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: John M. Perlowski, 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: 04/30/2011

 

Date of reporting period: 01/31/2011

 

Item 1 – Schedule of Investments

 

 

 

 

 

Schedule of Investments January 31, 2011 (Unaudited)

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Alabama — 2.4%

 

 

 

 

 

 

 

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

 

$

3,000

 

$

2,463,810

 

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

 

 

7,125

 

 

7,124,715

 

 

 

 

 

 

 

 

 

 

 

 

9,588,525

 

Alaska — 1.3%

 

 

 

 

 

 

 

Alaska Housing Finance Corp., RB,
General Housing, Series B (NPFGC),
5.25%, 12/01/30

 

 

600

 

 

592,674

 

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

 

 

4,425

 

 

4,679,924

 

 

 

 

 

 

 

 

 

 

 

 

5,272,598

 

Arizona — 0.6%

 

 

 

 

 

 

 

State of Arizona, COP, Department of
Administration, Series A (AGM):

 

 

 

 

 

 

 

5.00%, 10/01/27

 

 

1,850

 

 

1,747,843

 

5.25%, 10/01/28

 

 

800

 

 

768,784

 

 

 

 

 

 

 

 

 

 

 

 

2,516,627

 

California — 18.6%

 

 

 

 

 

 

 

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

 

 

4,150

 

 

3,198,903

 

Arcadia Unified School District
California, GO, CAB, Election of 2006,
Series A (AGM), 5.31%, 8/01/39 (b)

 

 

2,200

 

 

306,218

 

Cabrillo Community College District
California, GO, CAB, Election of 2004,
Series B (NPFGC) (b):

 

 

 

 

 

 

 

5.18%, 8/01/37

 

 

3,250

 

 

504,563

 

4.87%, 8/01/38

 

 

7,405

 

 

1,069,652

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

St. Joseph Health System, Series A,
5.75%, 7/01/39

 

 

775

 

 

761,120

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

California (continued)

 

 

 

 

 

 

 

California Health Facilities Financing
Authority, Refunding RB:

 

 

 

 

 

 

 

Sutter Health, Series B, 5.88%,
8/15/31 (c)

 

$

1,500

 

$

1,486,710

 

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

 

 

2,130

 

 

1,920,280

 

Carlsbad Unified School District, GO,
Election of 2006, Series B, 6.09%,
5/01/34 (a)

 

 

5,000

 

 

2,746,150

 

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

 

 

1,200

 

 

1,184,148

 

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

 

 

5,100

 

 

4,688,430

 

Coast Community College District
California, GO, Refunding, CAB,
Election of 2002, Series C (AGM),
5.53%, 8/01/13 (a)

 

 

2,800

 

 

2,160,564

 

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

 

 

6,110

 

 

6,000,448

 

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

 

 

1,230

 

 

1,152,805

 

Grossmont-Cuyamaca Community
College District California, GO,
Refunding, CAB, Election of 2002,
Series C (AGC), 5.80%, 8/01/30 (b)

 

 

10,030

 

 

2,626,957

 

Hartnell Community College District
California, GO, CAB, Election of 2002,
Series D, 7.43%, 8/01/34 (a)

 

 

4,125

 

 

1,948,568

 

Los Angeles Community College District
California, GO, Election of 2008,
Series C, 5.25%, 8/01/39

 

 

2,500

 

 

2,365,925

 

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

 

 

3,210

 

 

2,718,324

 

 

Portfolio Abbreviations

To simplify the listings 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

GAN

Grant Anticipation Notes

GO

General Obligation Bonds

HDA

Housing Development Authority

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, 2011

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)

 

 

 

 

 

 

 

Metropolitan Water District of Southern
California, RB, Series B-1 (NPFGC):

 

 

 

 

 

 

 

5.00%, 10/01/29

 

$

4,000

 

$

3,877,000

 

5.00%, 10/01/36

 

 

2,275

 

 

2,239,283

 

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

 

 

1,750

 

 

1,661,555

 

Orange County Sanitation District, COP,
Series B (AGM):

 

 

 

 

 

 

 

5.00%, 2/01/30

 

 

3,500

 

 

3,491,495

 

5.00%, 2/01/31

 

 

