UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-CSR
CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES
Investment Company Act file number: 811-7460
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:
Richelle S. Maestro, Esq.
2005 Market Street
Philadelphia, PA 19103
Registrant's telephone number, including area code: (800) 523-1918
Date of fiscal year end: 11/30
Date of reporting period: 5/31
Item 1. Reports to Stockholders
Delaware
Investments(SM)
--------------------------------------
A member of Lincoln Financial Group(R)
CLOSED-END
Semiannual Report 2003
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DELAWARE INVESTMENTS
DIVIDEND AND INCOME FUND, INC.
[LOGO]
POWERED BY RESEARCH.(SM)
Table
OF CONTENTS
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FINANCIAL STATEMENTS:
Statement of Net Assets 1
Statement of Operations 6
Statements of Changes in Net Assets 7
Statement of Cash Flows 8
Financial Highlights 9
Notes to Financial Statements 10
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Funds are not FDIC insured and are not guaranteed. It is possible to lose
the principal amount invested.
Mutual fund advisory services provided by Delaware Management Company, a
series of Delaware Management Business Trust, which is a registered
investment advisor.
(C) 2003 Delaware Distributors, L.P.
Statement Delaware Investments Dividend and Income Fund, Inc.
OF NET ASSETS May 31, 2003 (Unaudited)
Number of Market
Shares Value
--------------------------------------------------------------------------------
Common Stock - 74.58%
--------------------------------------------------------------------------------
Aerospace & Defense - 1.37%
Raytheon 59,800 $ 1,915,992
-----------
1,915,992
-----------
Automobiles & Automotive Parts - 1.01%
General Motors 39,900 1,409,667
-----------
1,409,667
-----------
Banking, Finance & Insurance - 10.30%
Bank of America 34,100 2,530,220
Friedman Billings Ramsey Group 98,995 1,316,634
*J.P. Morgan Chase 73,700 2,421,782
Mellon Financial 85,100 2,312,167
Morgan Stanley & Co. 57,300 2,621,475
Wells Fargo 41,900 2,023,770
*XL Capital Limited - Class A 13,000 1,131,650
-----------
14,357,698
-----------
Cable, Media & Publishing - 1.20%
Gannett 21,100 1,666,900
-----------
1,666,900
-----------
Chemicals - 3.69%
Air Products & Chemicals 45,200 1,970,268
*Dow Chemical 100,000 3,180,000
-----------
5,150,268
-----------
Computers & Technology - 2.42%
International Business Machines 20,900 1,840,036
Pitney Bowes 40,000 1,536,400
-----------
3,376,436
-----------
Consumer Products - 2.57%
Kimberly-Clark 39,000 2,025,270
Procter & Gamble 17,000 1,560,940
-----------
3,586,210
-----------
Electronics & Electrical Equipment - 0.94%
Emerson Electric 25,000 1,307,500
-----------
1,307,500
-----------
Energy - 4.92%
ChevronTexaco 28,000 1,986,320
ConocoPhillips 23,385 1,262,088
Exxon Mobil 40,000 1,456,000
Kerr-McGee 45,300 2,155,374
-----------
6,859,782
-----------
Food, Beverage & Tobacco - 6.13%
*General Mills 58,900 2,755,342
Heinz (H.J.) 62,100 2,053,647
Kellogg 61,500 2,164,800
PepsiCo 35,500 1,569,100
-----------
8,542,889
-----------
Healthcare & Pharmaceuticals - 7.10%
Abbott Laboratories 35,000 1,559,250
Biomet 62,100 1,707,750
Bristol-Myers Squibb 91,500 2,342,400
Number of Market
Shares Value
--------------------------------------------------------------------------------
Common Stock (continued)
--------------------------------------------------------------------------------
Healthcare & Pharmaceuticals (continued)
Merck & Co. 30,800 $ 1,711,864
Wyeth 58,800 2,578,380
-----------
9,899,644
-----------
Industrial Machinery - 1.20%
*Caterpillar 32,000 1,668,800
-----------
1,668,800
-----------
Investment Companies - 1.66%
*Gladstone Capital 120,300 2,308,557
-----------
2,308,557
-----------
Paper & Forest Products - 1.77%
International Paper 40,000 1,466,800
*Weyerhaeuser 20,000 1,007,600
-----------
2,474,400
-----------
Real Estate - 21.16%
AMB Property 65,600 1,798,096
Apartment Investment & Management 55,200 1,944,696
AvalonBay Communities 22,300 935,039
Camden Property Trust 54,900 1,907,226
Duke Realty 87,000 2,469,060
Equity Office Properties Trust 95,800 2,577,978
*Equity One 2,700 43,875
Liberty Property Trust 62,470 2,078,377
Macerich 41,000 1,414,500
Pan Pacific Retail Properties 61,400 2,412,406
Prentiss Properties Trust 76,272 2,201,210
Ramco-Gershenson Properties 72,100 1,686,419
Reckson Associates Realty 70,000 1,417,500
Reckson Associates Realty - Class B 21,520 441,160
Simon Property Group 92,500 3,479,849
Starwood Hotels & Resorts Worldwide 70,000 2,028,600
Sun Communities 16,600 654,206
-----------
29,490,197
-----------
Retail - 0.09%
++Kmart Holdings 8,010 127,359
-----------
127,359
-----------
Telecommunications - 2.00%
*BellSouth 60,000 1,590,600
Verizon Communications 31,720 1,200,602
-----------
2,791,202
-----------
Transportation & Shipping - 1.58%
*Union Pacific 36,000 2,195,640
-----------
2,195,640
-----------
Utilities - 3.47%
Dominion Resources 36,600 2,305,800
FPL Group 38,000 2,525,860
-----------
4,831,660
-----------
Total Common Stock
(cost $99,391,238) 103,960,801
-----------
1
Statement Delaware Investments Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Number of Market
Shares Value
--------------------------------------------------------------------------------
Convertible Preferred Stock - 8.24%
--------------------------------------------------------------------------------
