UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM N-Q
QUARTERLY SCHEDULE OF PORTFOLIO HOLDINGS OF REGISTERED
MANAGEMENT INVESTMENT COMPANY
Investment Company Act file number 811-21381
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FIRST TRUST VALUE LINE(R) DIVIDEND FUND
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(Exact name of registrant as specified in charter)
1001 Warrenville Road
Suite 300
LISLE, IL 60532
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(Address of principal executive offices) (Zip code)
W. Scott Jardine
First Trust Portfolios L.P.
1001 Warrenville Road
Suite 300
LISLE, IL 60532
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(Name and address of agent for service)
Registrant's telephone number, including area code: 630-241-4141
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Date of fiscal year end: MAY 31
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Date of reporting period: AUGUST 31, 2006
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Form N-Q is to be used by management investment companies, other than small
business investment companies registered on Form N-5 (ss.ss. 239.24 and 274.5 of
this chapter), to file reports with the Commission, not later than 60 days after
the close of the first and third fiscal quarters, pursuant to rule 30b1-5 under
the Investment Company Act of 1940 (17 CFR 270.30b1-5). The Commission may use
the information provided on Form N-Q in its regulatory, disclosure review,
inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-Q, and
the Commission will make this information public. A registrant is not required
to respond to the collection of information contained in Form N-Q unless the
Form displays a currently valid Office of Management and Budget ("OMB") control
number. Please direct comments concerning the accuracy of the information
collection burden estimate and any suggestions for reducing the burden to the
Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC
20549. The OMB has reviewed this collection of information under the clearance
requirements of 44 U.S.C. ss. 3507.
ITEM 1. SCHEDULE OF INVESTMENTS.
The Schedule(s) of Investments is attached herewith.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS - 99.1%
AIR FREIGHT & LOGISTICS - 0.5%
41,489 United Parcel Service, Inc., Class B ........ $ 2,906,304
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AUTO COMPONENTS - 0.5%
41,161 Magna International, Inc. ................... 2,961,534
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BEVERAGES - 1.1%
58,930 Anheuser-Busch Companies, Inc. .............. 2,909,963
65,251 Coca-Cola (The) Company ..................... 2,923,897
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5,833,860
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CAPITAL MARKETS - 1.1%
99,066 Allied Capital Corp. ........................ 3,030,429
88,727 Federated Investors, Inc., Class B .......... 2,970,580
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6,001,009
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CHEMICALS - 2.1%
44,842 Air Products & Chemicals, Inc. .............. 2,972,576
74,041 E. I. du Pont de Nemours and Company ........ 2,959,419
75,620 International Flavors & Fragrances, Inc. .... 3,007,407
46,626 PPG Industries, Inc. ........................ 2,954,223
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11,893,625
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COMMERCIAL BANKS - 16.3%
99,814 AmSouth Bancorporation ...................... 2,859,671
93,043 Associated Banc-Corp ........................ 2,934,576
49,098 Bank of Montreal ............................ 2,979,267
66,872 Bank of Nova Scotia ......................... 2,865,465
68,253 BB&T Corp. .................................. 2,921,228
38,929 Canadian Imperial Bank of Commerce .......... 2,827,803
43,822 City National Corp. ......................... 2,883,488
51,498 Comerica, Inc. .............................. 2,948,260
58,817 Commerce Bancshares, Inc. ................... 2,947,908
50,708 Compass Bancshares, Inc. .................... 2,941,064
49,813 Cullen/Frost Bankers, Inc. .................. 2,936,974
73,628 Fifth Third Bancorp ......................... 2,896,525
72,653 First Horizon National Corp. ................ 2,773,892
79,638 First Midwest Bancorp, Inc. ................. 2,974,479
121,656 Huntington Bancshares, Inc. ................. 2,910,012
23,704 M&T Bank Corp. .............................. 2,902,792
62,623 Marshall & Ilsley Corp. ..................... 2,920,110
79,464 Mercantile Bankshares Corp. ................. 2,934,606
52,465 National Bank of Canada ..................... 2,847,530
83,503 National City Corp. ......................... 2,887,534
155,320 Old National Bancorp ........................ 2,906,037
41,836 PNC Financial Services Group, Inc. .......... 2,961,570
