
	Clayton Williams Energy, Inc. (a)		900		98,955
	Comstock Resources, Inc. (a)		7,700		650,111
	Contango Oil & Gas Co. (a)		2,200		204,424
	Delek US Holdings, Inc.		1,600		14,736
	Double Eagle Pete & Mining Co. (a)		1,600		29,168
	EXCO Resources, Inc. (a)		12,500		461,375
	Endeavour International Corp. (a)		20,600		44,702
	Energy Partners Ltd. (a)		5,585		83,328
	Energy XXI Bermuda Ltd. (a)		12,300		84,993
	FX Energy, Inc. (a)		6,800		35,836
	Gasco Energy, Inc. (a)		16,600		68,890
	GeoGlobal Resources, Inc. (a)		6,400		13,632
	Geokinetics, Inc. (a)		900		16,299
	GeoResources, Inc. (a)		1,100		20,262
	Goodrich Petroleum Corp. (a)		3,400		281,928
	Gran Tierra Energy, Inc. (a)		16,200		129,114
	Grey Wolf, Inc. (a)		30,200		272,706
	Gulfport Energy Corp. (a)		4,600		75,762
	Harvest Natural Resources, Inc. (a)		6,400		70,784
	Houston American Energy Corp. (a)		2,900		32,538
	McMoRan Exploration Co. (a)		8,400		231,168
	Meridian Resource Corp. (a)		14,000		41,300
	Northern Oil And Gas, Inc. (a)		3,500		46,480
	Oilsands Quest, Inc. (a)		27,500		178,750
	Panhandle Oil & Gas Inc.		1,200		40,632
	Parallel Petroleum Corp. (a)		7,000		140,910
	Petroleum Development Corp. (a)		2,500		166,225
	Petroquest Energy, Inc. (a)		7,500		201,750
	Pioneer Drilling Co. (a)		8,400		158,004
	PrimeEnergy Corp. (a)		100		5,363

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held			Value

	Quest Resource Corp. (a)		3,700	$	42,217
	Rex Energy Corp. (a)		2,800		73,920
	Rosetta Resources, Inc. (a)		8,600		245,100
	Stone Energy Corp. (a)		4,800		316,368
	Swift Energy Co. (a)		5,200		343,512
	TXCO Resources, Inc. (a)		5,400		63,504
	Toreador Resources Corp. (a)		2,900		24,737
	Tri-Valley Corp. (a)		4,200		31,206
	Venoco, Inc. (a)		3,300		76,593
	VeraSun Energy Corp. (a)		16,805		69,405
	Warren Resources, Inc. (a)		9,800		143,864
	Western Refining, Inc.		5,300		62,752

					8,075,043

Oil: Integrated Domestic - 0.2%	Delta Petroleum Corp. (a)		10,800		275,508
	GMX Resources, Inc. (a)		2,500		185,250
	Ram Energy Resources, Inc. (a)		6,800		42,772

					503,530

Oil: Integrated International - 0.0%	Vaalco Energy, Inc. (a)		10,100		85,547

Paints & Coatings - 0.2%	Ferro Corp.		7,400		138,824
	H.B. Fuller Co.		8,900		199,716

					338,540

Paper - 0.4%	AbitibiBowater, Inc.		9,252		86,321
	Albany International Corp. Class A		4,900		142,100
	Boise, Inc. (a)		6,000		23,100
	Buckeye Technologies, Inc. (a)		5,900		49,914
	Kapstone Paper and Packaging Corp. (a)		3,600		24,012
	Mercer International, Inc.-Sbi (a)		4,800		35,904
	Multi-Color Corp.		1,150		24,139
	Neenah Paper, Inc.		2,500		41,775
	P.H. Glatfelter Co.		7,300		98,623
	Rock-Tenn Co. Class A		6,400		191,936
	Verso Paper Corp. (a)		2,800		23,688
	Wausau Paper Corp.		7,500		57,825

					799,337

Plastics - 0.0%	Spartech Corp.		5,200		49,036

Pollution Control & Environmental Services - 0.4%	American Ecology Corp.		2,600		76,778
	Darling International, Inc. (a)		13,800		227,976
	EnergySolutions, Inc.		5,500		122,925
	Fuel Tech, Inc. (a)		3,000		52,860
	Headwaters, Inc. (a)		7,400		87,098
	Team, Inc. (a)		3,200		109,824
	Met-Pro Corp.		2,900		38,715
	Metalico, Inc. (a)		4,300		75,336

					791,512

Power Transmission Equipment - 0.1%	Regal-Beloit Corp.		5,400		228,150
	Synthesis Energy Systems, Inc. (a)		3,600		32,436

					260,586

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Printing & Copying Services - 0.2%	Bowne & Co., Inc.		4,900	$	62,475
	Cenveo, Inc. (a)		8,700		84,999
	Schawk, Inc.		2,400		28,776
	VistaPrint Ltd. (a)		7,600		203,376

