N-Q 1 d592852dnq.htm BLACKROCK MUNIYIELD QUALITY FUND, INC. BlackRock MuniYield Quality Fund, Inc.

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: 04/30/2014

Date of reporting period: 07/31/2013

Item 1 – Schedule of Investments

Schedule of Investments July 31, 2013 (Unaudited)

   

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par  

(000)

     Value  

Alabama — 2.8%

    

Birmingham Water Works Board, RB, Series B,
5.00%, 1/01/38

   $ 2,000      $ 2,016,360   

City of Birmingham Alabama, GO, CAB, Series A,
5.31%, 3/01/43 (a)

     560        453,281   

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

     3,000        2,867,310   

University of Alabama, RB, Series A (NPFGC),
5.00%, 7/01/14 (b)

     7,125        7,292,509   
   

 

 

  
              12,629,460   

Alaska — 1.7%

    

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

     600        640,536   

Alaska Housing Finance Corp., Refunding RB, Series A,
4.13%, 12/01/37

     810        728,741   

Alaska Industrial Development & Export Authority, RB, Providence Health Services, Series A,
5.50%, 10/01/41

     1,400        1,462,580   

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

     4,425        5,040,119   
   

 

 

  
              7,871,976   

Arizona — 0.9%

    

Greater Arizona Development Authority, RB, Series B (NPFGC),
5.00%, 8/01/35

     1,600        1,603,312   

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

    

5.00%, 10/01/27

     1,850        1,953,748   

5.25%, 10/01/28

     250        265,790   
   

 

 

  
              3,822,850   

Arkansas — 0.3%

    

Arkansas Development Finance Authority, RB (AMBAC),
5.68%, 7/01/46 (c)

     7,000        1,106,280   

California — 19.5%

    

Alameda Corridor Transportation Authority, Refunding RB, CAB, Subordinate Lien, Series A (AMBAC),
5.45%, 10/01/25

     4,150        4,413,815   

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

    

5.86%, 8/01/37

     3,250        811,915   

5.90%, 8/01/38

     7,405        1,730,104   

California Health Facilities Financing Authority, RB:

    

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

     775        852,888   

Sutter Health, Series A, 5.00%, 8/15/52

     1,910        1,818,893   

Sutter Health, Series B, 5.88%, 8/15/31

     1,500        1,645,350   

California State Public Works Board, LRB, Various Judicial Council Projects, Series A,
5.00%, 3/01/38

     955        945,622   

California Statewide Communities Development Authority, RB, Kaiser Permanente, Series A,
5.00%, 4/01/42

     2,000        1,975,840   

Carlsbad Unified School District, GO, Election of 2006, Series B,
5.50%, 5/01/34 (a)

     5,000        3,742,750   

City of San Jose California, Refunding ARB, AMT:

    

Series A (AMBAC), 5.50%, 3/01/32

     5,100        5,431,602   

Series A-1, 5.75%, 3/01/34

     1,150        1,197,208   

Coast Community College District, GO, CAB, Election of 2002, Series C,
4.21%, 8/01/31 (a)

     2,800        2,886,072   

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

     6,110        6,439,573   

Grossmont Union High School District, GO, CAB, Election of 2004,
5.47%, 8/01/31 (c)

     5,000        1,892,800   

Grossmont-Cuyamaca Community College District, GO, Refunding CAB, Election of 2002, Series C (AGC),
5.40%, 8/01/30 (c)

     10,030        4,054,226   

Hartnell Community College District California, GO, CAB, Election of 2002, Series D,
5.47%, 8/01/34 (a)

     4,125        2,705,876   

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC),
5.00%, 8/01/32

     770        801,778   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013    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%, 10/01/13 (b)

   $ 3,465      $ 3,492,824   

Mount San Antonio Community College District, GO, Refunding, Convertible CAB, Election of 2008,
0.00%, 8/01/43 (a)(d)

     1,945        852,980   

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

    

5.00%, 2/01/30

     3,500        3,689,735   

5.00%, 2/01/31

     1,200        1,252,848   

Poway Unified School District, GO, Refunding, CAB, School Facilities Improvement, Election of 2007, Series B,
5.74%, 8/01/36 (c)

     5,000        1,360,450   

Rio Hondo Community College District California, GO, CAB, Election of 2004, Series C,
5.70%, 8/01/37 (c)

