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 811-06660

 

Name of Fund: BlackRock MuniYield Quality Fund, Inc. (MQY)

 

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

 

Name and address of agent for service: Anne F. Ackerley, Chief Executive Officer, BlackRock MuniYield Quality Fund, Inc., 55 East 52nd Street, New York, NY 10055.

 

Registrant’s telephone number, including area code: (800) 882-0052, Option 4

 

Date of fiscal year end: 04/30/2010

 

Date of reporting period: 01/31/2010

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments January 31, 2010 (Unaudited)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 2.5%

 

 

 

 

 

 

 

Alabama Public School & College
Authority, Refunding RB, Series A,
5.00%, 5/01/29

 

$

1,200

 

$

1,237,596

 

County of Jefferson Alabama, RB,
Series A, 4.75%, 1/01/25

 

 

3,000

 

 

2,334,270

 

University of Alabama, RB, Series A
(NPFGC), 5.00%, 7/01/34

 

 

7,125

 

 

7,320,795

 

 

 

 

 

 

 

 

 

 

 

 

10,892,661

 

Alaska — 1.0%

 

 

 

 

 

 

 

Borough of Matanuska-Susitna Alaska,
RB, Goose Creek Correctional Center
(AGC), 6.00%, 9/01/32

 

 

3,925

 

 

4,385,756

 

Arizona — 1.2%

 

 

 

 

 

 

 

Salt Verde Financial Corp., RB, Senior,
5.00%, 12/01/32

 

 

2,970

 

 

2,609,769

 

State of Arizona, COP, Department of
Administration, Series A (AGM),
5.00%, 10/01/27

 

 

1,850

 

 

1,888,295

 

State of Arizona, COP, Department of
Administration, Series A (AGM),
5.25%, 10/01/28

 

 

800

 

 

826,912

 

 

 

 

 

 

 

 

 

 

 

 

5,324,976

 

California — 18.6%

 

 

 

 

 

 

 

Alameda Corridor Transportation
Authority, Refunding RB, CAB,
Subordinate Lien, Series A (AMBAC),
5.52%, 10/01/25 (a)

 

 

4,150

 

 

3,249,159

 

Arcadia Unified School District
California, GO, CAB, Election of 2006,
Series A (AGM), 4.96%, 8/01/39 (b)

 

 

2,200

 

 

293,392

 

Cabrillo Community College District
California, GO, CAB, Election of 2004,
Series B (NPFGC), 5.18%,
8/01/37 (b)

 

 

3,250

 

 

485,388

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

Cabrillo Community College District
California, GO, CAB, Election of 2004,
Series B (NPFGC), 4.87%,
8/01/38 (b)

 

$

7,405

 

$

1,024,112

 

California Health Facilities Financing
Authority, Refunding RB, St. Joseph
Health System, Series A, 5.75%,
7/01/39

 

 

775

 

 

798,250

 

California State University, RB,
Systemwide, Series A (NPFGC),
5.00%, 11/01/35

 

 

2,400

 

 

2,358,864

 

Carlsbad Unified School District, GO,
Election, Series B, 6.09%,
5/01/34 (a)

 

 

5,000

 

 

3,079,100

 

Chino Valley Unified School District, GO,
Election of 2002, Series C (NPFGC),
5.25%, 8/01/30

 

 

1,200

 

 

1,218,888

 

City of San Jose California, Refunding
RB, Series A, AMT (AMBAC), 5.50%,
3/01/32

 

 

5,100

 

 

5,048,286

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM),
5.52%, 8/01/31 (a)

 

 

2,800

 

 

2,364,096

 

El Monte Union High School District
California, GO, Election of 2002,
Series C, (AGM), 5.25%, 6/01/28

 

 

6,110

 

 

6,369,186

 

Fresno Unified School District California,
GO, Election of 2001, Series E (AGM),
5.00%, 8/01/30

 

 

1,230

 

 

1,250,479

 

Golden State Tobacco Securitization
Corp. California, RB, Enhanced Asset-
Backed, Series B (Syncora), 5.50%,
6/01/13 (c)

 

 

10,000

 

 

11,368,800

 

Hartnell Community College District
California, GO, CAB, Election of 2002,
Series D, 7.26%, 8/01/34 (b)

 

 

4,125

 

 

1,993,984

 

 

Portfolio Abbreviations

To simplify the listing of portfolio holdings in the Schedule of Investments, the names and descriptions of many of the securities have been abbreviated according to the following list:

 

 

AGC

Assured Guaranty Corp.

AGM

Assured Guaranty Municipal Corp.

AMBAC

American Municipal Bond Assurance Corp.

AMT

Alternative Minimum Tax (subject to)

ARB

Airport Revenue Bonds

BHAC

Berkshire Hathaway Assurance Corp.