					379,626

Production Technology Equipment - 1.1%	ATMI, Inc. (a)		5,400		150,768
	Axcelis Technologies, Inc. (a)		16,500		80,520
	Brooks Automation, Inc. (a)		11,283		93,310
	Cognex Corp.		7,100		163,655
	Cymer, Inc. (a)		5,000		134,400
	Dionex Corp. (a)		3,100		205,747
	Electro Scientific Industries, Inc. (a)		5,000		70,850
	Emcore Corp. (a)		12,800		80,128
	Entegris, Inc. (a)		19,295		126,382
	Esterline Technologies Corp. (a)		4,900		241,374
	FEI Co. (a)		6,300		143,514
	Intevac, Inc. (a)		3,700		41,736
	K-Tron International, Inc. (a)		400		51,840
	Kulicke & Soffa Industries, Inc. (a)		9,000		65,610
	LTX Corp. (a)		10,700		23,540
	MTS Systems Corp.		3,000		107,640
	Mattson Technology, Inc. (a)		9,100		43,316
	Photon Dynamics, Inc. (a)		3,300		49,764
	Photronics, Inc. (a)		6,800		47,872
	Rofin-Sinar Technologies, Inc. (a)		5,200		157,040
	Rudolph Technologies, Inc. (a)		4,313		33,210
	Ultra Clean Holdings, Inc. (a)		3,300		26,268
	Ultratech, Inc. (a)		4,100		63,632

					2,202,116

Publishing: Miscellaneous - 0.2%	Consolidated Graphics, Inc. (a)		1,800		88,686
	Courier Corp.		1,700		34,136
	GateHouse Media, Inc.		2,780		6,839
	Idearc, Inc.		26,000		61,100
	Martha Stewart Living Omnimedia, Inc. Class A (a)		4,300		31,820
	Playboy Enterprises, Inc. Class B (a)		3,600		17,784
	Primedia, Inc.		4,750		22,135
	Scholastic Corp. (a)		4,100		117,506

					380,006

Publishing: Newspapers - 0.2%	AH Belo Corp.		2,140		12,198
	Belo Corp. Class A		14,800		108,188
	Dolan Media Co. (a)		3,900		70,980
	Journal Communications, Inc. Class A		7,100		34,222
	Lee Enterprises, Inc.		7,600		30,324
	McClatchy Co. Class A		10,111		68,552

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Media General, Inc. Class A		3,300	$	39,435

					363,899

Radio & TV Broadcasters - 0.2%	CKX, Inc. (a)		8,700		76,125
	Citadel Broadcasting Corp. (a)		30,650		37,393
	Cox Radio, Inc. Class A (a)		4,300		50,740
	Cumulus Media, Inc. Class A (a)		5,200		20,488
	Entercom Communications Corp.		5,300		37,206
	Fisher Communications, Inc. (a)		1,000		34,440
	Gray Television, Inc.		6,800		19,516
	Lin TV Corp. Class A (a)		4,500		26,820
	Outdoor Channel Holdings, Inc. (a)		3,200		22,336
	Sinclair Broadcast Group, Inc. Class A		9,400		71,440
	Westwood One, Inc. (a)		8,100		10,044
	World Wrestling Entertainment, Inc.		3,600		55,692

					462,240

Railroad Equipment - 0.3%	American Railcar Industries, Inc.		1,300		21,814
	Freightcar America, Inc.		2,000		71,000
	Greenbrier Cos., Inc.		2,800		56,840
	Westinghouse Air Brake Technologies Corp.		8,100		393,822

					543,476

Railroads - 0.1%	Genesee & Wyoming, Inc. Class A (a)		4,950		168,399

Real Estate - 0.2%	AMREP Corp.		300		14,277
	Avatar Holdings, Inc. (a)		1,000		30,290
	Bluegreen Corp. (a)		2,200		13,310
	Cogdell Spencer, Inc.		2,100		34,125
	Consolidated-Tomoka Land Co.		1,000		42,060
	FX Real Estate and Entertainment, Inc. (a)		1,360		2,584
	Forestar Real Estate Group, Inc. (a)		5,966		113,652
	Griffin Land & Nurseries, Inc.		500		15,350
	Grubb & Ellis Co.		5,400		20,790
	Hilltop Holdings, Inc. (a)		7,652		78,892
	Meruelo Maddux Properties, Inc. (a)		7,220		15,740
	Resource Capital Corp.		3,400		24,514
	Stratus Properties, Inc. (a)		700		12,173
	Tejon Ranch Co. (a)		1,800		64,908
	Thomas Properties Group, Inc.		3,600		35,424

					518,089

Real Estate Investment Trusts (REITs) - 5.0%	Acadia Realty Trust (b)		5,700		131,955
	Agree Realty Corp.		1,600		35,280
	Alexander’s, Inc. (a)		300		93,180
	American Campus Communities, Inc.		6,759		188,157
	American Capital Agency Corp.		1,900		31,616
	Anthracite Capital, Inc. (c)		9,600		67,584
	Anworth Mortgage Asset Corp.		13,900		90,489
	Arbor Realty Trust, Inc.		2,400		21,528
	Ashford Hospitality Trust, Inc.		20,950		96,789
	Associated Estates Realty Corp.		2,400		25,704

