UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549

FORM N-Q

QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY

Investment Company Act file number: 811-07460
 
Exact name of registrant as specified in charter: Delaware Investments® Dividend and
Income Fund, Inc.
 
Address of principal executive offices: 2005 Market Street
Philadelphia, PA 19103
 
Name and address of agent for service: David F. Connor, Esq.
2005 Market Street
Philadelphia, PA 19103
 
Registrant’s telephone number, including area code: (800) 523-1918
 
Date of fiscal year end: November 30
 
Date of reporting period: August 31, 2017

Item 1. Schedule of Investments.

Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc.
August 31, 2017 (Unaudited)

Number of Value
      shares       (US $)
Common Stock – 90.18%
Consumer Discretionary – 4.42%
Dollar Tree † 25,200 $ 2,006,928
Lowe’s 25,800 1,906,362
  3,913,290
Consumer Staples – 6.64%
Archer-Daniels-Midland 48,200   1,991,624
CVS Health 26,300 2,034,042
Mondelez International 45,600 1,854,096
    5,879,762
Diversified REITs – 0.85%  
Colony NorthStar 12,023 157,622
Fibra Uno Administracion 88,100 156,793
Forest City Realty Trust 5,500 131,780
Lexington Realty Trust 23,000 226,780
Vornado Realty Trust 1,065 79,332
752,307
Energy – 10.77%
Chevron 20,100 2,163,162
ConocoPhillips 43,500 1,899,210
Halliburton 43,000 1,675,710
Marathon Oil 162,698   1,809,202
Occidental Petroleum 33,200 1,982,040
9,529,324
Financials – 9.25%
Allstate 22,800 2,063,400
Bank of New York Mellon 39,200 2,049,376
BB&T 44,600 2,055,614
Marsh & McLennan 25,900 2,022,272
8,190,662
Healthcare – 17.28%
Abbott Laboratories 41,900 2,134,386
Brookdale Senior Living † 61,800 749,634
Cardinal Health 26,100 1,760,706
Express Scripts Holding † 33,670 2,115,149
Johnson & Johnson 15,300 2,025,261
Merck & Co. 35,200 2,247,872
Pfizer 64,189 2,177,291
Quest Diagnostics 19,200 2,080,320
15,290,619
Healthcare REITs – 0.94%
HCP 13,500 402,435
Healthcare Realty Trust 3,800 126,464
Healthcare Trust of America
     Class A		 5,200 161,564
Welltower 1,900 139,118
829,581
Hotel REITs – 1.20%
Hospitality Properties Trust 4,700 128,592
Host Hotels & Resorts 7,500 135,900
MGM Growth Properties 13,700 419,220
Summit Hotel Properties 25,600 379,904
1,063,616
Industrial REITs – 0.57%
Duke Realty 4,100 121,852
Terreno Realty 10,600 384,250
506,102
Industrials – 7.63%
Northrop Grumman 8,300 2,259,343
Raytheon 13,100 2,384,331
Waste Management 27,400 2,112,814
6,756,488
Information Technology – 9.52%
CA 62,386 2,069,967
Cisco Systems 62,500 2,013,125
Intel 58,900 2,065,623
Oracle 45,200 2,274,916
8,423,631
Information Technology REIT – 0.34%
Crown Castle International 2,800 303,632
303,632
Mall REITs – 1.21%
GGP 21,271 441,373
Simon Property Group 3,347 524,977
Taubman Centers 1,900 99,256
1,065,606
Manufactured Housing REIT – 0.14%
Sun Communities 1,400 126,434
126,434
Materials – 2.80%
EI du Pont de Nemours & Co. 26,200 2,198,966
Tarkett 6,827 282,585
2,481,551
Mortgage REIT – 0.23%
Starwood Property Trust 9,200 204,332
204,332
Multifamily REITs – 5.64%
ADO Properties 144A # 9,989 486,861
American Homes 4 Rent 6,980 154,677
Apartment Investment &
     Management		 17,719 803,202

(continues)     NQ-DDF [8/17] 10/17 (274098) 1

Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

Number of Value
      shares       (US $)
Common Stock (continued)
Multifamily REITs (continued)
Equity Residential 38,357 $ 2,575,673
Gecina 765 119,210
Invitation Homes 12,200 282,308
Safety Income and Growth † 23,600 463,740
Vonovia 2,481   104,942
4,990,613
Office REITs – 2.14%
  alstria office REIT 15,891 233,055
Easterly Government
     Properties 45,400 910,724
Equity Commonwealth † 13,400 414,596
Mack-Cali Realty 3,700 84,693
SL Green Realty 2,600 250,588
1,893,656
Self-Storage REIT – 0.11%
Jernigan Capital 4,900 95,256
95,256
Shopping Center REITs – 1.47%
Brixmor Property Group 13,900 260,208
First Capital Realty 7,981 129,677
Kimco Realty 10,630   208,561
Kite Realty Group Trust 14,100 283,692
Retail Properties of America 4,800 63,984
Urban Edge Properties 4,932 124,040
Washington Prime Group 14,100 117,735
Weingarten Realty Investors 3,600 115,344
1,303,241
Telecommunications – 4.41%
AT&T 49,200 1,843,032
Century Communications =† 500,000 0
Verizon Communications 43,000 2,062,710
3,905,742
Utilities – 2.62%
American Water Works 2,400 194,160
Edison International 26,500 2,124,770
2,318,930
Total Common Stock
(cost $62,325,117) 79,824,375
 
