nvq
Table of Contents

 
 
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   811-22058
Nuveen Tax-Advantaged Dividend Growth Fund
(Exact name of registrant as specified in charter)
     333 West Wacker Drive, Chicago, Illinois 60606     
(Address of principal executive offices) (Zip code)
Kevin J. McCarthy—Vice President and Secretary
     333 West Wacker Drive, Chicago, Illinois 60606     
(Name and address of agent for service)
Registrant’s telephone number, including area code:      312-917-7700     
Date of fiscal year end:        12/31      
Date of reporting period:    3/31/2008   
Form N-Q is to be used by management investment companies, other than small business investment companies registered on Form N-5 (§§ 239.24 and 274.5 of this chapter), to file reports with the Commission, not later than 60 days after the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use the information provided on Form N-Q in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-Q unless the Form displays a currently valid Office of Management and Budget (“OMB”) control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to the Secretary, Securities and Exchange Commission, 450 Fifth Street, NW, Washington, DC 20549-0609. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C. § 3507.
 
 

 


TABLE OF CONTENTS

Item 1. Schedule of Investments
Item 2. Controls and Procedures
Item 3. Exhibits
SIGNATURES
Certifications


Table of Contents

Item 1. Schedule of Investments
Portfolio of Investments (Unaudited)
Nuveen Tax-Advantaged Dividend Growth Fund (JTD)
March 31, 2008
                             
Shares     Description (1)               Value  
 
 
 
                   
 
Common Stocks – 83.7% (71.6% of Total Investments)
 
 
                   
 
Aerospace & Defense – 2.6%
 
 
                   
  105,563    
Raytheon Company
              $ 6,820,425  
 
 
 
                   
 
Beverages – 2.7%
 
 
                   
  110,455    
Coca-Cola Company
                6,723,396  
 
 
 
                   
 
Commercial Banks – 7.1%
 
 
                   
  162,633    
Bank of America Corporation
                6,165,417  
  116,818    
Cullen/Frost Bankers, Inc.
                6,196,027  
  187,709    
U.S. Bancorp
                6,074,263  
 
 
Total Commercial Banks
                18,435,707  
         
 
 
                   
 
Commercial Services & Supplies – 2.4%
 
 
                   
  183,765    
Waste Management, Inc.
                6,167,153  
 
 
 
                   
 
Communications Equipment – 5.1%
 
 
                   
  219,795    
Nokia Oyj, Sponsored ADR
                6,996,075  
  156,400    
QUALCOMM Inc.
                6,412,400  
 
 
Total Communications Equipment
                13,408,475  
         
 
 
                   
 
Diversified Telecommunication Services – 5.0%
 
 
                   
  180,103    
AT&T Inc.
                6,897,945  
  70,800    
Telefonica SA
                6,124,893  
 
 
Total Diversified Telecommunication Services
                13,022,838  
         
 
 
                   
 
Electric Utilities – 7.1%
 
 
                   
  76,752    
Exelon Corporation
                6,237,635  
  98,114    
FPL Group Inc.
                6,155,672  
  133,555    
PPL Corporation
                6,132,846  
 
 
Total Electric Utilities
                18,526,153  
         
 
 
                   
 
Electrical Equipment – 2.6%
 
 
                   
  132,341    
Emerson Electric Co.
                6,810,268  
 
 
 
                   
 
Gas Utilities – 2.6%
 
 
                   
  114,007    
Equitable Resources Inc.
                6,715,012  
 
 
 
                   
 
Health Care Equipment & Supplies – 2.5%
 
 
                   
  77,140    
Becton, Dickinson and Company
                6,622,469  
 
 
 
                   
 
Hotels Restaurants & Leisure – 2.6%
 
 
                   
  180,924    
YUM! Brands, Inc.
                6,732,182  
 
 
 
                   
 
Household Products – 2.4%
 
 
                   
  89,550    
Procter & Gamble Company
                6,274,769  
 
 
 
                   
 
Industrial Conglomerates – 2.6%
 
 
                   
  184,423    
General Electric Company
                6,825,495  
 
 
 
                   
 
Insurance – 4.8%
 
 
                   
  340,141    
Fidelity National Title Group Inc., Class A
                6,234,785  
  164,920    
Manulife Financial Corporation
                6,263,662  
 
 
Total Insurance
                12,498,447  
         
 
 
