UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM N-CSR

 

CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES

 

Investment Company Act file number

811-21633

 

Cohen & Steers Dividend Majors Fund, Inc.

(Exact name of registrant as specified in charter)

 

280 Park Avenue, New York, NY

 

10017

(Address of principal executive offices)

 

(Zip code)

 

Adam M. Derechin

Cohen & Steers Capital Management, Inc.

280 Park Avenue

New York, New York 10017

(Name and address of agent for service)

 

Registrant’s telephone number, including area code:

(212) 832-3232

 

 

Date of fiscal year end:

December 31

 

 

Date of reporting period:

June 30, 2010

 

 



 

Item 1. Reports to Stockholders.

 



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

To Our Shareholders:

We would like to share with you our report for the six months ended June 30, 2010. The net asset value (NAV) at that date was $11.88 per common share. The Fund's common stock is traded on the New York Stock Exchange (NYSE) and its share price can differ from its NAV; at period end, the Fund's closing price on the NYSE was $9.91.

The total returns, including income, for the Fund and its comparative benchmarks were:

    Six Months Ended
June 30, 2010
 
Dividend Majors Fund at Market Value a     –2.92 %  
Dividend Majors Fund at NAV a     –3.09 %  
S&P 500 Index b     –6.65 %  
Blended benchmark—50% S&P 500 Index/50% FTSE NAREIT
Equity REIT Index b
    –0.67 %  

 

The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

The Fund may pay distributions in excess of its investment company taxable income and net realized capital gains. This excess would be a "return of capital" distributed from the Fund's assets. Distributions of capital decrease the Fund's total assets and, therefore, could have the effect of increasing the Fund's expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.

Investment Review

U.S. equities were subject to strong shifts in sentiment and performance in the six-month period ended June 30. Markets advanced in the first quarter, and the second quarter saw a strong start following reports that 79% of S&P 500 companies beat analysts' first-quarter estimates. But a declining outlook for growth began to surface in May, triggered by concerns surrounding European sovereign bank debt, China's efforts to reduce real estate

a   As a closed-end investment company, the price of the Fund's New York Stock Exchange-traded shares will be set by market forces and at times may deviate from the NAV per share of the Fund.

b   The S&P 500 Index is an unmanaged index of common stocks that is frequently used as a general measure of stock market performance. The FTSE NAREIT Equity REIT Index is an unmanaged, market-capitalization-weighted index of all publicly traded REITs that invest predominantly in the equity ownership of real estate. The index is designed to reflect the performance of all publicly traded equity REITs as a whole.


1



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

speculation and weak U.S. housing and employment data. Value stocks, which had risen 95% through April from their March 2009 low, retreated about 15% by the end of June.

U.S. real estate stocks provided a contrast, making gains across virtually all sectors. The group began to rise in February as fourth-quarter 2009 earnings met expectations and indicated stabilization in occupancies and rents. Although REITs gave back some ground when the risk factors cited above emerged, they still outperformed the broad U.S. equity market by a wide margin for the period.

Politics were a factor

The proposed health care legislation created uncertainty within the health care sector (which had a total return of –8.8% in the period within the S&P 500 Index). Insurance companies, generic drug manufacturers and hospitals rallied in the first quarter when the public option disappeared. In the second quarter, after the legislation passed and its impact was assessed, the sector performed in line with its defensive profile, losing ground as markets rallied and performing comparatively well when more cyclical stocks retreated.

The financial services sector (–3.7%) was also subject to government policy. It outperformed in the first quarter amid little negative news, an improving economy and reassurance from the Federal Reserve that it would keep interest rates low. But in the second quarter Goldman Sachs pulled the group down when the Securities & Exchange Commission brought civil charges against the bank. Financial institutions' volatility increased in the last weeks of the period amid concerns about regulatory reform.

The industrial sector (–0.8%) performed relatively well, offering evidence that economic growth is proceeding, if at a slow pace. Industrial companies were lifted in the first quarter by a rally in the shares of General Electric. The company slipped in the second quarter, however, and several defense companies came under pressure.

Stability was valued

The consumer discretionary sector (–1.6%) rallied in the first quarter along with the overall market. More volatile names, such as Macy's, Sears and Ford, were later driven down by cautious consumers. Companies considered more stable, such as McDonald's and Ross, an off-price department store chain, held up better.

Other sectors more acutely felt the repercussions of Europe's sovereign debt crisis and China's efforts to diffuse real estate speculation. This was particularly true for materials (–12.9%) and energy (–12.2%) companies.

REITs prospered

Against this backdrop, REITs (which had a total return of (+5.6%) as measured by the FTSE NAREIT Equity REIT Index) were exceptionally strong performers. The apartment sector (+16.3%) c benefited from improved pricing power due to growth in employment that encouraged household formation. The hotel sector (+10.8%) saw revenue per available room begin to grow again, signaling that an economic recovery may be at hand.

c   Sector returns as measured by the FTSE NAREIT Equity REIT Index.


2



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

Regional malls (+6.0%) also outperformed, as discretionary consumer spending recovered strongly in the first quarter. Shopping centers (+3.2%), which tend to have stable anchor tenants such as grocery stores, lagged in the cyclical recovery.

The office sector (+0.8%) had mixed performance. Offices in major city centers have seen a trough in occupancies, and in some cases have started to raise rents. Companies in suburban markets, on the other hand, generally struggled with a lack of demand. The industrial sector (–13.8%) was the only real estate sector to end the period in negative territory. ProLogis, the largest weight in the sector, suffered from declining rents and concerns over its exposure to Europe.

Acquisition activity picked up

There was an increase in earnings-accretive acquisition announcements, a development we have been expecting. Ventas, a REIT that operates senior housing and health care properties, acquired a portfolio of 95 office buildings and ambulatory facilities at a price between $300 million and $400 million. The transaction gave Ventas a 100% interest in some of the properties and joint venture interests in the others, which could result in significant value creation.

Fund performance

The Fund had a negative total return and underperformed its blended benchmark. Factors that detracted from relative performance included our stock selection and overweight in the health care and financial services sectors. Within health care, our out-of-index allocation to Brookdale Senior Living, which is a REIT, hindered performance. Unlike more traditional net lease health care companies, Brookdale's fundamentals are heavily dependent on a healthy economy—specifically, strong employment and a stable housing market, both of which slowed in the period. The facility was also affected by a large equity offering by existing shareholders.

The Fund had significant holdings in the large banks with greater exposure to capital markets, which sold off more than the sector as a whole, as they were expected to be most affected when the regulatory reform bill becomes law. Among energy companies, the Fund owned Transocean Ltd., the owner of the Deepwater Horizon rig that drilled BP's Macondo well in the Gulf of Mexico; it was a significant factor in our underperformance. The Fund's overweight in ProLogis, an industrial REIT, also hindered performance. Nevertheless, we believe the company is attractively valued and will continue to see positive momentum in Europe, where its build-to-suit activity is strong.

Factors that boosted performance included stock selection within the consumer discretionary sector, particularly our large overweight in Ross Stores. Stock selection within the shopping center, office and self storage sectors aided performance. Our overweight in Developers Diversified Realty, a shopping center REIT, was beneficial, as the company rallied when it took steps to strengthen its balance sheet, including an equity offering. The Fund limited its REIT office holdings to companies that are concentrated in large cities; they substantially outperformed


3



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

the office sector. An overweight in hotels benefited the Fund's performance, although stock selection in that category was detrimental.