Convertible Preferred Stock – 1.62%
A Schulman 6.00% exercise
     price $52.33 Ψ 145 118,040
AMG Capital Trust II 5.15%
     exercise price $200.00,
     maturity date 10/15/37 2,953 179,948
Bank of America 7.25%
     exercise price $50.00 Ψ 155 204,290
El Paso Energy Capital Trust I
     4.75% exercise price
     $50.00, maturity date
     3/31/28 5,250 258,234
Huntington Bancshares
     8.50% exercise price
     $11.95 Ψ 182 261,807
Teva Pharmaceutical
     Industries 7.00% exercise
     price $75.00, maturity date
     12/15/18 89 28,458
Wells Fargo & Co. 7.50%
     exercise price $156.71 Ψ 159 211,629
Welltower 6.50% exercise
     price $57.42 Ψ 2,550 168,683
Total Convertible Preferred Stock
(cost $1,282,456) 1,431,089
 
Principal
amount°
Convertible Bonds – 7.50%
Capital Goods – 0.60%
Aerojet Rocketdyne Holdings 144A
     2.25% exercise price $26.00,
     maturity date 12/15/23 # 51,000 66,523
Kaman 144A 3.25% exercise price
     $65.26, maturity date 5/1/24 # 177,000 181,757
SolarCity 1.625% exercise price
     $759.35, maturity date 11/1/19 299,000 285,545
533,825
Communications – 1.09%
Alaska Communications Systems
     Group 6.25% exercise price
     $10.28, maturity date 5/1/18 100,000 103,000
Clearwire Communications 144A
     8.25% exercise price $7.08,
     maturity date 12/1/40 # 310,000 316,587
DISH Network
     144A 2.375% exercise price
     $82.22, maturity date 3/15/24 # 181,000 183,602
     3.375% exercise price $65.18,
     maturity date 8/15/26 73,000 84,954
Liberty Interactive 144A 1.75%
     exercise price $341.10, maturity
     date 9/30/46 # 173,000 219,710
Liberty Media 2.25% exercise price
     $104.55, maturity date 9/30/46 49,000 52,369
960,222

2 NQ-DDF [8/17] 10/17 (274098)

(Unaudited)

Principal Value
      amount°       (US $)
Convertible Bonds (continued)
Consumer Cyclical – 0.12%
Huron Consulting Group 1.25%
     exercise price $79.89, maturity
     date 10/1/19 109,000 $ 101,166
101,166
Consumer Non-Cyclical – 1.24%
Brookdale Senior Living 2.75%
     exercise price $29.33, maturity
     date 6/15/18 312,000 311,610
Hologic 2.00% exercise price
     $31.18, maturity date 3/1/42 ϕ 101,000 129,469
  Neurocrine Biosciences 144A 2.25%  
     exercise price $75.92, maturity
     date 5/15/24 # 131,000 143,199
Spectrum Pharmaceuticals 2.75%
     exercise price $10.53, maturity
     date 12/15/18 96,000 109,380
Vector Group
     1.75% exercise price $23.46,
     maturity date 4/15/20 • 262,000 299,990
     2.50% exercise price $15.22,
     maturity date 1/15/19 • 72,000 104,940
1,098,588
Energy – 0.38%
Helix Energy Solutions Group 4.25%  
     exercise price $13.89, maturity  
     date 5/1/22 218,000 210,915
PDC Energy 1.125% exercise price
     $85.39, maturity date 9/15/21 142,000 128,687
339,602
Financials – 0.87%
Ares Capital 144A 3.75% exercise
     price $19.39, maturity date
     2/1/22 # 119,000 120,487
Blackhawk Network Holdings
     1.50% exercise price $49.83,
     maturity date 1/15/22 201,000 228,763
GAIN Capital Holdings 144A 5.00%
     exercise price $8.20, maturity
     date 8/15/22 # 195,000 199,022
New Mountain Finance 5.00%
     exercise price $15.80, maturity
     date 6/15/19 212,000 219,420
767,692
Industrials – 0.59%
Chart Industries 2.00% exercise
     price $69.03, maturity date
     8/1/18 262,000 261,181
General Cable 4.50% exercise price
     $31.01, maturity date 11/15/29 ϕ 314,000 263,956
525,137
REITs – 1.02%
Blackstone Mortgage Trust
     4.375% exercise price $35.67,
     maturity date 5/5/22 124,000 125,317
     5.25% exercise price $27.67,
     maturity date 12/1/18 196,000 224,297
Spirit Realty Capital 3.75% exercise
     price $12.98, maturity date
     5/15/21 246,000 249,384
VEREIT 3.75% exercise price
     $14.99, maturity date 12/15/20 295,000 305,880
904,878
Technology – 1.59%
Cardtronics 1.00% exercise price
     $52.35, maturity date 12/1/20 254,000 235,744
Ciena 3.75% exercise price $20.17,
     maturity date 10/15/18 126,000 152,933
Electronics For Imaging 0.75%
     exercise price $52.72, maturity
     date 9/1/19 192,000 186,120
Knowles 3.25% exercise price
     $18.43, maturity date 11/1/21 136,000 150,110
NXP Semiconductors 1.00% exercise
     price $102.84, maturity date
     12/1/19 172,000 208,765
PROS Holdings 2.00% exercise price
     $33.79, maturity date 12/1/19 171,000 179,229
Verint Systems 1.50% exercise price
     $64.46, maturity date 6/1/21 302,000 291,430
1,404,331
Total Convertible Bonds
(cost $6,341,113) 6,635,441
 