     4,005        1,039,057   

San Bernardino Community College District, GO, CAB, Election of 2008, Series B,
5.23%, 8/01/34 (a)

     10,000        7,740,600   

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

     3,000        3,042,510   

San Diego Unified School District California, GO, CAB, Election of 2008, Series C,
5.74%, 7/01/38 (c)

     2,200        537,064   

San Diego Unified School District California, GO, Refunding, CAB, Series R-1, 5.41%, 7/01/31 (c)

     1,725        662,866   

San Joaquin County Transportation Authority, Refunding RB, Limited Tax, Measure K, Series A,
6.00%, 3/01/36

     900        1,006,101   

San Jose Unified School District, GO, Election of 2002, Series B (NPFGC), 5.00%, 8/01/15

     2,825        3,081,227   

San Marcos Unified School District, GO, Election of 2010, Series A:

    

5.00%, 8/01/34

     900        923,265   

5.00%, 8/01/38

     760        775,565   

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

     5        5,147   

State of California, GO, Refunding, Various Purpose:

    

5.00%, 2/01/38

     2,000        2,037,440   

5.00%, 9/01/41

     2,300        2,330,429   

5.00%, 10/01/41

     1,300        1,317,316   

State of California, GO, Various Purpose:

    

5.50%, 3/01/40

     2,000        2,113,940   

5.00%, 4/01/42

     1,500        1,518,840   

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

     1,825        1,917,619   

Yosemite Community College District, GO, CAB, Election of 2004, Series D,
5.74%, 8/01/36 (c)

     15,000        4,081,350   
   

 

 

  
              88,125,485   

Colorado — 0.4%

    

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

     1,885        1,978,157   

Florida — 8.9%

    

City of Jacksonville Transportation, Refunding RB, Series A, 5.00%, 10/01/30

     380        397,024   

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

     4,765        4,861,539   

County of Lee Florida, Refunding ARB, Series A, AMT:

    

5.63%, 10/01/26

     1,280        1,367,309   

5.38%, 10/01/32

     1,700        1,720,978   

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

     3,300        3,802,260   

County of Miami-Dade Florida, Refunding RB:

    

Miami International Airport, AMT (AGC),
5.00%, 10/01/40

     8,200        7,858,716   

Miami International Airport, Series A,
5.50%, 10/01/36

     6,490        6,775,300   

Subordinate Special Obligation, Series B,
5.00%, 10/01/37

     1,705        1,669,758   

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

     1,350        1,436,481   

 

                
2    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par  

(000)

     Value  

Florida (concluded)

    

Florida Ports Financing Commission, Refunding RB, State Transportation Trust Fund, Series B, AMT:

    

5.13%, 6/01/27

   $ 1,395      $ 1,492,789   

5.38%, 10/01/29

     1,900        2,032,487   

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

     1,250        1,411,212   

Hillsborough County Aviation Authority Florida, RB,
Series A, AMT (AGC),
5.38%, 10/01/33

     2,700        2,845,152   

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

     375        385,508   

South Florida Water Management District, COP:

    

(AGC), 5.00%, 10/01/22

     700        777,525   

(AMBAC), 5.00%, 10/01/36

     1,500        1,512,240   
   

 

 

  
              40,346,278   

Georgia — 3.0%

    

Augusta Georgia Water & Sewerage, RB (AGM),
5.25%, 10/01/34

     5,000        5,186,300   

Burke County Development Authority, Refunding RB, Oglethorpe Power, Vogtle Project, Series C,
5.70%, 1/01/43

     3,150        3,286,426   

City of Atlanta Georgia Department of Aviation, Refunding GARB, Series C (AGM),
5.00%, 1/01/33

     5,000        5,129,300   
   

 

 

  
              13,602,026   

Illinois — 19.0%

    

Chicago Transit Authority, RB, Sales Tax Receipts,
5.25%, 12/01/36

     840        859,858   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien:

    

Series A, 5.75%, 1/01/39

     5,500        5,721,650   

Series B-2, AMT (AGM), 5.75%, 1/01/23

     3,400        3,466,946   

Series B-2, AMT (AGM), 5.75%, 1/01/24

     4,000        4,076,560   

City of Chicago Illinois, GARB, O’Hare International Airport, Third Lien (concluded):

    

Series B-2, AMT (Syncora), 6.00%, 1/01/29

     3,300        3,352,041   

City of Chicago Illinois, GO:

    

CAB, City Colleges (NPFGC),
5.47%, 1/01/31 (c)

