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: Donald C. Burke, Chief Executive Officer,
BlackRock MuniYield Quality Fund, Inc., 800 Scudders Mill Road,
Plainsboro, NJ 08536. Mailing address: P.O. Box 9011, Princeton, NJ
08543-9011
Registrant's telephone number, including area code: (800) 882-0052, Option 4
Date of fiscal year end: 10/31/2008
Date of reporting period: 05/01/2008 - 07/31/2008
Item 1 - Schedule of Investments
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
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Alabama - 0.6% Jefferson County, Alabama, Limited Obligation School
Warrants, Series A, 4.75%, 1/01/25 $ 3,000 $ 2,529,720
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Arizona - 0.7% Salt Verde Financial Corporation, Arizona, Senior Gas
Revenue Bonds, 5%, 12/01/32 3,320 2,822,564
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California - 21.5% Alameda Corridor Transportation Authority, California,
Capital Appreciation Revenue Refunding Bonds, Subordinate
Lien, Series A, 5.45%, 10/01/25 (a)(b) 4,150 3,438,898
Arcadia, California, Unified School District, GO (Election of
2006), CABS, Series A, 4.96%, 8/01/39 (c)(d) 2,200 371,250
Cabrillo, California, Community College District, GO
(Election of 2004), Series B, 5.20%, 8/01/37 (d)(e) 3,250 575,250
Cabrillo, California, Community College District, GO
(Election of 2004), Series B, 4.87%, 8/01/38 (d)(e) 7,405 1,224,343
California State, GO, 5.50%, 4/01/28 5 5,127
California State, GO, Refunding, 5.25%, 9/01/10 (f) 4,450 4,698,043
California State, GO, Refunding, 5.125%, 6/01/27 30 30,151
California State, GO, Refunding, 5.25%, 2/01/33 (g) 5,700 5,720,349
California State University, Systemwide Revenue
Bonds, Series A, 5%, 11/01/35 (h) 3,450 3,354,677
California State, Various Purpose, GO, 5.25%, 11/01/29 10,000 10,136,400
California State, Various Purpose, GO, 5.50%, 11/01/33 3,200 3,253,600
Chino Valley, California, Unified School District, GO
(Election of 2002), Series C, 5.25%, 8/01/30 (e) 1,200 1,208,376
Coast Community College District, California, GO,
Refunding (Election of 2002), Series C, 5.45%,
8/01/13 (a)(c) 2,800 2,094,988
East Side Union High School District, California, Santa Clara
County, GO (Election of 2002), Series D,
5%, 8/01/26 (i) 2,150 2,112,461
Fresno, California, Unified School District, GO
(Election of 2001), Series E, 5%, 8/01/30 (c) 1,230 1,244,551
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds, Series
B, 5.50%, 6/01/13 (f)(i) 11,600 12,615,812
Los Angeles, California, Municipal Improvement
Corporation, Lease Revenue Bonds, Series B1, 4.75%,
8/01/37 (h) 3,410 3,171,880
Portfolio Abbreviations
To simplify the listings of portfolio holdings in the Schedule of Investments,
the names of many of the securities have been abbreviated according to the list
below.