CAB

Capital Appreciation Bonds

CIFG

CDC IXIS Financial Guaranty

COP

Certificates of Participation

EDA

Economic Development Authority

ERB

Education Revenue Bonds

FGIC

Financial Guaranty Insurance Co.

GAN

Grant Anticipation Notes

GO

General Obligation Bonds

HFA

Housing Finance Agency

IDA

Industrial Development Authority

ISD

Independent School District

NPFGC

National Public Finance Guarantee Corp.

PSF - GTD

Permanent School Fund Guaranteed

RB

Revenue Bonds

S/F

Single-Family

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2010

1


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Los Angeles Municipal Improvement
Corp., RB, Series B1 (NPFGC), 4.75%,
8/01/37

 

$

3,210

 

$

2,837,608

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC),
5.00%, 10/01/29

 

 

4,000

 

 

4,121,360

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC),
5.00%, 10/01/36

 

 

2,275

 

 

2,312,970

 

Mount Diablo Unified School District
California, GO, Election of 2002
(NPFGC), 5.00%, 7/01/27

 

 

2,000

 

 

2,016,800

 

Orange County Sanitation District, COP
(NPFGC), 5.00%, 2/01/33

 

 

2,750

 

 

2,805,742

 

Orange County Sanitation District, COP,
Series B (AGM), 5.00%, 2/01/30

 

 

3,500

 

 

3,664,080

 

Orange County Sanitation District, COP,
Series B (AGM), 5.00%, 2/01/31

 

 

1,200

 

 

1,249,608

 

Port of Oakland, RB, Series K, AMT
(NPFGC), 5.75%, 11/01/29

 

 

2,405

 

 

2,406,347

 

Poway Redevelopment Agency
California, Tax Allocation Bonds,
Refunding, Paguay Redevelopment
Project (AMBAC), 5.13%, 6/15/33

 

 

2,000

 

 

1,767,700

 

Sacramento Unified School District
California, GO, Election of 2002
(NPFGC), 5.00%, 7/01/30

 

 

2,500

 

 

2,510,500

 

San Bernardino Community College
District California, GO, CAB, Election,
Series B, 6.52%, 8/01/34 (a)

 

 

10,000

 

 

5,926,400

 

San Jose Unified School District Santa
Clara County California, GO, Election
of 2002, Series B (NPFGC), 5.00%,
8/01/29

 

 

2,825

 

 

2,897,348

 

San Mateo County Community College
District, GO, Election of 2001,
Series A (NPFGC), 5.00%, 9/01/26

 

 

2,725

 

 

2,780,454

 

State of California, GO, 5.13%, 6/01/27

 

 

30

 

 

29,574

 

State of California, GO, 5.50%, 4/01/28

 

 

5

 

 

5,050

 

Ventura County Community College
District, GO, Election of 2002,
Series B (NPFGC), 5.00%, 8/01/30

 

 

3,150

 

 

3,218,355

 

 

 

 

 

 

 

 

 

 

 

 

81,451,880

 

Colorado — 1.1%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian), 5.50%, 12/01/27

 

 

1,600

 

 

1,467,072

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian), 5.50%, 12/01/33

 

 

900

 

 

793,566

 

E-470 Public Highway Authority
Colorado, Refunding RB, CAB,
Series B (NPFGC), 5.51%,
9/01/29 (b)

 

 

9,000

 

 

2,484,450

 

 

 

 

 

 

 

 

 

 

 

 

4,745,088

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida — 6.8%

 

 

 

 

 

 

 

City of Miami Florida, RB (NPFGC),
5.00%, 1/01/37

 

$

650

 

$

636,786

 

City of Tallahassee Florida, RB (NPFGC),
5.00%, 10/01/32

 

 

2,700

 

 

2,739,339

 

County of Duval Florida, COP, Master
Lease Program (AGM), 5.00%,
7/01/33

 

 

4,050

 

 

4,033,233

 

County of Miami-Dade Florida, GO,
Building Better Communities Program,
Series B, 6.38%, 7/01/28

 

 

3,300

 

 

3,763,155

 

County of Miami-Dade Florida,
Refunding RB, Miami International
Airport, AMT (AGC), 5.00%, 10/01/40

 

 

8,200

 

 

7,769,172

 

County of Miami-Dade Florida,
Refunding RB, Miami International
Airport, Series A, AMT (CIFG), 5.00%,
10/01/38

 

 

2,900

 

 

2,652,833

 

County of Orange Florida, Refunding RB,
Series B (NPFGC), 5.13%, 1/01/32

 

 

2,200

 

 

2,213,244

 

Florida State Department of
Environmental Protection, RB,
Series B (NPFGC), 5.00%, 7/01/27

 

 

