BlackRock Enhanced Equity Dividend Trust (BDJ)

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 811-21784

Name of Fund: BlackRock Enhanced Equity Dividend Trust (BDJ)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock Enhanced

            Equity Dividend Trust, 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: 10/31/2012

Date of reporting period: 01/31/2012

Item 1 – Schedule of Investments

 

 

Schedule of Investments January 31, 2012 (Unaudited)

  

 

BlackRock Enhanced Equity Dividend Trust (BDJ)

(Percentages shown are based on Net Assets)

 

Common Stocks    Shares      Value  

 

  
Aerospace & Defense – 5.4%      

General Dynamics Corp.

      75,600       $ 5,228,496   

Honeywell International, Inc. (a)

      80,700         4,683,828   

Northrop Grumman Corp. (a)

      84,200         4,887,810   

Raytheon Co. (a)

      151,100         7,251,289   

Rockwell Collins, Inc.

      21,600         1,250,424   

United Technologies Corp. (a)

      110,900         8,689,015   
     

 

 

  
        31,990,862   

 

  
Air Freight & Logistics – 0.8%      

United Parcel Service, Inc., Class B (a)

      62,900         4,758,385   

 

  
Auto Components – 0.5%      

Johnson Controls, Inc. (a)

      85,600         2,719,512   

 

  
Beverages – 2.3%      

The Coca-Cola Co.

      112,000         7,563,360   

Diageo Plc - ADR (a)

      66,600         5,900,094   
     

 

 

  
        13,463,454   

 

  
Capital Markets – 0.2%      

The Bank of New York Mellon Corp. (a)

      59,500         1,197,735   

 

  
Chemicals – 3.4%      

Air Products & Chemicals, Inc. (a)

      7,700         677,831   

The Dow Chemical Co. (a)

      104,100         3,488,391   

E.I. du Pont de Nemours & Co. (a)

      175,300         8,921,017   

Olin Corp. (a)

      116,700         2,590,740   

Praxair, Inc. (a)

      39,100         4,152,420   
     

 

 

  
        19,830,399   

 

  
Commercial Banks – 6.6%      

Bank of Nova Scotia (a)

      111,100         5,709,567   

M&T Bank Corp.

      16,800         1,339,632   

National Bank of Canada (a)

      96,000         7,201,676   

The Toronto-Dominion Bank (a)

      65,400         5,043,648   

U.S. Bancorp (a)

      272,100         7,678,662   

Wells Fargo & Co. (a)

      420,000         12,268,200   
     

 

 

  
        39,241,385   

 

  
Consumer Finance – 1.1%      

American Express Co. (a)

      126,000         6,317,640   

 

  
Containers & Packaging – 0.2%      

Temple-Inland, Inc.

      36,000         1,148,040   

 

  
Diversified Financial Services – 2.6%      

Bank of America Corp. (a)

      360,000         2,566,800   

JPMorgan Chase & Co. (a)

      338,200         12,614,860   
     

 

 

  
        15,181,660   

 

  
Diversified Telecommunication Services – 5.3%   

AT&T Inc.

      330,800         9,728,828   

BCE, Inc.

      48,100         1,962,480   

CenturyLink, Inc. (a)

      227,300         8,416,919   

Frontier Communications Corp.

      38,100         163,068   

Verizon Communications, Inc.

      241,800         9,106,188   

Windstream Corp.

      146,400         1,767,048   
     

 

 

  
        31,144,531   

 

  
Electric Utilities – 4.1%      

American Electric Power Co., Inc. (a)

      68,800         2,721,728   

Duke Energy Corp.

      109,500         2,333,445   

Edison International

      47,200         1,937,088   

FirstEnergy Corp. (a)

      44,700         1,887,234   

ITC Holdings Corp. (a)

      18,000         1,326,780   

NextEra Energy, Inc. (a)

      76,600         4,584,510   

Northeast Utilities (a)

      68,000         2,363,000   
Common Stocks    Shares      Value  

 

  

Electric Utilities (concluded)

      

PPL Corp. (a)

      49,900       $ 1,386,721   

The Southern Co. (a)

      124,400         5,667,664   
     

 

 

  
        24,208,170   

 

  
Electrical Equipment – 0.3%      

Rockwell Automation, Inc. (a)

      24,900         1,938,963   

 

  
Energy Equipment & Services – 0.6%      

Schlumberger Ltd. (a)

      49,100         3,690,847   

 

  
Food & Staples Retailing – 0.6%      

Wal-Mart Stores, Inc. (a)

      61,600         3,779,776   

 

  
Food Products – 4.4%      

General Mills, Inc. (a)

      121,500         4,839,345   

HJ Heinz Co.