155,819 Popular, Inc. ............................... 2,968,352
79,139 Regions Financial Corp. ..................... 2,848,213
64,256 Royal Bank of Canada ........................ 2,854,252
37,874 SunTrust Banks, Inc. ........................ 2,893,574
100,643 Synovus Financial Corp. ..................... 2,926,698
50,435 Toronto-Dominion Bank ....................... 2,917,665
See Notes to Quarterly Portfolio of Investments. Page 1
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
COMMERCIAL BANKS - (CONTINUED)
51,755 Wachovia Corp. .............................. $ 2,827,376
83,503 Wells Fargo & Company ....................... 2,901,729
67,274 Wilmington Trust Corp. ...................... 2,963,420
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90,062,070
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COMMERCIAL SERVICES & SUPPLIES - 1.6%
48,533 Avery Dennison Corp. ........................ 3,006,134
68,786 Pitney Bowes, Inc. .......................... 2,998,382
89,026 R.R. Donnelley & Sons Company ............... 2,886,223
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8,890,739
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COMPUTERS & PERIPHERALS - 0.5%
70,813 Diebold, Inc. ............................... 2,967,773
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CONSTRUCTION MATERIALS - 0.5%
38,349 Vulcan Materials Company .................... 3,014,615
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CONSUMER FINANCE - 0.6%
63,305 SLM Corp. ................................... 3,072,192
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CONTAINERS & PACKAGING - 1.1%
91,867 Bemis Company ............................... 2,967,304
89,135 Sonoco Products Company ..................... 2,984,240
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5,951,544
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DISTRIBUTORS - 0.5%
70,951 Genuine Parts Company ....................... 2,932,405
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DIVERSIFIED FINANCIAL SERVICES - 0.5%
55,851 Bank of America Corp. ....................... 2,874,651
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DIVERSIFIED TELECOMMUNICATION SERVICES - 2.2%
94,833 AT&T, Inc. .................................. 2,952,151
72,599 BellSouth Corp. ............................. 2,956,231
140,667 Telecom Corp. of New Zealand Ltd.,
Sponsored ADR ............................. 3,104,521
83,696 Verizon Communications, Inc. ................ 2,944,425
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11,957,328
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ELECTRIC UTILITIES - 6.4%
63,568 ALLETE, Inc. ................................ 2,920,314
37,717 Entergy Corp. ............................... 2,928,725
48,195 Exelon Corp. ................................ 2,938,931
51,589 FirstEnergy Corp. ........................... 2,943,668
65,976 FPL Group, Inc. ............................. 2,932,633
97,276 Great Plains Energy, Inc. ................... 2,968,863
108,169 Hawaiian Electric Industries, Inc. .......... 2,965,994
64,114 Pinnacle West Capital Corp. ................. 2,945,397
84,523 PPL Corp. ................................... 2,955,769
66,383 Progress Energy, Inc. ....................... 2,942,758
86,768 Southern (The) Company ...................... 2,973,539
121,099 Westar Energy, Inc. ......................... 2,953,605
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35,370,196
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Page 2 See Notes to Quarterly Portfolio of Investments.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
ELECTRICAL EQUIPMENT - 1.1%
36,200 Emerson Electric Company .................... $ 2,973,830
63,819 Hubbell, Inc., Class B ...................... 2,967,583
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5,941,413
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FOOD & STAPLES RETAILING - 1.1%
95,081 Sysco Corp. ................................. 2,984,593
74,649 Weis Markets, Inc. .......................... 2,949,382
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5,933,975
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FOOD PRODUCTS - 8.0%
68,965 Cadbury Schweppes PLC, Sponsored ADR ........ 2,949,633
78,056 Campbell Soup Company ....................... 2,932,564
122,735 ConAgra Foods, Inc. ......................... 2,921,093
53,874 General Mills, Inc. ......................... 2,921,587
70,590 H.J. Heinz Company .......................... 2,953,486
54,044 Hershey (The) Company ....................... 2,916,214
61,174 J.M. Smucker (The) Company .................. 2,974,892
58,526 Kellogg Company ............................. 2,967,268
87,975 Kraft Foods, Inc., Class A .................. 2,983,232
65,887 Lancaster Colony Corp. ...................... 2,908,252