Investment Outlook

While there are structural headwinds to economic growth, we believe a double-dip recession is unlikely. The recovery is indeed fragile, and an external shock could send the U.S. economy into a zero or negative-growth environment. But the Federal Reserve's commitment to maintaining low interest rates, against a backdrop of barely palpable inflation, is likely to keep the economy moving forward, however slowly.

Overall, we find many large cap companies in good financial health, with substantial cash on their balance sheets. Although cautious about expanding their business, many have indicated that they plan to increase capital spending this year, which supports our thesis of a gradual economic recovery. Combined with what we believe will be low single-digit U.S. gross domestic product growth in 2010, the onset of the acquisition and fundamental-recovery stages for REITs should be a positive long-term development.

In this low-growth environment, the strongest returns will be generated by companies that can improve their margins in the face of fairly sluggish revenue growth. We favor consumer staples companies, which benefit from consistent earnings, and the technology sector, which allows us to participate in the recovery and maintain our high-quality bias. Although, we have modest expectations for equity total returns in 2010, they may compare favorably with those that are available from bonds.


4



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

Sincerely,

   
MARTIN COHEN   ROBERT H. STEERS  
Co-chairman   Co-chairman  
   
JOSEPH M. HARVEY   RICHARD E. HELM  
Portfolio Manager   Portfolio Manager  

 

  

  WILLIAM F. SCAPELL

  Portfolio Manager

The views and opinions in the preceding commentary are subject to change. There is no guarantee that any market forecast set forth in the commentary will be realized. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice and is not intended to predict or depict performance of any investment.

Visit Cohen & Steers online at cohenandsteers.com

For more information about any of our funds, visit cohenandsteers.com, where you will find daily net asset values, fund fact sheets and portfolio highlights. You can also access newsletters, education tools and market updates covering the global real estate, listed infrastructure, utilities, large cap value and preferred securities sectors.

In addition, our Web site contains comprehensive information about our firm, including our most recent press releases, profiles of our senior investment professionals and an overview of our investment approach.


5



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

JUNE 30, 2010

Top Ten Holdings
(Unaudited)

Security   Value   % of
Net
Assets
 
Simon Property Group   $ 7,483,183       5.0 %  
Public Storage     4,070,233       2.7    
ProLogis     3,424,467       2.3    
Equity Residential     3,085,524       2.0    
PS Business Parks     2,577,036       1.7    
Boston Properties     2,532,570       1.7    
Vornado Realty Trust     2,432,955       1.6    
AvalonBay Communities     2,380,935       1.6    
Brookdale Senior Living     2,312,130       1.5    
Exxon Mobil Corp.     2,174,367       1.4    

 

Sector Breakdown

(Based on Net Assets)
(Unaudited)


6




COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
COMMON STOCK     98.7 %              
CONSUMER—CYCLICAL     3.9 %              
APPAREL     0.7 %      
NIKE a             16,000     $ 1,080,800    
AUTO PARTS EQUIPMENT     0.4 %              
Genuine Parts Co.             9,500       374,775    
Johnson Controls             7,000       188,090    
              562,865    
MEDIA     0.6 %              
Comcast Corp.             22,900       397,773    
The Walt Disney Co.             15,200       478,800    
              876,573    
RETAIL     2.2 %              
Nordstrom             19,600       630,924    
Ross Stores             18,200       969,878    
Wal-Mart Stores a             35,700       1,716,099    
              3,316,901    
TOTAL CONSUMER—CYCLICAL                     5,837,139    
CONSUMER—NON-CYCLICAL     6.4 %              
AGRICULTURE     0.5 %              
Altria Group a             19,200       384,768    
Monsanto Co.             7,000       323,540    
              708,308    
APPAREL     0.5 %              
VF Corp.             9,900       704,682    
BEVERAGE     1.0 %              
PepsiCo             24,700       1,505,465    
COSMETICS/PERSONAL CARE     1.0 %              
Procter & Gamble Co.             26,500       1,589,470    
FOOD     0.5 %              
Kraft Foods             27,400       767,200    

 

See accompanying notes to financial statements.
7



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
RESTAURANT     1.0 %              
McDonald's Corp. a             22,800     $ 1,501,836    
RETAIL     1.4 %              
Costco Wholesale Corp.             14,000       767,620    
CVS Caremark Corp. a             44,100       1,293,012    
              2,060,632    
SPECIALTY RETAIL     0.5 %              
Home Depot             26,500       743,855    
TOTAL CONSUMER—NON-CYCLICAL                     9,581,448    
ENERGY     5.5 %              
OIL & GAS     4.5 %              
Apache Corp. a             10,100       850,319    
Chevron Corp. a             21,700       1,472,562    
Devon Energy Corp. a             14,700       895,524    
Exxon Mobil Corp. a             38,100       2,174,367    
Marathon Oil Corp.             23,600       733,724    
Occidental Petroleum Corp.             9,100       702,065    
              6,828,561    
OIL & GAS REFINING & MARKETING     0.3 %              
Valero Energy Corp.             21,600       388,368    
OIL & GAS SERVICES     0.7 %              
Schlumberger Ltd.             12,900       713,886    
Transocean Ltd. b             7,200       333,576    
              1,047,462    
TOTAL ENERGY                     8,264,391    
FINANCIAL     9.3 %              
BANK     3.7 %              
Bank of America Corp. a             101,500       1,458,555    
Bank of New York Mellon Corp.             20,200       498,738    
Banner Corp.             277,962       550,365    
BB&T Corp. a             20,600       541,986    
PNC Financial Services Group             3,500       197,750    

 

See accompanying notes to financial statements.
8



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
Toronto-Dominion Bank (Canada)             10,900     $ 706,291    
US Bancorp a             40,000       894,000    
Wells Fargo & Co. a             28,900       739,840    
              5,587,525    
CREDIT CARD     0.8 %              
American Express Co. a             10,200       404,940    
Visa             10,800       764,100    
              1,169,040    
DIVERSIFIED FINANCIAL SERVICE     2.8 %              
BlackRock a             2,300       329,820    
Citigroup b             203,000       763,280    
Franklin Resources             3,700       318,903    
Goldman Sachs Group             6,800       892,636    
JPMorgan Chase & Co. a             41,800       1,530,298    
Morgan Stanley a             15,800       366,718    
              4,201,655    
INSURANCE     2.0 %              
Aflac a             14,400       614,448    
HCC Insurance Holdings             23,200       574,432    
MetLife             29,400       1,110,144    
Power Corp., (Canada)             29,200       699,725    
              2,998,749    
TOTAL FINANCIAL                     13,956,969    
HEALTH CARE     6.0 %              
HEALTH CARE PROVIDERS & SERVICES     0.5 %              
UnitedHealth Group             25,100       712,840    
HEALTHCARE PRODUCTS     3.1 %              
Baxter International a             15,700       638,048    
Becton Dickinson & Co. a             11,300       764,106    
Covidien Ltd.             27,200       1,092,896    
Johnson & Johnson a             22,700       1,340,662    
Medtronic             26,000       943,020    
              4,778,732    

 