      66,600         3,453,210   

Kraft Foods, Inc., Class A (a)

      159,500         6,108,850   

Mead Johnson Nutrition Co. (a)

      72,900         5,401,161   

Unilever NV

      190,800         6,363,180   
     

 

 

  
        26,165,746   

 

  
Hotels, Restaurants & Leisure – 1.7%      

McDonald’s Corp.

      104,100         10,311,105   

 

  
Household Products – 1.9%      

Kimberly-Clark Corp.

      61,200         4,379,472   

The Procter & Gamble Co.

      109,000         6,871,360   
     

 

 

  
        11,250,832   

 

  
Independent Power Producers & Energy Traders – 0.5%   

International Power Plc

      531,100         2,811,124   

 

  
Industrial Conglomerates – 2.4%      

3M Co. (a)

      56,200         4,873,101   

General Electric Co. (a)

      483,800         9,051,898   
     

 

 

  
        13,924,999   

 

  
Insurance – 3.6%      

ACE Ltd. (a)

      57,000         3,967,200   

The Chubb Corp. (a)

      90,800         6,120,828   

Prudential Financial, Inc. (a)

      69,200         3,961,008   

The Travelers Cos., Inc. (a)

      122,900         7,165,070   
     

 

 

  
        21,214,106   

 

  
IT Services – 2.2%      

Automatic Data Processing, Inc. (a)

      25,660         1,405,655   

International Business Machines Corp. (a)

      59,500         11,459,700   
     

 

 

  
        12,865,355   

 

  
Leisure Equipment & Products – 0.6%      

Mattel, Inc.

      106,800         3,310,800   

 

  
Machinery – 3.9%      

Caterpillar, Inc. (a)

      113,900         12,428,768   

Deere & Co. (a)

      125,800         10,837,670   
     

 

 

  
        23,266,438   

 

  
Media – 1.5%      

Comcast Corp., Special Class A (a)

      236,700         6,033,483   

Time Warner Cable, Inc.

      7,150         527,098   

The Walt Disney Co. (a)

      54,700         2,127,830   
     

 

 

  
        8,688,411   

 

  
Metals & Mining – 3.2%      

BHP Billiton Ltd. - ADR (a)

      157,800         12,535,632   

Rio Tinto Plc - ADR

      73,200         4,425,672   
 

 

                   
          JANUARY 31, 2012    1

 

 

Schedule of Investments (continued)

  

 

BlackRock Enhanced Equity Dividend Trust (BDJ)

(Percentages shown are based on Net Assets)

 

Common Stocks    Shares      Value  

 

  
Metals & Mining (concluded)      

Southern Copper Corp. (a)

      64,300       $ 2,230,567   
     

 

 

  
        19,191,871   

 

  
Multi-Utilities – 2.6%      

Consolidated Edison, Inc. (a)

      24,600         1,450,416   

Dominion Resources, Inc.

      114,900         5,749,596   

Public Service Enterprise Group, Inc.

      132,900         4,032,186   

Sempra Energy

      33,400         1,900,460   

Wisconsin Energy Corp.

      59,300         2,016,200   
     

 

 

  
        15,148,858   

 

  
Oil, Gas & Consumable Fuels – 12.9%      

Chevron Corp.

      180,800         18,636,864   

ConocoPhillips

      74,500         5,081,645   

Enbridge, Inc. (a)

      210,100         7,905,728   

EQT Corp. (a)

      71,700         3,622,284   

Exxon Mobil Corp. (a)

      147,000         12,309,780   

Kinder Morgan, Inc. (b)

      32,700         1,061,769   

Marathon Oil Corp. (a)

      116,700         3,663,213   

Marathon Petroleum Corp. (a)

      61,500         2,350,530   

Murphy Oil Corp. (a)

      8,400         500,640   

Occidental Petroleum Corp. (a)

      61,500         6,135,855   

Peabody Energy Corp. (a)

      23,000         784,070   

Royal Dutch Shell Plc, Class A - ADR (a)

      24,900         1,776,864   

Spectra Energy Corp. (a)

      92,500         2,912,825   

Total SA - ADR (a)

      173,500         9,190,295   
     

 

 

  
        75,932,362   

 

  
Paper & Forest Products – 0.6%      

MeadWestvaco Corp.

      126,700         3,730,048   

 

  
Pharmaceuticals – 6.2%      

Abbott Laboratories

      80,300         4,348,245   

Bristol-Myers Squibb Co.