2,545

 

 

2,649,599

 

Sarasota County Public Hospital District,
RB, Sarasota Memorial Hospital
Project, Series A, 5.63%, 7/01/39

 

 

375

 

 

381,150

 

South Florida Water Management
District, COP (AGC), 5.00%, 10/01/22

 

 

2,700

 

 

2,878,092

 

 

 

 

 

 

 

 

 

 

 

 

29,716,603

 

Georgia — 0.9%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/39

 

 

2,820

 

 

2,915,260

 

Gwinnett County Hospital Authority,
Refunding RB, Gwinnett Hospital
System, Series D (AGM), 5.50%,
7/01/41

 

 

1,125

 

 

1,129,050

 

 

 

 

 

 

 

 

 

 

 

 

4,044,310

 

Hawaii — 0.3%

 

 

 

 

 

 

 

State of Hawaii, GO, Series CX (AGM),
5.50%, 2/01/21

 

 

1,155

 

 

1,237,790

 

Illinois — 22.8%

 

 

 

 

 

 

 

Chicago Board of Education Illinois, GO,
Refunding, Chicago School Reform
Board, Series A (NPFGC), 5.50%,
12/01/26

 

 

2,000

 

 

2,216,700

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT (AGM),
5.75%, 1/01/23

 

 

3,400

 

 

3,506,726

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT (AGM),
5.75%, 1/01/24

 

 

4,000

 

 

4,114,080

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT (Syncora),
6.00%, 1/01/29

 

 

3,300

 

 

3,405,402

 

 

 

 

2

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2010


 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

City of Chicago Illinois, GO, City of Chica
Illinois, GO, CAB, City Colleges
(NPFGC), 5.88%, 1/01/31 (b)

 

$

13,000

 

$

4,342,650

 

City of Chicago Illinois, RB, Series A
(AGC) 5.00%, 1/01/38

 

 

4,000

 

 

4,062,600

 

City of Chicago Illinois, Refunding, ARB,
General, Third Lien, Series A-2, AMT
(AGM), 5.75%, 1/01/21

 

 

2,665

 

 

2,768,882

 

City of Chicago Illinois, Refunding RB,
General Airport, Third Lien, Series A
AMT (NPFGC), 5.75%, 1/01/21

 

 

13,665

 

 

14,008,538

 

City of Chicago Illinois, Refunding RB,
General Airport, Third Lien, Series A,
AMT (NPFGC), 5.50%, 1/01/22

 

 

5,000

 

 

5,088,150

 

City of Chicago Illinois, Refunding RB,
General Airport, Third Lien, Series A,
AMT (NPFGC), 5.38%, 1/01/32

 

 

12,500

 

 

11,964,375

 

County of Cook Illinois, GO, Capital
Improvement, Series C (AMBAC),
5.50%, 11/15/12 (c)

 

 

5,080

 

 

5,727,852

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC), 5.52%,
6/15/30 (a)

 

 

28,525

 

 

28,341,584

 

Metropolitan Pier & Exposition Authority
Illinois, Refunding RB, McCormick
Place Expansion Project (NPFGC),
5.50%, 12/15/24

 

 

5,000

 

 

5,067,250

 

Regional Transportation Authority, RB,
Series B (NPFGC), 5.75%, 6/01/33

 

 

3,200

 

 

3,626,784

 

State of Illinois, RB, Build Illinois,
Series B, 5.25%, 6/15/34

 

 

1,700

 

 

1,751,952

 

 

 

 

 

 

 

 

 

 

 

 

99,993,525

 

Indiana — 2.4%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB,
Indiana Municipal Power Agency,
Series B, 5.75%, 1/01/34

 

 

550

 

 

565,290

 

Indiana Municipal Power Agency, RB,
Series A (NPFGC), 5.00%, 1/01/37

 

 

2,750

 

 

2,682,350

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB, Airport
Authority Project, Series B, AMT
(NPFGC), 5.25%, 1/01/28

 

 

2,370

 

 

2,292,406

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB, Airport
Authority Project, Series B, AMT
(NPFGC), 5.25%, 1/01/30

 

 

5,055

 

 

4,873,323

 

 

 

 

 

 

 

 

 

 

 

 

10,413,369

 

Iowa — 1.1%

 

 

 

 

 

 

 

Iowa Finance Authority, RB, Series A
(AGC), 5.63%, 8/15/37

 

 

4,825

 

 

4,988,616

 

Louisiana — 0.8%

 

 

 

 

 

 

 

Louisiana Public Facilities Authority,
Refunding RB, Christus Health,
Series B (AGC), 6.50%, 7/01/30

 

 

1,800

 

 

2,010,186

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Louisiana (concluded)

 

 

 

 

 

 

 