AMT Alternative Minimum Tax (subject to)
CABS Capital Appreciation Bonds
COP Certificates of Participation
EDA Economic Development Authority
GO General Obligation Bonds
HDA Housing Development Authority
HFA Housing Finance Agency
IDA Industrial Development Authority
IDR Industrial Development Revenue Bonds
PCR Pollution Control Revenue Bonds
S/F Single-Family
SIFMA Securities Industry and Financial Markets Association
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B-1,
5%, 10/01/29 (h) $ 4,000 $ 4,030,520
Metropolitan Water District of Southern California,
Waterworks Revenue Bonds, Series B-1,
5%, 10/01/36 (h) 2,275 2,276,888
Mount Diablo, California, Unified School District, GO
(Election of 2002), 5%, 7/01/27 (h) 2,000 1,963,920
Orange County, California, Sanitation District, COP,
5%, 2/01/33 (h) 2,750 2,704,213
Orange County, California, Sanitation District, COP,
Series B, 5%, 2/01/30 (c) 3,500 3,516,835
Orange County, California, Sanitation District, COP,
Series B, 5%, 2/01/31 (c) 1,200 1,203,300
Poway, California, Redevelopment Agency, Tax
Allocation Refunding Bonds (Paguay Redevelopment
Project), 5.125%, 6/15/33 (b) 2,000 1,946,420
Sacramento, California, Unified School District, GO
(Election of 2002), 5%, 7/01/30 (e) 2,500 2,511,500
San Jose, California, Airport Revenue Refunding Bonds,
AMT, Series A, 5.50%, 3/01/32 (b) 5,300 5,156,476
San Jose, California, Unified School District,
Santa Clara County, GO (Election of 2002),
Series B, 5%, 8/01/29 (h) 2,825 2,803,219
San Mateo County, California, Community College District,
GO (Election of 2001), Series A,
5%, 9/01/26 (h) 2,725 2,754,948
Ventura County, California, Community College District, GO
(Election of 2002), Series B,
5%, 8/01/30 (e) 3,150 3,120,957
-------------
89,245,351
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Colorado - 1.6% Colorado Health Facilities Authority Revenue
Bonds (Catholic Health Initiatives), Series A,
5.50%, 3/01/32 (j) 1,650 1,735,173
Colorado Health Facilities Authority Revenue Bonds
(Covenant Retirement Communities Inc.), Series A,
5.50%, 12/01/27 (g) 1,600 1,573,696
Colorado Health Facilities Authority Revenue Bonds
(Covenant Retirement Communities Inc.), Series A,
5.50%, 12/01/33 (g) 1,000 951,440
E-470 Public Highway Authority, Colorado, Capital
Appreciation Revenue Refunding Bonds, Series B,
5.485%, 9/01/29 (d)(e) 9,000 2,535,390
-------------
6,795,699
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BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
District of Columbia - District of Columbia, Revenue Refunding Bonds
0.6% (Catholic University of America), 5.625%,
10/01/09 (b)(f) $ 1,930 $ 2,032,541
District of Columbia, Revenue Refunding Bonds
(Catholic University of America), 5.625%, 10/01/29 (b) 570 584,563
-------------
2,617,104
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Florida - 3.8% Beacon Tradeport Community Development District,
Florida, Special Assessment Revenue Refunding Bonds
(Commercial Project), Series A, 5.625%, 5/01/32 (g) 2,235 2,115,874
Florida State Department of Environmental Protection,
Preservation Revenue Bonds, Series B, 5%, 7/01/27 (e) 2,845 2,793,676
Highlands County, Florida, Health Facilities Authority,
Hospital Revenue Bonds (Adventist Health System), Series C,
5.25%, 11/15/36 5,415 5,139,701
Miami-Dade County, Florida, Aviation Revenue
Refunding Bonds (Miami International Airport), AMT,
Series A, 5%, 10/01/38 (k) 3,000 2,606,220
Miami, Florida, Special Obligation Revenue Bonds (Street
and Sidewalk Improvement Program),
5%, 1/01/37 (e) 1,100 1,042,503
Orange County, Florida, Sales Tax Revenue Refunding
Bonds, Series B, 5.125%, 1/01/32 (h) 2,200 2,218,480
-------------
15,916,454
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Georgia - 3.3% Atlanta, Georgia, Water and Wastewater Revenue
Bonds, 5%, 11/01/34 (c) 4,270 4,238,786
Atlanta, Georgia, Water and Wastewater Revenue
Bonds, Series A, 5%, 11/01/33 (e) 1,200 1,151,724
Atlanta, Georgia, Water and Wastewater Revenue
Bonds, Series A, 5%, 11/01/39 (e) 2,525 2,391,326
Augusta, Georgia, Water and Sewer Revenue Bonds,