      268,600         8,659,664   

Johnson & Johnson

      115,300         7,599,423   

Merck & Co., Inc. (a)

      196,800         7,529,568   

Pfizer, Inc. (a)

      392,300         8,395,220   
     

 

 

  
        36,532,120   

 

  
Real Estate Investment Trusts (REITs) – 0.4%      

Weyerhaeuser Co. - REIT

      116,300         2,328,326   

 

  
Road & Rail – 1.8%      

Canadian National Railway Co.

      83,800         6,320,196   

Union Pacific Corp. (a)

      38,600         4,412,366   
     

 

 

  
        10,732,562   

 

  
Semiconductors & Semiconductor Equipment – 1.0%   

Intel Corp. (a)

      213,800         5,648,596   

 

  
Software – 1.1%      

Microsoft Corp. (a)

      220,700         6,517,271   

 

  
Specialty Retail – 2.7%      

Home Depot, Inc. (a)

      199,700         8,864,683   

Limited Brands, Inc. (a)

      168,100         7,036,666   
     

 

 

  
        15,901,349   

 

  
Textiles, Apparel & Luxury Goods – 1.2%      

VF Corp. (a)

      52,500         6,903,225   

 

  
Tobacco – 3.2%      

Altria Group, Inc.

      118,300         3,359,720   

Lorillard, Inc. (a)

      44,000         4,725,160   

Philip Morris International, Inc. (a)

      145,300         10,864,081   
     

 

 

  
        18,948,961   

 

  
Common Stocks    Shares      Value  

 

  
Water Utilities – 0.6%      

American Water Works Co., Inc.

      112,700       $ 3,801,371   

 

  
Wireless Telecommunication Services – 0.8%   

Millicom International Cellular SA

      12,800         1,266,944   

Rogers Communications, Inc., Class B (a)

      23,700         911,175   

Vodafone Group Plc - ADR (a)

      92,700         2,511,243   
     

 

 

  
        4,689,362   

 

  

Total Common Stocks – 95.0%

  

      560,426,557   

 

  
     
     
Investment Companies – 2.4%   

 

  

SPDR S&P 500 ETF Trust (a)

      106,300         13,947,623   

 

  

Total Long-Term Investments

      

(Cost – $548,889,272) – 97.4%

  

      574,374,180   

 

  
     
     

Short-Term Securities

      

 

  

BlackRock Liquidity Funds, TempFund, Institutional Class, 0.15% (c)(d)

      39,407,945         39,407,945   

 

  
    

Beneficial

Interest

(000)

         

 

  

BlackRock Liquidity Series, LLC Money Market Series, 0.09% (c)(d)(e)

    $ 254         254,100   

 

  

Total Short-Term Securities

      

(Cost – $39,662,045) – 6.7%

         39,662,045   

 

  

Total Investments Before Outstanding Options Written

  

(Cost – $588,551,317*) – 104.1%

  

      614,036,225   

 

  
     
     
Options Written    Contracts         

 

  
Exchange-Traded Call Options – (1.0)%   

3M Co., Strike Price USD 87.50, Expires 4/23/12

      310         (77,808 ) 

ACE Ltd., Strike Price USD 70, Expires 2/20/12

      315         (46,462 ) 

Air Products & Chemicals, Inc., Strike Price USD 90, Expires 3/19/12

      77         (12,512 ) 

American Electric Power Co., Inc., Strike Price USD 40, Expires 2/20/12

      380         (4,750 ) 

American Express Co., Strike Price USD 50, Expires 3/05/12

      695         (99,640 ) 

Automatic Data Processing, Inc., Strike Price USD 57.50, Expires 3/19/12

      140         (3,500 ) 

Bank of America Corp.:

      

Strike Price USD 6, Expires 2/20/12

      800         (92,800 ) 

Strike Price USD 8, Expires 3/19/12

      800         (13,200 ) 

The Bank of New York Mellon Corp., Strike Price USD 22, Expires 3/19/12

      330         (5,280 ) 

Bank of Nova Scotia, Strike Price CAD 50, Expires 2/20/12

      610         (109,504 ) 

BHP Billiton Ltd. - ADR:

      

Strike Price USD 77.50, Expires 2/20/12

      510         (168,300 ) 

Strike Price USD 80, Expires 3/19/12

      357         (96,747 ) 

Caterpillar, Inc., Strike Price USD 105, Expires 2/20/12

      625         (326,562 ) 
 

 

                   
2           JANUARY 31, 2012   

 

 

Schedule of Investments (continued)

  

 

BlackRock Enhanced Equity Dividend Trust (BDJ)

(Percentages shown are based on Net Assets)

 

Options Written    Contracts      Value  

 