Louisiana State Transportation
Authority, RB, CAB, Senior Lien,
Louisiana 1 Project, Series B
(AMBAC), 5.31%, 12/01/27 (b)

 

$

2,425

 

$

952,491

 

Rapides Finance Authority Louisiana,
RB, Cleco Power LLC Project, AMT
(AMBAC), 4.70%, 11/01/36

 

 

800

 

 

663,160

 

 

 

 

 

 

 

 

 

 

 

 

3,625,837

 

Maryland — 0.4%

 

 

 

 

 

 

 

Maryland Community Development
Administration, Refunding RB,
Residential, Series A, AMT, 5.75%,
9/01/39

 

 

1,575

 

 

1,660,097

 

Massachusetts — 1.8%

 

 

 

 

 

 

 

Massachusetts HFA, RB, Rental
Mortgage, Series C, AMT (AGM),
5.60%, 1/01/45

 

 

4,000

 

 

4,016,840

 

Massachusetts HFA, RB, S/F Housing,
Series 128, AMT (AGM), 4.80%,
12/01/27

 

 

2,200

 

 

2,110,702

 

Massachusetts Water Resources
Authority, Refunding RB, General,
Series A, (NPFGC), 5.00%, 8/01/34

 

 

1,800

 

 

1,853,316

 

 

 

 

 

 

 

 

 

 

 

 

7,980,858

 

Michigan — 7.3%

 

 

 

 

 

 

 

City of Detroit Michigan, RB, System,
Second Lien, Series B (NPFGC),
5.00%, 7/01/36

 

 

4,650

 

 

4,190,534

 

City of Detroit Michigan, Refunding RB,
Second Lien, Series E (BHAC), 5.75%,
7/01/31

 

 

8,300

 

 

8,852,448

 

Michigan Higher Education Student
Loan Authority, Refunding RB, Student
Loan, Series XVII-G, AMT (AMBAC),
5.20%, 9/01/20

 

 

2,140

 

 

2,140,920

 

Michigan Strategic Fund, RB, Detroit
Edison Co. Project, Series C, AMT
(Syncora), 5.45%, 12/15/32

 

 

5,800

 

 

5,460,294

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co., Pollution, Series C,
AMT (Syncora), 5.65%, 9/01/29

 

 

1,935

 

 

1,928,073

 

Michigan Strategic Fund, Refunding RB,
Detroit Edison Co. Project, Series A,
AMT (Syncora), 5.50%, 6/01/30

 

 

1,700

 

 

1,623,789

 

Royal Oak Hospital Finance Authority
Michigan, Refunding RB, William
Beaumont Hospital, 8.25%, 9/01/39

 

 

3,510

 

 

4,069,564

 

State of Michigan, RB, GAN, GAN (AGM),
5.25%, 9/15/26

 

 

3,350

 

 

3,534,853

 

 

 

 

 

 

 

 

 

 

 

 

31,800,475

 

Minnesota — 0.7%

 

 

 

 

 

 

 

City of Minneapolis Minnesota,
Refunding RB, Fairview Health
Services, Series B (AGC), 6.50%,
11/15/38

 

 

2,700

 

 

2,999,295

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2010

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Nevada — 8.9%

 

 

 

 

 

 

 

City of Carson City Nevada, RB, Carson-
Tahoe Hospital Project, Series A
(Radian), 5.50%, 9/01/33

 

$

4,100

 

$

3,718,290

 

City of Las Vegas Nevada, GO, Limited
Tax, Performing Arts Center, 6.00%,
4/01/34

 

 

1,150

 

 

1,262,067

 

County of Clark Nevada, RB, Southwest
Gas Corp. Project, Series A, AMT
(FGIC), 4.75%, 9/01/36

 

 

45

 

 

37,414

 

County of Clark Nevada, RB, Southwest
Gas Corp. Project, Series D, AMT
(NPFGC), 5.25%, 3/01/38

 

 

12,000

 

 

10,889,760

 

County of Clark Nevada, RB,
Subordinate Lien, Series A-2 (NPFGC),
5.00%, 7/01/30

 

 

2,000

 

 

2,022,840

 

County of Clark Nevada, RB,
Subordinate Lien, Series A-2 (NPFGC),
5.00%, 7/01/36

 

 

19,100

 

 

18,905,753

 

Las Vegas Valley Water District, GO,
Refunding, Series A (NPFGC), 5.00%,
6/01/24

 

 

2,050

 

 

2,118,675

 

 

 

 

 

 

 

 

 

 

 

 

38,954,799

 

New Jersey — 7.6%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax
(Radian), 5.75%, 6/15/29

 

 

710

 

 

696,943

 

New Jersey EDA, RB, Cigarette Tax
(Radian), 5.50%, 6/15/31

 

 

1,285

 