1,200

 

 

1,189,524

 

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

 

 

2,405

 

 

2,285,736

 

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

 

 

2,000

 

 

1,633,340

 

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

 

 

2,500

 

 

2,374,750

 

San Bernardino Community College
District California, GO, CAB, Election of
2008, Series B, 6.52%, 8/01/34 (a)

 

 

10,000

 

 

5,556,800

 

San Diego County Water Authority, COP,
Refunding, Series 2008-A (AGM),
5.00%, 5/01/38

 

 

3,000

 

 

2,825,490

 

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

 

 

2,825

 

 

2,764,940

 

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

 

 

2,725

 

 

2,724,891

 

State of California, GO:

 

 

 

 

 

 

 

5.13%, 6/01/27

 

 

30

 

 

28,858

 

5.50%, 4/01/28

 

 

5

 

 

4,972

 

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

 

 

3,150

 

 

2,991,933

 

Yosemite Community College District,
GO, CAB, Election of 2004, Series D,
6.55%, 8/01/36 (b)

 

 

15,000

 

 

2,448,450

 

 

 

 

 

 

 

 

 

 

 

 

74,938,782

 

Colorado — 1.5%

 

 

 

 

 

 

 

Colorado Health Facilities Authority, RB,
Covenant Retirement Communities,
Series A (Radian):

 

 

 

 

 

 

 

5.50%, 12/01/27

 

 

1,600

 

 

1,396,096

 

5.50%, 12/01/33

 

 

900

 

 

757,908

 

E-470 Public Highway Authority
Colorado, Refunding RB, CAB,
Series B (NPFGC), 5.56%, 9/01/29 (b)

 

 

9,000

 

 

2,254,320

 

Regional Transportation District, COP,
Series A, 5.38%, 6/01/31

 

 

1,885

 

 

1,838,214

 

 

 

 

 

 

 

 

 

 

 

 

6,246,538

 

Florida — 8.5%

 

 

 

 

 

 

 

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

 

 

2,700

 

 

2,539,863

 

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

 

 

4,050

 

 

3,698,298

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Florida (concluded)

 

 

 

 

 

 

 

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

 

$

3,300

 

$

3,572,844

 

County of Miami-Dade Florida, RB,
Water & Sewer System (AGM), 5.00%,
10/01/39

 

 

4,000

 

 

3,745,640

 

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

 

 

8,200

 

 

7,069,220

 

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

 

 

2,200

 

 

2,129,974

 

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

 

 

2,545

 

 

2,511,253

 

Highlands County Health Facilities
Authority, RB, Adventist Health
System/Sunbelt, Series B, 6.00%,
11/15/37

 

 

1,250

 

 

1,274,650

 

Orange County School Board, COP,
Series A (NPFGC), 5.00%, 8/01/31

 

 

5,000

 

 

4,689,050

 

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

 

 

375

 

 

367,429

 

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

 

 

2,700

 

 

2,751,138

 

 

 

 

 

 

 

 

 

 

 

 

34,349,359

 

Georgia — 1.0%

 

 

 

 

 

 

 

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

 

 

2,820

 

 

2,824,428

 

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

 

 

1,125

 

 

1,049,681

 

 

 

 

 

 

 

 

 

 

 

 

3,874,109

 

Illinois — 22.6%

 

 

 

 

 

 

 

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

 

 

2,000

 

 

1,972,820

 

Chicago Park District, GO, Harbor
Facilities, Series C, 5.25%, 1/01/40

 

 

750

 

 

721,920

 

City of Chicago Illinois, ARB, General,
Third Lien, Series B-2, AMT:

 

 

 

 

 

 

 

(AGM), 5.75%, 1/01/23

 

 

3,400

 

 

3,447,090

 

(AGM), 5.75%, 1/01/24

 

 

4,000

 

 

4,064,040

 

(Syncora), 6.00%, 1/01/29

 

 

3,300

 

 

3,309,405

 

City of Chicago Illinois, GO, CAB, City
Colleges (NPFGC), 5.90%,
1/01/31 (b)

 

 

13,000

 

 

3,308,630

 

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

 

 

4,000

 

 

3,678,560

 

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

 

 

2,665

 

 

2,728,667

 