5.25%, 10/01/39 (c) 2,820 2,891,713
Monroe County, Georgia, Development Authority, PCR,
Refunding (Oglethorpe Power Corporation-Scherer), Series
A, 6.80%, 1/01/11 3,000 3,240,270
-------------
13,913,819
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Hawaii - 0.5% Hawaii State, GO, Series CX, 5.50%, 2/01/21 (c) 2,000 2,117,840
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Illinois - 19.6% Chicago, Illinois, GO (Lakefront Millennium Parking
Facilities), 5.125%, 1/01/09 (e)(f) 5,000 5,172,150
Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A, 5.75%, 1/01/21 (e) 13,665 13,592,439
Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT,
Series A, 5.50%, 1/01/22 (e) 5,000 4,920,650
Chicago, Illinois, O'Hare International Airport Revenue
Bonds, Third Lien, AMT, Series B-2,
5.75%, 1/01/23 (c) 3,400 3,429,682
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Chicago, Illinois, O'Hare International Airport
Revenue Bonds, Third Lien, AMT, Series B-2,
5.75%, 1/01/24 (c) $ 4,000 $ 4,036,760
Chicago, Illinois, O'Hare International Airport Revenue
Bonds, Third Lien, AMT, Series B-2, 6%, 1/01/29 (i) 3,300 3,316,434
Chicago, Illinois, O'Hare International Airport, Revenue
Refunding Bonds, Third Lien, AMT, Series A-2,
5.75%, 1/01/21 (c) 2,665 2,698,179
Cook County, Illinois, Capital Improvement, GO, Series
C, 5.50%, 11/15/12 (b)(f) 5,080 5,577,637
Illinois Sports Facilities Authority, State Tax Supported
Revenue Bonds, 5.212%, 6/15/30 (a)(b) 28,525 26,235,013
Illinois Sports Facilities Authority, State Tax Supported
Revenue Bonds, 5%, 6/15/32 (b) 5,500 5,394,455
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds (McCormick
Place Expansion Project),
5.50%, 12/15/24 (h) 7,000 7,268,730
-------------
81,642,129
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Indiana - 1.7% Indianapolis, Indiana, Local Public Improvement Bond Bank,
Revenue Refunding Bonds (Indianapolis Airport Authority
Project), AMT, Series B, 5.25%, 1/01/28 (e) 2,470 2,318,293
Indianapolis, Indiana, Local Public Improvement Bond Bank,
Revenue Refunding Bonds (Indianapolis Airport Authority
Project), AMT, Series B, 5.25%, 1/01/30 (e) 5,055 4,704,537
-------------
7,022,830
-----------------------------------------------------------------------------------------------------------------------------------
Louisiana - 2.9% Louisiana Local Government Environmental Facilities and
Community Development Authority, Revenue Bonds (Capital
Projects and Equipment Acquisition Program), Series A,
6.30%, 7/01/30 (b) 5,100 5,203,428
Louisiana State Citizens Property Insurance Corporation,
Assessment Revenue Bonds, Series B,
5%, 6/01/23 (b) 2,800 2,648,212
Louisiana State Transportation Authority, Senior Lien Toll
Revenue Capital Appreciation Bonds, Series B,
5.31%, 12/01/27 (b)(d) 4,675 1,536,252
Rapides Financing Authority, Louisiana, Revenue Bonds
(Cleco Power LLC Project), AMT, 4.70%, 11/01/36 (b) 800 676,816
Terrebonne Parish, Louisiana, Hospital Service District
Number 1, Hospital Revenue Bonds (Terrebonne
General Medical Center Project),
5.50%, 4/01/33 (b) 1,900 1,934,979
-------------
11,999,687
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Massachusetts - 5.3% Massachusetts Bay Transportation Authority, General
Transportation System Revenue Refunding Bonds,
Series A, 7%, 3/01/11 (e) 3,730 4,112,884
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts Bay Transportation Authority, Revenue
Refunding Bonds (General Transportation System), Series
A, 7%, 3/01/14 (e) $ 3,550 $ 4,068,939
Massachusetts Bay Transportation Authority,
Sales Tax Revenue Refunding Bonds, Senior
Series A-2, 5.210%, 7/01/35 (d) 13,400 3,007,362
Massachusetts State, HFA, Rental Housing Mortgage
Revenue Bonds, AMT, Series C, 5.60%, 1/01/45 (c) 4,000 4,049,920
Massachusetts State, HFA, S/F Housing Revenue Bonds,
AMT, Series 128, 4.80%, 12/01/27 (c) 2,200 1,921,326
Massachusetts State Port Authority, Special Facilities
Revenue Bonds (Delta Air Lines Inc. Project), AMT,
Series A, 5.50%, 1/01/19 (b) 3,825 3,487,176
Massachusetts State Water Resource Authority,