Aerospace & Defense - 0.75%
*Northrop Grumman 7.25% 10,500 $ 1,049,475
-----------
1,049,475
-----------
Banking, Finance & Insurance - 3.49%
National Australia Bank Units 7.875% 40,000 1,540,000
Newell Financial Trust I 5.25% 52,600 2,524,800
Travelers Property Casualty 4.50% 32,200 803,390
-----------
4,868,190
-----------
Environmental Services - 0.69%
Allied Waste Industries 6.25% 16,200 955,800
-----------
955,800
-----------
Real Estate - 2.55%
*Crescent Real Estate 6.75% 62,600 1,355,290
General Growth Properties 7.25% 60,100 2,199,059
-----------
3,554,349
-----------
Transportation & Shipping - 0.76%
Union Pacific Capital Trust 6.25% 4,675 241,931
+Union Pacific Capital Trust
TIDES 144A 6.25% 15,715 813,252
-----------
1,055,183
-----------
Total Convertible Preferred Stock
(cost $10,624,238) 11,482,997
-----------
--------------------------------------------------------------------------------
Preferred Stock - 6.32%
--------------------------------------------------------------------------------
Banking, Finance & Insurance - 1.85%
+Credit Lyon Capital SCA 144A 9.50% 100,000 2,575,000
-----------
2,575,000
-----------
Cable, Media & Publishing - 0.28%
*CSC Holdings 11.75% 3,775 395,446
-----------
395,446
-----------
Real Estate - 3.00%
LaSalle Hotel Properties 10.25% 113,200 3,113,000
Ramco-Gershenson Properties 9.50% 40,000 1,069,600
-----------
4,182,600
-----------
Utilities - 1.19%
Public Service Enterprise Group 10.25% 27,200 1,652,400
-----------
1,652,400
-----------
Total Preferred Stock (cost $8,047,996) 8,805,446
-----------
Principal
Amount
--------------------------------------------------------------------------------
Convertible Bonds - 7.60%
--------------------------------------------------------------------------------
Automobiles & Automotive Parts - 0.27%
+Tower Automotive 144A 5.00% 8/1/04 $400,000 380,000
-----------
380,000
-----------
Computers & Technology - 0.40%
+Mercury Interactive 144A 4.75% 7/1/07 550,000 551,375
-----------
551,375
-----------
Principal Market
Amount Value
--------------------------------------------------------------------------------
Convertible Bonds (continued)
--------------------------------------------------------------------------------
Energy - 0.60%
Duke Energy 1.75% 5/15/23 $ 800,000 $ 836,000
-----------
836,000
-----------
Leisure, Lodging & Entertainment - 0.41%
+Regal Entertainment 144A
3.75% 5/15/08 550,000 576,125
-----------
576,125
-----------
Miscellaneous - 0.19%
*+Tyco International Group 144A
2.75% 1/15/18 250,000 268,438
-----------
268,438
-----------
Real Estate - 1.66%
Malan Realty Investors 9.50% 7/15/04 2,300,000 2,305,750
-----------
2,305,750
-----------
Retail - 1.75%
+Gap 144A 5.75% 3/15/09 1,825,000 2,427,250
-----------
2,427,250
-----------
Telecommunications - 0.58%
+Nextel Partners 144A 1.50% 11/15/08 800,000 814,000
-----------
814,000
-----------
Transportation & Shipping - 1.09%
Continental Airlines 4.50% 2/1/07 2,125,000 1,522,031
-----------
1,522,031
-----------
Utilities - 0.65%
+Centerpoint Energy 144A
3.75% 5/15/23 800,000 908,000
-----------
908,000
-----------
Total Convertible Bonds
(cost $10,176,188) 10,588,969
-----------
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Non-Convertible Bonds - 33.82%
--------------------------------------------------------------------------------
Automobiles & Automotive Parts - 0.40%
+Advanced Accessory Systems 144A
10.75% 6/15/11 200,000 205,000
CSK Auto 12.00% 6/15/06 325,000 359,125
-----------
564,125
-----------
Banking, Finance & Insurance - 1.36%
Athena Nuerosciences Finance
7.25% 2/21/08 425,000 344,250
+Bluewater Finance 144A
10.25% 2/15/12 150,000 152,250
+Crum & Forster 144A 10.375% 6/15/13 200,000 195,500
+Farmers Exchange Capital 144A
7.20% 7/15/48 150,000 121,421
+Farmers Insurance Exchange 144A
8.625% 5/1/24 75,000 69,190
Finova Group 7.50% 11/15/09 650,000 268,125
*+Gemstone Investor 144A
7.71% 10/31/04 225,000 220,500
+Interline Brands 144A 11.50% 5/15/11 175,000 180,250
2
Statement Delaware Investments Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Principal Market
Amount Value
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Non-Convertible Bonds (continued)
--------------------------------------------------------------------------------
Banking, Finance & Insurance (continued)
Tig Holdings 8.125% 4/15/05 $ 275,000 $ 259,875
+Zurich Capital Trust I 144A
8.376% 6/1/37 75,000 82,227
----------
1,893,588
----------
Building & Materials - 1.52%
*Foster Wheeler 6.75% 11/15/05 525,000 375,375
*K Hovnanian Enterprises 7.75% 5/15/13 275,000 281,188
+Lone Star Industries 144A 8.85% 6/15/05 300,000 295,500
Schuler Homes 10.50% 7/15/11 275,000 309,375
*Standard Pacific 9.25% 4/15/12 275,000 297,000
Technical Olympic USA 10.375% 7/1/12 300,000 315,000
*United States Steel 9.75% 5/15/10 250,000 248,750
----------
2,122,188
----------
Cable, Media & Publishing - 5.14%
American Media Operation
10.25% 5/1/09 275,000 299,063
Charter Communications
*10.75% 10/1/09 1,025,000 753,374
#13.50% 1/15/11 1,650,000 800,249
CSC Holdings 10.50% 5/15/16 675,000 754,312
*Dex Media East LLC 12.125% 11/15/12 475,000 558,124
*+DirecTV Holdings 144A 8.375% 3/15/13 275,000 305,938
*Echostar DBS 10.375% 10/1/07 450,000 498,938
+Hollinger 144A 11.875% 3/1/11 225,000 237,375
+Lamar Media 144A 7.25% 1/1/13 150,000 155,492
*Lodgenet Entertainment
10.25% 12/15/06 425,000 433,500
Mediacom Broadband 11.00% 7/15/13 350,000 386,750