     13,000        5,078,710   

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

     750        776,498   

City of Chicago Illinois, Refunding GARB, O’Hare International Airport:

    

Passenger Facility Charge, Series B, AMT,
5.00%, 1/01/31

     7,500        7,354,425   

Third Lien, Series A-2, AMT (AGM),
5.75%, 1/01/21

     2,665        2,718,593   

City of Chicago Illinois, Refunding RB, Waterworks, Second Lien, Series A (AMBAC),
5.00%, 11/01/36

     1,500        1,493,760   

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

     2,000        2,154,120   

City of Chicago Illinois Board of Education, GO, Unlimited Tax, Series A, 5.50%, 12/01/39

     3,180        3,280,488   

Cook County Forest Preserve District, GO, Refunding, Limited Tax Project, Series B,
5.00%, 12/15/37

     380        388,447   

Cook County Forest Preserve District, GO, Series C,
5.00%, 12/15/37

     440        451,392   

Illinois Finance Authority, RB, Carle Foundation,
Series A, 5.75%, 8/15/34

     850        908,573   

Illinois HDA, RB, Liberty Arms Senior Apartments, Series D, AMT (AMBAC),
4.88%, 7/01/47

     2,755        2,636,122   

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

     26,525        28,153,104   

Metropolitan Pier & Exposition Authority, RB, CAB, McCormick Place Expansion Project, Series A (NPFGC),
5.46%, 6/15/30 (c)

     15,000        6,044,700   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013    3

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par  

(000)

     Value  

Illinois (concluded)

    

Metropolitan Pier & Exposition Authority, Refunding RB, CAB, McCormick Place Expansion Project, Series B (AGM),
6.15%, 6/15/44 (c)

   $ 4,625      $ 712,805   

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

     900        982,026   

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

     3,200        3,533,728   

State of Illinois, GO:

    

5.50%, 7/01/33

     1,100        1,114,201   

5.50%, 7/01/38

     590        594,903   
   

 

 

  
              85,853,650   

Indiana — 1.9%

    

Indiana Finance Authority, RB:

    

CWA Authority Project, First Lien, Series A,
5.25%, 10/01/38

     1,400        1,435,392   

Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/40

     1,190        1,117,993   

Ohio River Bridges East End Crossing Project, Series A, AMT, 5.00%, 7/01/44

     690        617,391   

Indiana Municipal Power Agency, RB:

    

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

     1,150        1,153,530   

Series B, 5.75%, 1/01/34

     550        558,476   

Indianapolis Local Public Improvement Bond Bank, Refunding RB, Waterworks Project, Series A:

    

5.75%, 1/01/38

     1,300        1,372,813   

(AGC), 5.25%, 1/01/29

     2,350        2,461,390   
   

 

 

  
              8,716,985   

Iowa — 3.6%

    

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

     7,700        8,095,318   

Iowa Student Loan Liquidity Corp., RB, Senior Series A-2, AMT:

    

5.60%, 12/01/26

     2,135        2,284,301   

5.70%, 12/01/27

     2,135        2,270,060   

5.80%, 12/01/29

     1,315        1,390,468   

5.85%, 12/01/30

     2,040        2,155,423   
   

 

 

  
              16,195,570   

Louisiana — 1.3%

    

Louisiana Local Government Environmental Facilities & Community Development Authority, RB, East Baton Rouge Sewerage Commission Projects, Series A:

    

5.00%, 2/01/43

     1,910        1,881,025   

4.00%, 2/01/48

     1,910        1,574,260   

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

     1,800        1,973,070   

Terrebonne Levee & Conservation District, RB, Public Improvement Sales Tax Bonds,
5.00%, 7/01/38

     470        464,699   
   

 

 

  
              5,893,054   

Maine — 0.1%

    

Maine State Housing Authority, Refunding RB, Series B-1, AMT, 4.25%, 11/15/27

     455        444,958   

Massachusetts — 2.4%

    

Massachusetts HFA, RB, S/F Housing, Series 124, AMT,
5.00%, 12/01/31

     2,495        2,515,035   

Massachusetts HFA, Refunding RB, Series C, AMT:

    

5.00%, 12/01/30

     3,000        3,050,130   

5.35%, 12/01/42

     1,525        1,557,818   

Massachusetts School Building Authority, RB, Dedicated Sales Tax Bonds, Senior Series A,
5.00%, 5/15/43