City of Chicago Illinois, Refunding RB,
General Airport, Third Lien, Series A,
AMT (NPFGC):

 

 

 

 

 

 

 

5.75%, 1/01/21

 

 

13,665

 

 

13,735,648

 

5.38%, 1/01/32

 

 

10,000

 

 

8,996,600

 

 

 

 

2

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2011


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Illinois (concluded)

 

 

 

 

 

 

 

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

 

$

5,080

 

$

5,520,791

 

Illinois Sports Facilities Authority, RB,
State Tax Supported (AMBAC), 5.50%,
6/15/30

 

 

28,525

 

 

28,614,854

 

Metropolitan Pier & Exposition Authority,
RB, CAB, McCormick Place Expansion
Project, Series A (NPFGC),
5.82%, 6/15/30 (b)

 

 

15,000

 

 

4,184,400

 

Metropolitan Pier & Exposition Authority,
Refunding RB, CAB, McCormick Place
Expansion Project, Series B (AGM) (b):

 

 

 

 

 

 

 

5.83%, 6/15/27

 

 

1,750

 

 

622,895

 

6.25%, 6/15/44

 

 

4,625

 

 

470,039

 

Railsplitter Tobacco Settlement
Authority, RB, 6.00%, 6/01/28

 

 

900

 

 

858,906

 

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

 

 

3,200

 

 

3,276,928

 

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

 

 

1,700

 

 

1,591,353

 

 

 

 

 

 

 

 

 

 

 

 

91,103,546

 

Indiana — 3.1%

 

 

 

 

 

 

 

Indiana Municipal Power Agency, RB:

 

 

 

 

 

 

 

Series A (NPFGC), 5.00%, 1/01/37

 

 

2,750

 

 

2,522,135

 

Series B, 5.75%, 1/01/34

 

 

550

 

 

552,013

 

Indianapolis Local Public Improvement
Bond Bank, Refunding RB:

 

 

 

 

 

 

 

Airport Authority Project, Series B,
AMT (NPFGC), 5.25%, 1/01/28

 

 

2,370

 

 

2,204,005

 

Airport Authority Project, Series B,
AMT (NPFGC), 5.25%, 1/01/30

 

 

5,055

 

 

4,586,907

 

Waterworks Project, Series A (AGC),
5.50%, 1/01/38

 

 

2,450

 

 

2,511,471

 

 

 

 

 

 

 

 

 

 

 

 

12,376,531

 

Iowa — 1.9%

 

 

 

 

 

 

 

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

 

 

7,700

 

 

7,610,911

 

Louisiana — 0.5%

 

 

 

 

 

 

 

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

 

 

1,800

 

 

1,914,174

 

Maryland — 0.3%

 

 

 

 

 

 

 

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

 

 

1,155

 

 

1,198,775

 

Massachusetts — 2.9%

 

 

 

 

 

 

 

Massachusetts HFA, RB, AMT (AGM):

 

 

 

 

 

 

 

Rental Mortgage, Series C, 5.60%,
1/01/45

 

 

4,000

 

 

3,875,920

 

S/F Housing, Series 128, 4.80%,
12/01/27 (e)

 

 

2,200

 

 

2,042,216

 

Massachusetts HFA, Refunding RB,
Series C, AMT:

 

 

 

 

 

 

 

5.00%, 12/01/30

 

 

3,000

 

 

2,745,540

 

5.35%, 12/01/42

 

 

1,525

 

 

1,368,962

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

 

Value

 

Massachusetts (concluded)

 

 

 

 

 

 

 

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

 

$

1,800

 

$

1,800,000

 

 

 

 

 

 

 

 

 

 

 

 

11,832,638

 

Michigan — 9.3%

 

 

 

 

 

 

 

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

 

 

3,150

 

 

2,701,535

 

City of Detroit Michigan, Refunding RB:

 

 

 

 

 

 

 

Second Lien, Series E (BHAC),
5.75%, 7/01/31

 

 

8,300

 

 

8,334,279

 

Series D (NPFGC), 5.00%, 7/01/28

 

 

6,000

 

 

5,386,740

 

Series D (NPFGC), 5.00%, 7/01/33

 

 

1,000

 

 

866,510

 