General Revenue Refunding Bonds, Series B, 5.125%,
8/01/27 (e) 1,210 1,230,522
-------------
21,878,129
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Michigan - 3.9% Detroit, Michigan, Sewage Disposal System, Second Lien
Revenue Bonds, Series B, 5%, 7/01/36 (e)(h) 4,650 4,447,678
Michigan Higher Education Student Loan Authority, Student
Loan Revenue Refunding Bonds, AMT,
Series XVII-G, 5.20%, 9/01/20 (b) 2,300 2,089,159
Michigan State Strategic Fund, Limited Obligation Revenue
Refunding Bonds (Detroit Edison Company Pollution Control
Project), AMT, Series A,
5.50%, 6/01/30 (i) 1,700 1,550,944
Michigan State Strategic Fund, Limited Obligation Revenue
Refunding Bonds (Detroit Edison Company Pollution Control
Project), AMT, Series C,
5.65%, 9/01/29 (i) 3,300 3,008,445
Michigan State Strategic Fund, Limited Obligation Revenue
Refunding Bonds (Detroit Edison Company Pollution Control
Project), AMT, Series C,
5.45%, 12/15/32 (i) 5,800 5,210,778
-------------
16,307,004
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Minnesota - 1.0% Dakota County, Minnesota, Community
Development Agency, S/F Mortgage Revenue
Bonds (Mortgage-Backed Securities Program),
Series B, 5.15%, 12/01/38 (l)(m) 4,083 3,943,853
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Nebraska - 2.1% Municipal Energy Agency of Nebraska, Power Supply System
Revenue Bonds, Series A, 5%, 4/01/33 (c) 6,315 6,209,097
Washington County, Nebraska, Wastewater Facilities
Revenue Bonds (Cargill Inc. Project), AMT,
5.90%, 11/01/27 2,300 2,390,045
-------------
8,599,142
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BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Nevada - 10.0% Carson City, Nevada, Hospital Revenue Bonds (Carson-
Tahoe Hospital Project), Series A, 5.50%,
9/01/33 (g) $ 4,100 $ 3,901,888
Clark County, Nevada, Airport System Subordinate Lien
Revenue Bonds, Series A-2, 5%, 7/01/30 (h) 2,000 1,930,220
Clark County, Nevada, Airport System Subordinate Lien
Revenue Bonds, Series A-2, 5%, 7/01/36 (h) 19,100 18,349,561
Clark County, Nevada, IDR (Southwest Gas Corp.
Project), AMT, Series A, 4.75%, 9/01/36 (h) 2,300 1,703,403
Clark County, Nevada, IDR (Southwest Gas Corporation
Project), AMT, Series D, 5.25%, 3/01/38 (h) 12,000 9,655,200
Washoe County, Nevada, School District, GO, 5.875%,
12/01/09 (c)(f) 5,710 6,007,206
-------------
41,547,478
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New Hampshire - 1.2% New Hampshire State Business Finance Authority, PCR,
Refunding (Public Service Company), AMT, Series D,
6%, 5/01/21 (e) 5,000 5,029,400
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New Jersey - 8.0% New Jersey EDA, Cigarette Tax Revenue Bonds, 5.75%,
6/15/29 (g) 910 889,398
New Jersey EDA, Cigarette Tax Revenue Bonds, 5.50%,
6/15/31 (g) 1,385 1,342,854
New Jersey EDA, Motor Vehicle Surcharge Revenue
Bonds, Series A, 5.25%, 7/01/31 (e) 20,165 20,491,875
New Jersey EDA, School Facilities Construction
Revenue Bonds, Series O, 5.125%, 3/01/28 2,660 2,712,695
New Jersey EDA, School Facilities Construction
Revenue Bonds, Series O, 5.125%, 3/01/30 7,500 7,614,750
-------------
33,051,572
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New York - 4.2% Metropolitan Transportation Authority, New York,
Revenue Bonds, Series B, 5%, 11/15/35 (e) 3,000 2,921,340
Metropolitan Transportation Authority, New York,
Transportation Revenue Bonds, Series A,
5%, 11/15/32 (h) 8,990 8,779,274
New York City, New York, City Municipal Water Finance
Authority, Water and Sewer System, Revenue Refunding
Bonds, Series A, 5%, 6/15/35 (e) 2,300 2,283,049
Tobacco Settlement Financing Corporation of New York
Revenue Bonds, Series A-1, 5.25%, 6/01/22 (b) 3,570 3,653,788
-------------
17,637,451
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Ohio - 0.5% Jackson, Ohio, Hospital Facilities Revenue Bonds
(Consolidated Health System-Jackson Hospital),
6.125%, 10/01/09 (f)(g) 2,000 2,115,580
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Oklahoma - 0.5% Tulsa, Oklahoma, Airports Improvement Trust, General