  
Exchange-Traded Call Options (continued)   

CenturyLink, Inc.:

      

Strike Price USD 36, Expires 2/20/12

      310       $ (49,600 ) 

Strike Price USD 37, Expires 2/20/12

      340         (30,600 ) 

The Chubb Corp., Strike Price USD 70, Expires 2/20/12

      500         (9,750 ) 

Comcast Corp., Special Class A:

      

Strike Price USD 23.25, Expires 2/06/12

      210         (47,040 ) 

Strike Price USD 25.70, Expires 3/12/12

      1,090         (68,136 ) 

Consolidated Edison, Inc., Strike Price USD 60, Expires 2/20/12

      135         (2,362 ) 

Deere & Co., Strike Price USD 87.50, Expires 3/19/12

      690         (171,465 ) 

Diageo Plc - ADR, Strike Price USD 90, Expires 3/19/12

      180         (21,150 ) 

The Dow Chemical Co., Strike Price USD 34, Expires 3/19/12

      573         (68,474 ) 

E.I. du Pont de Nemours & Co.:

      

Strike Price USD 46, Expires 2/20/12

      275         (135,438 ) 

Strike Price USD 50, Expires 3/19/12

      690         (126,615 ) 

Enbridge, Inc., Strike Price CAD 37, Expires 2/20/12

      1,155         (97,911 ) 

EQT Corp., Strike Price USD 60, Expires 2/20/12

      125         (1,875 ) 

Exxon Mobil Corp., Strike Price USD 85, Expires 4/23/12

      566         (113,483 ) 

FirstEnergy Corp., Strike Price USD 42, Expires 3/19/12

      245         (20,212 ) 

General Electric Co.:

      

Strike Price USD 17.20, Expires 2/20/12

      810         (122,310 ) 

Strike Price USD 17.45, Expires 2/20/12

      335         (42,332 ) 

Strike Price USD 19, Expires 3/19/12

      1,510         (58,890 ) 

General Mills, Inc., Strike Price USD 41, Expires 2/20/12

      141         (1,058 ) 

Home Depot, Inc., Strike Price USD 45, Expires 3/19/12

      1,105         (116,578 ) 

Honeywell International, Inc., Strike Price USD 57.50, Expires 3/19/12

      440         (85,360 ) 

Intel Corp., Strike Price USD 27, Expires 3/19/12

      1,170         (50,310 ) 

International Business Machines Corp., Strike Price USD 195, Expires 3/19/12

      330         (99,165 ) 

ITC Holdings Corp., Strike Price USD 73.50, Expires 2/06/12

      100         (5,957 ) 

Johnson Controls, Inc., Strike Price USD 30, Expires 2/20/12

      470         (96,350 ) 

JPMorgan Chase & Co., Strike Price USD 38, Expires 3/19/12

      1,860         (227,850 ) 

Kraft Foods, Inc., Class A, Strike Price USD 37, Expires 2/20/12

      730         (102,565 ) 

Limited Brands, Inc.:

      

Strike Price USD 40, Expires 2/20/12

      810         (182,250 ) 

Strike Price USD 42, Expires 3/19/12

      115         (17,825 ) 

Lorillard, Inc., Strike Price USD 110, Expires 2/20/12

      240         (45,960 ) 

Marathon Oil Corp., Strike Price USD 33, Expires 3/19/12

      640         (36,800 ) 

Marathon Petroleum Corp., Strike Price USD 40, Expires 3/19/12

      340         (34,850 ) 

Mead Johnson Nutrition Co., Strike Price USD 75, Expires 2/20/12

      400         (54,600 ) 
Options Written    Contracts      Value  

 

  
Exchange-Traded Call Options (continued)   

Merck & Co., Inc., Strike Price USD 39, Expires 3/19/12

      670       $ (34,840 ) 

Microsoft Corp.:

      

Strike Price USD 26, Expires 2/20/12

      220         (78,100 ) 

Strike Price USD 30, Expires 3/19/12

      995         (46,765 ) 

Murphy Oil Corp., Strike Price USD 55, Expires 2/20/12

      46         (22,310 ) 

National Bank of Canada, Strike Price CAD 72, Expires 2/20/12

      530         (181,036 ) 

NextEra Energy, Inc., Strike Price USD 60, Expires 2/20/12

      422         (24,265 ) 

Northeast Utilities, Strike Price USD 35, Expires 3/19/12

      375         (19,688 ) 

Northrop Grumman Corp., Strike Price USD 57.50, Expires 2/20/12

      465         (68,588 ) 