81,399 McCormick & Company, Inc. ................... 2,964,552
176,217 Sara Lee Corp. .............................. 2,930,489
124,522 Unilever NV ................................. 2,968,604
122,838 Unilever PLC, Sponsored ADR ................. 2,957,939
63,003 Wm. Wrigley Jr. Company ..................... 2,924,599
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44,174,404
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GAS UTILITIES - 5.4%
81,582 AGL Resources, Inc. ......................... 2,968,769
103,142 Atmos Energy Corp. .......................... 2,970,490
82,485 Equitable Resources, Inc. ................... 3,040,397
77,288 National Fuel Gas Company ................... 2,950,083
61,020 New Jersey Resources Corp. .................. 3,030,253
77,536 Northwest Natural Gas Company ............... 2,965,752
70,045 Peoples Energy Corp. ........................ 2,968,507
114,743 Piedmont Natural Gas Company, Inc. .......... 2,991,350
121,149 UGI Corp. ................................... 3,004,495
96,630 WGL Holdings, Inc. .......................... 3,002,294
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29,892,390
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HEALTH CARE EQUIPMENT & SUPPLIES - 1.1%
93,763 Arrow International Inc. .................... 3,029,483
51,977 Hillenbrand Industries, Inc. ................ 2,966,327
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5,995,810
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HOUSEHOLD DURABLES - 1.6%
40,745 Fortune Brands, Inc. ........................ 2,958,087
127,582 Leggett & Platt, Inc. ....................... 2,940,765
68,965 Snap-On, Inc. ............................... 3,013,770
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8,912,622
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See Notes to Quarterly Portfolio of Investments. Page 3
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
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COMMON STOCKS - CONTINUED
HOUSEHOLD PRODUCTS - 2.1%
48,531 Clorox (The) Company ........................ $ 2,902,639
49,575 Colgate-Palmolive Company ................... 2,967,559
46,912 Kimberly-Clark Corp. ........................ 2,978,912
47,697 Proctor & Gamble (The)Company ............... 2,952,444
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11,801,554
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INDEPENDENT POWER PRODUCERS &
ENERGY TRADERS - 0.5%
49,331 Constellation Energy Group, Inc. ............ 2,964,300
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INDUSTRIAL CONGLOMERATES - 1.6%
41,656 3M Company .................................. 2,986,735
86,049 General Electric Company .................... 2,930,829
52,220 Teleflex, Inc. .............................. 2,914,398
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8,831,962
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INSURANCE - 5.3%
51,416 Allstate (The) Corp. ........................ 2,979,043
108,898 Arthur J. Gallagher & Company ............... 2,918,466
59,643 Chubb (The) Corp. ........................... 2,991,693
63,360 Cincinnati Financial Corp. .................. 2,956,378
48,801 Lincoln National Corp. ...................... 2,962,221
89,409 Manulife Financial Corp. .................... 2,919,204
48,075 MBIA Inc. ................................... 2,962,862
58,621 Mercury General Corp. ....................... 2,946,878
139,452 Old Republic International Corp. ............ 2,914,547
64,892 Protective Life Corp. ....................... 2,986,979
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29,538,271
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LEISURE EQUIPMENT & PRODUCTS - 0.6%
80,453 Polaris Industries, Inc. .................... 3,065,259
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MACHINERY - 2.2%
39,366 Deere & Company ............................. 3,074,485
44,391 Eaton Corp. ................................. 2,952,001
66,876 Illinois Tool Works, Inc. ................... 2,935,856
77,973 Ingersoll-Rand Company Ltd., Class A ........ 2,964,533
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11,926,875
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MEDIA - 1.6%
52,875 Gannett Co., Inc. ........................... 3,005,944
131,387 New York Times (The) Company ................ 2,958,835
92,158 Tribune Company ............................. 2,876,251
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8,841,030
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MULTI-UTILITIES - 9.1%
55,541 Ameren Corp. ................................ 2,974,221
63,945 Consolidated Edison, Inc. ................... 2,954,259
35,909 Dominion Resources, Inc. .................... 2,868,770
98,830 Duke Energy Corp. ........................... 2,964,900
Page 4 See Notes to Quarterly Portfolio of Investments.