Revenue Bonds (Tulsa International Airport), AMT,
Series B, 6%, 6/01/19 (h) 1,000 1,007,630
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Tulsa, Oklahoma, Airports Improvement Trust, General
Revenue Bonds (Tulsa International Airport), AMT,
Series B, 6.125%, 6/01/26 (h) $ 1,000 $ 1,005,290
-------------
2,012,920
-----------------------------------------------------------------------------------------------------------------------------------
Pennsylvania - 1.8% Pennsylvania HFA, S/F Mortgage Revenue Refunding Bonds,
AMT, Series 99A, 5.25%, 10/01/32 2,000 1,812,100
Philadelphia, Pennsylvania, Authority for Industrial
Development, Lease Revenue Bonds, Series B, 5.50%,
10/01/11 (c)(f) 5,000 5,442,400
-------------
7,254,500
-----------------------------------------------------------------------------------------------------------------------------------
South Carolina - 1.6% Berkeley County, South Carolina, School District,
Installment Lease Revenue Bonds (Securing Assets for
Education Project), 5.125%, 12/01/30 3,750 3,654,825
Kershaw County, South Carolina, Public Schools
Foundation, Installment Power Revenue Refunding
Bonds, 5%, 12/01/29 (k) 3,200 3,038,784
-------------
6,693,609
-----------------------------------------------------------------------------------------------------------------------------------
Tennessee - 2.1% Memphis-Shelby County, Tennessee, Airport Authority,
Airport Revenue Bonds, AMT, Series D,
6.25%, 3/01/18 (b) 5,000 5,130,900
Tennessee Energy Acquisition Corporation, Gas
Revenue Bonds, Series A, 5.25%, 9/01/26 4,035 3,699,409
-------------
8,830,309
-----------------------------------------------------------------------------------------------------------------------------------
Texas - 16.4% Bell County, Texas, Health Facilities Development
Revenue Bonds (Lutheran General Health Care
System), 6.50%, 7/01/19 (j) 1,000 1,184,590
Dallas-Fort Worth, Texas, International Airport, Joint
Revenue Bonds, AMT, Series B, 6%, 11/01/23 (e) 800 803,152
Dallas-Fort Worth, Texas, International Airport
Revenue Refunding and Improvement Bonds, AMT,
Series A, 5.875%, 11/01/17 (h) 1,835 1,851,130
Dallas-Fort Worth, Texas, International Airport
Revenue Refunding and Improvement Bonds, AMT,
Series A, 5.875%, 11/01/18 (h) 2,145 2,158,170
Dallas-Fort Worth, Texas, International Airport
Revenue Refunding and Improvement Bonds, AMT,
Series A, 5.875%, 11/01/19 (h) 2,385 2,390,533
Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good Shepherd
Medical Center Project), 6.375%, 10/01/10 (f)(g) 2,600 2,844,426
Gregg County, Texas, Health Facilities Development
Corporation, Hospital Revenue Bonds (Good Shepherd
Medical Center Project), 6.875%, 10/01/10 (f)(g) 3,000 3,313,170
Harris County-Houston Sports Authority, Texas,
Revenue Refunding Bonds, Senior Lien, Series G,
5.75%, 11/15/20 (e) 4,000 4,086,680
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Par
State Municipal Bonds (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Leander, Texas, Independent School District, Capital
Appreciation, GO, Refunding (School Building),
5.58%, 8/15/35 (d) $ 13,350 $ 2,897,884
Lewisville, Texas, Independent School District, Capital
Appreciation and School Building, GO, Refunding,
4.748%, 8/15/24 (d)(h) 6,150 2,483,985
North Harris County, Texas, Regional Water Authority,
Senior Lien Revenue Bonds, 5.125%, 12/15/35 (e) 7,150 6,979,973
North Texas Tollway Authority, System Revenue
Refunding Bonds, First Tier, 5.75%, 1/01/40 (e) 12,300 12,559,284
North Texas Tollway Authority, System Revenue Refunding
Bonds, First Tier, Series A, 6%, 1/01/25 850 891,046
Texas State Affordable Housing Corporation, S/F
Mortgage Revenue Bonds (Professional Educators Home
Loan Program), AMT, Series A-1,
5.50%, 12/01/39 (l)(m) 2,075 1,986,341
Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier, Series A,
5.75%, 8/15/38 (b) 7,200 7,400,376
Texas State Turnpike Authority, Central Texas Turnpike
System Revenue Bonds, First Tier,
Series A, 5%, 8/15/42 (b) 10,000 9,548,800
Travis County, Texas, Health Facilities Development