See accompanying notes to financial statements.
9



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
PHARMACEUTICAL     2.4 %              
Abbott Laboratories             24,800     $ 1,160,144    
Merck & Co.             33,300       1,164,501    
Pfizer a             91,300       1,301,938    
              3,626,583    
TOTAL HEALTH CARE                     9,118,155    
INDUSTRIAL     5.2 %              
AEROSPACE & DEFENSE     2.7 %              
Boeing Co.             3,000       188,250    
General Dynamics Corp.             18,400       1,077,504    
L-3 Communications Holdings a             12,700       899,668    
Lockheed Martin Corp. a             15,500       1,154,750    
United Technologies Corp.             11,500       746,465    
              4,066,637    
DIVERSIFIED MANUFACTURING     1.3 %              
3 M Co.             7,500       592,425    
General Electric Co. a             98,500       1,420,370    
              2,012,795    
ENVIRONMENTAL CONTROL     0.4 %              
Waste Management             18,200       569,478    
TRANSPORTATION     0.8 %              
Norfolk Southern Corp.             6,800       360,740    
United Parcel Service             13,300       756,637    
              1,117,377    
TOTAL INDUSTRIAL                     7,766,287    
MATERIALS     1.3 %              
CHEMICALS     1.0 %              
Dow Chemical Co.             15,200       360,544    
Ecolab             16,800       754,488    
Sigma-Aldrich Corp.             7,600       378,708    
              1,493,740    

 

See accompanying notes to financial statements.
10



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
METALS & MINING     0.3 %              
Freeport-McMoRan Copper & Gold             8,700     $ 514,431    
TOTAL MATERIALS                     2,008,171    
REAL ESTATE     49.4 %              
DIVERSIFIED     4.5 %              
Duke Realty Corp.             98,323       1,115,966    
Forest City Enterprises b             191,600       2,168,912    
Lexington Realty Trust             171,700       1,031,917    
Vornado Realty Trust             33,351       2,432,955    
              6,749,750    
HEALTH CARE     5.2 %              
Brookdale Senior Living a,b             154,142       2,312,130    
Cogdell Spencer             106,385       719,163    
Emeritus Corp. b             38,100       621,411    
Health Care REIT             30,200       1,272,024    
LTC Properties             62,600       1,519,302    
Nationwide Health Properties             36,700       1,312,759    
              7,756,789    
HOTEL     3.8 %              
Chesapeake Lodging Trust b             57,087       903,116    
Hersha Hospitality Trust             356,191       1,609,983    
Hospitality Properties Trust             47,800       1,008,580    
Host Hotels & Resorts             112,868       1,521,461    
Strategic Hotels & Resorts b             146,241       641,998    
              5,685,138    
INDUSTRIAL     2.7 %              
EastGroup Properties             19,600       697,368    
ProLogis             338,052       3,424,467    
              4,121,835    
OFFICE     5.6 %              
BioMed Realty Trust             78,515       1,263,306    
Boston Properties             35,500       2,532,570    

 

See accompanying notes to financial statements.
11



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
Brookfield Properties Corp. (Canada)             85,400     $ 1,199,016    
Douglas Emmett             52,000       739,440    
Liberty Property Trust             44,300       1,278,055    
SL Green Realty Corp.             26,300       1,447,552    
              8,459,939    
OFFICE/INDUSTRIAL     1.7 %              
PS Business Parks             46,200       2,577,036    
RESIDENTIAL     8.8 %              
APARTMENT     7.5 %              
Associated Estates Realty Corp.             96,203       1,245,829    
AvalonBay Communities             25,500       2,380,935    
BR E Properties             52,100       1,924,053    
Equity Residential             74,100       3,085,524    
Home Properties             16,504       743,835    
UDR             100,132       1,915,525    
              11,295,701    
MANUFACTURED HOME     1.3 %              
Equity Lifestyle Properties             40,500       1,953,315    
TOTAL RESIDENTIAL                     13,249,016    
SELF STORAGE     2.7 %              
Public Storage             46,300       4,070,233    
SHOPPING CENTER     11.9 %              
COMMUNITY CENTER     4.6 %              
Developers Diversified Realty Corp.             148,344       1,468,606    
Kimco Realty Corp.             135,675       1,823,472    
Regency Centers Corp.             43,000       1,479,200    
Tanger Factory Outlet Centers             19,700       815,186    
Weingarten Realty Investors             70,000       1,333,500    
              6,919,964    
FREE STANDING     0.4 %              
Excel Trust b             58,400       700,800    

 

See accompanying notes to financial statements.
12



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
REGIONAL MALL     6.9 %              
Glimcher Realty Trust             124,700     $ 745,706    
Macerich Co.             57,106       2,131,196    
Simon Property Group             92,671       7,483,183    
              10,360,085    
TOTAL SHOPPING CENTER                     17,980,849    
SPECIALTY     2.5 %              
Digital Realty Trust             19,789       1,141,430    
Rayonier             29,600       1,302,992    
Weyerhaeuser Co.             37,000       1,302,400    
              3,746,822    
TOTAL REAL ESTATE                     74,397,407    
TECHNOLOGY     8.8 %              
COMPUTERS     1.6 %              
Hewlett-Packard Co.             21,700       939,176    
International Business Machines Corp.             12,400       1,531,152    
              2,470,328    
INTERNET SERVICE PROVIDER     0.5 %              
Google b             1,600       711,920    
IT SERVICES     0.5 %              
Automatic Data Processing             19,500       785,070    
SEMICONDUCTORS     2.4 %              
Intel Corp.             86,800       1,688,260    
Microchip Technology a             14,100       391,134    
Texas Instruments             64,800       1,508,544    
              3,587,938    
SOFTWARE     2.4 %              
Microsoft Corp. a             75,200       1,730,352    
Oracle Corp.             89,100       1,912,086    
              3,642,438    

 

See accompanying notes to financial statements.
13



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
TELECOMMUNICATION EQUIPMENT     1.4 %              
Corning             44,500     $ 718,675    
Harris Corp.             16,500       687,225    
QUALCOMM             22,000       722,480    
              2,128,380    
TOTAL TECHNOLOGY                     13,326,074    
TELECOMMUNICATION SERVICES     1.2 %              
AT&T a             54,400       1,315,936    
Verizon Communications             20,400       571,608    
              1,887,544    
UTILITIES     1.7 %              
ELECTRIC UTILITIES     0.5 %              
NextEra Energy             15,500       755,780    
MULTI UTILITIES     1.2 %              
PG&E Corp.             10,700       439,770    
Sempra Energy             12,000       561,480    
Wisconsin Energy Corp.             15,400       781,396    
              1,782,646    
TOTAL UTILITIES                   2,538,426    
TOTAL COMMON STOCK (Identified cost—$141,418,369)                   148,682,011    

 

See accompanying notes to financial statements.
14



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

SCHEDULE OF INVESTMENTS—(Continued)

June 30, 2010 (Unaudited)

        Number
of Shares
 
Value
 
SHORT-TERM INVESTMENTS     1.5 %              
MONEY MARKET FUNDS  
Federated Government Obligations Fund, 0.04% c             1,150,074     $ 1,150,074    
State Street Institutional Liquid Reserves Fund, 0.21% c             1,150,407       1,150,407    
TOTAL SHORT-TERM INVESTMENTS
(Identified cost—$2,300,481)
                  2,300,481    
TOTAL INVESTMENTS (Identified cost—$143,718,850)     100.2 %           150,982,492    
WRITTEN CALL OPTIONS     0.0 %           (17,070 )  
LIABILITIES IN EXCESS OF OTHER ASSETS     (0.2 )%           (295,420 )  
NET ASSETS (Equivalent to $11.88 per share based on 12,684,550
shares of common stock outstanding)
    100.0 %         $ 150,670,002    
        Number
of Contracts
     
WRITTEN CALL OPTIONS  
S&P 500 Index, Strike Price 1,130, 7/17/10             42     $ (2,520 )  
S&P 500 Index, Strike Price 1,125, 7/17/10             194       (14,550 )  
TOTAL WRITTEN CALL OPTIONS
(Premiums Received—$559,021)
                  $ (17,070 )  

 

Glossary of Portfolio Abbreviation

REIT  Real Estate Investment Trust

Note: Percentages indicated are based on the net assets of the Fund.

a   All or a portion of the security is pledged in connection with written option contracts: $15,908,716 has been pledged to brokers.

b   Non-income producing security.

c   Rate quoted represents the seven day yield of the fund.