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS - CONTINUED
MULTI-UTILITIES - (CONTINUED)
122,167 Energy East Corp. ........................... $ 2,962,550
71,404 KeySpan Corp. ............................... 2,927,564
117,336 MDU Resources Group, Inc. ................... 2,874,732
90,130 NSTAR ....................................... 2,967,981
79,901 OGE Energy Corp. ............................ 2,975,513
70,164 PG & E Corp. ................................ 2,941,977
102,308 PNM Resources Inc. .......................... 2,933,170
72,166 SCANA Corp. ................................. 2,984,064
60,099 Sempra Energy ............................... 2,988,122
107,569 Vectren Corp. ............................... 2,964,602
69,443 Wisconsin Energy Corp. ...................... 2,986,049
57,135 WPS Resources Corp. ......................... 2,935,596
142,111 Xcel Energy, Inc. ........................... 2,955,909
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50,159,979
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OIL, GAS & CONSUMABLE FUELS - 3.1%
42,652 BP PLC, Sponsored ADR ....................... 2,902,469
43,546 Chevron Corp. ............................... 2,804,362
43,677 ConocoPhillips .............................. 2,770,432
41,201 Royal Dutch Shell PLC, Class A, ADR ......... 2,840,397
42,274 Total SA, Sponsored ADR ..................... 2,850,536
91,693 TransCanada Corp. ........................... 2,981,856
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17,150,052
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PERSONAL PRODUCTS - 0.5%
104,140 Avon Products, Inc. ......................... 2,989,859
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PHARMACEUTICALS - 4.3%
59,557 Abbott Laboratories ......................... 2,900,426
133,621 Bristol-Myers Squibb Company ................ 2,906,257
53,165 GlaxoSmithKline PLC, ADR .................... 3,018,709
44,851 Johnson & Johnson ........................... 2,900,066
53,048 Lilly (Eli) & Company ....................... 2,966,975
106,544 Pfizer, Inc. ................................ 2,936,353
65,723 Sanofi-Aventis, ADR ......................... 2,954,249
60,777 Wyeth ....................................... 2,959,840
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23,542,875
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REAL ESTATE INVESTMENT TRUSTS (REITS) - 10.7%
54,870 Archstone-Smith Trust ....................... 2,917,987
24,397 AvalonBay Communities, Inc. ................. 2,952,037
49,745 BRE Properties, Inc., Class A ............... 2,939,432
78,668 Duke Realty Corp. ........................... 2,987,811
78,775 Equity Office Properties Trust .............. 2,921,765
59,326 Equity Residential .......................... 2,958,588
40,094 Federal Realty Investment Trust ............. 2,969,763
101,416 Health Care Property Investors, Inc. ........ 3,051,607
71,633 Kimco Realty Corp. .......................... 2,976,351
61,471 Liberty Property Trust ...................... 2,942,617
See Notes to Quarterly Portfolio of Investments. Page 5
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
PORTFOLIO OF INVESTMENTS - (CONTINUED)
AUGUST 31, 2006 (UNAUDITED)
MARKET
SHARES VALUE
----------- --------------
COMMON STOCKS - CONTINUED
REAL ESTATE INVESTMENT TRUSTS (REITS) - (CONTINUED)
56,557 Mack-Cali Realty Corp. ...................... $ 3,006,005
108,735 New Plan Excel Realty Trust ................. 2,999,999
68,982 Pennsylvania Real Estate Investment Trust ... 2,919,318
83,986 Plum Creek Timber Company, Inc. ............. 2,925,232
52,712 Prologis .................................... 2,976,120
34,075 Public Storage, Inc. ........................ 2,952,599
33,778 Simon Property Group, Inc. .................. 2,864,037
97,997 United Dominion Realty Trust, Inc. .......... 2,989,888
74,230 Washington Real Estate Investment Trust ..... 3,015,223
69,978 Weingarten Realty Investors ................. 2,968,467
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59,234,846
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SPECIALTY RETAIL - 0.6%
58,965 Sherwin-Williams (The) Company .............. 3,044,953
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TEXTILES, APPAREL & LUXURY GOODS - 0.5%
43,088 VF Corp. .................................... 3,011,420
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THRIFTS & MORTGAGE FINANCE - 2.6%
97,570 Astoria Financial Corp. ..................... 2,995,399
85,517 Capitol Federal Financial ................... 2,902,447
45,738 Freddie Mac ................................. 2,908,937
132,464 Washington Federal, Inc. .................... 2,943,350
67,321 Washington Mutual, Inc. ..................... 2,820,077
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14,570,210
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TOTAL COMMON STOCKS ......................... 548,213,904
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(Cost $482,662,821)
TOTAL INVESTMENTS - 99.1% ................... 548,213,904
(Cost $482,662,821)*
NET OTHER ASSETS & LIABILITIES - 0.9% ....... 5,160,856
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NET ASSETS - 100.0% ......................... $ 553,374,760
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* Aggregate cost for federal income tax and financial reporting
purposes.
ADR American Depository Receipt
Page 6 See Notes to Quarterly Portfolio of Investments.