Corporation, Revenue Refunding Bonds (Ascension
Health Credit), Series A, 6.25%, 11/15/09 (e)(f) 4,600 4,891,364
-------------
68,270,904
-----------------------------------------------------------------------------------------------------------------------------------
Utah - 4.1% Salt Lake City, Utah, Hospital Revenue Refunding
Bonds (IHC Hospitals Inc.), 6.30%, 2/15/15 (e)(j) 15,000 16,903,950
-----------------------------------------------------------------------------------------------------------------------------------
Vermont - 0.4% Vermont HFA, Revenue Refunding Bonds, AMT, Series
C, 5.50%, 11/01/38 (c) 2,000 1,850,540
-----------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.7% Halifax County, Virginia, IDA, Exempt Facility Revenue
Refunding Bonds (Old Dominion Electric Cooperative
Project), AMT, 5.625%, 6/01/28 (b) 3,100 3,094,234
-----------------------------------------------------------------------------------------------------------------------------------
Washington - 2.7% King County, Washington, Sewer, GO, 5%, 1/01/35 (h) 100 97,843
Port of Tacoma, Washington, Revenue Refunding
Bonds, Series A, 5.25%, 12/01/14 (b)(f) 2,400 2,660,616
Tacoma, Washington, Regional Water Supply System,
Water Revenue Bonds, 5%, 12/01/32 (e) 5,100 5,050,071
Washington State, GO, Series A and AT-6,
6.25%, 2/01/11 (c) 3,185 3,355,716
-------------
11,164,246
-----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds - 123.3% 512,808,018
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Par
State Tender Option Bond Trusts (n) (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Alabama - 1.7% University of Alabama, General Revenue Bonds, Series
A, 5%, 7/01/34 (e) $ 7,275 $ 7,170,677
-----------------------------------------------------------------------------------------------------------------------------------
California - 7.9% Anaheim, California, Public Financing Authority, Electric
System Distribution Facilities Revenue Bonds, Series A, 5%,
10/01/31 (c) 1,245 1,247,513
Golden State Tobacco Securitization Corporation of
California, Tobacco Settlement Revenue Bonds, Series
B, 5.625%, 6/01/13 (f)(k) 14,160 15,478,013
San Diego County, California, Water Authority, Water
Revenue Refunding Bonds, COP, Series A, 5%,
5/01/32 (e) 8,997 9,030,152
San Diego County, California, Water Authority, Water
Revenue Refunding Bonds, COP, Series A, 5%,
5/01/33 (c) 5,175 5,226,336
Tamalpais, California, Union High School District, GO
(Election of 2001), 5%, 8/01/28 (c) 1,950 1,975,389
-------------
32,957,403
-----------------------------------------------------------------------------------------------------------------------------------
Florida - 5.2% Duval County, Florida, School Board, COP
(Master Lease Program), 5%, 7/01/33 (c) 3,105 2,993,468
Miami-Dade County, Florida, Aviation Revenue Refunding
Bonds (Miami International Airport), AMT,
5%, 10/01/40 (i)(o) 6,300 5,635,728
Miami-Dade County, Florida, Aviation Revenue Refunding
Bonds (Miami International Airport), AMT, Series A, 5%,
10/01/40 (i) 1,900 1,699,664
Miami-Dade County, Florida, School Board, COP,
Series B, 5.25%, 5/01/27 (o) 11,350 11,411,290
-------------
21,740,150
-----------------------------------------------------------------------------------------------------------------------------------
Georgia - 4.5% Atlanta, Georgia, Airport Passenger Facility Charge and
Subordinate Lien General Revenue Refunding Bonds, Series
C, 5%, 1/01/33 (c) 13,510 13,490,546
Augusta, Georgia, Water and Sewer Revenue
Bonds, 5.25%, 10/01/34 (c) 4,996 5,140,681
-------------
18,631,227
-----------------------------------------------------------------------------------------------------------------------------------
Illinois - 4.7% Chicago, Illinois, O'Hare International Airport, General
Airport Revenue Refunding Bonds, Third Lien, AMT, Series
A, 5.375%, 1/01/32 (e) 12,500 11,815,875
Chicago, Illinois, Water Revenue Refunding
Bonds, Second Lien, 5.25%, 11/01/33 (c) 3,928 4,002,073
Metropolitan Pier and Exposition Authority, Illinois,
Dedicated State Tax Revenue Refunding Bonds (McCormick