                   
 
IT Services – 2.7%
 
 
                   
  203,058    
Paychex, Inc.
                6,956,767  
 
 
 
                   
 
Machinery – 2.4%
 
 
                   
  137,093    
PACCAR Inc.
                6,169,185  
 
 
 
                   
 
Media – 2.0%
 
 
                   
  392,488    
Pearson Public Limited Company
                5,329,987  
 
 
 
                   
 
Metals & Mining – 2.5%
 
 
                   
  63,602    
Southern Copper Corporation
                6,603,796  
 
 
 
                   
 
Oil, Gas, & Consumable Fuels – 4.8%
 
 
                   
  73,551    
Chevron Corporation
                6,278,313  
  90,943    
Royal Dutch Shell PLC, Class A
                6,273,248  
 
 
Total Oil, Gas, & Consumable Fuels
                12,551,561  
         
 
 
                   
 
Pharmaceuticals – 5.3%
 
 
                   
  126,459    
Abbott Laboratories
                6,974,214  
  134,284    
Eli Lilly and Company
                6,927,712  
 
 
Total Pharmaceuticals
                13,901,926  
         
 
 
                   
 
Semiconductors & Equipment – 2.6%
 
 
                   
  205,274    
Microchip Technology Incorporated
                6,718,617  
 
 
 
                   
 
Thrifts & Mortgage Finance – 4.7%
 
 
                   
  349,923    
Hudson City Bancorp, Inc.
                6,186,639  
  339,398    
New York Community Bancorp, Inc.
                6,183,832  
 
 
Total Thrifts & Mortgage Finance
                12,370,471  
         
 
 
                   
 
Tobacco – 4.6%
 
 
                   
  84,504    
Loews Corp – Carolina Group
                6,130,765  
  116,334    
Philip Morris International, (3)
                5,884,174  
 
 
Total Tobacco
                12,014,939  
         
 
Total Common Stocks (cost $218,790,950)
                218,200,038  
         
                             
Shares     Description (1)   Coupon       Ratings (2)   Value  
 
 
 
                   
 
$25 Par (or similar) Preferred Securities – 23.2% (19.8% of Total Investments)
 
 
                   
 
Automobiles – 0.3%
 
 
                   
  30,900    
Daimler Finance NA LLC, Structured Asset Trust Unit Repackaging, Series DCX
  7.000%       A3   $ 717,343  
 
 
 
                   
 
Capital Markets – 1.6%
 
 
                   
  25,000    
Deutsche Bank Capital Funding Trust IX
  6.625%       Aa3     574,500  
  74,500    
Goldman Sachs Group Inc.
  6.200%       A     1,778,315  
  75,000    
Lehman Brothers Holdings
  7.950%       A-     1,547,250  
  12,500    
Morgan Stanley Capital Trust VII
  6.600%       A1     267,500  
 
 
Total Capital Markets
                4,167,565  
         
 
 
                   
 
Commercial Banks – 6.8%
 
 
                   
  75,000    
Banco Santander Finance
  6.800%       Aa3     1,668,750  
  50,000    
Banco Santander Finance
  6.500%       A     1,062,500  
  25,000    
Bank of America Corporation, Series D
  6.204%       Aa3     543,500  
  1,000,000    
Bank of America Corporation
  8.000%       Aa3     1,002,890  
  20,000    
Bank of America Corporation
  6.625%       Aa3     452,000  
  50,000    
Barclays Bank PLC
  7.100%       Aa3     1,210,000  
  52,300    
Barclays Bank PLC
  6.625%       Aa3     1,241,079  
  60,000    
Credit Suisse Guernsey
  7.900%       Aa3     1,511,250  
  23,200    
Fleet Capital Trust VIII
  7.200%       Aa2     556,800  
  15,200    
HSBC Holdings PLC
  6.200%       A1     330,448  
  55,200    
HSBC USA Inc.
  6.500%       A     1,242,000  
  50,000    
PNC Capital Trust
  7.750%       A2     1,228,750  
  50,000    
Royal Bank of Scotland Group PLC, Series T
  7.250%       Aa3     1,223,500  
  50,000    
Royal Bank of Scotland Group PLC
  6.600%       Aa3     1,115,000  
  7,000    
USB Capital Trust XI
  6.600%       Aa3     159,530  
  50,000    
Wachovia Corporation
  8.000%       A     1,234,250  
  500,000    
Wachovia Corporation
  7.980%       A     492,767  
  2,500    
Wells Fargo Capital Trust V
  7.000%       Aa2     60,175  
  45,000    
Wells Fargo Capital Trust XII
  7.875%       Aa2     1,139,625  
 