See accompanying notes to financial statements.
15




COHEN & STEERS DIVIDEND MAJORS FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES

June 30, 2010 (Unaudited)

AS SETS:  
Investments in securities, at value (Identified cost—$143,718,850)   $ 150,982,492    
Cash     46,377    
Foreign currency, at value (Identified cost—$6,819)     6,761    
Receivable for:  
Investment securities sold     511,530    
Dividends and interest     307,367    
Other assets     14,653    
Total Assets     151,869,180    
LIABILITIES:  
Payable for:  
Investment securities purchased     515,478    
Fund shares repurchased     243,169    
Dividends declared     215,360    
Investment management fees     98,710    
Options (Premiums received $559,021)     17,070    
Administration fees     5,265    
Directors' fees     687    
Other liabilities     103,439    
Total Liabilities     1,199,178    
NET ASSETS   $ 150,670,002    
NET ASSETS consist of:  
Paid-in-capital   $ 205,074,920    
Dividends in excess of net investment income     (2,096,899 )  
Accumulated net realized loss     (60,113,554 )  
Net unrealized appreciation     7,805,535    
    $ 150,670,002    
NET ASSET VALUE PER SHARE:  
($150,670,002 ÷ 12,684,550 shares outstanding)   $ 11.88    
MARKET PRICE PER SHARE   $ 9.91    
MARKET PRICE DISCOUNT TO NET ASSET VALUE PER SHARE     (16.58 )%  

 

See accompanying notes to financial statements.
16



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

STATEMENT OF OPERATIONS

For the Six Months Ended June 30, 2010 (Unaudited)

Investment Income:  
Dividend income (net of $6,025 of foreign withholding tax)   $ 1,744,482    
Expenses:  
Investment management fees     605,717    
Administration fees     53,642    
Shareholder reporting expenses     36,049    
Professional fees     25,992    
Custodian fees and expenses     20,991    
Transfer agent fees and expenses     9,492    
Directors' fees and expenses     6,802    
Miscellaneous     19,465    
Total Expenses     778,150    
Net Investment Income     966,332    
Net Realized and Unrealized Gain (Loss):  
Net realized gain (loss) on:  
Investments     8,684,026    
Options     (1,552,732 )  
Foreign currency transactions     (2,885 )  
Net realized gain     7,128,409    
Net change in unrealized appreciation (depreciation) on:  
Investments     (14,172,767 )  
Options     690,067    
Foreign currency translations     (122 )  
Net change in unrealized appreciation (depreciation)     (13,482,822 )  
Net realized and unrealized loss     (6,354,413 )  
Net Decrease in Net Assets Resulting from Operations   $ (5,388,081 )  

 

See accompanying notes to financial statements.
17



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

STATEMENT OF CHANGES IN NET ASSETS (Unaudited)

    For the
Six Months Ended
June 30, 2010
  For the
Year Ended
December 31, 2009
 
Change in Net Assets:  
From Operations:  
Net investment income   $ 966,332     $ 3,350,910    
Net realized gain (loss)     7,128,409       (61,478,957 )  
Net change in unrealized appreciation (depreciation)     (13,482,822 )     75,307,604    
Net increase (decrease) in net assets resulting from
operations
    (5,388,081 )     17,179,557    
Dividends and Distributions to Shareholders from:  
Net investment income     (3,180,388 )     (3,266,556 )  
Tax return of capital           (3,921,120 )  
Total dividends and distributions to shareholders     (3,180,388 )     (7,187,676 )  
Capital Stock Transactions:  
Decrease in net assets from Fund share transactions     (377,799 )        
Total increase (decrease) in net assets     (8,946,268 )     9,991,881    
Net Assets:  
Beginning of period     159,616,270       149,624,389    
End of period a   $ 150,670,002     $ 159,616,270    

 

a   Includes dividends in excess of net investment income and undistributed net investment income of $2,096,899 and $117,157, respectively.

See accompanying notes to financial statements.
18




COHEN & STEERS DIVIDEND MAJORS FUND, INC.

FINANCIAL HIGHLIGHTS (Unaudited)

The following table includes selected data for a share outstanding throughout each period and other performance information derived from the financial statements. It should be read in conjunction with the financial statements and notes thereto.

    For the Six   For the Year Ended December 31,   For the Period
January 31, 2005 a
 
    Months Ended       through  
Per Share Operating Performance:   June 30, 2010   2009   2008   2007   2006   December 31, 2005  
Net asset value, beginning of period   $ 12.55     $ 11.76     $ 19.29     $ 23.12     $ 20.21     $ 19.10    
Income from investment operations:  
Net investment income     0.08       0.26       0.54       0.53       0.49       0.43 b    
Net realized and unrealized
gain (loss)
    (0.51 )     1.10       (6.62 )     (2.46 )     4.72       1.75    
Total income (loss) from
investment operations
    (0.43 )     1.36       (6.08 )     (1.93 )     5.21       2.18    
Less dividends and distributions
to shareholders from:
 
Net investment income     (0.25 )     (0.26 )     (0.54 )     (0.51 )     (0.49 )     (0.43 )  
Net realized gain                       (0.66 )     (1.31 )     (0.06 )  
Tax return of capital           (0.31 )     (0.93 )     (0.73 )     (0.50 )     (0.51 )  
Total dividends and
distributions to
shareholders
    (0.25 )     (0.57 )     (1.47 )     (1.90 )     (2.30 )     (1.00 )  
Offering costs charged to paid-in capital                                   (0.04 )  
Dilutive effect of common share offering                                   (0.03 )  
Anti-dilutive effect from the purchase of
common shares
    0.01             0.02                      
Net increase (decrease) in net asset value     (0.67 )     0.79       (7.53 )     (3.83 )     2.91       1.11    
Net asset value, end of period   $ 11.88     $ 12.55     $ 11.76     $ 19.29     $ 23.12     $ 20.21    
Market value, end of period   $ 9.91     $ 10.45     $ 9.65     $ 16.85     $ 20.60     $ 17.03    
Total net asset value return c     –3.09 % d     13.79 %     –32.21 %     –7.64 %     28.18 %     11.81 % d  
Total market value return c     –2.92 % d     15.47 %     –36.32 %     –9.45 %     35.54 %     –10.03 % d  
Ratios/Supplemental Data:  
Net assets, end of period (in millions)   $ 150.7     $ 159.6     $ 149.6     $ 247.0     $ 296.0     $ 258.8    
Ratio of expenses to average daily
net assets
    0.96 % e     1.07 %     0.97 %     0.92 %     0.91 %     0.95 % e  
Ratio of net investment income to
average daily net assets
    1.20 % e     2.49 %     3.27 %     2.35 %     2.17 %     2.38 % e  
Portfolio turnover rate     57 % d     128 %     47 %     41 %     33 %     11 % d  

 

a   Commencement of operations.

b   Calculation based on average shares outstanding.

c   Total market value return is computed based upon the New York Stock Exchange market price of the Fund's shares and excludes the effects of brokerage commissions. Total net asset value return measures the changes in value over the period indicated, taking into account dividends as reinvested. Dividends and distributions, if any, are assumed for purposes of these calculations, to be reinvested at prices obtained under the Fund's dividend reinvestment plan.

d   Not annualized.

e   Annualized.