*Nextmedia Operating 10.75% 7/1/11 350,000 385,000
PanAmSat 8.50% 2/1/12 225,000 241,875
+PEI Holdings 144A 11.00% 3/15/10 225,000 246,375
Vertis
10.875% 6/15/09 300,000 291,000
+144A 9.75% 4/1/09 225,000 231,188
+Vivendi Universal 144A 9.25% 4/15/10 200,000 228,250
*#XM Satellite Radio 14.00% 12/31/09 485,848 353,454
----------
7,160,257
----------
Chemicals - 2.19%
*+Huntsman International 144A
9.875% 3/1/09 500,000 512,500
IMC Global
6.55% 1/15/05 125,000 125,000
*7.625% 11/1/05 350,000 355,250
*Lyondell Chemical 9.50% 12/15/08 225,000 216,563
MacDermid 9.125% 7/15/11 300,000 334,500
+Omnova Solutions 144A 11.25% 6/1/10 475,000 496,375
+Polyone Corporate 144A 10.625% 5/15/10 150,000 143,250
*+Rhodia SA 144A 8.875% 6/1/11 325,000 328,250
*SOI Funding 11.25% 7/15/09 275,000 226,875
*Solutia 6.72% 10/15/37 425,000 312,375
----------
3,050,938
----------
Principal Market
Amount Value
------------------------------------------------------------------------------
Non-Convertible Bonds (continued)
------------------------------------------------------------------------------
Computers & Technology - 0.15%
+Amkor Technologies 144A
7.75% 5/15/13 $125,000 $ 119,219
Asat Finance 12.50% 11/1/06 113,750 91,569
----------
210,788
----------
Consumer Products - 1.59%
*American Greetings 11.75% 7/15/08 610,000 709,888
+Jafra Cosmetics 144A 10.75% 5/15/11 350,000 358,750
+Levi Strauss 144A 12.25% 12/15/12 275,000 231,000
+Phillips Van Heusen 144A 8.125% 5/1/13 175,000 180,250
*Salton 12.25% 4/15/08 475,000 448,875
*Samsonite 10.75% 6/15/08 275,000 276,375
*+++Venture Holdings Trust 12.00% 6/1/09 425,000 8,500
----------
2,213,638
----------
Consumer Services - 0.54%
Alderwoods Group 12.25% 1/2/09 400,000 418,000
Corrections Corporate 7.50% 5/1/11 325,000 333,938
----------
751,938
----------
Electronics & Electrical Equipment - 0.56%
*+Sanmina - SCI Corp 144A 10.375% 1/15/10 700,000 780,500
----------
780,500
----------
Energy - 4.29%
+Citgo Petroleum 144A 11.375% 2/1/11 550,000 615,999
Dynegy Holdings
*6.75% 12/15/05 150,000 137,250
*6.875% 4/1/11 150,000 120,750
*El Paso 7.00% 5/15/11 250,000 216,250
El Paso Natural Gas
*6.75% 11/15/03 225,000 226,406
+144A 8.375% 6/15/32 150,000 153,750
*+El Paso Production 144A 7.75% 6/1/13 675,000 673,312
+Frontier Escrow 144A 8.00% 4/15/13 375,000 387,188
*Hanover Equipment Trust
8.50% 9/1/08 250,000 256,250
Key Energy Service 6.375% 5/1/13 525,000 534,188
+++Petroleum Geo-Services 6.25% 11/19/03 300,000 181,500
+Semco Energy 144A 7.75% 5/15/13 275,000 291,500
+Southern Natural Gas 144A
8.875% 3/15/10 200,000 218,000
*Tennessee Gas Pipeline 8.375% 6/15/32 350,000 358,750
*+Tesoro Petroleum 144A 8.00% 4/15/08 500,000 502,500
Transcontinental Gas Pipeline
6.125% 1/15/05 175,000 176,750
6.25% 1/15/08 225,000 223,875
8.875% 7/15/12 350,000 388,500
*Williams - Series A 7.50% 1/15/31 175,000 148,750
Williams Companies 6.625% 11/15/04 175,000 172,375
----------
5,983,843
----------
Environmental Services - 0.52%
*+Casella Waste Systems 144A
9.75% 2/1/13 225,000 237,375
*IESI 10.25% 6/15/12 470,000 493,500
----------
730,875
----------
3
Statement Delaware Investments Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Principal Market
Amount Value
--------------------------------------------------------------------------------
Non-Convertible Bonds (continued)
--------------------------------------------------------------------------------
Food, Beverage & Tobacco - 1.41%
B&G Foods 9.625% 8/1/07 $ 575,000 $ 591,531
Denny's Corp/Denny's
Holdings 12.75% 9/30/07 550,000 566,500
DiGiorgio 10.00% 6/15/07 475,000 472,625
National Wine & Spirits 10.125% 1/15/09 375,000 335,625
----------
1,966,281
----------
Healthcare & Pharmaceuticals - 0.48%
+Ameripath 144A 10.50% 4/1/13 195,000 203,775
@+HMP Equity 144A 15.433% 5/15/08 125,000 60,000
Team Health 12.00% 3/15/09 400,000 410,000
----------
673,775
----------
Industrial Machinery - 0.21%
*Amkor Technology 9.25% 2/15/08 275,000 287,375
----------
287,375
----------
Leisure, Lodging & Entertainment - 2.80%
Alliance Gaming 10.00% 8/1/07 225,000 234,563
Extended Stay America 9.875% 6/15/11 225,000 235,688
+Hard Rock Hotel 144A 8.875% 6/1/13 275,000 283,938
Herbst Gaming 10.75% 9/1/08 375,000 411,562
*MeriStar Hospitality Operating
Partnership 10.50% 6/15/09 275,000 268,813
Penn National Gaming 11.125% 3/1/08 300,000 330,000
*Regal Cinemas 9.375% 2/1/12 600,000 655,499
*Royal Caribbean 8.75% 2/2/11 750,000 757,499
*Six Flags 9.75% 6/15/07 275,000 277,063
+Town Sports International 144 A
9.625% 4/15/11 125,000 130,625
+Turning Stone Casino Resort
Enterprise 144A 9.125% 12/15/10 300,000 317,625
----------
3,902,875
----------
Metals & Mining - 0.13%
Earle M. Jorgensen 9.75% 6/1/12 175,000 182,875
----------
182,875
----------
Packaging & Containers - 1.12%
*AEP Industries 9.875% 11/15/07 405,000 394,875
Consolidated Container 10.125% 7/15/09 425,000 261,375
+Graham Packaging 144A 8.75% 1/15/08 275,000 272,250
Portola Packaging 10.75% 10/1/05 175,000 179,375
*+Radnor Holdings 144A 11.00% 3/15/10 450,000 456,750
----------
1,564,625
----------
Paper & Forest Products - 0.82%
Georgia-Pacific
9.875% 11/1/21 1,025,000 1,009,625
+144A 7.375% 7/15/08 125,000 124,375
----------
1,134,000
----------
Real Estate - 0.63%
Forest City Enterprises 7.625% 6/1/15 500,000 516,250
*Tanger Properties 9.125% 2/15/08 350,000 363,125
----------
879,375
----------
Principal Market
Amount Value
--------------------------------------------------------------------------------