 
Total Commercial Banks
                17,474,814  
         
 
 
                   
 
Consumer Finance – 0.5%
 
 
                   
  16,700    
HSBC Finance Corporation
  6.360%       A     360,720  
  38,900    
MBNA Corporation, Capital Trust D
  8.125%       Aa2     966,665  
 
 
Total Consumer Finance
                1,327,385  
         
 
 
                   
 
Diversified Financial Services – 1.7%
 
 
                   
  50,000    
CitiGroup Capital Trust XIX
  7.250%       A1     1,149,000  
  75,000    
Citigroup Inc., Series M
  8.125%       A     1,804,687  
  25,000    
ING Group N.V.
  7.200%       A1     602,000  
  35,000    
ING Group N.V.
  7.050%       A     820,750  
  2,000    
JPMorgan Chase Capital Trust X
  7.000%       Aa3     49,400  
 
 
Total Diversified Financial Services
                4,425,837  
         
 
 
                   
 
Electric Utilities – 3.7%
 
 
                   
  70,000    
Alabama Power Company
  5.625%       BBB+     1,715,000  
  50,000    
American Electric Power
  8.750%       Baa3     1,263,750  
  1,400    
Consolidated Edison Company of New York Inc.
  5.000%       A3     126,980  
  5,700    
DTE Energy Trust I
  7.800%       Baa3     144,894  
  3,000    
Entergy Louisiana LLC
  7.600%       A-     75,660  
  19,800    
FPC Capital I
  7.100%       Baa2     488,466  
  50,000    
FPL Group Capital Inc.
  7.450%       A3     1,291,500  
  57,558    
PPL Capital Funding, Inc.
  6.850%       Baa2     1,400,386  
  50,000    
PPL Electric Utilities Corporation
  6.250%       BBB     1,218,750  
  10,000    
Southern California Edison Company, Series C
  6.000%       Baa2     1,000,313  
  300    
Virginia Power Capital Trust
  7.375%       BBB     7,551  
  40,000    
Xcel Energy Inc.
  7.600%       Baa2     994,500  
 
 
Total Electric Utilities
                9,727,750  
         
 
 
                   
 
Insurance – 1.5%
 
 
                   
  53,600    
Ace Ltd., Series C
  7.800%       BBB     1,326,064  
  10,000    
Aegon N.V.
  6.875%       A-     225,100  
  4,700    
Aegon N.V.
  6.375%       A-     95,410  
  25,000    
American International Group
  7.700%       Aa3     623,000  
  21,800    
Arch Capital Group Limited
  8.000%       BBB-     556,336  
  12,100    
Endurance Specialty Holdings Limited
  7.750%       BBB-     284,471  
  1,300    
MetLife Inc., Series A
  4.000%       Baa1     26,000  
  17,625    
Phoenix Companies Inc.
  7.450%       BBB-     352,324  
  23,900    
RenaissanceRe Holdings Limited, Series C
  6.080%       BBB+     452,905  
 
 
Total Insurance
                3,941,610  
         
 
 
                   
 
Media – 0.8%
 
 
                   
  50,000    
Comcast Corporation
  7.000%       BBB+     1,177,500  
  38,700    
Viacom Inc.
  6.850%       BBB     900,549  
 
 
Total Media
                2,078,049  
         
 
 
                   
 
Oil, Gas, & Consumable Fuels – 0.4%
 
 
                   
  11,000    
Devon Energy Corporation, Series A
  6.490%       Baa3     1,113,063  
 
 
 
                   
 
Real Estate/Mortgage – 0.8%
 
 
                   
  50,000    
Kimco Realty Corporation, Series G
  7.750%       BBB+     1,191,250  
  40,000    
Wachovia Preferred Funding Corporation
  7.250%       A2     947,200  
 
 
Total Real Estate/Mortgage
                2,138,450  
         
 
 
                   
 
Thrifts & Mortgage Finance – 2.3%
 
 
                   