Corporate Bonds – 38.77%
Automotive – 0.12%
American Tire Distributors 144A
     10.25% 3/1/22 # 105,000 108,937
108,937
Banking – 2.00%
Ally Financial 5.75% 11/20/25 240,000 260,028
Credit Suisse Group 144A 6.25%
     #µΨ 200,000 212,478
Lloyds Banking Group 7.50% µΨ 330,000 368,841
Popular 7.00% 7/1/19 255,000 268,451

(continues)     NQ-DDF [8/17] 10/17 (274098) 3

Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

Principal Value
      amount°       (US $)
Corporate Bonds (continued)
Banking (continued)
Royal Bank of Scotland Group
     8.625% µΨ 400,000 $ 444,000
  UBS Group 6.875% µΨ 200,000 219,750
1,773,548
Basic Industry – 7.01%
BMC East 144A 5.50% 10/1/24 # 115,000 120,175
Boise Cascade 144A 5.625%
     9/1/24 # 280,000 294,700
Builders FirstSource
     144A 5.625% 9/1/24 # 95,000 99,631
     144A 10.75% 8/15/23 # 175,000 200,375
Cemex 144A 7.75% 4/16/26 # 400,000 460,500
Chemours 5.375% 5/15/27 190,000 198,550
Cleveland-Cliffs 144A 5.75%
     3/1/25 # 95,000 93,257
FMG Resources August 2006 144A
     4.75% 5/15/22 # 105,000 108,806
Freeport-McMoRan 6.875%  
     2/15/23 320,000 348,400
Hudbay Minerals  
     144A 7.25% 1/15/23 # 20,000 21,600
     144A 7.625% 1/15/25 # 160,000 177,200
James Hardie International Finance
     144A 5.875% 2/15/23 # 200,000 211,000
Joseph T Ryerson & Son 144A
     11.00% 5/15/22 # 80,000 90,700
Koppers 144A 6.00% 2/15/25 # 195,000 207,187
Kraton Polymers
     144A 7.00% 4/15/25 # 150,000 162,000
     144A 10.50% 4/15/23 # 175,000 202,563
Lennar
     4.50% 4/30/24 195,000 202,313
     4.75% 5/30/25 95,000 98,919
M/I Homes 6.75% 1/15/21 185,000 194,250
NCI Building Systems 144A 8.25%
     1/15/23 # 155,000 166,819
New Gold 144A 6.25% 11/15/22 # 66,000 68,640
NOVA Chemicals
     144A 5.00% 5/1/25 # 130,000 130,000
     144A 5.25% 6/1/27 # 160,000 160,000
Novelis 144A 6.25% 8/15/24 # 305,000 322,919
Olin 5.125% 9/15/27 195,000 202,313
PQ 144A 6.75% 11/15/22 # 125,000 135,937
PulteGroup 5.00% 1/15/27 100,000 103,375
Standard Industries 144A 5.00%
     2/15/27 # 195,000 200,363
Steel Dynamics 5.00% 12/15/26 190,000 201,400
Summit Materials
     6.125% 7/15/23 195,000 205,237
Summit Materials
     8.50% 4/15/22 60,000 67,950
US Concrete 6.375% 6/1/24 190,000 206,150
Vale Overseas 6.25% 8/10/26 260,000 295,360
Zekelman Industries 144A 9.875%
     6/15/23 # 220,000 246,950
6,205,539
Capital Goods – 1.42%
Ardagh Packaging Finance 144A
     6.00% 2/15/25 # 240,000 255,300
BWAY Holding
     144A 5.50% 4/15/24 # 245,000 256,331
     144A 7.25% 4/15/25 # 145,000 148,444
Flex Acquisition 144A 6.875%
     1/15/25 # 190,000 197,956
KLX 144A 5.875% 12/1/22 # 140,000 147,350
StandardAero Aviation Holdings
     144A 10.00% 7/15/23 # 85,000 94,775
TransDigm 6.375% 6/15/26 150,000 154,688
1,254,844
Consumer Cyclical – 2.49%
AMC Entertainment Holdings
     6.125% 5/15/27 185,000 174,131
Arch Merger 144A 8.50%
     9/15/25 # 290,000 283,475
Boyd Gaming 6.375% 4/1/26 395,000 430,056
JC Penney 8.125% 10/1/19 62,000 66,960
Landry’s 144A 6.75% 10/15/24 # 185,000 187,775
MGM Resorts International 4.625%
     9/1/26 200,000 204,498
Mohegan Gaming & Entertainment
     144A 7.875% 10/15/24 # 275,000 289,781
Penn National Gaming 144A
     5.625% 1/15/27 # 195,000 202,800
Penske Automotive Group 5.50%
     5/15/26 270,000 273,375
Rite Aid 144A 6.125% 4/1/23 # 95,000 93,694
2,206,545
Consumer Non-Cyclical – 1.30%
Cott Holdings 144A 5.50%
     4/1/25 # 215,000 226,019
Dean Foods 144A 6.50% 3/15/23 # 255,000 260,100
JBS USA 144A 5.75% 6/15/25 # 195,000 197,437
Live Nation Entertainment 144A
     4.875% 11/1/24 # 183,000 187,117
Post Holdings
     144A 5.00% 8/15/26 # 100,000 100,250