Non-Convertible Bonds (continued)
--------------------------------------------------------------------------------
Restaurants - 0.08%
Avado Brands 9.75% 6/1/06 $ 230,000 $ 106,950
----------
106,950
----------
Retail - 1.22%
*J Crew Operating 10.375% 10/15/07 485,000 458,325
*Office Depot 10.00% 7/15/08 480,000 564,000
Petco Animal Supplies 10.75% 11/1/11 195,000 219,863
+Remington Arms 144A 10.50% 2/1/11 300,000 302,250
*Saks 7.25% 12/1/04 150,000 156,375
----------
1,700,813
----------
Telecommunications - 2.43%
Crown Castle International
*#10.625% 11/15/07 250,000 265,625
*10.75% 8/1/11 425,000 448,375
Insight Midwest
9.75% 10/1/09 125,000 131,250
10.50% 11/1/10 225,000 244,125
*Nextel Communications 9.375% 11/15/09 300,000 323,250
*Nextel Partners 12.50% 11/15/09 150,000 168,750
*Nortel Networks Capital 7.40% 6/15/06 300,000 295,500
Qwest 7.20% 11/1/04 175,000 179,594
*+Qwest Services 144A 13.50% 1/1/08 625,000 714,062
Star Choice Communications
13.00% 12/15/05 225,000 238,500
Time Warner Telecommunications
9.75% 7/15/08 425,000 376,125
----------
3,385,156
----------
Textiles, Apparel & Furniture - 0.34%
+Oxford Industry 144A 8.875% 6/1/11 475,000 479,750
----------
479,750
----------
Transportation & Shipping - 1.13%
Hornbeck Offshore Services
10.625% 8/1/08 250,000 272,500
Kansas City Southern Railway
9.50% 10/1/08 425,000 456,875
+Overseas Shipholding Group
144A 8.25% 3/15/1 475,000 489,250
Stena AB 9.625% 12/1/12 325,000 354,656
----------
1,573,281
----------
Utilities - 2.76%
Avista 9.75% 6/1/08 500,000 554,999
*Calpine 10.50% 5/15/06 425,000 350,625
Homer City Fund 8.137% 10/1/19 200,000 207,500
+Illinois Power 144A 11.50% 12/15/10 100,000 110,250
Midland Funding II 11.75% 7/23/05 500,000 541,250
Midwest Generation 8.30% 7/2/09 350,000 343,627
Mirant Americas Generation
*7.625% 5/1/06 175,000 129,938
*8.30% 5/1/11 200,000 126,000
+Nevada Power 144A 10.875% 10/15/09 175,000 193,813
Orion Power Holdings 12.00% 5/1/10 375,000 406,875
4
Statement Delaware Investments Dividend and Income Fund, Inc.
OF NET ASSETS (CONTINUED)
Principal Market
Amount Value
--------------------------------------------------------------------------------
Non-Convertible Bonds (continued)
--------------------------------------------------------------------------------
Utilities (continued)
+PSEG Energy Holdings 144A
7.75% 4/16/07 $ 250,000 $ 265,892
+Williams Gas Pipelines Central
144A 7.375% 11/15/06 580,000 611,899
----------
3,842,668
----------
Total Non-Convertible Bonds
(cost $45,619,091) 47,142,477
----------
--------------------------------------------------------------------------------
Foreign Bonds - 4.46%
--------------------------------------------------------------------------------
Australia - 0.19%
*Normandy Yandal Operations
8.875% 4/1/08 475,000 270,750
----------
270,750
----------
British Virgin Islands - 0.26%
*ChipPAC International 12.75% 8/1/09 325,000 366,438
----------
366,438
----------
Canada - 2.60%
Ainsworth Lumber
12.50% 7/15/07 375,000 418,125
13.875% 7/15/07 100,000 112,500
*CP Ships 10.375% 7/15/12 275,000 308,000
*Fairfax Financial Holdings
7.75% 12/15/03 575,000 575,000
Rogers Cablesystems 10.00% 3/15/05 850,000 913,749
*Tembec Industries 8.50% 2/1/11 775,000 771,125
*Western Oil Sands 8.375% 5/1/12 475,000 515,375
----------
3,613,874
----------
Dominican Republic - 0.26%
+Dominican Republic 144A 9.04% 4/1/13 375,000 357,188
----------
357,188
----------
Ireland - 0.39%
MDP Acquisitions
9.625% 10/1/12 100,000 108,125
+144A 9.625% 10/1/12 400,000 432,500
----------
540,625
----------
Norway - 0.25%
Ocean Rig Norway 10.25% 6/1/08 425,000 354,875
----------
354,875
----------
Peru - 0.51%
Republic of Peru 4.00% 3/7/17 850,000 707,928
----------
707,928
----------
Total Foreign Bonds (cost $6,309,200) 6,211,678
----------
Number of
Shares
--------------------------------------------------------------------------------
Warrants - 0.07%
--------------------------------------------------------------------------------
++Solutia 650 7
++XM Satellite Radio 150 105,375
----------
Total Warrants (cost $86,044) 105,382
----------
Principal Market
Amount Value
--------------------------------------------------------------------------------
Short-Term Securities - 4.15%
--------------------------------------------------------------------------------
***U.S. Treasury Bills 1.055% 6/26/03 $5,795,000 $ 5,790,803
------------
Total Short-Term Securities
(cost $5,790,803) 5,790,803
------------
Total Market Value of Securities - 139.24%
(cost $186,044,798) 194,088,553
Short-Term Investments Held as Collateral
for Loaned Securities - 17.67%
(cost $24,630,382)** 24,630,382
Obligation to Return Securities
Lending Collateral - (17.67%)** (24,630,382)
Commercial Paper Payable
(par $55,000,000) - (39.33%) (54,829,293)
Receivables and Other Assets
Net of Liabilities - 0.09% 136,496
------------
Net Assets Applicable to 12,876,300
Shares ($0.01 par value) Outstanding;
Equivalent to $10.83 per share - 100.00% $139,395,756
============
Components of Net Assets at May 31, 2003:
Common stock, $0.01 par value,
500,000,000 shares authorized to the Fund $178,351,647
Treasury stock, 1,430,700 shares at cost (17,411,619)
Distributions in excess of net investment income (3,648,034)
Accumulated net realized loss on investments (25,939,993)
Net unrealized appreciation of investments 8,043,755
------------
Total net assets $139,395,756
============
*Fully or partially on loan.