See accompanying notes to financial statements.
19




COHEN & STEERS DIVIDEND MAJORS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)

Note 1. Significant Accounting Policies

Cohen & Steers Dividend Majors Fund, Inc. (the Fund) was incorporated under the laws of the State of Maryland on September 13, 2004 and is registered under the Investment Company Act of 1940 as amended, as a diversified, closed-end management investment company. The Fund's investment objective is to achieve high total return.

The following is a summary of significant accounting policies consistently followed by the Fund in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States of America (GAAP). The preparation of the financial statements in accordance with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from those estimates.

Portfolio Valuation: Investments in securities that are listed on the New York Stock Exchange are valued, except as indicated below, at the last sale price reflected at the close of the New York Stock Exchange on the business day as of which such value is being determined. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices for the day or, if no asked price is available, at the bid price. Exchange traded options are valued at their last sale price as of the close of options trading on applicable exchanges. In the absence of a last sale, options are valued at the average of the quoted bid and asked prices as of the close of business. Over-the-counter options quotations are provided by the respective counterparty.

Securities not listed on the New York Stock Exchange but listed on other domestic or foreign securities exchanges are valued in a similar manner. Securities traded on more than one securities exchange are valued at the last sale price on the business day as of which such value is being determined as reflected on the tape at the close of the exchange representing the principal market for such securities. If after the close of a foreign market, but prior to the close of business on the day the securities are being valued, market conditions change significantly, certain foreign securities may be fair valued pursuant to procedures established by the Board of Directors.

Readily marketable securities traded in the over-the-counter market, including listed securities whose primary market is believed by Cohen & Steers Capital Management, Inc. (the investment manager) to be over-the-counter, are valued at the official closing prices as reported by sources as the Board of Directors deem appropriate to reflect their fair market value. If there has been no sale on such day, the securities are valued at the mean of the closing bid and asked prices for the day, or if no asked price is available, at the bid price. However, certain fixed-income securities may be valued on the basis of prices provided by a pricing service when such prices are believed by the Board of Directors to reflect the fair market value of such securities.

Securities for which market prices are unavailable, or securities for which the investment manager determines that the bid and/or asked price does not reflect market value, will be valued at fair value pursuant to procedures approved by the Fund's Board of Directors. Circumstances in which market prices may be unavailable include, but are not limited to, when trading in a security is suspended, the exchange on which the security is traded is subject


20



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

to an unscheduled close or disruption or material events occur after the close of the exchange on which the security is principally traded. In these circumstances, the Fund determines fair value in a manner that fairly reflects the market value of the security on the valuation date based on consideration of any information or factors it deems appropriate. These may include, but are not limited to, recent transactions in comparable securities, information relating to the specific security and developments in the markets.

The Fund's use of fair value pricing may cause the net asset value of Fund shares to differ from the net asset value that would be calculated using market quotations. Fair value pricing involves subjective judgments and it is possible that the fair value determined for a security may be materially different than the value that could be realized upon the sale of that security.

Short-term debt securities with a maturity date of 60 days or less are valued at amortized cost, which approximates value. Investments in open-end mutual funds are valued at their closing net asset value.

Fair value is defined as the price that the Fund would receive to sell an investment or pay to transfer a liability in an orderly transaction with an independent buyer in the principal market, or in the absence of a principal market the most advantageous market for the investment or liability. The hierarchy of inputs that are used in determining the fair value of the Fund's investments is summarized below.

•  Level 1—quoted prices in active markets for identical investments

•  Level 2—other significant observable inputs (including quoted prices for similar investments, interest rates, credit risk, etc.)

•  Level 3—significant unobservable inputs (including the Fund's own assumptions in determining the fair value of investments)

The inputs or methodology used for valuing securities are not necessarily an indication of the risk associated with investing in those securities.

The following is a summary of the inputs used as of June 30, 2010 in valuing the Fund's investments carried at value:

    Total   Quoted Prices In
Active Market for
Identical Assets
(Level 1)
  Significant
Other Observable
Inputs
(Level 2)
  Significant
Unobservable
Inputs
(Level 3)
 
Common Stock   $ 148,682,011     $ 148,682,011     $          
Money Market Funds     2,300,481             2,300,481          
Total Investments   $ 150,982,492     $ 148,682,011     $ 2,300,481          
Other Financial Instruments *   $ (17,070 )   $ (17,070 )              

 

*   Other financial instruments are written option contracts.


21



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

Security Transactions and Investment Income: Security transactions are recorded on trade date. Realized gains and losses on investments sold are recorded on the basis of identified cost. Interest income is recorded on the accrual basis. Discounts are accreted and premiums are amortized over the life of the respective securities. Dividend income is recorded on the ex-dividend date, except for certain dividends on foreign securities, which are recorded as soon as the Fund is informed after the ex-dividend date. The Fund records distributions received in excess of income from underlying investments as a reduction of cost of investments and/or an increase in realized gain. Such amounts are based on estimates if actual amounts are not available, and actual amounts of income, realized gain and return of capital may differ from the estimated amounts. The Fund adjusts the estimated amounts of the components of distributions (and consequently its net investment income) as an increase to unrealized appreciation/(depreciation) and realized gain/(loss) on investments as necessary once the issuers provide information about the actual composition of the distributions.

Options: The Fund may write put or covered call options on an index or a security with the intention of earning option premiums. Option premiums may increase the Fund's realized gains and therefore may help increase distributable income. When a Fund writes (sells) an option, an amount equal to the premium received by the Fund is recorded in the Statement of Assets and Liabilities as a liability. The amount of the liability is subsequently marked-to-market to reflect the current market value of the option written. When an option expires, the Fund realizes a gain on the option to the extent of the premiums received. Premiums received from writing options which are exercised or closed, are added to or offset against the proceeds or amount paid on the transaction to determine the realized gain or loss. If a put option on a security is exercised, the premium reduces the cost basis of the securities purchased by the Fund. The Fund, as writer of an option, bears the market risk of an unfavorable change in the price of the underlying index or security. Other risks include the possibility of an illiquid options market or the inability of the counterparties to fulfill their obligations under the contract.

Dividends and Distributions to Shareholders: Dividends from net investment income and capital gain distributions are determined in accordance with U.S. federal income tax regulations, which may differ from GAAP. Dividends from net investment income, if any, are declared and paid quarterly. Net realized capital gains, unless offset by any available capital loss carryforward, are typically distributed to shareholders at least annually. Dividends and distributions to shareholders are recorded on the ex-dividend date and are automatically reinvested in full and fractional shares of the Fund based on the net asset value per share at the close of business on the payable date unless the shareholder has elected to have them paid in cash.

Distributions paid by the Fund are subject to recharacterization for tax purposes. Based upon the results of operations for the six months ended June 30, 2010, the investment manager considers it likely that a portion of the dividends will be reclassified to return of capital upon the final determination of the Fund's taxable income for the year.

Income Taxes: It is the policy of the Fund to continue to qualify as a regulated investment company, if such qualification is in the best interest of the shareholders, by complying with the requirements of Subchapter M of the


22



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

Internal Revenue Code applicable to regulated investment companies, and by distributing substantially all of its taxable earnings to its shareholders. Accordingly, no provision for federal income or excise tax is necessary. Management has analyzed the Fund's tax positions taken on federal income tax returns as well as its tax positions in non-U.S. jurisdictions where it trades for all open tax years and has concluded that as of June 30, 2010, no provisions for income tax would be required in the Fund's financial statements. The Fund's tax positions for the tax years for which the applicable statutes of limitations have not expired are subject to examination by the Internal Revenue Service, state departments of revenue and by foreign tax authorities.