4 NQ-DDF [8/17] 10/17 (274098)

(Unaudited)

Principal Value
      amount°       (US $)
Corporate Bonds (continued)
Consumer Non-Cyclical (continued)
Post Holdings
     144A 5.75% 3/1/27 # 99,000 $ 102,960
Tempur Sealy International 5.50%  
     6/15/26 75,000 77,599
  1,151,482
Energy – 5.77%
Alta Mesa Holdings 144A 7.875%
     12/15/24 # 190,000 204,725
AmeriGas Partners 5.875%
     8/20/26 240,000 246,000
Andeavor Logistics 5.25% 1/15/25 190,000 202,113
Antero Resources 5.625% 6/1/23 117,000 119,633
Cheniere Corpus Christi Holdings
     144A 5.125% 6/30/27 # 40,000 41,500
     5.875% 3/31/25 80,000 86,300
     7.00% 6/30/24 100,000 114,250
Chesapeake Energy
     144A 8.00% 12/15/22 # 58,000 60,175
     144A 8.00% 1/15/25 # 60,000 58,050
Crestwood Midstream Partners
     5.75% 4/1/25 190,000 193,087
Energy Transfer Equity 5.50%
     6/1/27 115,000 123,050
Genesis Energy 6.75% 8/1/22 294,000 299,145
Gulfport Energy 6.625% 5/1/23 200,000 200,000
Halcon Resources 144A 6.75%
     2/15/25 # 105,000 106,050
Hilcorp Energy I
     144A 5.00% 12/1/24 # 97,000 92,150
     144A 5.75% 10/1/25 # 71,000 68,870
Holly Energy Partners 144A 6.00%
     8/1/24 # 105,000 109,725
Laredo Petroleum 6.25% 3/15/23 205,000 210,637
Murphy Oil 6.875% 8/15/24 250,000 264,687
Murphy Oil USA 5.625% 5/1/27 385,000   413,875
Newfield Exploration 5.375%
     1/1/26 275,000 288,750
NuStar Logistics 5.625% 4/28/27 160,000 170,000
Oasis Petroleum 6.875% 3/15/22 105,000 102,900
QEP Resources 6.875% 3/1/21 275,000 286,687
Southwestern Energy  
     4.10% 3/15/22 100,000 92,750
     6.70% 1/23/25 195,000 191,100
Targa Resources Partners 144A
     5.375% 2/1/27 # 280,000 291,200
Transocean 144A 9.00% 7/15/23 # 170,000 181,900
Transocean Proteus 144A 6.25%  
     12/1/24 # 85,500 89,989
WildHorse Resource Development
     144A 6.875% 2/1/25 # 200,000 197,000
5,106,298
Financials – 0.46%
AerCap Global Aviation Trust 144A
     6.50% 6/15/45 #µ 200,000 217,000
E*TRADE Financial 5.875% µψ 180,000 192,150
409,150
Healthcare – 3.24%
Air Medical Group Holdings 144A
     6.375% 5/15/23 # 280,000 265,300
Change Healthcare Holdings 144A
     5.75% 3/1/25 # 200,000 206,500
CHS 6.25% 3/31/23 80,000 80,900
DaVita 5.00% 5/1/25 210,000 213,423
HCA
     5.375% 2/1/25 375,000 396,563
     5.875% 2/15/26 100,000 108,125
     7.58% 9/15/25 80,000 93,200
HealthSouth
     5.75% 11/1/24 285,000 294,263
     5.75% 9/15/25 90,000 94,050
Hill-Rom Holdings
     144A 5.00% 2/15/25 # 75,000 77,250
     144A 5.75% 9/1/23 # 100,000 105,750
inVentiv Group Holdings 144A
     7.50% 10/1/24 # 79,000 87,690
Mallinckrodt International Finance
     144A 5.50% 4/15/25 # 35,000 32,900
     144A 5.625% 10/15/23 # 115,000 110,687
MPH Acquisition Holdings 144A
     7.125% 6/1/24 # 270,000 290,250
Tenet Healthcare
     144A 5.125% 5/1/25 # 165,000 166,435
     8.00% 8/1/20 122,000 123,806
     8.125% 4/1/22 115,000 121,038
2,868,130
Insurance – 0.59%
HUB International 144A 7.875%
     10/1/21 # 215,000 224,073
USIS Merger Sub 144A 6.875%
     5/1/25 # 295,000 301,269
525,342
Media – 4.41%
Altice Luxembourg 144A 7.75%
     5/15/22 # 200,000 212,500