Occidental Petroleum Corp., Strike Price USD 100, Expires 2/20/12

      340         (80,580 ) 

Olin Corp., Strike Price USD 22.50, Expires 3/19/12

      645         (38,700 ) 

Peabody Energy Corp., Strike Price USD 39, Expires 3/19/12

      125         (5,312 ) 

Pfizer, Inc., Strike Price USD 22, Expires 2/20/12

      750         (4,875 ) 

Philip Morris International, Inc., Strike Price USD 77.50, Expires 2/20/12

      800         (23,600 ) 

PPL Corp., Strike Price USD 28, Expires 3/19/12

      125         (4,688 ) 

Praxair, Inc., Strike Price USD 110, Expires 3/19/12

      215         (19,350 ) 

Prudential Financial, Inc., Strike Price USD 60, Expires 3/19/12

      380         (47,880 ) 

Raytheon Co., Strike Price USD 47, Expires 2/20/12

      830         (112,050 ) 

Rockwell Automation, Inc., Strike Price USD 75, Expires 2/20/12

      135         (50,625 ) 

Rogers Communications, Inc., Class B, Strike Price CAD 40, Expires 3/19/12

      130         (4,538 ) 

Royal Dutch Shell Plc, Class A - ADR:

      

Strike Price USD 75, Expires 2/20/12

      131         (2,620 ) 

Strike Price USD 75, Expires 3/19/12

      5         (225 ) 

Schlumberger Ltd.:

      

Strike Price USD 70, Expires 2/20/12

      135         (76,612 ) 

Strike Price USD 72.50, Expires 2/20/12

      135         (49,275 ) 

Southern Co., Strike Price USD 45, Expires 2/20/12

      420         (24,360 ) 

Southern Copper Corp., Strike Price USD 36, Expires 3/19/12

      355         (34,612 ) 

SPDR S&P 500 ETF Trust, Strike Price USD 132, Expires 2/20/12

      1,063         (153,072 ) 

Spectra Energy Corp., Strike Price USD 30, Expires 2/20/12

      510         (76,500 ) 

The Toronto-Dominion Bank:

      

Strike Price USD 75, Expires 2/20/12

      310         (85,250 ) 

Strike Price USD 80, Expires 3/19/12

      50         (4,750 ) 

Total SA - ADR, Strike Price USD 52.50, Expires 3/19/12

      950         (185,250 ) 

The Travelers Cos., Inc., Strike Price USD 60, Expires 4/23/12

      616         (67,760 ) 

U.S. Bancorp, Strike Price USD 29, Expires 3/19/12

      1,500         (84,750 ) 

Union Pacific Corp., Strike Price USD 105, Expires 2/20/12

      215         (206,938 ) 

United Parcel Service, Inc., Class B, Strike Price USD 72.50, Expires 2/20/12

      345         (109,538 ) 
 

 

                   
          JANUARY 31, 2012    3

 

 

Schedule of Investments (continued)

  

 

BlackRock Enhanced Equity Dividend Trust (BDJ)

(Percentages shown are based on Net Assets)

 

Options Written    Contracts      Value  

 

  
Exchange-Traded Call Options (concluded)   

United Technologies Corp., Strike Price USD 75, Expires 2/20/12

      610       $ (221,125 ) 

VF Corp., Strike Price USD 140, Expires 2/20/12

      290         (26,100 ) 

Vodafone Group Plc - ADR, Strike Price USD 27.55, Expires 2/13/12

      510         (7,101 ) 

Wal-Mart Stores, Inc., Strike Price USD 62.50, Expires 3/19/12

      35         (2,292 ) 

The Walt Disney Co., Strike Price USD 40, Expires 2/20/12

      300         (16,800 ) 

Wells Fargo & Co., Strike Price USD 31, Expires 3/19/12

      2,310         (85,470 ) 

 

  

Total Exchange-Traded Call Options

         (5,790,376 ) 

 

  
Over-the-Counter Call Options – (0.3)%   

Abbott Laboratories, Strike Price USD 55.58, Expires 3/02/12, Broker Goldman Sachs & Co.

      44,000         (14,306 ) 

Altria Group, Inc., Strike Price USD 28.40, Expires 4/10/12, Broker Goldman Sachs & Co.

      65,000         (36,738 ) 

American Water Works Co., Inc., Strike Price USD 31.76, Expires 3/09/12, Broker Deutsche Bank Securities Corp.

      62,000         (132,425 ) 

AT&T Inc., Strike Price USD 30.42, Expires 2/15/12, Broker Morgan Stanley & Co., Inc.

      182,000         (4,512 ) 

BCE, Inc., Strike Price USD 42.16, Expires 3/05/12, Broker Deutsche Bank Securities Corp.