NOTES TO QUARTERLY PORTFOLIO OF INVESTMENTS (UNAUDITED)
FIRST TRUST VALUE LINE(R) DIVIDEND FUND
AUGUST 31, 2006
1. VALUATION AND INVESTMENT PRACTICES
A. PORTFOLIO VALUATION:
The First Trust Value Line(R) Dividend Fund (the "Fund") determines the net
asset value ("NAV") of its shares daily, as of the close of regular session
trading on the New York Stock Exchange ("NYSE"), normally 4:00 p.m. Eastern
time, on each day the NYSE is open for trading. The NAV is computed by dividing
the value of all assets of the Fund (including accrued interest and dividends),
less all liabilities (including accrued expenses and dividends declared but
unpaid), by the total number of shares outstanding.
The Fund's investments are valued at market value or, in the absence of market
value with respect to any portfolio securities, at fair value according to
procedures adopted by the Fund's Board of Trustees. Portfolio securities listed
on any exchange other than the NASDAQ National Market ("NASDAQ") are valued at
the last sale price on the business day as of which such value is being
determined. If there has been no sale on such day, the securities are valued at
the mean of the most recent bid and asked prices on such day. Securities traded
on the NASDAQ are valued at the NASDAQ Official Closing Price as determined by
NASDAQ. Portfolio securities traded on more than one securities exchange are
valued at the last sale price on the business day as of which such value is
being determined at the close of the exchange representing the principal market
for such securities. Portfolio securities traded in the over-the-counter market,
but excluding securities traded on the NASDAQ, are valued at the closing bid
prices. Short-term investments that mature in less than 60 days are valued at
amortized cost.
Foreign securities traded outside the United States are generally valued as of
the time their trading is complete, which is usually different from the close of
the NYSE. Occasionally, events affecting the value of such securities may occur
between such times and the close of the NYSE that will not always be reflected
in such securities' value. If events materially affecting the value of such
securities occur during such period, these securities will be valued at their
fair value according to procedures adopted by the Fund's Board of Trustees. All
securities and other assets of the Fund denominated in foreign currencies will
be converted to U.S. dollars using exchange rates in effect at the time of
valuation.
B. SECURITIES TRANSACTIONS:
Securities transactions are recorded as of the trade date. Realized gains and
losses from securities transactions are recorded on the identified cost basis.
2. UNREALIZED APPRECIATION/(DEPRECIATION)
As of August 31, 2006, the aggregate gross unrealized appreciation for all
securities in which there was an excess of value over tax cost was $72,886,063,
and the aggregate gross unrealized depreciation for all securities in which
there was an excess of tax cost over value was $7,334,980.
Page 7
ITEM 2. CONTROLS AND PROCEDURES.
(a) The registrant's principal executive and principal financial officers,
or persons performing similar functions, have concluded that the
registrant's disclosure controls and procedures (as defined in Rule
30a-3(c) under the Investment Company Act of 1940, as amended (the
"1940 Act") (17 CFR 270.30a-3(c))) are effective, as of a date within
90 days of the filing date of the report that includes the disclosure
required by this paragraph, based on their evaluation of these controls
and procedures required by Rule 30a-3(b) under the 1940 Act (17 CFR
270.30a-3(b)) and Rules 13a-15(b) or 15d-15(b) under the Securities
Exchange Act of 1934, as amended (17 CFR 240.13a-15(b) or
240.15d-15(b)).
(b) There were no changes in the registrant's internal control over
financial reporting (as defined in Rule 30a-3(d) under the 1940 Act (17
CFR 270.30a-3(d)) that occurred during the registrant's last fiscal
quarter that have materially affected, or are reasonably likely to
materially affect, the registrant's internal control over financial
reporting.
ITEM 3. EXHIBITS.
Certifications pursuant to Rule 30a-2(a) under the 1940 Act and Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, the registrant has duly caused this report to be
signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) FIRST TRUST VALUE LINE(R) DIVIDEND FUND
By (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 24, 2006
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Pursuant to the requirements of the Securities Exchange Act of 1934 and the
Investment Company Act of 1940, this report has been signed below by the
following persons on behalf of the registrant and in the capacities and on the
dates indicated.
By (Signature and Title)* /S/ JAMES A. BOWEN
-------------------------------------------------------
James A. Bowen, Chairman of the Board, President and
Chief Executive Officer
(principal executive officer)
Date OCTOBER 24, 2006
----------------------------------------------------------------------------
By (Signature and Title)* /S/ MARK R. BRADLEY
-------------------------------------------------------
Mark R. Bradley, Treasurer, Controller, Chief
Financial Officer and Chief Accounting Officer
(principal financial officer)
Date OCTOBER 24, 2006
----------------------------------------------------------------------------
* Print the name and title of each signing officer under his or her signature.