Place Expansion Project), Series B,
5.75%, 6/15/23 (e) 3,498 3,738,536
-------------
19,556,484
-----------------------------------------------------------------------------------------------------------------------------------
Louisiana - 1.6% Louisiana State Gas and Fuels Tax Revenue
Bonds, Series A, 4.75%, 5/01/39 (c) 7,050 6,616,566
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Municipal Bonds Transferred to Par
State Tender Option Bond Trusts (n) (000) Value
-----------------------------------------------------------------------------------------------------------------------------------
Maryland - 1.7% Baltimore, Maryland, Convention Center Hotel Revenue
Bonds, Senior Series A,
5.25%, 9/01/39 (i)(p) $ 7,109 $ 7,178,472
-----------------------------------------------------------------------------------------------------------------------------------
Massachusetts - 4.0% Massachusetts State School Building Authority,
Dedicated Sales Tax Revenue Bonds, Series A, 5%,
8/15/30 (c) 16,499 16,625,590
-----------------------------------------------------------------------------------------------------------------------------------
Michigan - 0.9% Detroit, Michigan, Sewage Disposal System,
Second Lien Revenue Refunding Bonds, Series
E, 5.75%, 7/01/31 (h) 3,297 3,523,119
-----------------------------------------------------------------------------------------------------------------------------------
New Hampshire - 2.5% New Hampshire Health and Education Facilities
Authority Revenue Bonds (Dartmouth-Hitchcock
Obligation Group), 5.50%, 8/01/27 (c) 9,999 10,346,521
-----------------------------------------------------------------------------------------------------------------------------------
New Jersey - 3.2% New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50%, 6/15/24 (o) 7,150 7,233,869
New Jersey EDA, Cigarette Tax Revenue Bonds,
5.50%, 6/15/31 (o) 6,000 6,074,580
-------------
13,308,449
-----------------------------------------------------------------------------------------------------------------------------------
New York - 6.5% Erie County, New York, IDA, School Facility Revenue
Bonds (City of Buffalo Project), Series A, 5.75%,
5/01/28 (c) 2,008 2,167,788
New York City, New York, GO, Series B,
5.875%, 8/01/16 (e) 13,840 14,749,565
New York State Thruway Authority, General Revenue
Refunding Bonds, Series G, 5%, 1/01/32 (c) 10,000 10,110,300
-------------
27,027,653
-----------------------------------------------------------------------------------------------------------------------------------
Virginia - 0.8% Virginia State, HDA, Commonwealth Mortgage Revenue
Bonds, Series H, Sub-Series H-1, 5.35%, 7/01/31 (e) 3,195 3,218,994
-----------------------------------------------------------------------------------------------------------------------------------
Washington - 0.6% Central Puget Sound Regional Transportation Authority,
Washington, Sales and Use Tax Revenue Bonds, Series A,
5%, 11/01/32 (c) 2,500 2,529,350
-----------------------------------------------------------------------------------------------------------------------------------
Total Municipal Bonds Transferred to
Tender Option Bond Trusts - 45.8% 190,430,655
-----------------------------------------------------------------------------------------------------------------------------------
Total Long-Term Investments
(Cost - $717,519,733) - 169.1% 703,238,673
-----------------------------------------------------------------------------------------------------------------------------------
Short-Term Securities Shares
-----------------------------------------------------------------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund,
2.08% (q)(r) 7,400,000 7,400,000
-----------------------------------------------------------------------------------------------------------------------------------
Total Short-Term Securities
(Cost - $7,400,000) - 1.8% 7,400,000
-----------------------------------------------------------------------------------------------------------------------------------
BlackRock MuniYield Quality Fund, Inc.