      26,500         (6,015 ) 

Bristol-Myers Squibb Co., Strike Price USD 35.25, Expires 3/05/12, Broker Credit Suisse First Boston

      148,000         (2,028 ) 

Canadian National Railway Co., Strike Price USD 78.74, Expires 3/09/12, Broker Goldman Sachs & Co.

      46,000         (18,886 ) 

CenturyLink, Inc., Strike Price USD 37.55, Expires 3/06/12, Broker Morgan Stanley & Co., Inc.

      60,000         (29,306 ) 

Chevron Corp., Strike Price USD 107.50, Expires 3/13/12, Broker UBS Securities LLC

      100,000         (91,888 ) 

The Coca-Cola Co., Strike Price USD 68.48, Expires 3/21/12, Broker Goldman Sachs & Co.

      61,500         (48,611 ) 

ConocoPhillips, Strike Price USD 70.33, Expires 3/14/12, Broker Morgan Stanley & Co., Inc.

      41,000         (36,326 ) 

Diageo Plc - ADR, Strike Price USD 85.29, Expires 3/05/12, Broker Banc of America Securities

      19,000         (67,581 ) 

Dominion Resources, Inc., Strike Price USD 50.69, Expires 2/13/12, Broker Goldman Sachs & Co.

      63,000         (16,892 ) 

Duke Energy Corp., Strike Price USD 20.95, Expires 2/16/12, Broker Citigroup Global Markets, Inc.

      60,000         (25,486 ) 

Edison International, Strike Price USD 40.10, Expires 3/05/12, Broker Goldman Sachs & Co.

      26,000         (31,557 ) 

EQT Corp., Strike Price USD 57.25, Expires 2/09/12, Broker Citigroup Global Markets, Inc.

      27,000         (85 ) 

Exxon Mobil Corp., Strike Price USD 88.53, Expires 3/23/12, Broker Deutsche Bank Securities Corp.

      24,300         (10,769 ) 

General Dynamics Corp., Strike Price USD 72.22, Expires 3/22/12, Broker Goldman Sachs & Co.

      41,600         (37,176 ) 
Options Written    Contracts      Value  

 

  
Over-the-Counter Call Options (continued)   

General Mills, Inc.:

      

Strike Price USD 40.55, Expires 2/23/12, Broker Morgan Stanley & Co., Inc.

      32,000       $ (8,605 ) 

Strike Price USD 40.70, Expires 3/01/12, Broker Deutsche Bank Securities Corp.

      21,000         (3,671 ) 

HJ Heinz Co., Strike Price USD 53.13, Expires 3/02/12, Broker Banc of America Securities

      36,500         (5,973 ) 

International Power Plc:

      

Strike Price GBP 3.28, Expires 3/14/12, Broker UBS Securities LLC

      88,800         (18,426 ) 

Strike Price GBP 3.38, Expires 4/10/12, Broker Banc of America Securities

      203,300         (35,240 ) 

Johnson & Johnson, Strike Price USD 65.50, Expires 3/13/12, Broker Deutsche Bank Securities Corp.

      64,000         (76,177 ) 

Kimberly-Clark Corp., Strike Price USD 74, Expires 3/13/12, Broker Credit Suisse First Boston

      34,000         (7,588 ) 

Kraft Foods, Inc., Class A, Strike Price USD 37.78, Expires 2/23/12, Broker Credit Suisse First Boston

      15,000         (10,917 ) 

M&T Bank Corp., Strike Price USD 81.84, Expires 3/14/12, Broker Goldman Sachs & Co.

      9,500         (13,110 ) 

Mattel, Inc., Strike Price USD 28.27, Expires 2/07/12, Broker Citigroup Global Markets, Inc.

      59,000         (161,129 ) 

McDonald’s Corp., Strike Price USD 99.56, Expires 3/30/12, Broker Morgan Stanley & Co., Inc.

      57,200         (101,217 ) 

MeadWestvaco Corp., Strike Price USD 30.96, Expires 2/27/12, Broker Morgan Stanley & Co., Inc.

      69,500         (17,567 ) 

Merck & Co., Inc., Strike Price USD 35.96, Expires 2/06/12, Broker Deutsche Bank Securities Corp.

      41,200         (94,925 ) 

Millicom International Cellular SA:

      

Strike Price USD 100.70, Expires 3/13/12, Broker Citigroup Global Markets, Inc.

      7,000         (26,811 ) 

Strike Price USD 101.72, Expires 4/10/12, Broker Citigroup Global Markets, Inc.