Kalamazoo Hospital Finance Authority,
RB, Bronson Methodist Hospital
(AGM), 5.25%, 5/15/36

 

 

575

 

 

527,568

 

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

 

 

2,140

 

 

2,140,642

 

Michigan State HDA, RB, Series C, AMT,
5.50%, 12/01/28

 

 

1,455

 

 

1,378,918

 

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

 

 

5,800

 

 

5,348,876

 

Michigan Strategic Fund, Refunding RB,
AMT (Syncora), Detroit Edison Co.:

 

 

 

 

 

 

 

Pollution, Series C, 5.65%, 9/01/29

 

 

1,935

 

 

1,891,385

 

Project, Series A, 5.50%, 6/01/30

 

 

1,700

 

 

1,616,411

 

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

 

 

3,510

 

 

3,908,420

 

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

 

 

3,350

 

 

3,385,242

 

 

 

 

 

 

 

 

 

 

 

 

37,486,526

 

Minnesota — 0.7%

 

 

 

 

 

 

 

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

 

 

2,700

 

 

2,834,055

 

Nevada — 8.6%

 

 

 

 

 

 

 

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

 

 

4,100

 

 

3,626,573

 

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

 

 

1,150

 

 

1,200,381

 

County of Clark Nevada, RB (NPFGC):

 

 

 

 

 

 

 

Southwest Gas Corp. Project,
Series D, AMT, 5.25%, 3/01/38

 

 

10,400

 

 

9,203,688

 

Subordinate Lien, Series A-2,
5.00%, 7/01/30

 

 

2,000

 

 

1,810,620

 

Subordinate Lien, Series A-2,
5.00%, 7/01/36

 

 

19,100

 

 

16,872,940

 

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

 

 

2,050

 

 

2,082,554

 

 

 

 

 

 

 

 

 

 

 

 

34,796,756

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2011

3


 

 

 

 

Schedule of Investments (continued)

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

New Jersey — 7.8%

 

 

 

 

 

 

 

New Jersey EDA, RB:

 

 

 

 

 

 

 

Cigarette Tax (Radian), 5.75%,
6/15/29

 

$

710

 

$

635,130

 

Cigarette Tax (Radian), 5.50%,
6/15/31

 

 

1,285

 

 

1,130,646

 

Motor Vehicle Surcharge, Series A
(NPFGC), 5.25%, 7/01/31

 

 

20,065

 

 

20,063,997

 

School Facilities Construction,
Series O, 5.13%, 3/01/30

 

 

7,500

 

 

7,360,950

 

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

 

 

2,000

 

 

2,108,180

 

 

 

 

 

 

 

 

 

 

 

 

31,298,903

 

North Carolina — 0.5%

 

 

 

 

 

 

 

North Carolina Medical Care
Commission, RB, Novant Health
Obligation, Series A, 4.75%,
11/01/43

 

 

2,300

 

 

1,870,199

 

Ohio — 0.3%

 

 

 

 

 

 

 

Ohio Higher Educational Facility
Commission, Refunding RB, Summa
Health System, 2010 Project (AGC),
5.25%, 11/15/40

 

 

1,400

 

 

1,277,108

 

Pennsylvania — 1.0%

 

 

 

 

 

 

 

Pennsylvania HFA, Refunding RB, AMT:

 

 

 

 

 

 

 

S/F, Series 73A, 5.45%, 10/01/32

 

 

2,120

 

 

2,072,406

 

Series 99A, 5.25%, 10/01/32

 

 

2,000

 

 

1,905,380

 

 

 

 

 

 

 

 

 

 

 

 

3,977,786

 

Puerto Rico — 2.4%

 

 

 

 

 

 

 

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

 

 

4,700

 

 

4,812,894

 

Puerto Rico Sales Tax Financing Corp.,
Refunding RB:

 

 

 

 

 

 

 

CAB, Series A (NPFGC), 5.73%,
8/01/41 (b)

 

 

28,000

 

 

3,647,840

 

First Sub-Series C, 6.00%, 8/01/39

 

 

1,050

 

 

1,047,154

 

 

 

 

 

 

 

 

 

 

 

 

9,507,888

 

South Carolina — 0.6%

 

 

 