     1,720        1,787,372   

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

     1,800        1,918,908   
   

 

 

  
              10,829,263   

Michigan — 6.8%

    

City of Detroit Michigan, Refunding RB, Second Lien:

    

Sewage Disposal System, Series E (BHAC),
5.75%, 7/01/31

     8,300        8,347,144   

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

     1,000        909,480   

Lansing Board of Water & Light Utilities System, RB,
Series A,
5.50%, 7/01/41

     2,500        2,668,275   

 

                
4    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par  

(000)

     Value  

Michigan (concluded)

    

Michigan Finance Authority, Refunding RB, Trinity Health Credit Group,
5.00%, 12/01/39 (d)

   $ 1,000      $ 989,820   

Michigan State Building Authority, Refunding RB, Facilities Program:

    

Series I-A, 5.38%, 10/15/36

     1,200        1,256,196   

Series I-A, 5.38%, 10/15/41

     1,000        1,039,920   

Series II-A (AGM), 5.25%, 10/15/36

     4,270        4,445,753   

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

     1,275        1,316,642   

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

     1,700        1,700,051   

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

     3,510        4,237,693   

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

     3,350        3,640,445   
   

 

 

  
              30,551,419   

Minnesota — 0.7%

    

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

     2,700        3,109,806   

Missouri — 0.1%

    

Missouri State Health & Educational Facilities Authority, Refunding RB, CoxHealth, Series A,
5.00%, 11/15/44

     420        404,544   

Nebraska — 0.2%

    

Central Plains Energy Project Nebraska, RB, Gas Project No. 3, 5.25%, 9/01/37

     1,000        1,001,380   

Nevada — 2.6%

    

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

     1,150        1,249,119   

County of Clark Nevada, ARB, Subordinate Lien, Series A-2 (NPFGC):

    

5.00%, 7/01/30

     1,000        1,024,110   

5.00%, 7/01/36

     9,350        9,362,248   
   

 

 

  
              11,635,477   

New Jersey — 5.6%

    

New Jersey EDA, RB:

    

Cigarette Tax (Radian),
5.50%, 6/15/14

     1,285        1,344,213   

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

     12,375        12,729,172   

New Jersey Higher Education Student Assistance Authority, Refunding RB, Series 1, AMT:

    

5.50%, 12/01/25

     800        848,032   

5.75%, 12/01/27

     375        395,299   

5.75%, 12/01/28

     400        419,932   

5.88%, 12/01/33

     1,980        2,045,637   

New Jersey Housing & Mortgage Finance Agency, Refunding RB, M/F Housing, Series 2, AMT,
4.35%, 11/01/33

     1,655        1,522,848   

New Jersey State Turnpike Authority, RB, Series A,
5.00%, 1/01/43

     500        507,890   

New Jersey Transportation Trust Fund Authority, RB, Transportation System Series A:

    

5.00%, 6/15/42

     2,470        2,501,641   

(NPFGC), 5.75%, 6/15/25

     2,000        2,359,120   

Rutgers The State University of New Jersey, Refunding RB, Series L, 5.00%, 5/01/43

     640        659,379   
   

 

 

  
              25,333,163   

New York — 2.6%

    

Hudson New York Yards Infrastructure Corp., RB, Series A,
5.75%, 2/15/47

     1,000        1,061,710   

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

     2,000        2,237,500   

New York State HFA, RB, Affordable Housing, Series B,
5.30%, 11/01/37

     3,350        3,409,797   

New York State Thruway Authority, Refunding RB, Series I,
5.00%, 1/01/37

     2,815        2,871,075   

Port Authority of New York & New Jersey, Refunding RB, Consolidated, 172nd Series, AMT,
4.50%, 4/01/37

     2,270        2,119,363   
   

 

 

  
              11,699,445   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013    5

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par  

(000)

     Value  

Ohio — 1.0%

    

County of Allen Ohio, Refunding RB, Hospital Facilities, Catholic Health Partners, Series A,
5.00%, 5/01/42

   $ 1,000      $ 976,080   

County of Lucas Ohio, Refunding RB, Promedica Healthcare, Series A, 6.50%, 11/15/37

     725        827,566   

Ohio Higher Educational Facility Commission, Refunding RB, Kenyon College Project, 5.00%, 7/01/37

     475        476,454   

Ohio State Turnpike Commission, RB, Infrastructure Project, Junior Lien Series A-1 (d):