Note 2. Investment Management Fees, Administration Fees and Other Transactions with Affiliates

Investment Management Fees: The investment manager serves as the Fund's investment manager pursuant to an investment management agreement (the investment management agreement). Under the terms of the investment management agreement, the investment manager provides the Fund with day-to-day investment decisions and generally manages the Fund's investments in accordance with the stated policies of the Fund, subject to the supervision of the Board of Directors.

For the services under the investment management agreement, the Fund pays the investment manager an investment management fee, accrued daily and paid monthly, at an annual rate of 0.75% of the Fund's average daily net assets.

Administration Fees: The Fund has entered into an administration agreement with the investment manager under which the investment manager performs certain administrative functions for the Fund and receives a fee, accrued daily and paid monthly, at the annual rate of 0.04% of the Fund's average daily net assets. For the six months ended June 30, 2010, the Fund paid the investment manager $32,305 in fees under this administration agreement. Additionally, the Fund pays State Street Bank and Trust Company as sub-administrator under a fund accounting and administration agreement.

Directors' and Officers' Fees: Certain directors and officers of the Fund are also directors, officers, and/or employees of the investment manager. The Fund does not pay compensation to any affiliated directors and officers except for the Chief Compliance Officer, who received $1,440 from the Fund for the six months ended June 30, 2010.

Note 3. Purchases and Sales of Securities

Purchases and sales of securities, excluding short-term investments, for the six months ended June 30, 2010, totaled $90,029,354 and $91,180,884, respectively.


23



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

Transactions in options written during the six months ended June 30, 2010, were as follows:

    Number
of Contracts
  Premium  
Options outstanding at December 31, 2009     339     $ 591,388    
Options written     1,953       3,584,295    
Options terminated in closing transactions     (2,056 )     (3,616,662 )  
Options outstanding at June 30, 2010     236     $ 559,021    

 

Note 4. Income Tax Information

As of June 30, 2010, the federal tax cost and net unrealized appreciation on securities were as follows:

Gross unrealized appreciation   $ 15,149,066    
Gross unrealized depreciation     (7,885,424 )  
Net unrealized appreciation   $ 7,263,642    
Cost for federal income tax purposes   $ 143,718,850    

 

As of December 31, 2009, the Fund had a net capital loss carryforward of $66,436,776, of which $5,770,371 will expire on December 31, 2016 and $60,666,405 will expire on December 31, 2017. This carryforward may be used to offset future capital gains to the extent provided by regulations.

Note 5. Capital Stock

The Fund is authorized to issue 100 million shares of common stock at a par value of $0.001 per share.

During the six months ended June 30, 2010, and the year ended December 31, 2009, the Fund issued no shares of common stock for the reinvestment of dividends.

On December 15, 2009, the Board of Directors approved the continuation of the delegation of its authority to management to effect repurchases, pursuant to management's discretion and subject to market conditions and investment considerations, of up to 10% of the Fund's common shares outstanding ("Share Repurchase Program") through the fiscal year ended December 31, 2010. During the six months ended June 30, 2010, the Fund repurchased 37,000 Treasury shares of its common stock at an average price of $10.18 per share (including brokerage commissions) and a weighted average discount of 16.1%. These repurchases, which had a total cost of $377,798, resulted in an increase of $0.01 to the Fund's net asset value. During the year ended December 31, 2009 the Fund did not effect any purchases.


24



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

NOTES TO FINANCIAL STATEMENTS (Unaudited)—(Continued)

Note 6. Derivative Investments

The following table presents the value of derivatives held at June 30, 2010 and the effect of derivatives held during the six months ended June 30, 2010, along with the respective location in the financial statements. The volume of activity for written options during the six months ended June 30, 2010 is summarized in Note 3.

Statement of Assets and Liabilities  
    Assets   Liabilities  
Derivatives   Location   Fair Value   Location   Fair Value  
Equity contracts               Payables   $ 17,070    
Statement of Operations  

 

Derivatives   Location   Realized
Gain/(Loss)
  Change in Unrealized
Appreciation/
(Depreciation)
 
Equity contracts   Net Realized and Unrealized Gain (Loss)   $ (1,552,732 )   $ 690,067    

 

Note 7. Other

In the normal course of business, the Fund enters into contracts that provide general indemnifications. The Fund's maximum exposure under these arrangements is dependent on claims that may be made against the Fund in the future and, therefore, cannot be estimated; however, based on experience, the risk of material loss from such claims is considered remote.


25




COHEN & STEERS DIVIDEND MAJORS FUND, INC.

PROXY RESULTS (Unaudited)

Cohen & Steers Dividend Majors Fund, Inc. shareholders voted on the following proposals at the annual meeting held on May 13, 2010. The description of each proposal and number of shares voted are as follows:

Common Shares

    Shares Voted
For
  Authority
Withheld
 
To elect Directors  
Martin Cohen     9,082,434.314       661,459.792    
Richard J. Norman     9,101,941.463       641,952.643    
Frank K. Ross     9,089,311.769       654,582.337    

 


26



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

AVERAGE ANNUAL TOTAL RETURNS

(periods ended June 30, 2010) (Unaudited)

Based on Net Asset Value   Based on Market Value  
One Year   Five Years   Since Inception
(01/31/05)
  One Year   Five Years   Since Inception
(01/31/05)
 
  22.68 %     –1.73 %     –0.20 %     20.90 %     –3.26 %     –4.30 %  

 

The performance data quoted represent past performance. Past performance is no guarantee of future results. The investment return will vary and the principal value of an investment will fluctuate and shares, if sold, may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted.

REINVESTMENT PLAN

We urge shareholders who want to take advantage of this plan and whose shares are held in 'Street Name' to consult your broker as soon as possible to determine if you must change registration into your own name to participate.

OTHER INFORMATION

A description of the policies and procedures that the Fund uses to determine how to vote proxies relating to portfolio securities is available (i) without charge, upon request, by calling 800-330-7348, (ii) on our Web site at cohenandsteers.com or (iii) on the Securities and Exchange Commission's Web site at http://www.sec.gov. In addition, the Fund's proxy voting record for the most recent 12-month period ended June 30 is available (i) without charge, upon request, by calling 800-330-7348 or (ii) on the SEC's Web site at http://www.sec.gov.

The Fund files its complete schedule of portfolio holdings with the SEC for the first and third quarters of each fiscal year on Form N-Q. The Fund's Forms N-Q are available (i) without charge, upon request by calling 800-330-7348, or (ii) on the SEC's Web site at http://www.sec.gov. In addition, the Forms N-Q may be reviewed and copied at the SEC's Public Reference Room in Washington, DC. Information on the operation of the Public Reference Room may be obtained by calling 800-SEC-0330.

Please note that the distributions paid by the Fund to shareholders are subject to recharacterization for tax purposes. The Fund may also pay distributions in excess of the Fund's net investment company taxable income and this excess would be a tax-free return of capital distributed from the Fund's assets. To the extent this occurs, the Fund's shareholders of record will be notified of the estimated amount of capital returned to shareholders for each such distribution and this information will also be available at cohenandsteers.com. The final tax treatment of all distributions is reported to shareholders on their 1099-DIV forms, which are mailed after the close of each calendar year. Distributions of capital decrease the Fund's total assets and, therefore, could have the effect of increasing the Fund's expense ratio. In addition, in order to make these distributions, the Fund may have to sell portfolio securities at a less than opportune time.

Notice is hereby given in accordance with Section 23(c) of the Investment Company Act of 1940 that the Fund may purchase, from time to time, shares of its common stock in the open market.