 

 

 

 

South Carolina Transportation
Infrastructure Bank, RB, Series A,
5.25%, 10/01/40

 

 

2,500

 

 

2,387,800

 

Texas — 12.8%

 

 

 

 

 

 

 

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

 

 

1,000

 

 

1,208,690

 

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

 

 

2,850

 

 

3,079,339

 

Comal ISD, GO, School Building (PSF-
GTD), 5.00%, 2/01/36

 

 

2,500

 

 

2,516,475

 

Dallas-Fort Worth International Airport
Facilities Improvement Corp.,
Refunding RB, Joint Series A, AMT
(NPFGC):

 

 

 

 

 

 

 

5.88%, 11/01/17

 

 

1,835

 

 

1,889,903

 

5.88%, 11/01/18

 

 

2,145

 

 

2,209,178

 

5.88%, 11/01/19

 

 

2,385

 

 

2,423,160

 

 

 

 

 

 

 

 

 

Municipal Bonds

 

Par
(000)

 

Value

 

Texas (concluded)

 

 

 

 

 

 

 

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

 

$

4,150

 

$

2,075,208

 

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

 

 

4,800

 

 

4,808,880

 

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

 

 

2,300

 

 

2,321,413

 

North Texas Tollway Authority,
Refunding RB, First Tier:

 

 

 

 

 

 

 

CAB, System (AGC), 5.73%,
1/01/31 (b)

 

 

7,950

 

 

2,227,988

 

Series A, 6.00%, 1/01/28

 

 

3,380

 

 

3,491,472

 

System (NPFGC), 5.75%, 1/01/40

 

 

12,300

 

 

11,559,294

 

Texas State Turnpike Authority, RB, First
Tier, Series A (AMBAC):

 

 

 

 

 

 

 

5.75%, 8/15/38

 

 

7,200

 

 

6,641,064

 

5.00%, 8/15/42

 

 

6,045

 

 

5,133,414

 

 

 

 

 

 

 

 

 

 

 

 

51,585,478

 

Utah — 4.2%

 

 

 

 

 

 

 

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

 

 

15,000

 

 

16,962,750

 

Vermont — 0.4%

 

 

 

 

 

 

 

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

 

 

1,730

 

 

1,670,211

 

Virginia — 1.7%

 

 

 

 

 

 

 

Roanoke Economic Development
Authority, Refunding RB, Carilion
Health System, Series B (AGM),
5.00%, 7/01/38

 

 

5,250

 

 

4,824,750

 

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

 

 

2,125

 

 

2,127,040

 

 

 

 

 

 

 

 

 

 

 

 

6,951,790

 

Washington — 1.7%

 

 

 

 

 

 

 

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

 

 

5,100

 

 

4,954,446

 

Washington Health Care Facilities
Authority, RB, Providence Health &
Services, Series A:

 

 

 

 

 

 

 

5.00%, 10/01/39

 

 

1,525

 

 

1,349,579

 

5.25%, 10/01/39

 

 

850

 

 

781,652

 

 

 

 

 

 

 

 

 

 

 

 

7,085,677

 

Wisconsin — 0.4%

 

 

 

 

 

 

 

Wisconsin Health & Educational
Facilities Authority, RB, Ascension
Health Senior Credit Group, 5.00%,
11/15/33

 

 

1,850

 

 

1,657,545

 

Total Municipal Bonds – 117.6%

 

 

 

 

 

474,173,585

 

 

 

 

 

 

 

 

 

 

 

 

4

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2011


 

 

 

 

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 (g)

 

Par
(000)

 

Value

 

California — 11.4%

 

 

 

 

 

 

 

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

 

$

1,244

 

$

1,170,883

 

California State University, Refunding
RB, Systemwide, Series A (AGM),
5.00%, 11/01/32

 

 

7,000

 

 

6,583,920

 

Golden State Tobacco Securitization
Corp., RB, Enhanced Asset-Backed,
Series B (CIFG), 5.63%, 6/01/13 (d)

 

 

10,000

 

 

11,010,800

 

Los Angeles Community College District
California, GO, Series A:

 

 

 

 

 

 

 

Election of 2001 (NPFGC), 5.00%,
8/01/32

 

 