Schedule of Investments July 31, 2008 (Unaudited)
(Percentages shown are based on Net Assets)
Value
-----------------------------------------------------------------------------------------------------------------------------------
Total Investments (Cost - $724,919,733*) - 170.9% $ 710,638,673
Other Assets Less Liabilities - 1.4% 6,007,038
Liability for Trust Certificates, Including Interest Expense and
Fees Payable - (26.1)% (108,606,866)
Preferred Stock, at Redemption Value - (46.2)% (192,156,741)
-------------
Net Assets Applicable to Common Stock - 100.0% $ 415,882,104
=============
* The cost and unrealized appreciation (depreciation) of investments as of
July 31, 2008, as computed for federal income tax purposes, were as
follows:
Aggregate cost $ 616,243,843
=============
Gross unrealized appreciation $ 10,451,473
Gross unrealized depreciation (24,472,814)
-------------
Net unrealized depreciation $ (14,021,341)
=============
(a) Represents a step bond. Rate shown reflects the effective yield at the
time of purchase.
(b) AMBAC Insured.
(c) FSA Insured.
(d) Represents a zero coupon bond. Rate shown reflects the effective yield at
the time of purchase.
(e) MBIA Insured.
(f) U.S. government securities, held in escrow, are used to pay interest on
this security as well as to retire the bond in full at the date indicated,
typically at a premium to par.
(g) Radian Insured.
(h) FGIC Insured.
(i) XL Capital Insured.
(j) Security is collateralized by Municipal or U.S. Treasury Obligations.
(k) CIFG Insured.
(l) FHLMC Collateralized.
(m) FNMA/GNMA Collateralized.
(n) Securities represent bonds transferred to a tender option bond trust in
exchange for which the Fund acquired residual interest certificates. These
securities serve as a collateral in a financing transaction.
(o) Assured Guaranty Insured.
(p) BHAC Insured.
(q) Represents the current yield as of report date.
(r) Investments in companies considered to be an affiliate of the Fund, for
purposes of Section 2(a)(3) of the Investment Company Act of 1940, were as
follows:
--------------------------------------------------------------------------
Affiliate Net
Activity Income
--------------------------------------------------------------------------
Merrill Lynch Institutional Tax-Exempt Fund 6,392,329 $ 201,678
--------------------------------------------------------------------------
o Forward interest rate swap outstanding as of July 31, 2008 was as follows:
--------------------------------------------------------------------------
Notional
Amount Unrealized
(000) Depreciation
--------------------------------------------------------------------------
Pay a fixed rate of 3.75% and receive
a floating rate based on
1-week SIFMA Municipal Swap Index
Broker, JPMorgan Chase
Expires October 2023 $ 20,000 $ (143,580)
--------------------------------------------------------------------------
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/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Executive Officer of
BlackRock MuniYield Quality Fund, Inc.
Date: September 19, 2008
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/ Donald C. Burke
--------------------------------
Donald C. Burke
Chief Executive Officer (principal executive officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: September 19, 2008
By: /s/ Neal J. Andrews
--------------------------------
Neal J. Andrews
Chief Financial Officer (principal financial officer) of
BlackRock MuniYield Quality Fund, Inc.
Date: September 19, 2008