27



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

APPROVAL OF INVESTMENT MANAGEMENT AGREEMENT

The Board of Directors of the Fund, including a majority of the directors who are not parties to the Fund's investment management agreement (the "Management Agreement"), or interested persons of any such party ("Independent Directors"), has the responsibility under the Investment Company Act of 1940 to approve the Fund's Management Agreement for its initial two year term and its continuation annually thereafter at a meeting of the Board of Directors called for the purpose of voting on the approval or continuation. At a meeting held in person on June 22-23, 2010, the Management Agreement was discussed and was unanimously continued for a term ending June 30, 2011 by the Fund's Board of Directors, including the Independent Directors. The Independent Directors were represented by independent counsel who assisted them in their deliberations during the meeting and executive session.

In considering whether to continue the Management Agreement, the Board of Directors reviewed materials provided by the Fund's investment manager (the "Investment Manager") and Fund counsel which included, among other things, fee, expense and performance information compared to peer funds ("Peer Funds") and performance comparisons to a larger category universe, prepared by an independent data provider; supplemental performance and summary information prepared by the Investment Manager; and a memorandum outlining the legal duties of the Board of Directors. The Board of Directors also spoke directly with representatives of the independent data provider and met with investment management personnel. In addition, the Board of Directors considered information provided from time to time by the Investment Manager throughout the year at meetings of the Board of Directors, including presentations by portfolio managers relating to the investment performance of the Fund and the investment strategies used in pursuing the Fund's objective. In particular, the Board of Directors considered the following:

(i) The nature, extent and quality of services provided by the Investment Manager: The Board of Directors reviewed the services that the Investment Manager provides to the Fund, including, but not limited to, making the day-to-day investment decisions for the Fund, and generally managing the Fund's investments in accordance with the stated policies of the Fund. The Board of Directors also discussed with officers and portfolio managers of the Fund the types of transactions that were being done on behalf of the Fund. Additionally, the Board of Directors took into account the services provided by the Investment Manager to its other funds, including those that have investment objectives and strategies similar to the Fund. The Board of Directors next considered the education, background and experience of the Investment Manager's personnel, noting particularly that the favorable history and reputation of the portfolio managers for the Fund has had, and would likely continue to have, a favorable impact on the Fund. The Board of Directors further noted the Investment Manager's ability to attract qualified and experienced personnel. After consideration of the above factors, among others, the Board of Directors concluded that the nature, extent and quality of services provided by the Investment Manager are adequate and appropriate.

(ii) Investment performance of the Fund and the Investment Manager: The Board of Directors considered the investment performance of the Fund compared to Peer Funds and compared to a relevant blended benchmark. The Board of Directors considered that the Fund outperformed the medians of the Peer Funds for the one- and


28



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

five-year periods ended March 31, 2010, and underperformed the medians for the year-to-date and three-year periods. The Board of Directors also noted that the Fund underperformed its blended benchmark for the year-to-date, one- three- and five-year periods ended March 31, 2010. The Board of Directors engaged in discussions with the Investment Manager regarding the contributors and detractors to the Fund's performance during the periods. The Board of Directors considered that, effective April 1, 2009, the Fund replaced its quantitative screening methodology used to select dividend yielding stocks with an actively managed large cap dividend value strategy and that following this change the Fund's performance improved. The Board of Directors noted that the Fund's investment mix of REITs (25% minimum investment) and dividend paying stocks is unique to the Peer Fund group, making performance comparisons difficult. The Board of Directors also considered supplemental information provided by the Investment Manager, including a narrative summary of various factors affecting performance, and the Investment Manager's performance in managing other funds that invest in real estate, large cap and dividend yielding securities. The Board of Directors determined to closely monitor the Fund's performance and requested that the Investment Manager provide updates for this purpose.

(iii) Cost of the services provided and profits realized by the Investment Manager from the relationship with the Fund: Next, the Board of Directors considered the management fees and administrative fees payable by the Fund, as well as total expense ratios. As part of its analysis, the Board of Directors gave consideration to the fee and expense analyses provided by the independent data provider. The Board of Directors considered the Fund's actual and contractual management fees, and the Fund's net expense ratios compared to the medians of the Peer Funds, and noted that the Fund was lower than the medians of the Peer Funds across all categories. The Board of Directors then considered the administrative services provided by the Investment Manager, including compliance and accounting services, and further noted that the Fund pays an administration fee to the Investment Manager. The Board of Directors concluded that, in light of market conditions, the Fund's current expense structure is satisfactory.

The Board of Directors also reviewed information regarding the profitability to the Investment Manager of its relationship with the Fund. The Board of Directors considered the level of the Investment Manager's profits and whether the profits were reasonable for the Investment Manager. The Board of Directors took into consideration other benefits to be derived by the Investment Manager in connection with the Management Agreement, noting particularly the research and related services, within the meaning of Section 28(e) of the Securities Exchange Act of 1934, as amended, that the Investment Manager receives by allocating the Fund's brokerage transactions. The Board of Directors also considered the fees received by the Investment Manager under the Administration Agreement, and noted the significant services received, such as compliance, accounting and operational services and furnishing office space and facilities for the Fund, and providing persons satisfactory to the Board of Directors to serve as officers of the Fund, and that these services were beneficial to the Fund. The Board of Directors concluded that the profits realized by the Investment Manager from its relationship with the Fund were reasonable and consistent with fiduciary duties.


29



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

(iv) The extent to which economies of scale would be realized as the Fund grows and whether fee levels would reflect such economies of scale: The Board of Directors noted that as a closed-end fund, the Fund would not be expected to have inflows of capital that might produce increasing economies of scale. The directors determined that, given the Fund's closed-end structure, there were no significant economies of scale that were not being shared with shareholders.

(v) Comparison of services rendered and fees paid to those under other investment management contracts, such as contracts of the same and other investment managers or other clients: As discussed above in (iii), the Board of Directors compared the fees paid under the Management Agreements to those under other investment management contracts of other investment advisers managing Peer Funds. The Board of Directors also considered the services rendered, fees paid and profitability under the Management Agreements to the Investment Manager's other management agreements and advisory contracts with institutional and other clients with similar investment mandates, including subadvised mutual funds and proprietary funds. The Board of Directors also considered the entrepreneurial risk and financial exposure assumed by the Investment Manager in developing and managing the Fund that the Investment Manager does not have with institutional and other clients. The Board of Directors determined that on a comparative basis the fees under the Management Agreement were reasonable in relation to the services provided.

No single factor was cited as determinative to the decision of the Board of Directors. Rather, after weighing all of the considerations and conclusions discussed above, the Board of Directors, including the Independent Directors, unanimously approved the continuation of the Management Agreement.