  75,000    
Federal Home Loan Mortgage Corporation, Notes
  5.570%       AA-     1,432,500  
  48,265    
Federal Home Loan Mortgage Corporation
  5.660%       AA-     950,338  
  25,000    
Federal Home Loan Mortgage Corporation
  5.100%       AA-     818,750  
  25,000    
Federal Home Loan Mortgage Corporation
  5.000%       AA-     850,000  
  75,000    
Federal Home Loan Mortgage Corporation
  0.000%       AA-     1,830,000  
 
 
Total Thrifts & Mortgage Finance
                5,881,588  
         
 
 
                   
 
U.S. Agency – 2.5%
 
 
                   
  32,900    
Federal National Mortgage Association
  7.625%       AA-     783,431  
  40,000    
Federal National Mortgage Association
  6.750%       AA-     902,400  
  25,000    
Federal National Mortgage Association
  5.810%       AA-     994,000  
  25,000    
Federal National Mortgage Association
  5.380%       AA-     935,000  
  125,000    
Federal National Mortgage Association
  0.000%       AA-     3,006,250  
 
 
Total U.S. Agency
                6,621,081  
         
 
 
                   
 
Wireless Telecommunication Services – 0.3%
 
 
                   
  25,600    
Telephone and Data Systems Inc.
  7.600%       BBB-     534,016  
  11,800    
United States Cellular Corporation
  8.750%       A-     295,118  
 
 
Total Wireless Telecommunication Services
                829,134  
         
 
Total $25 Par (or similar) Preferred Securities (cost $63,949,022)
                60,443,669  
         
 
Principal                        
Amount (000)     Description (1)   Coupon   Maturity   Ratings (2)   Value  
 
 
 
                   
 
Corporate Bonds – 0.0% (0.0% of Total Investments)
 
 
                   
 
Airlines – 0.0%
 
 
                   
$ 8    
Continental Airlines
  6.541%   9/15/09   B   $ 7,954  
 
$ 8    
Total Corporate Bonds (cost $7,796)
                7,954  
 
 
Shares     Description (1)               Value  
 
 
 
                   
 
Investment Companies – 0.3% (0.2% of Total Investments)
 
 
                   
  50,000    
Flaherty and Crumrine/Claymore Preferred Securities Income Fund Inc.
              $ 742,000  
 
 
Total Investment Companies (cost $826,500)
                742,000  
         
                             
Principal                        
Amount (000)     Description (1)   Coupon   Maturity       Value  
 
 
 
                   
 
Short-Term Investments – 9.8% (8.4% of Total Investments)
 
 
                   
$ 25,491    
Repurchase Agreement with State Street Bank, dated 3/31/08, repurchase price $25,492,112, collateralized by $22,275,000 U.S. Treasury Bonds, 5.375%, due 2/15/31, value $25,796,415 and $200,000 U.S. Treasury Bonds, 4.375% due 2/15/38, value $205,500
  1.100%   4/01/08       $ 25,491,333  
       
 
                   
   
       
Total Short-Term Investments (cost $25,491,333)
                25,491,333  
         
 
Total Investments (cost $309,065,601) – 117.0%
                304,884,994  
         
                             
            Notional   Expiration   Strike        
Contracts     Type   Amount (4)   Date   Price     Value  
 
 
 
                   
 
Call Options Written (0.8)%
                   
 
 
                   
  (130 )  
S&P 500 Index
  $(16,900,000 ) 4/19/08   $1,300   $ (562,250 )
  (130 )  
S&P 500 Index
  (17,550,000 ) 4/19/08   1,350     (204,100 )
  (130 )  
S&P 500 Index
  (16,900,000 ) 5/17/08   1,300     (778,050 )
  (130 )  
S&P 500 Index
  (17,225,000 ) 5/17/08   1,325     (581,750 )
 
  (520 )  
Total Call Options Written (premiums received $2,464,540)
  (68,575,000 )           (2,126,150 )
 
 
Other Assets Less Liabilities – (2.4)%
                (6,065,168 )
                             
 
Fund Preferred Shares, at Liquidation Value – (13.8)% (5)
                (36,000,000 )
                             
 
Net Assets Applicable to Common Shares – 100%
              $ 260,693,676  
                             
     
 (1)  
All percentages shown in the Portfolio of Investments are based on net assets applicable to Common shares unless otherwise noted.
   