6,120

 

 

5,751,576

 

Election of 2008, 6.00%, 8/01/33

 

 

2,639

 

 

2,791,646

 

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

 

 

2,749

 

 

2,670,789

 

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

 

 

509

 

 

511,272

 

San Diego County Water Authority, COP,
Refunding:

 

 

 

 

 

 

 

Series 2002-A (NPFGC), 5.00%,
5/01/32

 

 

9,003

 

 

8,682,835

 

Series 2008-A (AGM), 5.00%,
5/01/33

 

 

5,170

 

 

4,994,530

 

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

 

 

1,950

 

 

1,902,342

 

 

 

 

 

 

 

 

 

 

 

 

46,070,593

 

Colorado — 0.3%

 

 

 

 

 

 

 

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

 

 

1,220

 

 

1,191,360

 

District of Columbia — 0.4%

 

 

 

 

 

 

 

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

 

 

1,320

 

 

1,382,885

 

Florida — 9.9%

 

 

 

 

 

 

 

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

 

 

6,000

 

 

5,678,640

 

County of Miami-Dade Florida, RB,
Water & Sewer System (AGM), 5.00%,
10/01/39

 

 

8,728

 

 

8,173,087

 

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

 

 

6,300

 

 

6,167,322

 

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

 

 

2,399

 

 

2,357,364

 

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

 

 

4,310

 

 

4,436,240

 

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

 

 

11,350

 

 

10,993,156

 

Orange County School Board, COP,
Series A (NPFGC), 5.00%, 8/01/30

 

 

2,000

 

 

1,892,740

 

 

 

 

 

 

 

 

 

 

 

 

39,698,549

 

Georgia — 3.6%

 

 

 

 

 

 

 

Augusta-Richmond County Georgia, RB
(AGM), 5.25%, 10/01/34

 

 

5,000

 

 

5,016,150

 

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (g)

 

Par
(000)

 

Value

 

Georgia (concluded)

 

 

 

 

 

 

 

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

 

$

10,000

 

$

9,538,600

 

 

 

 

 

 

 

 

 

 

 

 

14,554,750

 

Hawaii — 1.5%

 

 

 

 

 

 

 

Honolulu City & County Board of Water
Supply, RB, Series A (NPFGC), 5.00%,
7/01/33

 

 

6,000

 

 

5,947,860

 

Illinois — 3.9%

 

 

 

 

 

 

 

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

 

 

14,429

 

 

13,908,106

 

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

 

 

2,000

 

 

1,959,653

 

 

 

 

 

 

 

 

 

 

 

 

15,867,759

 

Massachusetts — 4.1%

 

 

 

 

 

 

 

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

 

 

16,500

 

 

16,512,446

 

Nevada — 1.9%

 

 

 

 

 

 

 

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

 

 

5,007

 

 

5,209,579

 

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

 

 

2,429

 

 

2,568,385

 

 

 

 

 

 

 

 

 

 

 

 

7,777,964

 

New Hampshire — 2.5%

 

 

 

 

 

 

 

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

 

 

10,000

 

 

10,018,500

 

New York — 5.6%

 

 

 

 

 

 

 

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

 

 

2,007

 

 

2,108,271

 

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

 

 

3,509

 

 

3,660,750

 

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

 

 

1,545

 

 

1,620,427

 

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

 

 

14,200

 

 

13,751,848

 

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

 

 

1,500

 

 

1,509,405

 

 

 

 

 

 

 

 

 

 

 

 

22,650,701

 

North Carolina — 0.5%

 

 

 

 

 

 

 

North Carolina HFA, RB, Series 31-A,
AMT, 5.25%, 7/01/38

 

 

2,369

 

 

2,182,002

 

Ohio — 0.2%

 

 

 

 

 

 

 

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

 

 

780

 

 

765,024

 

South Carolina — 1.2%

 

 

 

 

 

 

 

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

 

 

4,695

 

 

4,849,794

 

 

 

 

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2011

5


 

 

 

 

Schedule of Investments (concluded)

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

 

 

 

 

 

 

 

Municipal Bonds Transferred to Tender
Option Bond Trusts (g)

 

Par
(000)

 

Value

 

Texas — 2.7%

 

 