 

1,196,386

 

New Jersey EDA, RB, Motor Vehicle
Surcharge, Series A (NPFGC), 5.25%,
7/01/31

 

 

20,065

 

 

20,079,848

 

New Jersey EDA, RB, School Facilities
Construction, Series O, 5.13%,
3/01/28

 

 

1,120

 

 

1,163,635

 

New Jersey EDA, RB, School Facilities
Construction, Series O, 5.13%,
3/01/30

 

 

7,500

 

 

7,700,475

 

New Jersey Transportation Trust Fund
Authority, RB, Transportation System,
Series A (NPFGC), 5.75%, 6/15/25

 

 

2,200

 

 

2,556,092

 

 

 

 

 

 

 

 

 

 

 

 

33,393,379

 

New York — 2.7%

 

 

 

 

 

 

 

City of New York New York, GO, Series B
(NPFGC), 5.88%, 8/01/10 (c)

 

 

10,000

 

 

10,387,400

 

Triborough Bridge & Tunnel Authority,
RB, General, Series A-2, 5.25%,
11/15/34

 

 

1,500

 

 

1,589,805

 

 

 

 

 

 

 

 

 

 

 

 

11,977,205

 

Oregon — 0.2%

 

 

 

 

 

 

 

Medford Hospital Facilities Authority,
RB, Asante Health Sytem, Sereis A
(AGC), 5.00%, 8/01/40 (d)

 

 

750

 

 

730,523

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Pennsylvania — 1.5%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB, S/F,
Series 73A, AMT, 5.45%, 10/01/32

 

$

2,120

 

$

2,127,886

 

Pennsylvania HFA, Refunding RB,
Series 99A, AMT, 5.25%, 10/01/32

 

 

2,000

 

 

2,004,300

 

Pennsylvania Turnpike Commission, RB,
CAB, Sub-Series E, 6.48%,
12/01/38 (a)

 

 

4,100

 

 

2,588,699

 

 

 

 

 

 

 

 

 

 

 

 

6,720,885

 

Puerto Rico — 2.5%

 

 

 

 

 

 

 

Puerto Rico Electric Power Authority,
Refunding RB, Series VV (NPFGC),
5.25%, 7/01/30

 

 

1,600

 

 

1,617,984

 

Puerto Rico Sales Tax Financing Corp.,
RB, First Sub-Series A, 6.38%,
8/01/39

 

 

4,700

 

 

5,001,270

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB, CAB, Series A (NPFGC),
5.75%, 8/01/41 (b)

 

 

28,000

 

 

4,161,920

 

 

 

 

 

 

 

 

 

 

 

 

10,781,174

 

South Carolina — 0.7%

 

 

 

 

 

 

 

Berkeley County School District, RB,
Securing Assets For Education,
5.13%, 12/01/30

 

 

3,175

 

 

3,238,056

 

Texas — 15.6%

 

 

 

 

 

 

 

Bell County Health Facility Development
Corp. Texas, RB, Lutheran General
Health Care System, 6.50%,
7/01/19 (e)

 

 

1,000

 

 

1,238,630

 

City of Houston Texas, Refunding RB,
Combined, First Lien, Series A (AGC),
6.00%, 11/15/35

 

 

2,850

 

 

3,217,792

 

Dallas-Fort Worth International Airport
Facilities Improvement Corp.,
Refunding RB, Joint Series A, AMT
(NPFGC), 5.88%, 11/01/17

 

 

1,835

 

 

1,911,850

 

Dallas-Fort Worth International Airport
Facilities Improvement Corp.,
Refunding RB, Joint Series A, AMT
(NPFGC), 5.88%, 11/01/18

 

 

2,145

 

 

2,225,159

 

Dallas-Fort Worth International Airport
Facilities Improvement Corp.,
Refunding RB, Joint Series A, AMT
(NPFGC), 5.88%, 11/01/19

 

 

2,385

 

 

2,468,857

 

Gregg County Health Facilities
Development Corp. Texas, RB, Good
Shepherd Medical Center Project
(Radian), 6.38%, 10/01/10 (c)

 

 

2,600

 

 

2,724,982

 

Gregg County Health Facilities
Development Corp. Texas, RB, Good
Shepherd Medical Center Project
(Radian), 6.88%, 10/01/10 (c)

 

 

3,000

 

 

3,154,140

 

Harris County-Houston Sports Authority,
Refunding RB, Senior Lien, Series G
(NPFGC), 5.75%, 11/15/20

 

 

3,900

 

 

3,959,631

 

 

 

 

4

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2010

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

Lewisville ISD Texas, GO, Refunding,
CAB, School Building (NPFGC), 4.67%,
8/15/24 (b)

 

$

6,150

 

$

3,062,762

 