      5,800         (9,164 ) 

Pfizer, Inc., Strike Price USD 21.59, Expires 3/27/12, Broker Morgan Stanley & Co., Inc.

      142,000         (43,338 ) 

PPL Corp., Strike Price USD 28.80, Expires 2/24/12, Broker Credit Suisse First Boston

      15,000         (1,810 ) 

The Procter & Gamble Co., Strike Price USD 66.29, Expires 3/21/12, Broker Goldman Sachs & Co.

      60,000         (8,227 ) 

Public Service Enterprise Group, Inc.:

      

Strike Price USD 32.08, Expires 2/27/12, Broker Credit Suisse First Boston

      59,500         (2,661 ) 

Strike Price USD 30.80, Expires 4/10/12, Broker Morgan Stanley & Co., Inc.

      14,000         (6,384 ) 

Rio Tinto Plc - ADR, Strike Price USD 59.05, Expires 3/12/12, Broker Credit Suisse First Boston

      40,000         (198,221 ) 

Rockwell Collins, Inc., Strike Price USD 57.99, Expires 3/12/12, Broker Morgan Stanley & Co., Inc.

      12,000         (13,094 ) 
 

 

                   
4           JANUARY 31, 2012   

 

 

Schedule of Investments (continued)

  

 

BlackRock Enhanced Equity Dividend Trust (BDJ)

(Percentages shown are based on Net Assets)

 

Options Written    Contracts      Value  

 

  
Over-the-Counter Call Options (continued)   

Sempra Energy, Strike Price USD 56.25, Expires 3/09/12, Broker Goldman Sachs & Co.

      18,500       $ (23,601 ) 

Southern Co., Strike Price USD 45.41, Expires 4/10/12, Broker Credit Suisse First Boston

      26,000         (16,211 ) 

The Travelers Cos., Inc., Strike Price USD 60.59, Expires 3/05/12, Broker Banc of America Securities

      6,000         (1,744 ) 

Unilever NV, Strike Price USD 34.75, Expires 2/13/12, Broker Morgan Stanley & Co., Inc.

      105,000         (12,460 ) 

Verizon Communications, Inc., Strike Price USD 39.21, Expires 3/01/12, Broker UBS Securities LLC

      133,000         (12,425 ) 

Wal-Mart Stores, Inc., Strike Price USD 61.83, Expires 3/30/12, Broker Goldman Sachs & Co.

      30,400         (30,707 ) 

Weyerhaeuser Co. - REIT, Strike Price USD 16.92, Expires 2/08/12, Broker Morgan Stanley & Co., Inc.

      64,000         (198,400 ) 

Windstream Corp., Strike Price USD 12, Expires 3/09/12, Broker Goldman Sachs & Co.

      80,500         (18,816 ) 
Options Written    Contracts      Value  

 

  
Over-the-Counter Call Options (concluded)   

Wisconsin Energy Corp., Strike Price USD 34.75, Expires 2/28/12, Broker Morgan Stanley & Co., Inc.

      32,500       $ (13,012 ) 

 

  

Total Over-the-Counter Call Options

  

      (1,802,218 ) 

 

  

Total Options Written

      

(Premiums Received – $7,801,494) – (1.3)%

  

      (7,592,594 ) 

 

  

Total Investments Net of Outstanding Options Written – 102.8%

   

      606,443,631   

Liabilities in Excess of Other Assets – (2.8)%

  

      (16,255,461 ) 
     

 

 

  

Net Assets – 100.0%

         $590,188,170   
     

 

 

  

 

* As of January 31, 2012, gross unrealized appreciation and gross unrealized depreciation based on cost for federal income tax purposes were as follows:

 

Tax cost

    $ 607,962,583   
  

 

 

  

Gross unrealized appreciation

    $ 33,799,760   

Gross unrealized depreciation

      (27,726,118 ) 
  

 

 

  

Net unrealized appreciation

    $ 6,073,642   
  

 

 

  

 

(a) All or a portion of security has been pledged/segregated as collateral in connection with outstanding options written.
(b) Security, or a portion of security, is on loan.
(c) Represents the current yield as of report date.
 

 

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

 

Affiliate   

Shares/

Beneficial Interest

Held at

October 31,

2011

   

Net

Activity

   

Shares/

Beneficial Interest

Held at

January 31,

2012

   

Realized

Gain

    Income

 

BlackRock Liquidity Funds, TempFund, Institutional Class

    30,155,024    9,252,921    39,407,945    $1,108    $10,933

BlackRock Liquidity Series, LLC Money Market Series

    $446,250    $(192,150)    $254,100    –    $7,493

 

 

(e) Security was purchased with the cash collateral from loaned securities.