 

 

 

 

 

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

 

$

5,900

 

$

5,982,394

 

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

 

 

4,750

 

 

4,801,680

 

 

 

 

 

 

 

 

 

 

 

 

10,784,074

 

Virginia — 0.1%

 

 

 

 

 

 

 

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

 

 

450

 

 

449,042

 

Washington — 0.6%

 

 

 

 

 

 

 

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

 

 

2,504

 

 

2,487,888

 

Total Municipal Bonds Transferred to
Tender Option Bond Trusts – 50.4%

 

 

 

 

 

203,191,191

 

Total Long-Term Investments
(Cost – $708,281,462) – 168.0%

 

 

 

 

 

677,364,776

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Short-Term Securities

 

Shares

 

 

 

 

FFI Institutional Tax-Exempt Fund,
0.15% (h)(i)

 

 

5,809,451

 

 

5,809,451

 

Total Short-Term Securities
(Cost – $5,809,451) – 1.5%

 

 

 

 

 

5,809,451

 

Total Investments
(Cost – $714,090,913*) – 169.5%

 

 

 

 

 

683,174,227

 

Other Assets Less Liabilities – 1.0%

 

 

 

 

 

4,263,435

 

Liability for Trust Certificates, Including Interest
Expense and Fees Payable – (26.7)%

 

 

 

 

 

(107,683,160

)

Preferred Shares, at Redemption Value – (43.8) %

 

 

 

 

 

(176,637,619

)

 

 

 

 

 

 

 

 

 

 

 

 

 

Net Assets Applicable to Common Shares – 100.0%

 

 

 

 

$

403,116,883

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

*

The cost and unrealized appreciation (depreciation) of investments as of January 31, 2011, as computed for federal income tax purposes, were as follows:

 

 

 

 

 

 

 

 

Aggregate cost

 

 

 

 

$

606,998,897

 

 

 

 

 

 

Gross unrealized appreciation

 

 

 

 

$

7,397,356

 

Gross unrealized depreciation

 

 

 

 

 

(38,811,812

)

 

 

 

 

 

Net unrealized depreciation

 

 

 

 

$

(31,414,456

)

 

 

 

 

 

 

 

(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)

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

 

 

 

 

 

 

 

 

Counterparty

 

Value

 

Unrealized
Appreciation

 

Morgan Stanley & Co.

 

$

1,486,710

 

$

12,165

 

 

 

(d)

US 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.

 

 

(e)

Variable rate security. Rate shown is as of report date.

 

 

(f)

Security is collateralized by Municipal or US Treasury obligations.

 

 

(g)

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.

 

 

(h)

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Affiliate

 

Shares
Held at
April 30,
2010

 

Net
Activity

 

Shares
Held at
January 31,
2011

 

Income

 

FFI Institutional
Tax-Exempt
Fund

 

8,066,496

 

(2,257,045)

 

5,809,451

 

$ 11,079

 

 

 

 

(i)

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, prepayment 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 semi-annual report.

The following table summarizes the inputs used as of January 31, 2011 in determining the fair valuation of the Fund’s investments:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Valuation Inputs

 

Level 1

 

Level 2

 

Level 3

 

Total

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

Investments in Securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

Long-Term
Investments1

 

 

—

 

$

677,364,776

 

 

—

 

$

677,364,776

 

Short-Term
Securities

 

$

5,809,451

 

 

—

 

 

—

 

 

5,809,451

 

 

 

Total

 

$

5,809,451

 

$

677,364,776

 

 

—

 

$

683,174,227

 

 

 

 

 

1

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

 

 

 

6

BLACKROCK MUNIYIELD QUALITY FUND, INC.

JANUARY 31, 2011

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 13a-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/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield Quality Fund, Inc.
   
  Date: March 25, 2011
   
  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/ John M. Perlowski  
    John M. Perlowski
    Chief Executive Officer (principal executive officer) of
    BlackRock MuniYield Quality Fund, Inc.
   
  Date: March 25, 2011
   
  By: /s/ Neal J. Andrews  
    Neal J. Andrews
    Chief Financial Officer (principal financial officer) of
    BlackRock MuniYield Quality Fund, Inc.
     
  Date: March 25, 2011