DCS Announces Final Results of In-Kind Tender Offer and Schedule of In-Kind Proceeds to be Distributed

LISLE, Ill.--()--Claymore Dividend & Income Fund (the “Fund”)(NYSE: DCS), today announced that, in accordance with its in-kind tender offer (the “Offer”) to repurchase up to 4,085,947 of its issued and outstanding common shares of beneficial interest (“Common Shares”), representing approximately 45% of its issued and outstanding Common Shares, which expired at 11:59 p.m. EST on Monday, January 4, 2010, the Fund has accepted 4,085,893 properly tendered shares, representing approximately 45% of the Fund’s Common Shares outstanding, at a price per Common Share of approximately $16.24 (the “Repurchase Price”). The total value of assets of the Fund to be distributed in payment for such properly tendered Common Shares accepted in the Offer based on the Repurchase Price is approximately $66.36 million.

4,595,592 Common Shares were properly tendered in the Offer. In accordance with the terms of the Offer, the Fund is repurchasing shares on a pro-rata basis, disregarding fractions, from all tendering shareholders, with the exception of Common Shares tendered by shareholders who owned not more than 99 Common Shares and who properly tendered all such Common Shares, which the Fund will purchase in full in accordance with the terms of the Offer. Accordingly, on a pro rata basis, except as noted above, approximately 88.91% of the Common Shares properly tendered by each shareholder who tendered their Common Shares has been accepted for payment.

The Fund released today the aggregate schedule of in-kind proceeds to be distributed in connection with the Offer. The market value of each of the distributable assets listed below may increase or decrease before the actual receipt by shareholders of the distributable assets. The Fund delivered the distributable assets on January 15, 2010 to brokers whose customers tendered shares in the Offer through the Depository Trust Company (“DTC”). The Fund will distribute cash in lieu of any fractional share of a security that is not distributed due to rounding. Shareholders are encouraged to consult their own tax advisers with respect to the tax consequences of a sale of Common Shares pursuant to the Offer, including potential tax consequences in jurisdictions where the shareholder is a citizen, resident or domiciliary.