**See Note 7 in "Notes to Financial Statements".
***U.S. Treasury bills are traded on a discount basis; the interest rate shown
is the effective yield at the time of purchase by the Fund.
+Security exempt from registration under Rule 144A of the Securities Act of
1933. See Note 8 in "Notes to Financial Statements".
++Non-income producing security for the period ended May 31, 2003.
+++Non-income producing security. Security is currently in default.
#Step coupon bond.
@Zero coupon bond. The interest rate shown is the yield at the time of
purchase.
Abbreviation
TIDES - Term Income Deferred Equity Securities
See accompanying notes
5
Statement Delaware Investments Dividend and Income Fund, Inc.
OF OPERATIONS Six Months Ended May 31, 2003 (Unaudited)
Investment Income:
Interest $3,019,788
Dividends 2,122,788
Security lending income 22,410 $ 5,164,986
---------- -----------
Expenses:
Management fees 501,892
Commercial paper fees 50,440
Accounting and administration expenses 46,040
Professional fees 35,190
Reports to shareholders 32,760
Transfer agent fees 24,840
NYSE fees 17,520
Custodian fees 6,870
Directors' fees 5,640
Other 7,018
----------
Total operating expenses (before interest expense) 728,210
Interest expense 390,714
-----------
Total operating expenses (after interest expense) 1,118,924
Less: expenses paid indirectly (1,538)
-----------
Total expenses 1,117,386
-----------
Net Investment Income 4,047,600
-----------
Net Realized and Unrealized Gain (Loss) on Investments:
Net realized loss on investments (3,760,513)
Net change in unrealized appreciation/depreciation of investments 16,275,237
-----------
Net Realized and Unrealized Gain on Investments 12,514,724
-----------
Net Increase in Net Assets Resulting from Operations $16,562,324
===========
See accompanying notes
6
Statements Delaware Investments Dividend and Income Fund, Inc.
OF CHANGES IN NET ASSETS
Six Months Year
Ended Ended
5/31/03 11/30/02
(Unaudited)
Increase (Decrease) in Net Assets from Operations:
Net investment income $ 4,047,600 $ 8,177,813
Net realized loss on investments (3,760,513) (15,574,367)
Net change in unrealized appreciation/depreciation of investments 16,275,237 7,232,078
------------- -------------
Net increase (decrease) in net assets resulting from operations 16,562,324 (164,476)
------------- -------------
Dividends and Distributions to Shareholders from:
Net investment income (7,726,210) (8,496,926)
Return of capital -- (10,496,508)
------------- -------------
(7,726,210) (18,993,434)
------------- -------------
Net Increase (Decrease) in Net Assets 8,836,114 (19,157,910)
Net Assets:
Beginning of period 130,559,642 149,717,552
------------- -------------
End of period $ 139,395,756 $ 130,559,642
============= =============
See accompanying notes
7
Statement Delaware Investments Dividend and Income Fund, Inc.
OF CASH FLOWS Six Months Ended May 31, 2003 (Unaudited)
Net Cash Provided by Operating Activities:
Net increase in net assets resulting from operations $ 16,562,324
-------------
Adjustments to reconcile net increase in net assets from operations to cash provided by operating activities:
Amortization of premium and discount on investments (508,102)
Net proceeds from investment transactions 1,700,693
Net realized loss from security transactions 3,760,513
Change in net unrealized appreciation/depreciation (16,275,237)
Decrease in receivable for investments sold 948,566
Decrease in interest and dividends receivable 18,308
Increase in other assets (2,019)
Increase in payable for investments purchased 1,269,684
Decrease in interest payable (79,816)
Decrease in accrued expenses and other liabilities (10,139)
-------------
Total adjustments (9,177,549)
-------------
Net cash provided by operating activities 7,384,775
-------------
Cash Flows Used for Financing Activities:
Cash provided by issuance of commerical paper 109,630,933
Cash used to liquidate commercial paper (109,529,470)
Cash dividends and distributions paid (7,726,210)
-------------
Net cash used for financing activities (7,624,747)
-------------
Net decrease in cash (239,972)
Cash at beginning of period 246,912
-------------
Cash at end of period $ 6,940
=============
Cash paid for interest $ 367,931
=============
See accompanying notes
8
Financial
HIGHLIGHTS
Selected data for each share of the Fund outstanding
throughout each period were as follows:
------------------------------------------------------------------------------------------------------------------------------------
Delaware Investments Dividend and Income Fund, Inc.