    

5.25%, 2/15/32

     950        992,750   

5.25%, 2/15/33

     1,325        1,379,444   
   

 

 

  
              4,652,294   

Pennsylvania — 1.6%

    

Pennsylvania Turnpike Commission, RB, Subordinate, Special Motor License Fund:

    

6.00%, 12/01/36

     775        863,769   

5.50%, 12/01/41

     6,000        6,317,220   
   

 

 

  
              7,180,989   

Puerto Rico — 3.7%

    

Puerto Rico Sales Tax Financing Corp., RB, First

Sub-Series A:

    

6.38%, 8/01/39

     4,310        4,390,425   

6.00%, 8/01/42

     5,000        4,993,150   

Puerto Rico Sales Tax Financing Corp., Refunding RB:

    

CAB, Series A (NPFGC), 6.60%, 8/01/41 (c)

     28,000        4,541,600   

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

     1,050        1,048,624   

First Sub-Series C, 5.50%, 8/01/40

     1,630        1,519,633   
   

 

 

  
              16,493,432   

South Carolina — 0.7%

    

South Carolina Jobs EDA, Refunding RB, Palmetto Health, Series A (AGM), 6.50%, 8/01/39

     320        354,890   

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

     2,500        2,603,550   
   

 

 

  
              2,958,440   

Tennessee — 0.8%

    

Memphis Center City Revenue Finance Corp., RB, Pyramid & Pinch District, Series B (AGM),
5.25%, 11/01/30

     3,520        3,722,400   

Texas — 12.3%

    

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

     1,000        1,203,820   

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

     2,850        3,239,709   

City of San Antonio Texas, RB, Texas Electric & Gas Systems, Junior Lien,
5.00%, 2/01/38

     760        787,330   

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

     2,500        2,640,950   

Dallas-Fort Worth International Airport, ARB, Joint Improvement, Series D, AMT:

    

5.00%, 11/01/38

     8,225        7,817,205   

5.00%, 11/01/42

     1,500        1,416,345   

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

     4,800        5,081,904   

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

     2,300        2,460,816   

Midland County Fresh Water Supply District No. 1, Refunding RB, CAB, City of Midland Project,
Series A, 5.12%, 9/15/36 (c)

     2,870        891,766   

North Texas Tollway Authority, Refunding RB, First Tier:

    

Series A, 6.00%, 1/01/28

     3,380        3,811,322   

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

     12,300        13,099,623   

San Antonio Public Facilities Corp., Refunding RB, Convention Center Refinancing and Expansion Project:

    

4.00%, 9/15/42

     2,155        1,801,020   

CAB, 5.00%, 9/15/35 (c)

     3,530        1,183,044   

CAB, 5.04%, 9/15/36 (c)

     6,015        1,902,845   

CAB, 5.07%, 9/15/37 (c)

     4,305        1,285,559   

Texas Municipal Gas Acquisition & Supply Corp. III, RB,
5.00%, 12/15/31

     1,600        1,525,904   

 

                
6    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds  

Par  

(000)

     Value  

Texas (concluded)

    

Texas Transportation Commission, Refunding RB, Central Texas Turnpike System, First Tier,
Series A, 5.00%, 8/15/41

   $ 5,500      $ 5,268,120   
   

 

 

  
              55,417,282   

Utah — 2.5%

    

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

     10,490        11,101,252   

Vermont — 0.0%

    

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

     45        46,252   

Washington — 2.1%

    

Central Puget Sound Regional Transit Authority, RB, Series A, 5.00%, 11/01/36

     2,000        2,075,520   

Washington Health Care Facilities Authority, RB:

    

Multicare Health System, Series B,
5.00%, 8/15/44

     4,000        3,919,600   

Providence Health & Services, Series A,
5.00%, 10/01/39

     1,525        1,498,678   

Providence Health & Services, Series A,
5.25%, 10/01/39

     850        861,382   

Washington Health Care Facilities Authority, Refunding RB, Providence Health & Services,
Series A, 5.00%, 10/01/42

     1,155        1,134,048   
   

 

 

  
              9,489,228   

Wisconsin — 0.4%

    

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

     1,850        1,879,785   
Total Municipal Bonds — 109.5%             494,092,580   
   
                 

Municipal Bonds Transferred to Tender

Option Bond (TOB) Trusts (g)

         

Arizona — 2.4%

    