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	BioMed Realty Trust, Inc.		12,100	$	296,813
	CapLease, Inc.		6,200		46,438
	Capital Trust, Inc.		2,800		53,788
	Capstead Mortgage Corp.		9,300		100,905
	Care Investment Trust, Inc.		2,000		18,860
	Cedar Shopping Centers, Inc.		7,200		84,384
	Chimera Investment Corp.		5,600		50,456
	Colonial Properties Trust		8,300		166,166
	Corporate Office Properties Trust		6,500		223,145
	Cousins Properties, Inc.		7,800		180,180
	DCT Industrial Trust, Inc.		28,750		238,050
	DiamondRock Hospitality Co.		15,840		172,498
	Dupont Fabros Technology, Inc.		2,100		39,144
	Eastgroup Properties, Inc.		4,200		180,180
	Education Realty Trust, Inc.		4,700		54,755
	Entertainment Properties Trust		5,100		252,144
	Equity Lifestyle Properties, Inc.		3,400		149,600
	Equity One, Inc.		5,400		110,970
	Extra Space Storage, Inc.		12,900		198,144
	FelCor Lodging Trust, Inc.		11,100		116,550
	First Industrial Realty Trust, Inc.		7,500		206,025
	First Potomac Realty Trust		4,100		62,484
	Franklin Street Properties Corp.		9,100		115,024
	Friedman Billings Ramsey Group, Inc. Class A		24,500		36,750
	Getty Realty Corp.		2,800		40,348
	Glimcher Realty Trust		6,400		71,552
	Gramercy Capital Corp.		7,061		81,837
	Hatteras Financial Corp.		1,900		43,681
	Healthcare Realty Trust, Inc.		8,500		202,045
	Hersha Hospitality Trust		5,900		44,545
	Highwoods Properties, Inc.		9,600		301,632
	Home Properties, Inc.		5,400		259,524
	Inland Real Estate Corp.		9,500		136,990
	Investors Real Estate Trust		9,700		92,538
	JER Investors Trust, Inc.		3,800		23,940
	Kite Realty Group Trust		3,400		42,500
	LTC Properties, Inc.		3,900		99,684
	LaSalle Hotel Properties		6,800		170,884
	Lexington Corporate Properties Trust		8,330		113,538
	MFA Mortgage Investments, Inc.		26,300		171,476
	Maguire Properties, Inc.		6,500		79,105
	Medical Properties Trust, Inc.		11,700		118,404
	Mid-America Apartment Communities, Inc.		4,400		224,576
	Mission West Properties, Inc.		2,500		27,400
	Monmouth Real Estate Investment Corp. Class A		4,100		26,240
	National Health Investors, Inc.		3,800		108,338
	National Retail Properties, Inc.		12,300		257,070

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Newcastle Investment Corp.		9,400	$	65,894
	NorthStar Realty Finance Corp.		9,400		78,208
	Omega Healthcare Investors, Inc.		11,700		194,805
	One Liberty Properties, Inc.		1,700		27,727
	PS Business Parks, Inc.		2,500		129,000
	Parkway Properties, Inc.		2,600		87,698
	Pennsylvania Real Estate Investment Trust		6,200		143,468
	Post Properties, Inc.		7,400		220,150
	Potlatch Corp.		6,639		299,552
	RAIT Investment Trust		10,840		80,433
	Ramco-Gershenson Properties Trust		3,000		61,620
	Realty Income Corp.		17,100		389,196
	Redwood Trust, Inc.		5,700		129,903
	Saul Centers, Inc.		1,800		84,582
	Senior Housing Properties Trust		16,300		318,339
	Sovran Self Storage, Inc.		3,600		149,616
	Strategic Hotel Capital, Inc.		12,100		113,377
	Sun Communities, Inc.		3,100		56,513
	Sunstone Hotel Investors, Inc.		10,200		169,320
	Tanger Factory Outlet Centers, Inc.		5,500		197,615
	U-Store-It Trust		8,800		105,160
	Universal Health Realty Income Trust		1,900		57,000
	Urstadt Biddle Properties, Inc. Class A		3,400		49,844
	Washington Real Estate Investment Trust		8,300		249,415
	Winthrop Realty Trust, Inc.		6,600		23,760

					10,155,777

Recreational Vehicles & Boats - 0.2%	Fleetwood Enterprises, Inc. (a)		10,900		28,558
	Marine Products Corp.		1,600		10,560
	Polaris Industries, Inc.		5,700		230,166
	Winnebago Industries, Inc.		4,800		48,912

					318,196

Rental & Leasing Services: Commercial - 0.1%	Aircastle Ltd.		8,300		69,803
	Electro Rent Corp.		3,500		43,890
	H&E Equipment Services, Inc. (a)		2,600		31,252
	McGrath RentCorp		3,900		95,901

					240,846

Rental & Leasing Services: Consumer - 0.3%	Aaron Rents, Inc.		7,500		167,475
	Amerco, Inc. (a)		1,600		76,288
	Dollar Thrifty Automotive Group, Inc. (a)		3,600		34,020
	RSC Holdings, Inc. (a)		7,800		72,228
	Rent-A-Center, Inc. (a)		11,500		236,555

					586,566

Restaurants - 1.0%	AFC Enterprises, Inc. (a)		4,300		34,357
	BJ’s Restaurants, Inc. (a)		2,400		23,352
	Bob Evans Farms, Inc.		5,300		151,580

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Buffalo Wild Wings, Inc. (a)		3,100	$	76,973
	CBRL Group, Inc.		3,758		92,109
	CEC Entertainment, Inc. (a)		3,700		103,637
	CKE Restaurants, Inc.		8,800		109,736
	California Pizza Kitchen, Inc. (a)		4,250		47,557
	The Cheesecake Factory, Inc. (a)		11,200		178,192
	Denny’s Corp. (a)		16,800		47,712
	DineEquity, Inc.		2,900		108,344
	Domino’s Pizza, Inc. (a)		6,600		75,900
	Einstein Noah Restaurant Group, Inc. (a)		600		6,642
	Jack in the Box, Inc. (a)		9,900		221,859
	Krispy Kreme Doughnuts, Inc. (a)		10,500		52,395
	Landry’s Restaurants, Inc.		2,400		43,128
	Luby’s, Inc. (a)		3,300		20,130
	O’Charleys, Inc.		3,900		39,234
	P.F. Chang’s China Bistro, Inc. (a)		4,200		93,828
	Papa John’s International, Inc. (a)		3,800		101,042
	Red Robin Gourmet Burgers, Inc. (a)		2,800		77,672
	Ruby Tuesday, Inc.		8,800		47,520
	Ruth’s Hospitality Group, Inc. (a)		3,400		17,612
	Sonic Corp. (a)		10,170		150,516
	The Steak n Shake Co. (a)		4,600		29,118
	Texas Roadhouse, Inc. Class A (a)		8,600		77,142
	Triarc Cos.		10,200		64,566

					2,091,853

Retail - 2.6%	1-800-FLOWERS.COM, Inc. Class A (a)		4,400		28,380
	99 Cents Only Stores (a)		7,900		52,140
	America’s Car Mart, Inc. (a)		1,900		34,048
	Asbury Automotive Group, Inc.		5,700		73,245
	Aéropostale, Inc. (a)		11,400		357,162
	bebe Stores, Inc.		6,300		60,543
	Big 5 Sporting Goods Corp.		4,000		30,280
	Blockbuster, Inc. Class A (a)		30,900		77,250
	Blue Nile, Inc. (a)		2,300		97,796
	Borders Group, Inc.		10,200		61,200
	Brown Shoe Co., Inc.		7,125		96,544
	The Buckle, Inc.		2,600		118,898
	Build-A-Bear Workshop, Inc. (a)		2,500		18,175
	CSK Auto Corp. (a)		7,200		75,456
	Cabela’s, Inc. Class A (a)		5,800		63,858
	Cache, Inc. (a)		1,900		20,330
	Casual Male Retail Group, Inc. (a)		6,300		19,215
	The Cato Corp. Class A		5,000		71,200
	Central Garden & Pet Co. Class A (a)		10,869		44,563
	Charlotte Russe Holding, Inc. (a)		3,500		62,160
	Charming Shoppes, Inc. (a)		19,100		87,669
	Chico’s FAS, Inc. (a)		30,300		162,711

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	The Children’s Place Retail Stores, Inc. (a)		4,000	$	144,400
	Christopher & Banks Corp.		6,000		40,800
	Circuit City Stores, Inc.		29,500		85,255
	Coldwater Creek, Inc. (a)		10,200		53,856
	Collective Brands, Inc. (a)		10,300		119,789
	Conn’s, Inc. (a)		1,600		25,712
	Dillard’s, Inc. Class A		9,900		114,543
	Dress Barn, Inc. (a)		7,600		101,688
	drugstore.com, Inc. (a)		13,200		25,080
	Ezcorp, Inc. (a)		6,700		85,425
	FGX International Holdings Ltd. (a)		1,500		12,060
	FTD Group, Inc.		2,700		35,991
	Fred’s, Inc.		6,700		75,308
	GSI Commerce, Inc. (a)		4,000		54,520
	Gaiam, Inc. (a)		3,000		40,530
	Genesco, Inc. (a)		4,000		123,480
	Group 1 Automotive, Inc.		3,800		75,506
	Gymboree Corp. (a)		4,900		196,343
	Hibbett Sports, Inc. (a)		4,850		102,335
	Hot Topic, Inc. (a)		7,800		42,198
	Insight Enterprises, Inc. (a)		8,100		95,013
	Jo-Ann Stores, Inc. (a)		4,200		96,726
	Jos. A. Bank Clothiers, Inc. (a)		3,025		80,919
	Lawson Products, Inc.		979		24,260
	MarineMax, Inc. (a)		2,700		19,359
	Men’s Wearhouse, Inc.		8,900		144,981
	New York & Co. (a)		3,500		31,955
	Overstock.com, Inc. (a)		2,700		70,065
	PC Connection, Inc. (a)		1,000		9,310
	PC Mall, Inc. (a)		2,100		28,476
	Pacific Sunwear of California, Inc. (a)		11,400		97,242
	The Pantry, Inc. (a)		3,800		40,508
	The Pep Boys - Manny, Moe & Jack		7,100		61,912
	PetMed Express, Inc. (a)		4,300		52,675
	Pier 1 Imports, Inc. (a)		15,000		51,600
	PriceSmart, Inc.		2,100		41,538
	Retail Ventures, Inc. (a)		3,500		16,100
	Rush Enterprises, Inc. Class A (a)		5,700		68,457
	Russ Berrie & Co., Inc. (a)		2,200		17,534
	Sally Beauty Co., Inc. (a)		14,800		95,608
	School Specialty, Inc. (a)		3,500		104,055
	Shutterfly, Inc. (a)		3,600		43,956
	Sonic Automotive, Inc.		4,400		56,716
	Stage Stores, Inc.		6,450		75,271
	Stamps.com, Inc. (a)		3,000		37,440
	Stein Mart, Inc.		4,300		19,393
	Syms Corp.		1,000		13,600

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Systemax, Inc.		1,500	$	26,475
	The Talbots, Inc.		3,700		42,883
	Tractor Supply Co. (a)		5,800		168,432
	Tuesday Morning Corp. (a)		5,100		20,961
	Tween Brands, Inc. (a)		4,200		69,132
	Volcom, Inc. (a)		3,200		76,576
	The Wet Seal, Inc. Class A (a)		16,200		77,274
	Zale Corp. (a)		6,100		115,229
	Zumiez, Inc. (a)		3,300		54,714

					5,413,987

Savings & Loan - 0.9%	Anchor Bancorp Wisconsin, Inc.		3,400		23,834
	Bank Mutual Corp.		8,500		85,340
	Berkshire Hills Bancorp, Inc.		1,500		35,475
	Brookline Bancorp, Inc.		10,200		97,410
	Brooklyn Federal Bancorp, Inc.		900		10,845
	Danvers Bancorp, Inc. (a)		3,300		36,300
	Dime Community Bancshares, Inc.		4,400		72,644
	Downey Financial Corp.		3,400		9,418
	ESSA Bancorp, Inc.		3,300		41,316
	FirstFed Financial Corp. (a)		2,300		18,492
	First Financial Holdings, Inc.		2,300		39,514
	First Financial Northwest, Inc.		4,300		42,699
	First Niagara Financial Group, Inc.		18,400		236,624
	First Place Financial Corp.		2,300		21,620
	Flagstar Bancorp, Inc.		7,100		21,371
	Flushing Financial Corp.		3,400		64,430
	Guaranty Financial Group, Inc. (a)		6,900		37,053
	Home Federal Bancorp, Inc.		900		8,874
	IBERIABANK Corp.		2,300		102,281
	IndyMac Bancorp, Inc.		19,700		12,214
	Kearny Financial Corp.		3,000		33,000
	Meridian Interstate Bancorp, Inc. (a)		1,600		15,552
	NASB Financial, Inc.		300		5,334
	NewAlliance Bancshares, Inc.		18,300		228,384
	Northwest Bancorp, Inc.		2,900		63,278
	OceanFirst Financial Corp.		1,800		32,490
	Ocwen Financial Corp. (a)		5,800		26,970
	Provident Financial Services, Inc.		10,100		141,501
	Provident New York Bancorp		6,900		76,314
	Rockville Financial, Inc.		1,400		17,584
	Roma Financial Corp.		1,100		14,410
	Sterling Financial Corp.		8,460		35,024
	United Community Financial Corp.		4,400		16,500
	ViewPoint Financial Group		1,800		26,496

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	W Holding Co., Inc.		18,600	$	15,810
	Westfield Financial, Inc.		5,900		53,395

					1,819,796

Scientific Equipment & Suppliers - 0.2%	Newport Corp. (a)		6,400		72,896
	Varian, Inc. (a)		5,000		255,300

					328,196

Securities Brokerage & Services - 0.5%	Diamond Hill Investments Group (a)		400		33,400
	GFI Group, Inc.		11,000		99,110
	Gladstone Investment Corp.		4,300		27,649
	International Assets Holding Corp., Inc. (a)		600		18,036
	KBW, Inc. (a)		4,400		90,552
	Knight Capital Group, Inc. Class A (a)		15,900		285,882
	LaBranche & Co., Inc. (a)		8,600		60,888
	Ladenburg Thalmann Financial Services, Inc. (a)		13,700		20,687
	MarketAxess Holdings, Inc. (a)		5,100		38,556
	optionsXpress Holdings, Inc.		7,300		163,082
	Penson Worldwide, Inc. (a)		3,100		37,045
	SWS Group, Inc.		4,300		71,423
	Thomas Weisel Partners Group, Inc. (a)		3,021		16,525

					962,835

Services: Commercial - 3.0%	ABM Industries, Inc.		7,400		164,650
	AMN Healthcare Services, Inc. (a)		5,700		96,444
	Administaff, Inc.		3,800		105,982
	The Advisory Board Co. (a)		3,100		121,923
	Ambassadors Group, Inc.		3,500		52,220
	Angelica Corp.		1,200		25,524
	CBIZ, Inc. (a)		7,600		60,420
	CDI Corp.		2,300		58,512
	CRA International, Inc. (a)		2,000		72,300
	Casella Waste Systems, Inc. (a)		3,700		45,103
	Chemed Corp.		4,000		146,440
	Coinstar, Inc. (a)		4,700		153,737
	Cornell Cos., Inc. (a)		1,700		40,987
	CoStar Group, Inc. (a)		3,300		146,685
	Cross Country Healthcare, Inc. (a)		5,600		80,696
	Dice Holdings, Inc. (a)		2,100		17,346
	DynCorp. International, Inc. (a)		4,100		62,115
	Exponent, Inc. (a)		2,500		78,525
	First Advantage Corp. Class A (a)		2,000		31,700
	Forrester Research, Inc. (a)		2,400		74,112
	G&K Services, Inc. Class A		3,300		100,518
	The Geo Group, Inc. (a)		8,800		198,000
	Gevity HR, Inc.		4,600		24,748
	Global Sources Ltd. (a)		2,680		40,682
	Global Traffic Network, Inc. (a)		2,300		20,562
	Heidrick & Struggles International, Inc.		3,100		85,684

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held	Value

	Hudson Highland Group, Inc. (a)	4,100	$	42,927
	ICF International, Inc. (a)	1,300		21,606
	ICT Group, Inc. (a)	1,300		10,660
	IKON Office Solutions, Inc.	13,700		154,536
	Jackson Hewitt Tax Service, Inc.	4,700		57,434
	Kelly Services, Inc. Class A	4,600		88,918
	Kforce, Inc. (a)	5,100		43,299
	The Knot, Inc. (a)	4,800		46,944
	Korn/Ferry International (a)	7,400		116,402
	Liquidity Services, Inc. (a)	2,700		31,131
	MAXIMUS, Inc.	3,000		104,460
	MPS Group, Inc. (a)	15,900		169,017
	Midas, Inc. (a)	2,700		36,450
	Monro Muffler, Inc.	2,800		43,372
	Navigant Consulting, Inc. (a)	8,300		162,348
	Net 1 UEPS Technologies, Inc. (a)	7,500		182,250
	Nutri/System, Inc.	5,400		76,356
	On Assignment, Inc. (a)	5,300		42,506
	Orbitz Worldwide, Inc. (a)	5,100		25,551
	PHH Corp. (a)	9,400		144,290
	PRG-Schultz International, Inc. (a)	2,900		27,289
	People Support, Inc. (a)	3,700		31,450
	Perficient, Inc. (a)	5,200		50,232
	Pre-Paid Legal Services, Inc. (a)	1,500		60,930
	The Providence Service Corp. (a)	2,100		44,331
	Regis Corp.	7,300		192,355
	Resources Connection, Inc.	7,900		160,765
	Rollins, Inc.	7,400		109,668
	Spherion Corp. (a)	10,000		46,200
	Standard Parking Corp. (a)	1,400		25,480
	Steiner Leisure Ltd. (a)	2,500		70,875
	TeleTech Holdings, Inc. (a)	6,600		131,736
	Tetra Tech, Inc. (a)	9,900		223,938
	TrueBlue, Inc. (a)	7,500		99,075
	Unifirst Corp.	2,200		98,252
	Viad Corp.	3,400		87,686
	Volt Information Sciences, Inc. (a)	2,150		25,607
	Waste Connections, Inc. (a)	11,200		357,616
	Waste Services, Inc. (a)	3,133		22,056
	Watson Wyatt Worldwide, Inc.	7,200		380,808
	World Fuel Services Corp.	4,600		100,924

				6,053,345

Shipping - 0.9%	American Commercial Lines, Inc. (a)	6,200		67,766
	Arlington Tankers Ltd.	1,800		41,796
	Double Hull Tankers, Inc.	7,100		71,213

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Eagle Bulk Shipping, Inc.		7,900	$	233,603
	Genco Shipping & Trading Ltd.		3,800		247,760
	General Maritime Corp.		4,500		116,910
	Golar LNG Ltd.		6,000		92,940
	Gulfmark Offshore, Inc. (a)		3,500		203,630
	Horizon Lines, Inc. Class A		5,100		50,745
	International Shipholding Corp. (a)		1,200		28,128
	Knightsbridge Tankers Ltd.		2,600		83,746
	Nordic American Tanker Shipping Ltd.		5,900		229,038
	Ship Finance International Ltd.		7,100		209,663
	TBS International Ltd. (a)		1,900		75,905

					1,752,843

Shoes - 0.6%	Crocs, Inc. (a)		14,400		115,344
	DSW, Inc. Class A (a)		2,600		30,628
	Deckers Outdoor Corp. (a)		2,200		306,240
	The Finish Line, Inc. Class A (a)		7,956		69,215
	Iconix Brand Group, Inc. (a)		10,000		120,800
	K-Swiss, Inc. Class A		4,200		61,740
	Kenneth Cole Productions, Inc. Class A		1,500		19,050
	Shoe Carnival, Inc. (a)		1,400		16,506
	Skechers U.S.A., Inc. Class A (a)		5,400		106,704
	Steven Madden Ltd. (a)		3,300		60,654
	Timberland Co. Class A (a)		7,900		129,165
	Weyco Group, Inc.		900		23,877
	Wolverine World Wide, Inc.		8,400		224,028

					1,283,951

Steel - 0.3%	China Precision Steel, Inc. (a)		3,500		15,260
	Esmark, Inc. (a)		2,600		49,712
	General Steel Holdings, Inc. (a)		1,300		20,436
	Gibraltar Industries, Inc.		4,700		75,059
	Olympic Steel, Inc.		1,600		121,472
	Sutor Technology Group Ltd. (a)		1,700		12,019
	Universal Stainless & Alloy Products, Inc. (a)		1,100		40,744
	Worthington Industries, Inc.		10,900		223,450

					558,152

Sugar - 0.0%	Imperial Sugar Co. New Shares		1,900		29,507

Telecommunications Equipment - 0.6%	Airvana, Inc. (a)		3,700		19,832
	Applied Signal Technology, Inc.		2,400		32,784
	Arris Group, Inc. (a)		21,046		177,839
	Audiovox Corp. Class A (a)		2,800		27,496
	Belden, Inc.		7,400		250,712
	Mastec, Inc. (a)		6,900		73,554
	OpNext, Inc. (a)		2,200		11,836
	Plantronics, Inc.		8,200		183,024
	Polycom, Inc. (a)		14,800		360,528
	Powerwave Technologies, Inc. (a)		22,200		94,350
	Preformed Line Products Co.		300		12,093
	Symmetricom, Inc. (a)		8,000		30,720

					1,274,768

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

Textile Products - 0.1%	Interface, Inc. Class A		9,000	$	112,770
	Unifi, Inc. (a)		8,900		22,428

					135,198

Textiles Apparel Manufacturers - 0.8%	American Apparel, Inc. (a)		6,200		41,230
	Carter’s, Inc. (a)		9,100		125,762
	Cherokee, Inc.		1,400		28,210
	Columbia Sportswear Co.		2,200		80,850
	G-III Apparel Group, Ltd. (a)		1,900		23,446
	J. Crew Group, Inc. (a)		7,270		239,983
	Lululemon Athletica, Inc. (a)		3,200		92,992
	Maidenform Brands, Inc. (a)		3,300		44,550
	Oxford Industries, Inc.		2,400		45,960
	Perry Ellis International, Inc. (a)		1,850		39,257
	Quiksilver, Inc. (a)		21,600		212,112
	True Religion Apparel, Inc. (a)		3,000		79,950
	Under Armour, Inc. Class A (a)		5,500		141,020
	The Warnaco Group, Inc. (a)		7,600		334,932

					1,530,254

Tires & Rubber - 0.1%	Cooper Tire & Rubber Co.		9,900		77,616
	Titan International, Inc.		4,600		163,852

					241,468

Tobacco - 0.2%	Alliance One International, Inc. (a)(b)		16,400		83,804
	Schweitzer-Mauduit International, Inc.		2,600		43,810
	Star Scientific, Inc. (a)		13,400		16,080
	Universal Corp.		4,700		212,534
	Vector Group Ltd.		5,519		89,021

					445,249

Toys - 0.2%	Jakks Pacific, Inc. (a)		4,600		100,510
	Leapfrog Enterprises, Inc. (a)		5,600		46,592
	Marvel Entertainment, Inc. (a)		8,200		263,548

					410,650

Transportation Miscellaneous - 0.3%	CAI International, Inc. (a)		1,100		19,140
	Celadon Group, Inc. (a)		4,000		39,960
	Dynamex, Inc. (a)		1,400		37,534
	HUB Group, Inc. Class A (a)		6,200		211,606
	Odyssey Marine Exploration, Inc. (a)		7,900		31,363
	Pacer International, Inc.		5,900		126,909
	Textainer Group Holdings Ltd.		1,500		29,295
	Ultrapetrol Bahamas Ltd. (a)		4,100		51,701

					547,508

Truckers - 0.6%	Arkansas Best Corp.		3,900		142,896
	Forward Air Corp.		5,100		176,460
	Heartland Express, Inc.		9,900		147,609
	Knight Transportation, Inc.		9,550		174,765
	Marten Transport Ltd. (a)		2,500		39,925

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held		Value

	Old Dominion Freight Line, Inc. (a)		4,650	$	139,593
	Patriot Transportation Holding, Inc. (a)		200		16,000
	Saia, Inc. (a)		2,300		25,116
	Universal Truckload Services, Inc. (a)		1,000		22,020
	Werner Enterprises, Inc.		7,200		133,776
	YRC Worldwide, Inc. (a)		9,840		146,321

					1,164,481

Utilities: Cable TV & Radio - 0.0%	Mediacom Communications Corp. Class A (a)		8,000		42,720

Utilities: Electrical - 1.7%	Allete, Inc.		4,400		184,800
	Avista Corp.		9,200		197,432
	Black Hills Corp.		6,400		205,184
	CH Energy Group, Inc.		2,700		96,039
	Central Vermont Public Service Corp.		1,300		25,181
	Cleco Corp.		10,200		237,966
	El Paso Electric Co. (a)		7,700		152,460
	The Empire District Electric Co.		5,700		105,678
	IDACORP, Inc.		7,600		219,564
	ITC Holdings Corp.		8,300		424,213
	MGE Energy, Inc.		3,700		120,694
	NorthWestern Corp.		6,500		165,230
	Otter Tail Corp.		5,000		194,150
	PNM Resources, Inc.		13,300		159,068
	Pike Electric Corp. (a)		2,800		46,508
	Portland General Electric Co.		10,800		243,216
	UIL Holdings Corp.		4,333		127,434
	Unisource Energy Corp.		5,800		179,858
	Westar Energy, Inc.		17,900		385,029

					3,469,704

Utilities: Gas Distributors - 1.0%	Chesapeake Utilities Corp.		1,400		36,008
	EnergySouth, Inc.		1,200		58,872
	The Laclede Group, Inc.		3,600		145,332
	New Jersey Resources Corp.		7,100		231,815
	Nicor, Inc.		7,700		327,943
	Northwest Natural Gas Co.		4,500		208,170
	Piedmont Natural Gas Co.		12,300		321,768
	South Jersey Industries, Inc.		5,000		186,800
	Southwest Gas Corp.		7,200		214,056
	WGL Holdings, Inc.		8,300		288,342

					2,019,106

Utilities: Miscellaneous - 0.1%	Aquila, Inc. (a)		63,000		237,510

Utilities: Telecommunications - 1.0%	Alaska Communications Systems Group, Inc.		7,400		88,356
	Atlantic Tele-Network, Inc.		1,300		35,763
	Centennial Communications Corp. (a)		11,100		77,589
	Cincinnati Bell, Inc. (a)		41,300		164,374
	Consolidated Communications Holdings, Inc.		3,319		49,420
	FairPoint Communications, Inc.		15,450		111,394

Small Cap Premium & Dividend Income Fund Inc.
Schedule of Investments June 30, 2008 (Unaudited)


Industry	Common Stocks	Shares Held	Value

	FiberTower Corp. (a)	20,310	$	28,434
	General Communication, Inc. Class A (a)	8,700		59,769
	Global Crossing Ltd. (a)	4,500		80,730
	Globalstar, Inc. (a)	8,200		23,206
	Hungarian Telephone & Cable Corp. (a)	400		7,296
	ICO Global Communications Holdings Ltd. (a)	17,500		57,050
	IDT Corp. Class B	8,100		13,770
	iPCS, Inc. (a)	2,900		85,927
	Ibasis, Inc.	4,100		13,448
	Iowa Telecommunications Services, Inc.	5,400		95,094
	NTELOS Holdings Corp.	5,000		126,850
	Neutral Tandem, Inc. (a)	2,700		47,250
	ORBCOMM, Inc. (a)	4,300		24,510
	PAETEC Holding Corp. (a)	20,570		130,620
	Premiere Global Services, Inc. (a)	10,400		151,632
	RCN Corp.	6,200		66,836
	Rural Cellular Corp. Class A (a)	2,200		97,922
	Shenandoah Telecom Co.	3,600		46,872
	TW Telecom, Inc. (a)	24,830		398,025
	USA Mobility, Inc.	4,300		32,465
	Virgin Mobile USA, Inc. (a)	3,600		9,900