(continues)     NQ-DDF [8/17] 10/17 (274098) 5

Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

Principal Value
      amount°       (US $)
Corporate Bonds (continued)
Media (continued)
CCO Holdings  
     144A 5.50% 5/1/26 # 30,000 $ 31,350
     144A 5.75% 2/15/26 # 120,000 127,163
     144A 5.875% 5/1/27 # 220,000 234,300
Cequel Communications Holdings I
     144A 7.75% 7/15/25 # 200,000 221,750
CSC Holdings 144A 10.875%
     10/15/25 # 200,000 246,500
DISH DBS 7.75% 7/1/26 175,000 205,844
Gray Television 144A 5.875%
       7/15/26 # 270,000 278,775
Lamar Media 5.75% 2/1/26 167,000 180,777
Nexstar Broadcasting 144A 5.625%
     8/1/24 # 265,000 274,937
Nielsen Co. Luxembourg 144A
     5.00% 2/1/25 # 385,000 398,475
Radiate Holdco 144A 6.625%
     2/15/25 # 195,000 193,294
SFR Group 144A 7.375% 5/1/26 # 200,000 216,754
Sinclair Television Group 144A
     5.125% 2/15/27 # 195,000 190,125
Sirius XM Radio
     144A 5.00% 8/1/27 # 100,000 103,250
     144A 5.375% 4/15/25 # 175,000 185,430
Tribune Media 5.875% 7/15/22 170,000 177,225
Virgin Media Secured Finance 144A
     5.25% 1/15/26 # 200,000 209,250
VTR Finance 144A 6.875%
     1/15/24 # 200,000 213,000
3,900,699
Services – 3.98%
Advanced Disposal Services 144A
     5.625% 11/15/24 # 195,000 203,287
Avis Budget Car Rental 144A
     6.375% 4/1/24 # 105,000 107,887
Covanta Holding 5.875% 7/1/25 190,000 189,050
ESH Hospitality 144A 5.25%
     5/1/25 # 265,000 273,613
GEO Group
     5.875% 1/15/22 500,000 521,875
     5.875% 10/15/24 100,000 104,000
     6.00% 4/15/26 130,000 134,550
Herc Rentals 144A 7.75% 6/1/24 # 206,000 226,600
Iron Mountain US Holdings 144A
     5.375% 6/1/26 # 195,000 206,700
KAR Auction Services 144A 5.125%
     6/1/25 # 95,000 98,487
Prime Security Services Borrower
     144A 9.25% 5/15/23 # 605,000 670,037
Scientific Games International
     10.00% 12/1/22 320,000 357,200
Team Health Holdings 144A 6.375%
     2/1/25 # 145,000 140,309
United Rentals North America
     5.50% 5/15/27 270,000 286,875
3,520,470
Technology & Electronics – 1.55%
CDK Global 5.00% 10/15/24 175,000 187,390
CDW Finance 5.00% 9/1/25 95,000 99,513
CommScope Technologies
     144A 5.00% 3/15/27 # 195,000 194,815
     144A 6.00% 6/15/25 # 115,000 122,763
Entegris 144A 6.00% 4/1/22 # 140,000 146,125
Infor US 6.50% 5/15/22 165,000 169,125
Sensata Technologies U.K. Financing
     144A 6.25% 2/15/26 # 200,000 219,500
Solera 144A 10.50% 3/1/24 # 120,000 137,250
Symantec 144A 5.00% 4/15/25 # 95,000 99,721
1,376,202
Telecommunications – 2.88%
CenturyLink 6.75% 12/1/23 170,000 174,250
Cincinnati Bell 144A 7.00%
     7/15/24 # 205,000 203,463
CyrusOne Finance 144A 5.375%
     3/15/27 # 170,000 180,200
Level 3 Financing 5.375% 5/1/25 180,000 185,400
Sprint
     7.125% 6/15/24 200,000 220,250
     7.875% 9/15/23 125,000 143,141
Sprint Communications 7.00%
     8/15/20 136,000 149,430
T-Mobile USA
     6.375% 3/1/25 75,000 80,953
     6.50% 1/15/26 210,000 233,100
Uniti Group 144A 7.125%
     12/15/24 # 210,000 195,899
Wind Acquisition Finance 144A
     7.375% 4/23/21 # 400,000 416,138
Zayo Group
     144A 5.75% 1/15/27 # 75,000 79,780
     6.375% 5/15/25 265,000 285,787
2,547,791
Transportation – 0.44%
XPO Logistics 144A 6.125%
     9/1/23 # 370,000 387,575
387,575