Schedule of In-Kind Proceeds

Security Name   CUSIP   Par/Shares   Market Value ($)
TIME WARNER 7.7% 5/01/32   00184AAG0   135,000   $161,717.60
AU OPTRONICS CORPORATION ADR   2255107   8,647   $111,373.36
ABBOTT LABS   2824100   21,103   $1,149,269.38
AETNA INC. 6.75% 12/15/37   00817YAG3   206,000   $215,720.30
ALCOA INC. 6.75% 7/15/18   013817AS0   125,000   $131,698.02
ALTRIA GROUP INC.   02209S103   35,211   $696,825.69
AMERICAN EXPRESS AXP VAR 9/1/66   025816AU3   58,000   $53,848.48
AMERICAN EXPRESS CO.   025816BB4   206,000   $246,631.47
AMERICAN INT’L GROUP 5.375% 10/18/11   02687QBE7   212,000   $213,776.08
ANADARKO 8.70% 3/15/19   032511BC0   200,000   $254,502.25
ANALOG DEVICES INC.   32654105   5,105   $161,675.35
ASTRAZENECA PLC ADR   46353108   26,101   $1,237,448.41
AUTOMATIC DATA PROCESSING   53015103   9,224   $395,063.92
AVALONBAY COMMUNITIES 6.1% 3/15/20   05348EAN9   84,000   $87,568.66
AVERY-DENNISON CORPORATION   53611109   1,652   $60,876.20
AVON PRODUCTS, INC.   54303102   4,228   $135,803.36
BP AMOCO PLC ADR   55622104   38,350   $2,268,402.50
BANK OF AMERICA 8% 12/29/49   060505DR2   57,000   $57,180.69
BEMIS COMPANY   81437105   1,652   $49,576.52
BHP BILLITON LTD.   88606108   25,014   $1,990,363.98
BIOVAIL CORPORATION   09067J109   1,574   $23,106.32
BOSTON PROPERTIES 5.875% 10/15/19   10112RAQ7   89,000   $90,698.74
BRASIL TELECOM SA ADR   10553M101   3,382   $102,136.40
BRISTOL-MYERS SQUIBB CO.   110122108   34,207   $876,725.41
CRH PLC SPONSORED ADR   12626K203   4,374   $122,690.70
CSX CORPORATION 6% 10/1/36   126408GH0   201,000   $201,884.37
CAMDEN PROPERTY 5.7% 5/15/17   133131AQ5   94,000   $89,527.10
CAMPBELL SOUP CO.   134429109   5,089   $172,364.43
CATERPILLAR INC.   149123101   6,177   $361,663.35
CATERPILLAR 7.15% 2/15/19   14912L4E8   135,000   $160,148.71
CENOVUS ENERGY INC.   15135U109   7,657   $203,676.20
CENTURYTEL INC.   156700106   976   $35,780.16
CHEVRON CORPORATION   166764100   26,418   $2,088,607.08
CHUNGHWA TELECOM CO. ADR   17133Q403   9,177   $172,527.60
CITIGROUP 8.5% 5/22/19   172967EV9   214,000   $252,197.45
COCA-COLA COMPANY   191216100   37,555   $2,142,137.20
COMCAST CORPORATION 6.55% 7/1/39   20030NAY7   206,000   $216,199.23
CEMIG SA SPONSORED ADR   204409601   3,491   $64,339.13
CIA SIDERURGICA SPONSORED ADR   20440W105   7,844   $260,185.48
CIA DE SANEAMENTO BAS ADR   20441A102   2,008   $80,139.28
CONOCOPHILLIPS   20825C104   24,274   $1,276,326.92
CORNING INC 6.625% 5/15/19   219350AS4   128,000   $141,402.05
DPL INC.   233293109   1,081   $29,781.55
DIAGEO PLC SPONSORED ADR   25243Q205   10,715   $744,371.05
WALT DISNEY CO. 7% 3/1/32   25468PBW5   208,000   $248,619.54
R.R. DONNELLEY & SONS CO.   257867101   3,526   $80,075.46
DOVER CORPORATION   260003108   1,796   $76,078.56
DOW CHEMICAL   260543103   18,502   $539,888.36
E.I. DU PONT DE NEMOURS   263534109   16,917   $579,576.42
EASTMAN CHEMICAL CO.   277432100   1,318   $81,386.50
EATON CORP.   278058102   2,777   $178,616.64
EMBRAER AIRCRAFT CORP. ADR   29081M102   1,796   $41,721.08
EMERSON ELECTRIC CO.   291011104   14,374   $623,112.90
ENCANA CORP.   292505104   7,657   $261,869.40
ENERPLUS RESOURCES   29274D604   1,673   $39,449.34
EXELON GENERATION 6.2% 10/1/17   30161MAE3   209,000   $227,787.80
FANNIE MAE 5.375% PREFERRED   313586810   131   $393,000.00
FEDERATED INVESTORS INC.   314211103   1,827   $51,156.00
FEDEX CORP. 8% 1/15/2019   31428XAR7   197,000   $244,313.06
FORTUNE BRANDS INC.   349631101   2,513   $109,039.07
FORTUNE BRANDS 6.625% 7/15/28   349631AG6   205,000   $200,352.80
GE CAPITAL CORP. 6.375% 11/15/67   36962G3M4   26,000   $23,142.71