Lone Star College System, GO, 5.00%,
8/15/33

 

 

4,800

 

 

4,985,856

 

Mansfield ISD Texas, GO, School
Building (PSF-GTD), 5.00%, 2/15/33

 

 

2,300

 

 

2,415,437

 

North Harris County Regional Water
Authority, RB, Senior Lien (NPFGC),
5.13%, 12/15/35

 

 

1,710

 

 

1,733,820

 

North Texas Tollway Authority,
Refunding RB, CAB, System, First Tier
(AGC), 5.73%, 1/01/31

 

 

10,000

 

 

2,926,600

 

North Texas Tollway Authority,
Refunding RB, First Tier, Series A,
6.00%, 1/01/28

 

 

3,380

 

 

3,593,244

 

North Texas Tollway Authority,
Refunding RB, System, First Tier
(NPFGC), 5.75%, 1/01/40

 

 

12,300

 

 

12,550,059

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC), 5.75%,
8/15/38

 

 

7,200

 

 

7,233,480

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC), 5.00%,
8/15/42

 

 

10,000

 

 

9,139,200

 

 

 

 

 

 

 

 

 

 

 

 

68,541,499

 

Utah — 4.0%

 

 

 

 

 

 

 

City of Salt Lake City Utah, Refunding
RB, IHC Hospitals Inc. (NPFGC),
6.30%, 2/15/15 (e)

 

 

15,000

 

 

17,477,250

 

Vermont — 0.4%

 

 

 

 

 

 

 

Vermont HFA, Refunding RB, Multiple
Purpose, Series C, AMT (AGM), 5.50%,
11/01/38

 

 

1,820

 

 

1,837,163

 

Washington — 1.8%

 

 

 

 

 

 

 

City of Tacoma Washington, RB
(NPFGC), 5.00%, 12/01/32

 

 

5,100

 

 

5,156,100

 

Port of Tacoma Washington, RB,
Series A, (AMBAC), 5.25%,
12/01/34 (c)

 

 

2,400

 

 

2,812,992

 

 

 

 

 

 

 

 

 

 

 

 

7,969,092

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Housing & EDA, Refunding
RB, Series C, AMT, 4.88%, 3/01/36

 

 

1,890

 

 

1,742,013

 

Total Municipal Bonds – 116.0%

 

 

 

 

 

508,624,174

 

 

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

 

 

 

 

 

 

California — 8.5%

 

 

 

 

 

 

 

Anaheim Public Financing Authority
California, RB, Electric System
Distribution Facilities, Series A (AGM),
5.00%, 10/01/31

 

 

1,244

 

 

1,245,496

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

Par
(000)

 

Value

 

California (concluded)

 

 

 

 

 

 

 

Golden State Tobacco Securitization
Corporation, California, RB, Enhanced
Asset Bank, Series B (CIFG), 5.63%,
6/01/13 (b)

 

$

14,160

 

$

16,155,994

 

Los Angeles Community College District
California, GO, 2008 Election,
Series A, 6.00%, 8/01/33

 

 

2,639

 

 

2,927,249

 

San Diego Community College District
California, GO, California, GO, Election
of 2002, 5.25%, 8/01/33

 

 

508

 

 

519,991

 

San Diego County Water Authority, COP,
Refunding, Series 2008-A (AGM),
5.00%, 5/01/33

 

 

5,170

 

 

5,249,980

 

San Diego County Water Authority, COP,
Refunding, Series A (NPFGC), 5.00%,
5/01/32

 

 

9,003

 

 

9,091,255

 

Tamalpais Union High School District
California, GO, Election of 2001
(AGM), 5.00%, 8/01/28

 

 

1,950

 

 

1,973,108

 

 

 

 

 

 

 

 

 

 

 

 

37,163,073

 

Colorado — 0.3%

 

 

 

 

 

 

 

Colorado Health Facilities Authority,
Refunding RB, Catholic Healthcare,
Series A, 5.50%, 7/01/34

 

 

1,220

 

 

1,285,641

 

District of Columbia — 0.3%

 

 

 

 

 

 

 

District of Columbia, RB, Series A,
5.50%, 12/01/30

 

 

1,320

 

 

1,466,045

 

Florida — 7.2%

 

 

 

 

 

 

 

City of Tallahassee. Florida, RB (NPFGC),
5.00%, 10/01/37

 

 

6,000

 

 

6,007,140

 

County of Seminole. Florida, Refunding
RB, Series B (NPFGC), 5.25%,
10/01/31

 

 

6,300

 

 

6,884,892

 

Florida State Board of Education, GO,
Series D, 5.00%, 6/01/37

 

 

2,399

 

 

2,457,972

 

Jacksonville Electric Authority Florida,
RB, Sub-Series A, 5.63%, 10/01/32

 