------------------------------------------------------------------------------------------------------------------------------------
Six Months
Ended Year Ended
5/31/03(5) 11/30/02(3) 11/30/01 11/30/00 11/30/99 11/30/98
(Unaudited)
Net asset value, beginning of period $10.140 $11.630 $11.590 $13.000 $16.230 $18.010
Income (loss) from investment operations:
Net investment income(4) 0.314 0.635 0.617 0.803 0.939 1.020
Net realized and unrealized gain (loss) on investments 0.976 (0.650) 0.923 (0.713) (1.914) (0.890)
------- ------- ------- ------- ------- -------
Total from investment operations 1.290 (0.015) 1.540 0.090 (0.975) 0.130
------- ------- ------- ------- ------- -------
Less dividends and distributions from:
Net investment income (0.600) (0.660) (0.617) (0.803) (0.939) (1.020)
Net realized gain on investments -- -- (0.080) (0.560) (1.316) (0.890)
Return of capital -- (0.815) (0.803) (0.137) -- --
------- ------- ------- ------- ------- -------
Total dividends and distributions (0.600) (1.475) (1.500) (1.500) (2.255) (1.910)
------- ------- ------- ------- ------- -------
Net asset value, end of period $10.830 $10.140 $11.630 $11.590 $13.000 $16.230
======= ======= ======= ======= ======= =======
Market value, end of period $12.200 $10.020 $13.850 $11.875 $11.250 $17.630
======= ======= ======= ======= ======= =======
Total return based on:(1)
Market value 28.37% (18.98%) 30.20% 19.78% (26.53%) 8.30%
Net asset value 12.60% (2.36%) 12.02% 1.17% (7.80%) 0.12%
Ratios and supplemental data:
Net assets, end of period (000 omitted) $139,396 $130,560 $149,718 $149,292 $185,985 $232,269
Ratio of total operating expenses to average net assets 1.74% 1.86% 2.77% 3.02% 2.34% 2.22%
Ratio of total operating expenses to adjusted
average net assets (before interest expense)(2) 0.79% 0.80% 0.83% 0.71% 0.77% 0.80%
Ratio of interest expense to adjusted average net assets(2) 0.43% 0.54% 1.22% 1.58% 1.08% 1.02%
Ratio of net investment income to average net assets 4.57% 5.69% 5.07% 6.45% 6.34% 5.91%
Ratio of net investment income to adjusted average
net assets(2) 3.20% 4.12% 3.75% 4.88% 5.03% 4.84%
Portfolio turnover 248% 107% 61% 47% 55% 46%
Leverage analysis:
Debt outstanding at end of period (000 omitted) $55,000 $55,000 $55,000 $55,000 $55,000 $55,000
Average daily balance of debt outstanding (000 omitted) $54,882 $54,857 $54,724 $54,463 $54,567 $54,555
Average daily balance of shares outstanding (000 omitted) 12,876 12,876 12,876 13,744 14,307 14,307
Average debt per share $4.262 $4.260 $4.250 $3.963 $3.814 $3.813
(1) Total investment return is calculated assuming a purchase of common stock on the opening of the first day and a sale on the
closing of the last day of each period reported. Dividends and distributions, if any, are assumed for the purposes of this
calculation, to be reinvested at prices obtained under the Fund's dividend reinvestment plan. Generally, total investment
return based on net asset value will be higher than total investment return based on market value in periods where there is an
increase in the discount or a decrease in the premium of the market value to the net asset value from the beginning to the end
of such periods. Conversely, total investment return based on net asset value will be lower than total investment return based
on market value in periods where there is a decrease in the discount or an increase in the premium of the market value to the
net asset value from the beginning to the end of such periods.
(2) Adjusted average net assets excludes debt outstanding.
(3) As required, effective December 1, 2001, the Fund has adopted the provisions of the AICPA Audit and Accounting Guide for
Investment Companies that require amortization of all premium and discounts on debt securities. The effect of this change for
the year ended November 30, 2002 was a decrease in net investment income per share of $0.025, an increase in net realized and
unrealized gain (loss) per share of $0.025, a decrease in the ratio of net investment income to average net assets of 0.22%,
and a decrease in the ratio of net investment income to adjusted average net assets of 0.16%. Per share data and ratios for
periods prior to December 1, 2001 have not been restated to reflect this change in accounting.
(4) The average shares outstanding method has been applied for per share information.
(5) Ratios and portfolio turnover have been annualized and total return has not been annualized.
See accompanying notes
9
Notes Delaware Investments Dividend and Income Fund, Inc.
TO FINANCIAL STATEMENTS May 31, 2003 (Unaudited)
Delaware Investments Dividend and Income Fund, Inc. (the "Fund") is organized as
a Maryland corporation and is a diversified closed-end management investment
company under the Investment Company Act of 1940, as amended. The Fund's shares
trade on the New York Stock Exchange under the symbol DDF.
The investment objective of the Fund is to seek high current income. Capital
appreciation is a secondary objective.
1. Significant Accounting Policies
The following accounting policies are in accordance with accounting principles
generally accepted in the United States and are consistently followed by the
Fund:
Security Valuation - All equity securities are valued at the last quoted sales
price as of the time of the regular close of the New York Stock Exchange (NYSE)
on the valuation date. If on a particular day an equity security does not trade,
then the mean between the bid and the asked prices will be used. U.S. government
and agency securities are valued at the mean between the bid and asked prices.
Long-term debt securities are valued by an independent pricing service and such
prices are believed to reflect the fair value of such securities. Short-term
debt securities having less than 60 days to maturity are valued at amortized
cost, which approximates market value. 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 with respect to foreign securities, aftermarket trading or
significant events after local market trading (e.g., government actions or
pronouncements, trading volume or volatility on markets, exchanges among
dealers, or news events).
Federal Income Taxes - The Fund intends to continue to qualify for federal
income tax purposes as a regulated investment company and make the requisite
distributions to shareholders. Accordingly, no provision for federal income
taxes has been made in the financial statements.
Distributions - The Fund has a managed distribution policy. Under the policy,
the Fund declares and pays monthly distributions and is managed with a goal of
generating as much of the distribution as possible from ordinary income (net
investment income and short-term capital gains). The balance of the distribution
then comes from long-term capital gains and, if necessary, a return of capital.
The current annualized rate is $1.20 per share. The Fund continues to evaluate
its monthly distribution in light of ongoing economic and market conditions and
may change the amount of the monthly distributions in the future.
Borrowings - The Fund issues short-term commercial paper at a discount from par.
The discount is amortized as interest expense over the life of the commercial
paper using the straight-line method (See Note 6).
Use of Estimates - The preparation of financial statements in conformity with
accounting principles generally accepted in the United States requires
management to make estimates and assumptions that affect the reported amounts of
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results
could differ from those estimates.
Other - Expenses common to all funds within the Delaware Investments Family of
Funds are allocated amongst the funds on the basis of average net assets.
Security transactions are recorded on the date the securities are purchased or
sold (trade date). Costs used in calculating realized gains and losses on the
sale of investment securities are those of the specific securities sold.