30



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

Meet the Cohen & Steers family of open-end funds:

C OHEN & S TEERS
G LOBAL R EALTY S HARES

  •  Designed for investors seeking total return, investing primarily in global real estate equity securities

  •  Symbols: CSFAX, CSFBX * , CSFCX, CSSPX

C OHEN & S TEERS
I NSTITUTIONAL G LOBAL R EALTY S HARES

  •  Designed for institutional investors seeking total return, investing primarily in global real estate securities

  •  Symbol: GRSIX

C OHEN & S TEERS
R EALTY S HARES

  •  Designed for investors seeking total return, investing primarily in REITs

  •  Symbol: CSRSX

C OHEN & S TEERS
I NSTITUTIONAL R EALTY S HARES

  •  Designed for institutional investors seeking total return, investing primarily in REITs

  •  Symbol: CSRIX

C OHEN & S TEERS
R EALTY I NCOME F UND

  •  Designed for investors seeking maximum total return, investing primarily in real estate securities with an emphasis on both income and capital appreciation

  •  Symbols: CSEIX, CSBIX * , CSCIX, CSDIX

C OHEN & S TEERS
I NTERNATIONAL R EALTY F UND

  •  Designed for investors seeking total return, investing primarily in international real estate securities

  •  Symbols: IRFAX, IRFCX, IRFIX

C OHEN & S TEERS
A SIA P ACIFIC R EALTY S HARES

  •  Designed for investors seeking total return, investing primarily in real estate securities located in the Asia Pacific region

  •  Symbols: APFAX, APFCX, APFIX

C OHEN & S TEERS
G LOBAL I NFRASTRUCTURE F UND

  •  Designed for investors seeking total return, investing primarily in global infrastructure securities

  •  Symbols: CSUAX, CSUBX * , CSUCX, CSUIX

C OHEN & S TEERS
D IVIDEND V ALUE F UND

  •  Designed for investors seeking high current income and long-term growth of income and capital appreciation, investing primarily in dividend paying common stocks and preferred stocks

  •  Symbols: DVFAX, DVFCX, DVFIX

C OHEN & S TEERS
P REFERRED S ECURITIES AND I NCOME F UND

  •  Designed for investors seeking total return and high current income and capital appreciation, investing primarily in preferred and debt securities

  •  Symbols: CPXAX, CPXCX, CPXIX

   *   Class B shares are no longer offered except through dividend reinvestment and permitted exchanges by existing Class B shareholders.

Please consider the investment objectives, risks, charges and expenses of the fund carefully before investing. A prospectus containing this and other information can be obtained by calling 800-330-7348 or by visiting cohenandsteers.com. Please read the prospectus carefully before investing.

Cohen & Steers Securities, LLC, Distributor


31



COHEN & STEERS DIVIDEND MAJORS FUND, INC.

OFFICERS AND DIRECTORS

Robert H. Steers
Director and co-chairman

Martin Cohen
Director and co-chairman

Bonnie Cohen
Director

George Grossman
Director

Richard E. Kroon
Director

Richard J. Norman
Director

Frank K. Ross
Director

Willard H. Smith Jr.
Director

C. Edward Ward, Jr.
Director

Adam M. Derechin
President and chief executive officer

Joseph M. Harvey
Vice president

Richard E. Helm
Vice president

Yigal D. Jhirad
Vice president

Francis C. Poli
Secretary

James Giallanza
Treasurer and chief financial officer

Lisa D. Phelan
Chief compliance officer

KEY INFORMATION

Investment Manager

Cohen & Steers Capital Management, Inc.
280 Park Avenue
New York, NY 10017
(212) 832-3232

Fund Subadministrator and Custodian

State Street Bank and Trust Company
One Lincoln Street
Boston, MA 02111

Transfer Agent

The Bank of New York Mellon
480 Washington Boulevard
Jersey City, NJ 07310
(866) 227-0757

Legal Counsel

Stroock & Stroock & Lavan, LLP
180 Maiden Lane
New York, NY 10038

New York Stock Exchange Symbol: DVM

Web site: cohenandsteers.com

This report is for shareholder information. This is not a prospectus intended for use in the purchase or sale of Fund shares. Past performance is of course no guarantee of future results and your investment may be worth more or less at the time you sell.


32




COHEN & STEERS

DIVIDEND MAJORS FUND

280 PARK AVENUE

NEW YORK, NY 10017

eDelivery NOW AVAILABLE

Stop traditional mail delivery; receive your shareholder reports online.

Sign up at cohenandsteers.com

SEMIANNUAL REPORT

JUNE 30, 2010

DVMSAR




 

Item 2. Code of Ethics.

 

Not applicable.

 

Item 3. Audit Committee Financial Expert.

 

Not applicable.

 

Item 4. Principal Accountant Fees and Services.

 

Not applicable.

 

Item 5. Audit Committee of Listed Registrants.

 

Not applicable.

 

Item 6. Schedule of Investments.

 

Included in Item 1 above.

 

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

 

Not applicable.

 

Item 8.  Portfolio Managers of Closed-End Management Investment Companies.

 

Not applicable.

 

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

 

 

 

(a)

 

(b)

 

(c)

 

(d)

 

DVM

 

Total Number
of Shares
Purchased

 

Average Price
paid per Share

 

Total Number
of Shares
Purchased as
Part of Publicly
Announced
Plans or
Programs

 

Maximum
Number of
Shares that May
Yet Be
Purchased
Under the Plans
or Programs

 

1/1/10 – 1/31/10

 

N/A

 

N/A

 

N/A

 

N/A

 

2/1/10 – 2/28/10

 

N/A

 

N/A

 

N/A

 

N/A

 

3/1/10 – 3/31/10

 

N/A

 

N/A

 

N/A

 

N/A

 

4/1/10 – 4/30/10

 

N/A

 

N/A

 

N/A

 

N/A

 

5/1/10 – 5/31/10

 

N/A

 

N/A

 

N/A

 

N/A

 

6/1/10 – 6/30/10

 

37,000

 

10.18

 

37,000

 

N/A

 

 



 

Note : On December 15, 2009, the Board of Directors of the Fund approved continuation of the delegation of its authority to management to effect repurchases, pursuant to management’s discretion and subject to market conditions and investment considerations, of up to 10% of the Fund’s common shares outstanding (“Share Repurchase Program”) through the current fiscal year ending December 31, 2010.

 

Item 10. Submission of Matters to a Vote of Security Holders.

 

None.

 

Item 11. Controls and Procedures.

 

(a) The registrant’s principal executive officer and principal financial officer have concluded, based upon their evaluation of the registrant’s disclosure controls and procedures as conducted within 90 days of the filing date of this report, that these disclosure controls and procedures provide reasonable assurance that material information required to be disclosed by the registrant in the report it files or submits on Form N-CSR is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms and that such material information is accumulated and communicated to the registrant’s management, including its principal executive officer and principal financial officer, as appropriate, in order to allow timely decisions regarding required disclosure. e controls and procedures as of a date within 90 days of the filing date of this report.

 

(b) There were no changes in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

 

Item 12. Exhibits.

 

(a)(1)  Not applicable.

 



 

(a) (2) Certifications of principal executive officer and principal financial officer as required by Rule 30a-2(a) under the Investment Company Act of 1940.

 

(a)(3)  Not applicable.

 

(b) Certifications of principal executive officer and principal financial officer as required by Rule 30a- 2(b) under the Investment Company Act of 1940.

 



 

SIGNATURES

 

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.

 

COHEN & STEERS DIVIDEND MAJORS FUND, INC.

 

 

By:

/s/ Adam M. Derechin

 

 

Name: Adam M. Derechin

 

 

Title: President and Chief Executive Officer

 

 

 

 

Date: September 3, 2010

 

 

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

 

 

By:

/s/ Adam M. Derechin

 

 

Name:

Adam M. Derechin

 

 

Title:

President and Chief Executive Officer

 

 

 

(principal executive officer)

 

 

 

 

 

By:

/s/ James Giallanza

 

 

Name:

James Giallanza

 

 

Title:

Treasurer

 

 

 

(principal financial officer)

 

 

 

 

 

 

 

Date: September 3, 2010

 

 


Cohen & Steers Dividend Majors Fund (NYSE:DVM)
Historical Stock Chart
From Jun 2024 to Jul 2024 Click Here for more Cohen & Steers Dividend Majors Fund Charts.
Cohen & Steers Dividend Majors Fund (NYSE:DVM)
Historical Stock Chart
From Jul 2023 to Jul 2024 Click Here for more Cohen & Steers Dividend Majors Fund Charts.