6 NQ-DDF [8/17] 10/17 (274098)

(Unaudited)

Principal Value
      amount°       (US $)
Corporate Bonds (continued)
Utilities – 1.11%
AES
     5.50% 4/15/25 160,000 $ 167,600
     6.00% 5/15/26 25,000 26,813
Calpine
     5.50% 2/1/24 100,000 93,125
     5.75% 1/15/25 100,000 92,500
Dynegy  
     7.375% 11/1/22 100,000 103,750
     144A 8.00% 1/15/25 # 45,000 46,631
Emera 6.75% 6/15/76 µ 180,000 206,279
Enel 144A 8.75% 9/24/73 #µ 200,000 242,250
978,948
Total Corporate Bonds
(cost $32,925,561) 34,321,500
 
Loan Agreements – 0.76%
Applied Systems 2nd Lien 7.796%
     (US0003M + 6.50%) 1/23/22 ● 284,561 288,059
Kronos 2nd Lien 9.561% (US0003M
     + 8.25%) 11/1/24 ● 195,000 201,703
Russell Investments US Institutional
     Holdco Tranche B 1st Lien 5.49%
     (US0003M + 4.25%) 6/1/23 ● 181,543 183,529
Total Loan Agreements
(cost $633,395) 673,291
 
Number of
Shares
Master Limited Partnership – 0.79%
Ares Management 12,800 232,320
Brookfield Infrastructure
     Partners 10,700 472,191
Total Master Limited
Partnership (cost $371,580) 704,511
 
Preferred Stock – 0.76%
Bank of America 6.50% µ 220,000 248,325
Colony NorthStar 8.50% 8,300 213,559
GMAC Capital Trust I
     7.10% (US0003M +
     5.785%) ● 8,000 208,960
Total Preferred Stock
(cost $602,747) 670,844
 
Warrant – 0.00%
Wheeler Real Estate
     Investment Trust strike
     price $5.50, expiration
     date 4/29/19 † 7,617 503
Total Warrant (cost $63) 503
 
Principal
amount°
Short-Term Investments – 3.71%
Discount Note – 0.19%≠
Federal Home Loan Bank
     1.005% 9/21/17 166,667 166,576
166,576
Repurchase Agreements – 3.52%
Bank of America Merrill Lynch
     0.98%, dated 8/31/17, to
     be repurchased on 9/1/17,
     repurchase price $686,918
     (collateralized by US
     government obligations
     2.875% 11/15/46; market
     value $700,638) 686,900 686,900
     Bank of Montreal
     0.92%, dated 8/31/17, to
     be repurchased on 9/1/17,
     repurchase price
     $1,545,564 (collateralized
     by US government
     obligations
     0.00%–2.500%
     4/30/18–2/15/40; market
     value $1,576,435) 1,545,524 1,545,524
BNP Paribas
     1.02%, dated 8/31/17, to
     be repurchased on 9/1/17,
     repurchase price $884,601
     (collateralized by US
     government obligations
     0.00%–3.375%
     2/15/19–5/15/46; market
     value $902,267) 884,576 884,576
3,117,000
 
Total Short-Term
Investments
(cost $3,283,574) 3,283,576

(continues)     NQ-DDF [8/17] 10/17 (274098) 7

Schedule of investments

Delaware Investments® Dividend and Income Fund, Inc. (Unaudited)

Total Value of      
     Securities – 144.09%
     (cost $107,765,606) $ 127,545,130
 
Borrowing Under Line of
     Credit – (45.19%) (40,000,000 )
Liabilities Net of
     Receivables and Other
     Assets – 1.10% 969,992
Net Assets Applicable to    
     7,688,159 Shares
     Outstanding – 100.00% $ 88,515,122
____________________

#

Security exempt from registration under Rule 144A of the Securities Act of 1933, as amended. At Aug. 31, 2017, the aggregate value of Rule 144A securities was $20,874,370, which represents 23.58% of the Fund’s net assets.

=

The value of this security was determined using significant unobservable inputs and is reported as a Level 3 security in the disclosure table located in Note 2 in “Notes.”

≠

The rate shown is the effective yield at the time of purchase.

°

Principal amount shown is stated in US dollars unless noted that the security is denominated in another currency.