GE CAPITAL CORP. 6.75% 3/15/32   36962GXZ2   208,000   $217,710.23
GENERAL MILLS INC.   370334104   4,374   $310,116.60
GENUINE PARTS COMPANY   372460105   2,726   $103,942.38
GLAXOSMITHKLINE PLC ADR   37733W105   42,893   $1,843,112.21
GOLDMAN SACHS 6.75% 10/1/37   38141GFD1   201,000   $211,330.19
GOLDMAN SACHS CAP. II 5.793% 12/29/49   381427AA1   60,000   $47,428.24
GREIF BROS CORP.   397624107   387   $21,571.38
HCP INC. 6.7% 1/30/18   40414LAA7   89,000   $89,575.12
HARSCO CORP.   415864107   771   $25,867.05
HEINZ (H.J.) CO.   423074103   5,253   $225,038.52
HELLENIC TELCOMMUNICATIONS ORG. ADR   423325307   17,287   $128,961.02
HERSHEY CO.   427866108   4,096   $148,357.12
HOME DEPOT, INC.   437076102   32,342   $927,245.14
HOME DEPOT 5.875% 12/16/36   437076AS1   206,000   $199,613.13
HONEYWELL INT'L INC.   438516106   7,302   $294,635.70
HUBBELL INC. (CLASS B)   443510201   846   $40,447.26
HUGHES NETWORK 9.5% 4/15/14   444433AF3   126,000   $133,385.02
ILLINOIS TOOL WORKS   452308109   9,216   $447,621.12
INTEL CORP.   458140100   96,489   $2,014,690.32
INT’L FLAVORS & FRAGRANCES   459506101   1,146   $48,143.46
INT’L GAME TECHNOLOGY 7.5% 6/15/19   459902AR3   206,000   $224,463.30
INT’L PAPER 7.5% 8/15/21   460146CE1   199,000   $229,424.37
INVERNESS MEDICAL INNOVATION 9% 5/15/16   46126PAF3   211,000   $219,440.00
JPMORGAN CHASE 7.9% 4/49   46625HHA1   58,000   $60,812.65
JPMORGAN CHASE 6.3% 4/23/19   46625HHL7   204,000   $230,610.98
JOHNSON & JOHNSON   478160104   28,804   $1,863,042.72
JOHNSON CONTROLS INC.   478366107   6,356   $176,696.80
KELLOGG COMPANY   487836108   5,512   $291,198.96
KIMBERLY CLARK   494368103   7,221   $464,093.67
KOHL'S CORPORATION 6.875% 12/15/37   500255AQ7   206,000   $234,575.39
PHILIPS ELECTRONICS   500472303   8,300   $255,889.00
KRAFT FOODS INC.   50075N104   14,495   $397,597.85
LEGGETT AND PLATT INC.   524660107   2,888   $59,232.88
ELI LILLY & CO.   532457108   19,702   $705,725.64
LIMITED BRANDS INC.   532716107   6,228   $120,262.68
LINEAR TECHNOLOGY CORP.   535678106   3,955   $122,367.70
LORILLARD INC.   544147101   1,589   $129,535.28
LUBRIZOL CORPORATION   549271104   1,145   $85,520.05
MDU RESOURCES GROUP   552690109   2,911   $69,602.01
MAGYAR TELECOM TELE SPONSORED ADR   559776109   3,779   $73,388.18
MARATHON OIL CORP.   565849106   7,067   $226,921.37
MARSH & MCLENNAN CO.   571748102   7,881   $172,357.47
MASCO CORPORATION   574599106   7,189   $102,730.81
MATTEL INC.   577081102   6,306   $126,056.94
MAXIM INTEGRATED PRODUCTS   57772K101   2,789   $57,146.61
MCCORMICK & COMPANY   579780206   1,732   $62,871.60
MCDONALD'S CORPORATION   580135101   21,327   $1,338,909.06
MCGRAW-HILL COMPANIES   580645109   5,706   $191,778.66
MERCK & CO. INC.   58933Y105   36,071   $1,334,987.71
MICROCHIP TECHNOLOGY INC.   595017104   3,250   $94,835.00
NATIONAL FUEL GAS COMPANY   636180101   1,437   $72,798.42
NORDSTROM INC.   655664100   2,301   $87,253.92
NORFOLK SOUTHERN CORP.   655844108   3,536   $185,958.24
NORTHROP GRUMMAN CORP.   666807102   3,298   $187,491.30
NUCOR CORP.   670346105   3,297   $157,563.63
ORACLE CORPORATION 6.125% 7/8/39   68389XAH8   126,000   $136,191.23
PPG INDUSTRIES INC.   693506107   3,110   $188,466.00
PARTNER COMM. ADR   70211M109   2,633   $54,081.82
PAYCHEX INC.   704326107   6,553   $201,963.46
PEARSON PLC SPONSORED ADR   705015105   7,128   $102,571.92
PENN WEST ENERGY TRUST   707885109   4,755   $86,065.50
J.C. PENNEY CO.   708160106   2,383   $64,722.28
PENTAIR INC.   709631105   1,329   $44,362.02
PEPSICO INC.   713448108   29,221   $1,789,494.04
PFIZER INC.   717081103  