Dividend income is recorded on the ex-dividend date and interest income is
recorded on the accrual basis. Discounts and premiums are amortized to interest
income over the lives of the respective securities. Distributions received from
investments in Real Estate Investment Trusts are recorded as dividend income on
ex-dividend date, subject to reclass-ification upon notice of the character of
such distribution by the issuer.
Certain expenses of the Fund are paid through commission arrangements with
brokers. These transactions are done subject to best execution. The amount of
these expenses was approximately $1,538 for the six months ended May 31, 2003.
In addition, the Fund may receive earnings credits from its custodian when
positive cash balances are maintained, which are used to offset custody fees.
There were no earnings credits for the six months ended May 31, 2003. The
expenses paid under the above arrangements are included in their respective
expense captions on the Statement of Operations with the corresponding expense
offset shown as "expenses paid indirectly".
2. Investment Management, Administration Agreements and
Other Transactions with Affiliates:
In accordance with the terms of its investment management agreement, the Fund
pays Delaware Management Company (DMC), a series of Delaware Management Business
Trust and the investment manager, an annual fee of 0.55%, which is calculated
daily based on the adjusted average weekly net assets.
The Fund has engaged Delaware Service Company, Inc. (DSC), an affiliate of DMC,
to provide accounting and administration services. The Fund pays DSC a monthly
fee computed at the annual rate of 0.05% of the Fund's adjusted average weekly
net assets, subject to an annual minimum of $85,000.
For purposes of the calculation of investment management fees and administration
fees, adjusted average weekly net assets does not include the commercial paper
liability.
At May 31, 2003, the Fund had liabilities payable to affiliates as follows:
Investment Accounting, Other expenses
management fee administration and other payable to DMC
payable to DMC expenses payable to DSC and affiliates
-------------- ----------------------- --------------
$13,211 $45,929 $5,609
Certain officers of DMC and DSC are officers and/or directors of the Fund. These
officers and directors are paid no compensation by the Fund.
3. Investments
For the six months ended May 31, 2003, the Fund made purchases of $205,938,333
and sales of $210,359,342 of investment securities other than U.S. government
securities and short-term investments.
At May 31, 2003, the cost of investments for federal income tax purposes has
been estimated since the final tax characteristics cannot be determined until
fiscal year end. At May 31, 2003, the cost of investments was $186,019,431. At
May 31, 2003, the net unrealized appreciation was $8,069,122, of which
$20,103,217 related to unrealized appreciation of investments and $12,034,095
related to unrealized depreciation of investments.
4. Dividend and Distribution Information
Income and long-term capital gain distributions are determined in accordance
with federal income tax regulations, which may differ from accounting principles
generally accepted in the United States. The tax
10
Notes Delaware Investments Dividend and Income Fund, Inc.
TO FINANCIAL STATEMENTS (CONTINUED)
4. Dividend and Distribution Information (continued)
character of dividends and distributions paid during the six months ended May
31, 2003 and the year ended November 30, 2002 was as follows:
Six Months Year
Ended Ended
5/31/03* 11/30/02
---------- -----------
Ordinary income $7,726,210 $ 8,496,926
Return of capital -- 10,496,508
---------- -----------
Total $7,726,210 $18,993,434
========== ===========
*Tax information for the six months ended May 31, 2003 is an estimate and a
portion of ordinary income will be redesignated as return of capital at fiscal
year end.
The components of net assets are estimated since final tax characteristics
cannot be determined until fiscal year end. As of May 31, 2003, the estimated
components of net assets on a tax basis were as follows:
Shares of beneficial interest $160,940,028
Distributions in excess of ordinary income (3,648,034)
Net realized capital losses on investments (3,648,378)
Capital loss carryforwards (22,316,982)
Unrealized appreciation/depreciation of investments 8,069,122
------------
Net assets $139,395,756
============
For federal income tax purposes, capital loss carryforwards may be carried
forward and applied against future capital gains. Such capital loss
carryforwards expire as follows: $6,557,294 expires in 2009 and $15,759,688
expires in 2010.
5. Capital Stock
The Fund did not repurchase any shares under the Share Repurchase Program or
have any transactions in common shares during the six months ended May 31, 2003.
Shares issuable under the Fund's dividend investment plan are purchased by the
Fund's transfer agent, Mellon Investor Services, LLC, in the open market.
6. Commercial Paper
As of May 31, 2003, $55,000,000 of commercial paper was outstanding with an
amortized cost of $54,829,293. The weighted average discount rate of commercial
paper outstanding at May 31, 2003 was 1.33%. The average daily balance of
commercial paper outstanding during the six months ended May 31, 2003 was
$54,882,329 at a weighted discount rate of 1.41%. The maximum amount of
commercial paper outstanding at any time during the period was $55,000,000. In
conjunction with the issuance of the commercial paper, the Fund entered into a
line of credit arrangement with J.P. Morgan Chase Bank for $30,000,000. Interest
on borrowings is based on market rates in effect at the time of borrowing. The
commitment fee is computed at the rate of 0.15% per annum on the unused balance.
During the six months ended May 31, 2003, there were no borrowings under this
arrangement.
7. Securities
Lending The Fund, along with other funds in the Delaware Investments Family of
Funds, may lend its securities pursuant to a security lending agreement (Lending
Agreement) with J.P. Morgan Chase. Initial security loans made pursuant to the
Lending Agreement are required to be secured by U.S. Treasury obligations and/or
cash collateral not less than 102% of the market value of the securities issued
in the United States and 105% of the market value of securities issued outside
the United States. With respect to each loan, if the aggregate market value of
the collateral held on any business day is less than the aggregate market value
of the securities which are the subject of such loan, the borrower will be
notified to provide additional collateral not less than the applicable
collateral requirements.
Cash collateral received is invested in fixed-income securities, with a weighted
average maturity not to exceed 90 days, rated in one of the top two tiers by
Standard & Poor's Ratings Group or Moody's Investors Service, Inc. or repurchase
agreements collateralized by such securities. However, in the event of default
or bankruptcy by the lending agent, realization and/or retention of the
collateral may be subject to legal proceedings.
In the event the borrower fails to return loaned securities and the collateral
received is insufficient to cover the value of the loaned securities and
provided such collateral shortfall is not the result of investment losses, the
lending agent has agreed to pay the amount of the shortfall to the Fund, or at
the discretion of the lending agent, replace the loaned securities. At May 31,
2003, the market value of securities on loan was $24,327,789.