 
 (2)  
Ratings: Using the higher of Standard & Poor’s Group (“Standard & Poor’s”) or Moody’s Investor Service, Inc. (“Moody’s”) rating. Ratings below BBB by Standard & Poor’s or Baa by Moody’s are considered to be below investment grade.
   
 
 (3)  
Non-income producing.
   
 
 (4)  
For disclosure purposes, Notional Amount is calculated by multiplying the number of Contracts by the Strike Price by 100.
   
 
 (5)  
Fund Preferred Shares, at Liquidation Value as of percentage of total investment is (11.8)%.
   
 
ADR  
American Depositary Receipt.
   
 
Fair Value Measurements
During the current fiscal period, the Fund adopted the provisions of Statement of Financial Accounting Standards No. 157, Fair Value Measurements (SFAS 157). SFAS 157 defines fair value, establishes a framework for measuring fair value in generally accepted accounting principles, and expands disclosure about fair value measurements. In determining the value of the Fund’s investments various inputs are used. These inputs are summarized in the three broad levels listed below:
   Level 1 -   Quoted prices in active markets for identical securities.
   Level 2 -   Other significant observable inputs (including quoted prices for similar securities, interest rates, prepayment speeds, credit risk, etc.).
   Level 3 -   Significant unobservable inputs (including management’s assumptions in determining the fair value of investments).
The inputs or methodology used for valuing securities are not an indication of the risk associated with investing in those securities.
The following is a summary of the Fund’s fair value measurements as of March 31, 2008:
                                 
      Level 1     Level 2     Level 3     Total    
 
Investments
  $ 279,672,941     $ 25,212,053     $ -     $ 304,884,994    
Call options written
    (2,126,150 )     -       -       (2,126,150 )  
 
Total
  $ 277,546,791     $ 25,212,053     $ -     $ 302,758,844    
 
Income Tax Information
The following information is presented on an income tax basis. Differences between amounts for financial statement and federal income tax purposes are primarily due to the recognition of unrealized gain or loss for tax (mark-to-market) on option contracts, timing differences in the recognition of income and timing differences in recognizing certain gains and losses on investment transactions. To the extent that differences arise that are permanent in nature, such amounts are reclassified within the capital accounts on the Statement of Assets and Liabilities presented in the annual report, based on their federal tax basis treatment; temporary differences do not require reclassification. Temporary and permanent differences do not impact the net asset value of the Fund.
At March 31, 2008, the cost of investments was $309,065,601
Gross unrealized appreciation and gross unrealized depreciation of investments at March 31, 2008, were as follows:
         
 
 
       
Gross unrealized:
       
Appreciation
  $ 10,283,416  
Depreciation
    (14,464,023 )
 
       
 
 
       
Net unrealized appreciation (depreciation) of investments
  $ (4,180,607 )
 
       
 


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Item 2. Controls and Procedures.
  a.   The registrant’s principal executive and principal financial officers, or persons performing similar functions, have concluded that the registrant’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended (the “1940 Act”) (17 CFR 270.30a-3(c))) are effective, as of a date within 90 days of the filing date of this report that includes the disclosure required by this paragraph, based on their evaluation of the controls and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR 270.30a-3(b)) and Rule 13a-15(b) or 15d-15(b) under the Securities Exchange Act of 1934 (17 CFR 240.13a-15(b) or 240.15d-15(b)).
 
  b.   There were no changes in the registrant’s internal control over financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17 CFR 270.30a-3(d)) that occurred during the registrant’s last fiscal quarter that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.
Item 3. Exhibits.
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 1940 Act (17 CFR 270.30a-2(a)), exactly as set forth below: EX-99 CERT Attached hereto.

 


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SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant)   Nuveen Tax-Advantaged Dividend Growth Fund
         
     
By (Signature and Title)*  /s/ Kevin J. McCarthy    
  Kevin J. McCarthy  
  Vice President and Secretary   
 
Date May 30, 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 (Signature and Title)*  /s/ Gifford R. Zimmerman    
  Gifford R. Zimmerman   
  Chief Administrative Officer (principal executive officer)   
 
Date May 30, 2008
         
     
By (Signature and Title)*  /s/ Stephen D. Foy    
  Stephen D. Foy   
  Vice President and Controller (principal financial officer)   
 
Date May 30, 2008
 
*   Print the name and title of each signing officer under his or her signature.