 

— Foreign currency exchange contracts as of January 31, 2012 were as follows:

 

 

  

Currency

Purchased

   Currency
Sold		   Counterparty  

Settlement

Date

  

Unrealized

Appreciation

(Depreciation)

  

 

  
    Citigroup Global    
USD    48,718    CAD   49,000   Markets, Inc.   2/01/12     $  (150)   
    Citigroup Global    
GBP    404,000  USD   633,637   Markets, Inc.   2/02/12     2,985   
    Citigroup Global    
GBP    839,000  USD   1,322,707   Markets, Inc.   2/03/12     (614 ) 
    Citigroup Global    
USD    34,662    GBP   22,000   Markets, Inc.   2/03/12     (4 ) 

 

  
Total              

$2,217

  

 

— For Trust compliance purposes, the Trust’s industry classifications refer to any one or more of the industry sub-classifications used by one or more widely recognized market indexes or ratings group indexes, and/or as defined by Trust management. These definitions may not apply for purposes of this report, which may combine industry sub-classifications for reporting ease.
— Fair Value Measurements – Various inputs are used in determining the fair value of investments and derivative financial instruments. These inputs are categorized into a disclosure hierarchy consisting of three broad levels for financial reporting purposes as follows:

 

  — Level 1 - unadjusted 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 Trust’s own assumptions used in determining the fair value of investments and derivative financial instruments)
 

 

                   
          JANUARY 31, 2012    5

 

 

Schedule of Investments (concluded)

  

 

BlackRock Enhanced Equity Dividend Trust (BDJ)

 

Changes in valuation techniques may result in transfers in or out of an assigned level within the disclosure hierarchy. The categorization of a value determined for investments and derivative financial instruments is based on the pricing transparency of the investment and derivative financial instrument and does not necessarily correspond to the Trust’s perceived risk of investing in those securities. For information about the Trust’s policy regarding valuation of investments and derivative financial instruments and other significant accounting policies, please refer to the Trust’s most recent financial statements as contained in its annual report.

The following tables summarize the inputs used as of January 31, 2012 in determining the fair valuation of the Trust’s investments and derivative financial instruments:

 

 

  
Valuation Inputs    Level 1      Level 2      Level 3    Total  

 

  

Assets:

            

Investments:

            

Long-Term Investments:

            

Common Stocks1

      $557,615,433         $  2,811,124       –    $ 560,426,557   

Investment Companies

      13,947,623                  –       –      13,947,623   

Short-Term Securities

      39,407,945         254,100       –      39,662,045   

 

  

Total

      $610,971,001         $  3,065,224       –    $ 614,036,225   
  

 

 

  

 

1

See above Schedule of Investments for values in each industry excluding Level 2, Independent Power Producers & Energy Traders, within the table.

 

  
Valuation Inputs    Level 1     Level 2     Level 3    Total  

 

  

Derivative Financial Instruments2

          

Assets:

          

Foreign currency exchange contracts

    $ 2,985        –      –    $ 2,985   

Liabilities:

          

Equity contracts

      (5,397,862 )    $ (2,194,732 )    –      (7,592,594 ) 

Foreign currency exchange contracts

      (768 )      –      –      (768 ) 

 

  

Total

    $ (5,395,645 )    $ (2,194,732 )    –    $ (7,590,377 ) 
  

 

 

  

 

2

Derivative financial instruments are foreign currency exchange contracts and options. Foreign currency exchange contracts are valued at the unrealized appreciation/depreciation on the instrument and options are shown at value.

 

Portfolio Abbreviations

 

To simplify the listings of portfolio holdings in the Trust’s Schedule of Investments, the names and descriptions of many securities have been abbreviated according to the following list:      ADR      American Depositary Receipt    REIT      Real Estate Investment Trust
     CAD      Canadian Dollar    SPDR      S&P Depositary Receipts
     ETF      Exchange-Traded Fund    USD      US Dollar
     GBP      British Pound        

 

                   
6           JANUARY 31, 2012   

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 Enhanced Equity Dividend Trust

 

By:   /s/ John M. Perlowski
  John M. Perlowski
  Chief Executive Officer (principal executive officer) of
  BlackRock Enhanced Equity Dividend Trust
Date:   March 23, 2012

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 Enhanced Equity Dividend Trust
Date:   March 23, 2012

 

By:   /s/ Neal J. Andrews
  Neal J. Andrews
  Chief Financial Officer (principal financial officer) of
  BlackRock Enhanced Equity Dividend Trust
Date:   March 23, 2012