Phoenix Civic Improvement Corp., RB, Civic Plaza Expansion Project, Series A, 5.00%, 7/01/37

     8,000        8,014,160   

Salt River Project Agricultural Improvement & Power District, RB, Series A, 5.00%, 1/01/38

     2,750        2,824,470   
   

 

 

  
              10,838,630   

California — 5.0%

    

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

     7,000        7,236,600   

Los Angeles Community College District California, GO, Election of 2001, Series A (NPFGC),
5.00%, 8/01/32

     6,120        6,372,573   

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

     2,639        3,055,012   

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

     509        562,736   

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

     5,170        5,367,804   
   

 

 

  
              22,594,725   

Colorado — 0.3%

    

Colorado Health Facilities Authority, Refunding RB, Catholic Health Initiatives, Series A,
5.50%, 7/01/34 (h)

     1,220        1,314,739   

District of Columbia — 1.1%

    

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

     1,320        1,479,346   

Metropolitan Washington Airports Authority, Refunding ARB, Series A, AMT, 5.00%, 10/01/30

     3,400        3,469,972   
   

 

 

  
              4,949,318   

Florida — 15.0%

    

City of Tallahassee Florida, RB, Energy System (NPFGC):

    

5.00%, 10/01/32 (h)

     2,700        2,773,845   

5.00%, 10/01/37

     6,000        6,026,460   

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

     12,729        12,895,968   

County of Miami-Dade Florida, Refunding RB, Transit System, Sales Surtax, 5.00%, 7/01/42

     2,390        2,417,342   

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013    7

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender

Option Bond (TOB) Trusts (g)

  

Par  

(000)

     Value  

Florida (concluded)

    

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

   $ 6,300      $ 6,816,348   

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

     2,399        2,483,820   

Highlands County Health Facilities Authority, RB, Adventist, Series C, 5.25%, 11/15/36

     5,990        6,270,272   

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

     4,310        4,718,157   

Miami-Dade County School Board, COP, Refunding, 5.25%, 5/01/27

     11,350        12,336,542   

Orange County School Board, COP, Series A:

    

(AGC), 5.50%, 8/01/34

     3,544        3,757,003   

(NPFCG), 5.00%, 8/01/31

     5,000        5,144,000   

(NPFGC), 5.00%, 8/01/30

     2,000        2,076,860   
   

 

 

  
              67,716,617   

Hawaii — 1.4%

    

Honolulu City & County Board of Water Supply, RB, Series A (NPFGC), 5.00%, 7/01/14 (b)

     6,000        6,261,360   

Illinois — 8.2%

    

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

     4,000        4,006,120   

City of Chicago Illinois, Refunding RB:

    

Sales Tax, Series A, 5.00%, 1/01/41

     1,140        1,152,437   

Waterworks, Second Lien (AGM),
5.25%, 11/01/33

     14,429        14,725,854   

Illinois State Toll Highway Authority, RB:

    

Series A, 5.00%, 1/01/38

     2,878        2,912,244   

Series B, 5.50%, 1/01/33

     2,000        2,154,013   

Metropolitan Pier & Exposition Authority, RB, McCormick Place Expansion Project, Series A, 5.00%, 6/15/42

     360        362,905   

Metropolitan Pier & Exposition Authority, Refunding RB, McCormick Place Expansion Project, Series B, 4.25%, 6/15/42 (h)

     6,000        5,338,440   

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

     6,198        6,479,273   
   

 

 

  
              37,131,286   

Massachusetts — 3.8%

    

Massachusetts School Building Authority, RB, Series A (AGM):

    

5.00%, 8/15/15 (b)

     2,123        2,236,827   

5.00%, 8/15/30

     14,377        15,147,974   
   

 

 

  
              17,384,801   

Michigan — 1.8%

    

Michigan Finance Authority, Refunding RB, Trinity Health, 5.00%, 12/01/39

     8,100        8,017,542   

Nevada — 1.8%

    

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

     5,007        5,381,371   

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

     2,429        2,759,991   
   

 

 

  
              8,141,362   

New Jersey — 0.6%

    

New Jersey Transportation Trust Fund Authority, RB, Transportation System, Series B, 5.25%, 6/15/36 (h)

     2,581        2,679,796   

New York — 8.6%

    

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

     2,007        2,223,666   

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

     3,509        3,897,640   

New York City Municipal Water Finance Authority, Refunding RB, Water & Sewer System, Second General Resolution, Series CC, 5.00%, 6/15/47

     7,640        7,837,188   

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

     1,545        1,728,469   

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

     10,000        10,379,100   

Port Authority of New York & New Jersey, RB, Series 169, AMT, 5.00%, 10/15/34

     10,830        11,040,968   

 

                
8    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013   

Schedule of Investments (continued)

   

BlackRock MuniYield Quality Fund, Inc. (MQY)

(Percentages shown are based on Net Assets)

 

Municipal Bonds Transferred to Tender

Option Bond (TOB) Trusts (g)

  

Par  

(000)

     Value  

New York (concluded)

    

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

   $ 1,500      $ 1,622,820   
   

 

 

  
              38,729,851   

North Carolina — 0.5%

    

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

     2,149        2,181,661   

Ohio — 0.2%

    

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

     780        825,154   

South Carolina — 1.1%

    

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

     4,695        5,037,500   

Texas — 4.1%

    

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

     5,900        6,312,528   

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

     4,750        5,084,828   

Dallas Fort Worth International Airport, ARB, Series H, AMT, 5.00%, 11/01/37 (h)

     4,496        4,282,873   

North East ISD Texas, GO, School Building, Series A (PSF-GTD), 5.00%, 8/01/37 (h)

     2,000        2,100,580   

Tarrant County Cultural Education Facilities Finance Corp., RB, Baylor Health Care System Project, Series A, 5.00%, 11/15/38

     879        874,207   
   

 

 

  
              18,655,016   

Virginia — 0.1%

    

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

     450        476,341   

Washington — 0.6%

    

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

     2,504        2,611,785   

Wisconsin — 0.6%

    

Wisconsin Health & Educational Facilities Authority, Refunding RB, Froedtert & Community Health, Inc.:

    

5.25%, 4/01/39

     2,000        2,043,060   

5.00%, 4/01/42

     640        630,368   
   

 

 

  
              2,673,428   

Total Municipal Bonds Transferred to

Tender Option Bond (TOB) Trusts — 57.2%

             258,220,912   
Total Long-Term Investments
(Cost — $737,645,087) — 166.7%		             752,313,492   
   
                 
Short-Term Securities   Shares         

FFI Institutional Tax-Exempt Fund, 0.03% (i)(j)

     6,334,897        6,334,897   
Total Short-Term Securities
(Cost — $6,334,897) — 1.4%		             6,334,897   
Total Investments (Cost — $743,979,984*) — 168.1%        758,648,389   
Other Assets Less Liabilities — 0.9%       4,184,312   

Liability for TOB Trust Certificates, Including Interest Expense and Fees Payable — (29.9%)

   

     (134,885,577 ) 
VRDP Shares, at Liquidation Value — (39.1%)        (176,600,000 ) 
   

 

 

  
Net Assets Applicable to Common Shares — 100.0%      $ 451,347,124   
   

 

 

  

 

 

*   As of July 31, 2013, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

   $ 610,800,215   
 

 

 

  

Gross unrealized appreciation

   $ 27,746,875   

Gross unrealized depreciation

     (14,737,476 ) 
 

 

 

  

Net unrealized appreciation

   $ 13,009,399   
 

 

 

  

 

Notes to Schedule of Investments

 

(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.

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013    9

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund, Inc. (MQY)

 

 

(b)   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.

 

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

 

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

 

Counterparty   Value     Unrealized
Appreciation		  

Citigroup, Inc

   $ 2,372,194      $ 1,024   

Morgan Stanley

     989,820        5,720   

RBC Capital Markets

     852,980        45,260   

 

(e)   Security is collateralized by municipal or US Treasury obligations.

 

(f)   Variable rate security. Rate shown is as of report date.

 

(g)   Securities represent bonds transferred to a TOB in exchange for which the Fund acquired residual interest certificates. These securities serve as collateral in a financing transaction.

 

(h)   All or a portion of security is subject to a recourse agreement, which may require the Fund to pay the liquidity provider in the event there is a shortfall between the TOB trust certificates and proceeds received from the sale of the security contributed to the TOB trust. In the case of a shortfall, the aggregate maximum potential amount the Fund could ultimately be required to pay under the agreements, which expire from February 1, 2016 to December 1, 2029 is $24,725,000.

 

(i)   Investments in issuers considered to be an affiliate of the Fund during the period ended July 31, 2013, 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,

2013

    

Net

Activity

    

Shares Held
at July 31,

2013

     Income  

FFI Institutional Tax-Exempt Fund

     802,157        5,532,740        6,334,897      $ 299   

 

(j)   Represents the current yield as of report date.

 

                
10    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013   

Schedule of Investments (continued)    BlackRock MuniYield Quality Fund, Inc. (MQY)

 

 

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 Guarantee Corp.    HAD    Housing Development Authority
     AGM    Assured Guaranty Municipal Corp.    HFA    Housing Finance Agency
     AMBAC    American Municipal Bond Assurance Corp.    IDA    Industrial Development Authority
     AMT    Alternative Minimum Tax (subject to)    ISD    Independent School District
     ARB    Airport Revenue Bonds    LRB    Lease Revenue Bonds
     BHAC    Berkshire Hathaway Assurance Corp.    M/F    Multi-Family
     CAB    Capital Appreciation Bonds    NPFGC    National Public Finance Guarantee Corp.
     COP    Certificates of Participation    PSF-GTD    Permanent School Fund Guaranteed
     EDA    Economic Development Authority    Radian    Radian Guaranty, Inc.
     ERB    Education Revenue Bonds    RB    Revenue Bonds
     GAB    Grant Anticipation Bonds    S/F    Single-Family
     GARB    General Airport Revenue Bonds    Syncora    Syncora Guarantee
     GO    General Obligation Bonds      

 

                
   BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013    11

Schedule of Investments (concluded)    BlackRock MuniYield Quality Fund, Inc. (MQY)

 

 

Ÿ  

Fair Value Measurements — Various inputs are used in determining the fair value of investments. These inputs to valuation techniques are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  Ÿ  

Level 1 — unadjusted price quotations in active markets/exchanges for identical assets or liabilities that the Fund has the ability to access

 

  Ÿ  

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)

 

  Ÿ  

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 hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). Accordingly, the degree of judgment exercised in determining fair value is greatest for instruments categorized in Level 3. The inputs used to measure fair value may fall into different levels of the fair value hierarchy. In such cases, for disclosure purposes, the fair value hierarchy classification is determined based on the lowest level input that is significant to the fair value measurement in its entirety.

Changes in valuation techniques may result in transfers into or out of an assigned level within the disclosure hierarchy. In accordance with the Fund’s policy, transfers between different levels of the fair value disclosure hierarchy are deemed to have occurred as of the beginning of the reporting period. The categorization of a value determined for investments is based on the pricing transparency of the investment and is not necessarily an indication of the risks associated with investing in those securities. For information about the Fund’s policy regarding valuation of investments, please refer to the Fund’s most recent financial statements as contained in its annual report.

The following table summarizes the Fund’s investments categorized in the disclosure hierarchy as of July 31, 2013:

 

     Level 1     Level 2     Level 3   Total  
Assets:        

Investments:

        

Long-Term Investments 1

     —      $ 752,313,492      —   $ 752,313,492   

Short-Term Securities

   $ 6,334,897        —      —     6,334,897   
 

 

 

    

 

 

    

 

  

 

 

  
Total   $ 6,334,897      $ 752,313,492      —   $ 758,648,389   
 

 

 

    

 

 

    

 

  

 

 

  

 

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

      

 

Certain of the Fund’s liabilities are held at carrying amount, which approximates fair value for financial reporting purposes. As of July 31, 2013, such liabilities are categorized within the disclosure hierarchy as follows:

 

   

     Level 1     Level 2     Level 3   Total  
Liabilities:        

Bank overdraft

     —      $ (11,336 )    —   $ (11,336 ) 

TOB trust certificates

     —        (134,838,775 )    —     (134,838,775 ) 

VRDP Shares

     —        (176,600,000 )    —     (176,600,000 ) 
 

 

 

    

 

 

    

 

  

 

 

  
Total     —      $ (311,450,111 )    —   $ (311,450,111 ) 
 

 

 

    

 

 

    

 

  

 

 

  

There were no transfers between levels during the period ended July 31, 2013.

 

                
12    BLACKROCK MUNIYIELD QUALITY FUND, INC.    JULY 31, 2013   

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: September 24, 2013

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: September 24, 2013
By:  

/s/ Neal J. Andrews

  Neal J. Andrews
 

Chief Financial Officer (principal financial officer) of

BlackRock MuniYield Quality Fund, Inc.

Date: September 24, 2013