 

4,310

 

 

4,613,855

 

Miami Dade County School Board.
Florida, COP, Series B (AGC), 5.25%,
5/01/27

 

 

11,350

 

 

11,751,790

 

 

 

 

 

 

 

 

 

 

 

 

31,715,649

 

Georgia — 3.5%

 

 

 

 

 

 

 

City of Atlanta Georgia, RB, General,
Subordinate Lien, Series C (AGM),
5.00%, 1/01/33

 

 

10,000

 

 

10,027,100

 

City of Augusta, Georgia, RB (AGM),
0.25%, 10/01/34

 

 

5,000

 

 

5,196,650

 

 

 

 

 

 

 

 

 

 

 

 

15,223,750

 

Illinois — 4.8%

 

 

 

 

 

 

 

City of Chicago, Illinois, Refunding RB,
Second Lien (AGM), 5.25%, 11/01/33

 

 

14,429

 

 

15,118,639

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2010

5


 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

Illinois State Toll Highway Authority, RB,
Series B, 5.50%, 1/01/33

 

$

2,000

 

$

2,137,113

 

Metropolitan Pier & Exposition Authority,
Illinois, Refunding RB, McCormick
Place Expansion, Series B (NPFGC),
5.75%, 6/15/23

 

 

3,499

 

 

3,784,631

 

 

 

 

 

 

 

 

 

 

 

 

21,040,383

 

Massachusetts — 4.0%

 

 

 

 

 

 

 

Massachusetts School Building
Authority, RB, Series A (AGM), 5.00%,
8/15/30

 

 

16,500

 

 

17,304,116

 

Nevada — 1.8%

 

 

 

 

 

 

 

City of Las Vegas, Nevada, GO, Limited
Tax Performing Arts Center, 6.00%,
4/01/39

 

 

5,007

 

 

5,429,016

 

Clark County Water Reclamation
District, GO, Series B, 5.75%,
7/01/34

 

 

2,429

 

 

2,666,096

 

 

 

 

 

 

 

 

 

 

 

 

8,095,112

 

New Hampshire — 2.3%

 

 

 

 

 

 

 

New Hampshire Health & Education
Facilities Authority, RB, Dartmouth
Hitchcock Obligation (AGM), 5.50%,
8/01/27

 

 

10,000

 

 

10,189,400

 

New Jersey — 1.2%

 

 

 

 

 

 

 

New Jersey EDA, RB, Cigarette Tax,
(AGC), 5.50%, 6/15/24

 

 

5,150

 

 

5,330,405

 

New York — 5.1%

 

 

 

 

 

 

 

Erie County Industrial Development
Agency, RB, City School District of
Buffalo Project, Series A (AGM),
5.75%, 5/01/28

 

 

2,007

 

 

2,183,425

 

New York City Municipal Water Finance
Authority, RB, Fiscal 2009, Series A,
5.75%, 6/15/40

 

 

3,509

 

 

3,913,435

 

New York State Dormitory Authority,
ERB, Series B, 5.75%, 3/15/36

 

 

1,545

 

 

1,718,735

 

New York State Thruway Authority, RB,
Series G (AGM), 5.00%, 1/01/32

 

 

14,200

 

 

14,510,270

 

 

 

 

 

 

 

 

 

 

 

 

22,325,865

 

Ohio — 0.2%

 

 

 

 

 

 

 

State of Ohio, RB, Cleveland Clinic
Health, Series B, 5.50%, 1/01/34

 

 

780

 

 

814,609

 

South Carolina — 1.2%

 

 

 

 

 

 

 

South Carolina State Public Service
Authority, RB, Santee Cooper,
Series A, 5.50%, 1/01/38

 

 

4,695

 

 

5,051,022

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (f)

 

Par
(000)

 

Value

 

Texas — 2.6%

 

 

 

 

 

 

 

Clear Creek Independent School District,
Texas, GO, Refunding, School Building
(PSF - GTD), 5.00%, 2/15/33

 

$

5,900

 

$

6,344,181

 

Cypress Fairbanks Independent School
District, GO, Refunding, Schoolhouse
(PSF - GTD), 5.00%, 2/15/32

 

 

4,750

 

 

5,012,153

 

 

 

 

 

 

 

 

 

 

 

 

11,356,334

 

Virginia — 0.8%

 

 

 

 

 

 

 

Fairfax County IDA Virginia, Refunding
RB, Health Care, Inova Health System,
Series A, 5.50%, 5/15/35

 

 

450

 

 

467,906

 

Virginia Housing Development Authority,
RB, Series H, Sub-Series H 1 (NPFGC),
5.35%, 7/01/31

 

 

3,195

 

 

3,224,873

 

 

 

 

 

 

 

 

 