µ

Fixed to variable rate investment. The interest rate shown reflects the fixed rate in effect at Aug. 31, 2017. Interest rate will reset at a future date.

ψ

No contractual maturity date.

†

Non-income producing security.

●

Variable rate investment. Interest rates reset periodically. Interest rate shown reflects the rate in effect at Aug. 31, 2017. For securities based on a published reference rate and spread, the reference rate and spread are indicated in their description above. Certain variable rate securities are not based on a published reference rate and spread but are determined by the issuer or agent and are based on current market conditions. These securities do not indicate a reference rate and spread in their description above.

ϕ

Step coupon bond. Coupon increases or decreases periodically based on a predetermined schedule. Stated rate in effect at Aug. 31, 2017.

Summary of abbreviations:
REIT — Real Estate Investment Trust
US0003M — Intercontinental Exchange London Interbank Offered Rate US Dollar 3 Month
USSW5 — US Dollar Swap Semi 30/360 5 Year

See accompanying notes.

8 NQ-DDF [8/17] 10/17 (274098)

Notes

Delaware Investments® Dividend and Income Fund, Inc.
August 31, 2017 (Unaudited)

1. Significant Accounting Policies

The following accounting policies are in accordance with US generally accepted accounting principles (US GAAP) and are consistently followed by Delaware Investments® Dividend and Income Fund, Inc. (Fund). This report covers the period of time since the Fund’s last fiscal year end.

Security Valuation — Equity securities and exchange-traded funds (ETFs), except those traded on the Nasdaq Stock Market LLC (Nasdaq), are valued at the last quoted sales price as of the time of the regular close of the New York Stock Exchange on the valuation date. Equity securities and ETFs traded on the Nasdaq are valued in accordance with the Nasdaq Official Closing Price, which may not be the last sales price. If, on a particular day, an equity security or ETF does not trade, the mean between the bid and ask prices will be used, which approximates fair value. Equity securities listed on a foreign exchange are normally valued at the last quoted sales price on the valuation date. US government and agency securities are valued at the mean between the bid and ask prices, which approximates fair value. Other debt securities are valued based upon valuations provided by an independent pricing service or broker and reviewed by management. To the extent current market prices are not available, the pricing service may take into account developments related to the specific security, as well as transactions in comparable securities. Valuations for fixed income securities utilize matrix systems, which reflect such factors as security prices, yields, maturities, and ratings, and are supplemented by dealer and exchange quotations. Foreign currency exchange contracts and foreign cross currency exchange contracts are valued at the mean between the bid and ask prices, which approximates fair value. Interpolated values are derived when the settlement date of the contract is an interim date for which quotations are not available. Exchange-traded options are valued at the last reported sale price or, if no sales are reported, at the mean between the last reported bid and ask prices, which approximates fair value. Generally, other securities and assets for which market quotations are not readily available are valued at fair value as determined in good faith under the direction of the Fund’s Board of Directors. In determining whether market quotations are readily available or fair valuation will be used, various factors will be taken into consideration, such as market closures or suspension of trading in a security. The Fund may use fair value pricing more frequently for securities traded primarily in non-US markets because, among other things, most foreign markets close well before the Fund values its securities, generally as of 4:00pm Eastern time. The earlier close of these foreign markets gives rise to the possibility that significant events, including broad market moves, government actions or pronouncements, aftermarket trading, or news events may have occurred in the interim. Whenever such a significant event occurs, the Fund may value foreign securities using fair value prices based on third-party vendor modeling tools (international fair value pricing). The foregoing valuation policies apply to restricted and unrestricted securities.

2. Investments

US GAAP defines fair value as the price that the Fund would receive to sell an asset or pay to transfer a liability in an orderly transaction between market participants at the measurement date under current market conditions. A three-level hierarchy for fair value measurements has been established based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability based on the best information available under the circumstances. The Fund’s investment in its entirety is assigned a level based upon the observability of the inputs which are significant to the overall valuation. The three-level hierarchy of inputs is summarized below.

Level 1 – 

inputs are quoted prices in active markets for identical investments. (Examples: equity securities, open-end investment companies, futures contracts, exchange-traded options contracts)

 
Level 2 – 

other observable inputs, including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, prepayment speeds, loss severities, credit risks, and default rates), or other market-corroborated inputs. (Examples: debt securities, government securities, swap contracts, foreign currency exchange contracts, foreign securities utilizing international fair value pricing, broker-quoted securities, fair valued securities)

 
Level 3 – 

Significant unobservable inputs, including the Fund’s own assumptions used to determine the fair value of investments. (Examples: broker-quoted securities, fair valued securities)

Level 3 investments are valued using significant unobservable inputs. The Fund may also use an income-based valuation approach in which the anticipated future cash flows of the investment are discounted to calculate fair value. Discounts may also be applied due to the nature or duration of any restrictions on the disposition of the investments. Valuations may also be based upon current market prices of securities that are comparable in coupon, rating, maturity, and industry. The derived value of a Level 3 investment may not represent the value which is received upon disposition and this could impact the results of operations.