				2,124,502

Utilities: Water - 0.2%	American States Water Co.	3,000		104,820
	California Water Service Group	3,300		108,141
	Connecticut Water Service, Inc.	1,700		38,080
	Consolidated Water Co., Inc.	2,000		39,600
	Middlesex Water Co.	2,500		41,475
	SJW Corp.	2,300		60,720
	Southwest Water Co.	3,965		39,729

				432,565

Wholesalers - 0.2%	Brightpoint, Inc. (a)	8,430		61,539
	Chindex International, Inc. (a)	2,100		30,807
	Houston Wire & Cable Co.	3,200		63,680
	MWI Veterinary Supply, Inc. (a)	1,900		62,909
	Prestige Brands Holdings, Inc. (a)	5,500		58,630
	United Stationers, Inc. (a)	4,000		147,800

				425,365

	Total Common Stocks (Cost - $200,131,506) - 86.3%			176,794,352

	Investment Companies

	BlackRock Kelso Capital Corp. (c)	1,400		13,244
	Gladstone Capital Corp.	2,900		44,196
	Hercules Technology Growth Capital, Inc.	5,600		50,008
	Kayne Anderson Energy Development Co.	1,400		32,130
	Patriot Capital Funding, Inc.	3,500		21,875

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


Industry	Investment Companies	Shares Held		Value

	Pennantpark Investment Corp.	3,600	$	25,956
	Prospect Capital Corp.	3,900		51,402

	Total Investment Companies (Cost - $360,552) - 0.1%			238,811


	Short-Term Securities		Face Amount

Time Deposits - 13.5%	State Street Bank & Trust Co., 1%, 7/01/08	$	27,559,147	27,559,147

	Total Short-Term Securities (Cost - $27,559,147) - 13.5%			27,559,147

	Total Investments Before Options Written (Cost - $228,051,205*) - 99.9%			204,592,310


	Options Written	Number of Contracts

Call Options Written	Russell 2000 Index, expiring July 2008 at USD 750	1,000		(82,500	)
	Russell 2000 Index, expiring July 2008 at USD 760	750		(33,750	)

				(116,250	)

	Total Options Written (Premiums Received - $1,627,209) - (0.1%)			(116,250	)

	Total Investments, Net of Options Written (Cost - $226,423,996) - 99.8%			204,476,060
	Other Assets Less Liabilities - 0.2%			462,009

	Net Assets - 100.0%		$	204,938,069


*	The cost and unrealized appreciation (depreciation) of investments, as of June 30, 2008, as computed for federal income tax purposes, were as follows:


Aggregate cost	$	217,401,378

Gross unrealized appreciation	$	3,215,812
Gross unrealized depreciation		(16,024,880	)

Net unrealized depreciation	$	(12,809,068	)


(a)	Non-income producing security.

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

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



Affiliate		Purchase Cost		Sales Cost	Realized Loss		Dividend Income

Anthracite
Capital, Inc.	$	7,219	$	18,035	($6,680	)	$	6,500
BlackRock Kelso
Capital Corp.	$	3,714		—	—		$	860

•

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

Small Cap Premium & Dividend Income Fund Inc.

Schedule of Investments June 30, 2008 (Unaudited)


•	Financial futures contracts purchased as of June 30, 2008 were as follows:



Number of Contracts	Issue		Expiration Date		Face Value		Appreciation (Depreciation)

400		Russell 2000 Index		September 2008	$	29,258,540	$	(1,590,540	)


•	Effective January 1, 2008, the Fund adopted Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, “Fair Value Measurements” (“FAS 157”). FAS 157 clarifies the definition of fair value, establishes a framework for measuring fair values and requires additional disclosures about the use of fair value measurements. Various inputs are used in determining the fair value of investments, which are as follows:

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

		•	Level 2 - other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates) or other market-corroborated inputs)

		•	Level 3 - unobservable inputs based on the best information available in the circumstance, to the extent observable inputs are not available (including the Fund’s own assumption used in determining the fair value of investments)


	The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to Note 1(a) of the Notes to Financial Statements.

	The following table summarizes the inputs used as of June 30, 2008 in determining the fair valuation of the Fund’s investments:



Valuation Inputs	Investments in Securities		Other Financial Instruments⁺

Level 1	$	204,592,310	$	(1,706,790	)
Level 2		—		—
Level 3		—		—

Total	$	204,592,310	$	(1,706,790	)


⁺	Other financial instruments are futures and options.

See Notes to Financial Statements.

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

Item 7 –

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

Item 8 –

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

Item 9 –	Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers – Not Applicable
Item 10 –	Submission of Matters to a Vote of Security Holders – The registrant’s Nominating Committee will consider nominees to the board of directors recommended by shareholders when a vacancy becomes available. Shareholders who wish to recommend a nominee should send nominations which include biographical information and set forth the qualifications of the proposed nominee to the registrant’s Secretary. There have been no material changes to these procedures.
Item 11 –	Controls and Procedures

11(a) –

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

11(b) –	There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act) that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 12 –	Exhibits attached hereto
12(a)(1) –	Code of Ethics – Not Applicable to this semi-annual report
12(a)(2) –	Certifications – Attached hereto
12(a)(3) –	Not Applicable

12(b) –	Certifications – Attached hereto
	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
	Small Cap Premium & Dividend Income Fund Inc.

	By:	/s/ Mitchell M. Cox
		Mitchell M. Cox
		Chief Executive Officer of
		Small Cap Premium & Dividend Income Fund Inc.

	Date: August 21, 2008

	Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

	By:	/s/ Mitchell M. Cox
		Mitchell M. Cox
		Chief Executive Officer (principal executive officer) of
		Small Cap Premium & Dividend Income Fund Inc.

	Date: August 21, 2008

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

	Date: August 21, 2008