 

 

 

3,692,779

 

Washington — 0.6%

 

 

 

 

 

 

 

Central Puget Sound Regional
Transportation Authority, Washington,
RB, Series A (AGM), 5.00%, 11/01/32

 

 

2,504

 

 

2,608,879

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 44.4%

 

 

 

 

 

194,663,062

 

Total Long-Term Investments
(Cost – $689,788,600) – 160.4%

 

 

 

 

 

703,287,236

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.16% (g)(h)

 

 

5,501,884

 

 

5,501,884

 

Total Short-Term Securities
(Cost – $5,501,884) – 1.2%

 

 

 

 

 

5,501,884

 

Total Investments
(Cost – $695,290,484*) – 161.6%

 

 

 

 

 

708,789,120

 

Other Assets Less Liabilities – 1.2%

 

 

 

 

 

5,288,227

 

Liability for Trust Certificates, Including Interest

 

 

 

 

 

 

 

Expense and Fees Payable – (22.5)%

 

 

 

 

 

(98,839,089

)

Preferred Shares, at Redemption Value – (40.3)%

 

 

 

 

 

(176,653,794

)

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

438,584,464

 

 

 

 

 

 

 

 

 

6

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2010


 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Quality Fund, Inc. (MQY)

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2010, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

Aggregate cost

 

$

600,702,040

 

 

 

Gross unrealized appreciation

 

$

24,549,457

 

Gross unrealized depreciation

 

 

(15,229,396

)

 

 

Net unrealized appreciation

 

$

9,320,061

 

 

 

 

 

(a)

Represents a step-up bond that pays an initial coupon rate for the first period and then a higher coupon rate for the following periods. Rate shown reflects the current yield as of report date.

 

 

(b)

Represents a zero-coupon bond. Rate shown reflects the current yield as of report date.

 

 

(c)

U.S. government securities, held in escrow, are used to pay interest on this security, as well as to retire the bond in full at the date indicated, typically at a premium to par.

 

 

(d)

When-issued security. Unsettled when-issued security transactions were as follows:

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Merrill Lynch & Co.

 

$

730,523

 

 

—

 

 

 

(e)

Security is collateralized by Municipal or U.S. Treasury Obligations.

 

 

(f)

Securities represent bonds transferred to a tender option bond trust in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

 

(g)

Investments in companies considered to be an affiliate of the Fund, for purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as follows:

 

 

 

 

 

 

 

 

Affiliate

 

Net
Activity

 

Income

 

FFI Institutional Tax-Exempt Fund

 

$

(5,407,270

)

$

22,345

 

 

 

 

(h)

Represents the current yield as of report date.

 

 

 

•

Fair Value Measurements — Various inputs are used in determining the fair value of investments, which are as follows:

 

 

 

 

•

Level 1 — price quotations in active markets/exchanges for identical assets and liabilities

 

 

 

 

•

Level 2 — other observable inputs (including, but not limited to: quoted prices for similar assets or liabilities in markets that are active, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the assets or liabilities (such as interest rates, yield curves, volatilities, repayment speeds, loss severities, credit risks and default rates) or other market-corroborated inputs)

 

 

 

 

•

Level 3 — unobservable inputs based on the best information available in the circumstances, to the extent observable inputs are not available (including the Fund’s own assumptions used in determining the fair value of investments)

 

 

 

 

The inputs or methodologies used for valuing securities are not necessarily an indication of the risk associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments and other significant accounting policies, please refer to the Fund’s most recent financial statements as contained in its annual report.

 

 

 

 

The following table summarizes the inputs used as of January 31, 2010 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

Valuation Inputs

 

Investments in
Securities

 

 

 

Assets

 

 

 

Level 1 - Short-Term Securities

 

$

5,501,884

 

Level 2 - Long-Term Investments1

 

 

703,287,236

 

Level 3

 

 

—

 

 

 

Total

 

$

708,789,120

 

 

 

 

 

 

1          See above Schedule of Investments for values in each state or political subdivision.

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2010

7

Item 2 – Controls and Procedures
   
2(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”)) are effective as of a date within 90 days of the filing of this report based on the evaluation of these controls and procedures required by Rule 30a-3(b) under the 1940 Act and Rule 13(a)-15(b) under the Securities Exchange Act of 1934, as amended.
   
2(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) 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 – Attached hereto
   
  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.
   
  BlackRock MuniYield Quality Fund, Inc.
   
  By: /s/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer of
    BlackRock MuniYield Quality Fund, Inc.
   
  Date: March 19, 2010
   
  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/ Anne F. Ackerley  
    Anne F. Ackerley
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield Quality Fund, Inc.
   
  Date: March 19, 2010
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Quality Fund, Inc.
     
  Date: March 19, 2010