(continues)     NQ-DDF [8/17] 10/17 (274098) 9

(Unaudited)

2. Investments (continued)

The following table summarizes the valuation of the Fund’s investments by fair value hierarchy levels as of Aug. 31, 2017:

Securities       Level 1       Level 2       Level 3       Total
Assets:
Common Stock
     Consumer Discretionary $ 3,913,290 $ — $ — $ 3,913,290
     Consumer Staples 5,879,762 — — 5,879,762
     Diversified REITs 752,307 — — 752,307
     Energy 9,529,324 — — 9,529,324
     Financials 8,190,662 — — 8,190,662
     Healthcare 15,290,619 — — 15,290,619
     Healthcare REITs 829,581 — — 829,581
     Hotel REITs 1,063,616 — — 1,063,616
     Industrial REITs 506,102 — — 506,102
     Industrials 6,756,488 — — 6,756,488
     Information Technology 8,423,631 — — 8,423,631
     Information Technology REIT 303,632 — — 303,632
     Mall REITs 1,065,606 — — 1,065,606
     Manufactured Housing REIT 126,434 — — 126,434
     Materials 2,198,966 282,585 — 2,481,551
     Mortgage REIT 204,332 — — 204,332
     Multifamily REITs 4,398,810 591,803 — 4,990,613
     Office REITs 1,660,601 233,055 — 1,893,656
     Self-Storage REIT 95,256 — — 95,256
     Shopping Center REITs 1,303,241 — — 1,303,241
     Telecommunications 3,905,742 — — 3,905,742
     Utilities 2,318,930 — — 2,318,930
Convertible Preferred Stock1 674,153 756,936 — 1,431,089
Corporate Debt — 40,956,941 — 40,956,941
Loan Agreements — 673,291 — 673,291
Master Limited Partnership 704,511 — — 704,511
Preferred Stock1 422,519 248,325 — 670,844
Short-Term Investments — 3,283,576 — 3,283,576
Warrant 503 — — 503
Total Value of Securities $ 80,518,618 $ 47,026,512 $ — $ 127,545,130

The security that has been valued at zero on the “Schedule of investments” is considered to be Level 3 investments in this table.

10 NQ-DDF [8/17] 10/17 (274098)

(Unaudited)

1Security type is valued across multiple levels. Level 1 investments represent exchange-traded investments, Level 2 investments represent investments with observable inputs or matrix-priced instruments, and Level 3 investments represent investments without observable inputs. The amounts attributed to Level 1 investments, Level 2 investments, and Level 3 investments represent the following percentages of the total value of these security types:

      Level 1       Level 2       Level 3       Total
Convertible Preferred Stock 47.11%   52.89%   — 100.00%
Preferred Stock 62.98% 37.02% — 100.00%

As a result of utilizing international fair value pricing as of Aug. 31, 2017, a portion of the portfolio was categorized as Level 2.

During the period ended Aug. 31, 2017, there were no transfers between Level 1 investments, Level 2 investments, or Level 3 investments that had a significant impact to the Fund. This does not include transfers between Level 1 investments and Level 2 investments due to the Fund utilizing international fair value pricing during the period. In accordance with the fair valuation procedures described in Note 1, international fair value pricing of securities in the Fund occurs when market volatility exceeds an established rolling threshold. If the threshold is exceeded on a given date, then prices of international securities (those that traded on exchanges that close at a different time than the time that the Fund’s net asset value (NAV) is determined) are established using a separate pricing feed from a third party vendor designed to establish a price for each such security as of the time that the Fund’s NAV is determined. Further, international fair value pricing uses other observable market-based inputs in place of the closing exchange price due to the events occurring after the close of the exchange or market on which the investment is principally traded, causing a change in classification between levels. The Fund’s policy is to recognize transfers between levels based on fair value at the beginning of the reporting period.

A reconciliation of Level 3 investments is presented when the Fund has a significant amount of Level 3 investments at the beginning, interim, or end of the period in relation to net assets. Management has determined not to provide a reconciliation of Level 3 investments as they are not considered significant to the Fund’s net assets at the beginning, interim, or end of the period. Management has determined not to provide additional disclosure on Level 3 inputs since the Level 3 investments are not considered significant to the Fund’s net assets at the end of the period.

3. Subsequent Events

Management has determined that no material events or transactions occurred subsequent to Aug. 31, 2017 that would require recognition or disclosure in the Fund’s ”Schedule of investments.“

NQ-DDF [8/17] 10/17 (274098) 11

Item 2. Controls and Procedures.

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of the filing of this report and have concluded that they are effective in providing reasonable assurance that the information required to be disclosed by the registrant in its reports or statements filed under the Securities Exchange Act of 1934 is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission.

There were no significant changes in the registrant’s internal control over financial reporting that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

Item 3. Exhibits.

File as exhibits as part of this Form a separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)), exactly as set forth below: