Edgar Filing: DREMAN CLAYMORE DIVIDEND & INCOME FUND

Dreman/Claymore Dividend & Income Fund

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 811-21455

Dreman/Claymore Dividend & Income Fund

(Exact name of registrant as specified in charter)

2455 Corporate West Drive, Lisle, IL 60532

(Address of principal executive offices) (Zip code)

Nicholas Dalmaso, Chief Legal and Executive Officer

Dreman/Claymore Dividend & Income Fund

2455 Corporate West Drive, Lisle, IL 60532

(Name and address of agent for service)

Registrant’s telephone number, including area code: (630) 505-3700

Date of fiscal year end: October 31

Date of reporting period: July 31, 2005

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.

Item 1. Schedule of Investments.

Dreman/Claymore Dividend & Income Fund

Portfolio of Investments / July 31, 2005 (unaudited)


Number of Shares			Value
		Long-Term Investments - 142.5%
		Common Stocks - 111.4%
		Consumer Staples - 35.8%
	2,451,700	Altria Group, Inc. (a)	$	164,165,832
	1,452,300	Loews Corp. - Carolina Group (a)		56,538,039
	123,700	Regal Entertainment Group - Class A		2,388,647
	567,600	Reynolds American, Inc.		47,286,756
	166,800	Universal Corp.		7,956,360
	1,363,000	UST, Inc. (a)		62,725,260
	364,775	Vector Group Ltd.		7,080,283

				348,141,177

		Energy - 14.5%
	203,600	BP Prudhoe Bay Royalty Trust		15,127,480
	530,600	ChevronTexaco Corp.		30,780,106
	686,200	ConocoPhillips		42,949,258
	336,000	Devon Energy Corp.		18,846,240
	50,900	Enerplus Resources Fund (Canada)		2,031,419
	175,000	Fairborne Energy Trust (Canada)		1,853,250
	175,000	Harvest Energy Trust (Canada)		4,228,000
	175,000	Ketch Resources Trust (Canada)		1,713,250
	131,500	Pengrowth Energy Trust - Class A (Canada)		3,077,100
	375,000	Penn West Energy Trust (Canada)		9,483,750
	150,800	San Juan Basin Royalty Trust		6,855,368
	240,400	Williams Coal Seam Gas Royalty Trust		4,127,668

				141,072,889

		Financials - 33.2%
	185,000	American Home Mortgage Investment Corp.		7,105,850
	180,900	American International Group, Inc.		10,890,180
	540,000	Bank of America Corp.		23,544,000
	350,000	ECC Capital Corp.		2,233,000
	759,100	Fannie Mae (a)		42,403,326
	1,087,200	Freddie Mac (a)		68,798,016
	724,800	KeyCorp		24,817,152
	87,546	Ladenburg Thalmann Financial Services, Inc. (b)		54,278
	794,100	Luminent Mortgage Capital, Inc.		8,441,283
	681,700	MFA Mortgage Investments, Inc.		4,744,632
	150,000	New Century Financial Corp.		7,857,000
	151,700	Newcastle Investment Corp.		4,687,530
	525,600	Novastar Financial, Inc.		21,302,568
	233,600	PNC Financial Services Group		12,805,952
	415,000	Regions Financial Corp.		13,960,600
	448,600	U.S. Bancorp		13,484,916
	65,000	Wachovia Corp. (a)		3,274,700
	1,232,800	Washington Mutual, Inc. (a)		52,369,344

				322,774,327

		Healthcare - 7.9%
	1,465,000	Bristol-Myers Squibb Co.		36,595,700
	80,700	Medco Health Solutions, Inc. (b)		3,909,108
	920,100	Merck & Co., Inc.		28,578,306
	300,000	Pfizer, Inc.		7,950,000

				77,033,114

		Telecommunications - 3.0%
	107,000	Alaska Communications Systems Group, Inc.		1,056,090
	1,140,000	SBC Communications, Inc.		27,873,000

				28,929,090

		Utilities - 17.0%
	715,600	Ameren Corp.		39,801,672
	659,700	Consolidated Edison, Inc.		31,771,152
	191,100	DTE Energy Co.		8,981,700
	361,900	Empire District Electric Co.		8,750,742
	327,200	Great Plains Energy, Inc.		10,620,912
	114,300	KeySpan Corp.		4,650,867
	108,300	Nicor, Inc.		4,420,806
	406,700	OGE Energy Corp.		12,355,546
	374,700	Peoples Energy Corp.		16,168,305
	433,800	Progress Energy, Inc.		19,351,818
	132,800	Public Service Enterprise Group, Inc.		8,539,040
	190,200	Star Gas Partners, LP		523,050

				165,935,610

		Total Common Stocks
		(Cost $966,424,633)		1,083,886,207

		Preferred Stocks - 23.8%
		Consumer Discretionary - 0.3%
	125,000	Westcoast Hospitality Co., 9.500%		3,331,250

		Consumer Staples - 0.4%
	40,000	Dairy Farmers of America, 7.875% (c)		4,025,000

		Energy - 1.1%
	385,500	Southern Union Co., 7.550%		10,504,875

		Financials - 21.8%
	7,000,000	Abbey National Capital Trust I, 8.963% (d)		9,899,008
	58,000	Abbey National PLC, Series B, 7.375% (United Kingdom)		1,537,580
	200,000	ABN AMRO Capital Fund Trust VII, 6.080%		5,060,000
	200,000	Affordable Residential, Series A, 8.250%		5,070,000
	18,000	Apartment Investment & Management Co., 10.100%		470,160
	80,000	Banco Santander, Series 1, 6.410% (Spain)		2,100,000
	10,000,000	Barclays Bank PLC, 8.550% (United Kingdom) (c)(d)		11,833,820
	9,000,000	CA Preferred Funding Trust, 7.000%		9,376,335
	189,300	Chevy Chase Bank, 8.000%		5,499,165
	1,000	Doral Financial Corp., Series B, 8.350%		26,500
	8,660	Doral Financial Corp., Series C, 7.250% (Puerto Rico)		220,830
	200,000	Fannie Mae, Series E, 5.100%		8,562,500
	80,000	Fannie Mae, Series O, 7.000% (d)		4,455,000
	12,840,000	HSBC Capital Funding LP, 9.547% (c)(d)		15,373,358
	7,042,000	HSBC Capital Funding LP, 10.176% (c)(d)		11,005,054
	140,500	Lehman Brothers Holdings, Inc., Series F, 6.500%		3,640,355
	2,000,000	Lloyds TSB Bank PLC, 6.900% (United Kingdom)		2,070,134
	80,000	LTC Properties, Inc., Series F, 8.000%		2,092,504
	21,000	Novastar Financial, Inc., Series C, 8.900%		541,800
	13,354,000	Old Mutual Cap Funding, 8.000%		14,023,730
	400,000	OMEGA Healthcare, Series D, 8.375%		10,480,000
	31,000,000	Prudential PLC, 6.500% (United Kingdom)		31,083,700
	6,400,000	RBS Capital Trust B, 6.800%		6,591,904
	5,750,000	Royal Bank Of Scotland Group PLC, 7.648% (United Kingdom) (d)		7,194,745
	12,000,000	Royal Bank Of Scotland Group PLC, Series 1, 9.118% (United Kingdom)		14,058,972
	400,000	Scottish Re Group Ltd., 7.250% (d)		9,968,000
	16,775,000	UBS Preferred Funding Trust I, 8.622% (d)		19,589,275

				211,824,429

		Utilities - 0.2%
	80,000	Alabama Power Co., 5.300%		1,984,000

		Total Preferred Stocks
		(Cost $229,391,440)		231,669,554

		Convertible Preferred Stocks - 4.9%
	505	Fannie Mae, 5.375%
		(Cost $49,831,000)		48,148,786