The securities on loan were collateralized by the following:
Description Market Value
----------- ------------
Morgan Stanley Dean Witter
Discover 1.41% 6/30/04 $ 279,154
Canadian Imperial Bank NY 1.4095% 10/09/03 139,544
Racers Series 2002-35-C 1.60855% 4/15/04 695,071
Goldman Sachs Group LP 1.515% 7/14/03 977,039
Wilmington Trust Company 1.26% 7/21/03 700,037
Fannie Mae 1.314945% 1/29/04 6,978,590
Barclays London 1.27% 6/17/03 1,118,107
Merrill Lynch Mortgage Capital 1.475% 6/6/03 697,885
UBS Warburg LLC 1.375% 6/2/03 13,044,955
-----------
$24,630,382
-----------
8. Credit and Market Risks
The Fund invests in high-yield fixed income securities, which carry ratings of
BB or lower by S&P and/or Ba or lower by Moody's. Investments in these higher
yielding securities are generally accompanied by a greater degree of credit risk
than higher rated securities. Additionally, lower rated securities may be more
susceptible to adverse economic and competitive industry conditions than
investment grade securities.
The Fund may invest up to 10% of its total assets in illiquid securities, which
may include securities with contractual restrictions on resale, securities
exempt from registration under Rule 144A of the Securities Act of 1933, as
amended, and other securities which may not be readily marketable. The relative
illiquidity of these securities may impair the Fund from disposing of them in a
timely manner and at a fair price when it is necessary or desirable to do so.
The Fund invests in real estate investment trusts (REITs) and is subject to some
of the risks associated with that industry. If the Fund holds real estate
directly as a result of defaults or receives rental income directly from real
estate holdings, its tax status as a regulated investment company may be
jeopardized. There were no direct holdings during the six months ended May 31,
2003. The Fund's REIT holdings are also affected by interest rate changes,
particularly if the REITs it holds use floating rate debt to finance their
ongoing operations.
11
This page intentionally left blank.
Delaware
Investments(SM)
--------------------------------------
A member of Lincoln Financial Group(R) [LOGO OMITTED]
This semiannual report is for the information of Delaware Investments Dividend
and Income Fund, Inc. shareholders. The return and principal value of an
investment in the Fund will fluctuate so that shares, when resold, may be worth
more or less than their original cost.
Notice is hereby given in accordance with Section 23(c) of the Investment Act of
1940 that the Fund may, from time to time, purchase shares of its Common Stock
on the open market at market prices.
Board of Directors Affiliated Officers Contact Information
Walter P. Babich Jude T. Driscoll Investment Manager
Board Chairman Chairman Delaware Management Company
Citadel Construction Corporation Delaware Investments Family of Funds Philadelphia, PA
King of Prussia, PA Philadelphia, PA
International Affiliate
David K. Downes Michael P. Bishof Delaware International Advisers Ltd.
President and Chief Executive Officer Senior Vice President and Treasurer London, England
Delaware Investments Family of Funds Delaware Investments Family of Funds
Philadelphia, PA Philadelphia, PA Principal Office of the Fund
2005 Market Street
John H. Durham Richelle S. Maestro Philadelphia, PA 19103
Private Investor Senior Vice President,
Gwynedd Valley, PA General Counsel and Secretary Independent Auditors
Delaware Investments Family of Funds Ernst & Young LLP
John A. Fry Philadelphia, PA 2001 Market Street
President Philadelphia, PA 19103
Franklin & Marshall College
Lancaster, PA Registrar and Stock Transfer Agent
Mellon Investor Services, LLC
Anthony D. Knerr Overpeck Centre
Managing Director 85 Challenger Road
Anthony Knerr & Associates Ridgefield, NJ 07660
New York, NY 800 851-9677
Ann R. Leven* For Securities Dealers and Financial
Former Treasurer/Chief Fiscal Officer Institutions Representatives Only
National Gallery of Art 800 362-7500
Washington, DC
Web site
Thomas F. Madison* www.delawareinvestments.com
President and Chief Executive Officer
MLM Partners, Inc.
Minneapolis, MN
+----------------------------------------------------------------------------------+
Janet L. Yeomans* | Your Reinvestment Options |
Vice President/Mergers & Acquisitions | Delaware Investments Dividend and Income Fund, Inc. offers an automatic dividend |
3M Corporation | reinvestment program. If you would like to reinvest dividends, and shares are |
St. Paul, MN | registered in your name, contact Mellon Investor Services, LLC at 800 851-9677. |
| You will be asked to put your request in writing. If you have shares registered |
| in "street" name, contact the broker/dealer holding the shares or your financial |
| advisor. |
+----------------------------------------------------------------------------------+
*Audit Committee Member
(7906) Printed in the USA
SA-DDF [5/03] IVES 7/03 J9271
Item 2. Code of Ethics
Not applicable.
Item 3. Audit Committee Financial Expert
Not applicable.
Item 4. Principal Accountant Fees and Services
Not applicable.
Item 5. Audit Committee of Listed Registrants
Not applicable.
Item 6. [Reserved]
Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End
Management Investment Companies
Not applicable.
Item 8. [Reserved]
Item 9. 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 ensuring 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 controls
or in other factors that could significantly affect these controls subsequent to
the date of their last evaluation, including any corrective actions with regard
to significant deficiencies and material weaknesses.
Exhibits
(a) Code of Ethics
Not applicable.
(b) (1) Certifications of Principal Executive Officer and Principal Financial
Officer pursuant to Rule 30a-2 under the Investment Company Act of 1940 are
attached hereto as Exhibit 99.CERT.
(2) Certifications pursuant to Section 906 of the Sarbanes-Oxley Act of
2002 are attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and
the Investment Company Act of 1940, the registrant has duly caused this report
to be signed on its behalf, by the undersigned, thereunto duly authorized.
Delaware Investments Dividend and Income Fund, Inc.:
Jude T. Driscoll
-----------------------------
By: Jude T. Driscoll
Title: Chairman
Date: August 3, 2003
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.
Jude T. Driscoll
-----------------------------
By: Jude T. Driscoll
Title: Chairman
Date: August 3, 2003
Michael P. Bishof
-----------------------------
By: Michael P. Bishof
Title: Treasurer
Date: August 3, 2003