		Investment Companies - 2.2%
	116,000	Cohen & Steers REIT and Preferred Income Fund, Inc.		3,219,000
	296,200	Evergreen Income Advantage Fund		4,457,810
	232,600	Hyperion Total Return Fund		2,105,030
	240,000	Nuveen Preferred and Convertible Income Fund II		3,235,200
	211,200	Nuveen Quality Preferred Income Fund II		3,083,520
	295,200	Pioneer High Income Trust		4,965,264
	6,400	Salomon Brothers Worldwide Income Fund, Inc.		99,712

		Total Investment Companies
		(Cost $21,925,956)		21,165,536

Principal Amount
		Corporate Bonds - 0.2%
		Financials - 0.2%
$	2,000,000	Preferred Term Securities XI Ltd., Zero Coupon, 9/24/33, NR (c)
		(Cost 1,940,029)		1,902,500

		Total Long-Term Investments - 142.5%
		(Cost $1,269,513,058)		1,386,772,583

Number of Shares
		Short-Term Investments - 0.9%
		Money Market Fund - 0.9%
	8,672,706	JP Morgan Prime Money Market Fund
		(Cost $8,672,706)		8,672,706

		Total Investments - 143.4%
		(Cost $1,278,185,764)		1,395,445,289
		Other Assets in Excess of Liabilities - 0.3%		2,972,382
		Preferred Shares, at Liquidation Value - ( -43.7% of Net Assets Applicable to Common Shares or -30.5% of Total Investments)		(425,000,000	)

		Net Assets Applicable to Common Shares - 100.0%	$	973,417,671

LP - Limited Partnership

PLC - Public Limited Company

REIT - Real Estate Investment Trust

(a)	All or a portion of these securities have been physically segregated in connection with open futures contracts.

(b)	Non-income producing security.

(c)	Securities are exempt from registration under Rule 144A of the Securities Act of 1933.

These securities may be resold in transactions exempt from registration, normally to qualified institutional buyers. At July 31, 2005, these securities amounted to 4.5% of net assets.

(d)	Floating or variable rate security.

Ratings shown are per Standard & Poor’s. Securities classified NR are not rated by Standard & Poor’s.

All percentages shown in the Portfolio of Investments are based on Net Assets Applicable to Common Shares unless otherwise noted.

At July 31, 2005, the following futures contracts were outstanding:

Short Contracts

Number of
Contracts

Expiration
Month

Original

Value

Value at

July 31, 2005

Unrealized
Appreciation

US Treasury Bonds (CBT)

2,889

Sept-05

343,395,005

333,137,813

10,257,192


Country Allocation*
United States	93.4	%
United Kingdom	4.9	%
Canada	1.6	%
Spain	0.1	%
Puerto Rico	0.0	%**

*	Subject to change daily.

**	Amount is less than 0.1%.

See previously submitted notes to financial statements for the semi-annual period ended April 30, 2005.

Item 2. Controls and Procedures.

(a)

The registrant’s principal executive officer and principal financial officer have evaluated the registrant’s disclosure controls and procedures within 90 days of this filing and have concluded, based on such evaluation, that the registrant’s disclosure controls and procedures were effective, as of that date, in ensuring that information required to be disclosed by the registrant in this Form N-Q was recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

(b)

There was no change in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act) that occurred during the registrant’s last fiscal quarter that may have materially affected or is reasonably likely to materially affect the registrant’s internal control over financial reporting.

Item 3. Exhibits.

A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Investment Company Act (17 CFR 270.30a-2(a)), exactly as set forth below: 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.


Dreman/Claymore Dividend & Income Fund

By:		/s/ Nicholas Dalmaso
		Nicholas Dalmaso
		Chief Legal and Executive Officer

Date: September 23, 2005

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


By:		/s/ Nicholas Dalmaso
		Nicholas Dalmaso
		Chief Legal and Executive Officer

Date: September 23, 2005


By:		/s/ Steven M. Hill
		Steven M. Hill
		Treasurer and Chief Financial Officer

Date: September 23, 2005