96,620

  $1,829,016.60
PHILIP MORRIS INTERNATIONAL   718172109   19,830   $978,610.50
PHILIPPINE LONG DISTANCE SPONSORED ADR   718252604   1,857   $106,944.63
PINNACLE ENTERTAINMENT 7.5% 6/15/15   723456AG4   214,000   $200,446.68
PITNEY-BOWES INC.   724479100   4,099   $93,949.08
PLUM CREEK TIMBER COMPANY INC.   729251108   2,368   $90,220.80
PUBLIC SERVICE ENTERPRISE   744573106   9,245   $310,909.35
RPM INTERNATIONAL, INC.   749685103   1,142   $23,970.58
REPSOL YPF SA SPONSORED ADR   76026T205   16,657   $452,903.83
RIO TINTO PLC ADR   767204100   3,459   $775,196.49
ROCKWELL AUTOMATION INC.   773903109   1,454   $69,399.42
ROYAL DUTCH SHELL PLC ADR   780259206   33,381   $2,081,305.35
SARA LEE CORP.   803111103   14,547   $178,928.10
SASOL LTD SPONSORED ADR   803866300   6,603   $275,675.25
SIMON PROPERTY GROUP 10.35% 4/1/19   828807CA3   62,000   $79,671.24
JM SMUCKER CO.   832696405   1,294   $80,460.92
SNAP-ON INC.   833034101   815   $34,930.90
SONOCO PRODUCTS   835495102   1,836   $55,171.80
SOUTHWEST AIRLINES CO.   844741AX6   208,000   $203,572.63
SOUTHWESTERN ELECTRIC 6.45% 1/15/19   845437BK7   126,000   $139,037.66
STANLEY WORKS   854616109   1,431   $75,428.01
STEEL DYNAMICS INC.   858119100   1,675   $30,635.75
SUNOCO INC.   86764P109   1,190   $32,927.30
SYSCO CORPORATION   871829107   10,986   $308,706.60
TAIWAN SEMICONDUCTOR ADR   874039100   90,691   $1,050,201.78
TELECOM NEW ZEALAND SPONSORED ADR   879278208   6,952   $64,375.52
TELEFONOS DE MEXICO ADR   879403780   9,015   $153,976.20
TENARIS SA ADR   88031M109   6,181   $274,003.73
TEXTRON INC 7.25% 10/1/19   883203BQ3   126,000   $133,389.90
THOMSON REUTERS CORP.   884903105   11,375   $371,166.25
3M CO.   88579Y101   12,912   $1,071,954.24
TOTAL SA SPONSORED ADR   8.92E+113   31,979   $2,106,776.52
UNITED PARCEL SERVICE (CLASS B)   911312106   18,992   $1,104,954.56
UNITEDHEALTH 6.5% 6/15/37   91324PAX0   206,000   $205,039.22
VF CORPORATION   918204108   2,066   $151,603.08
WGL HOLDINGS INC.   92924F106   454   $15,354.28
WADDELL & REED FINANCIAL   930059100   1,100   $34,397.00
WASTE MAGEMENT INC.   94106L109   17,002   $580,788.32
WASTE MANAGEMENT INC. 7.375% 3/11/19   94106LAU3   200,000   $235,841.84
WEATHERFORD 9.625% 3/1/19   947075AF4   199,000   $255,078.96
WELLPOINT 5.95% 12/15/34   94973VAH0   198,000   $188,440.64
WELLS FARGO 7.98% 2/28/49   949746PM7   58,000   $59,849.22
WHIRLPOOL CORPORATION   963320106   768   $62,937.60
WILLIAMS COMPANIES, INC.   969457100   15,580   $336,683.80
COOPER INDUSTRIES (CLASS A)   G24140108   3,357   $144,149.58
INGERSOLL-RAND PLC   G47791101   3,092   $112,085.00
INVESCO LTD   G491BT108   3,862   $90,139.08
SCOTTISH RE GROUP (PREFERRED)   G73537402   103,638   $544,099.50
TYCO INTERNATIONAL LTD   H89128104   4,104   $148,852.08
TYCO ELECTRONICS LTD   H8912P106   4,381   $109,656.43
CELLCOM ISRAEL LTD   M2196U109   901   $29,579.83

The Offer is not part of a plan to liquidate the Fund. Shareholder participation was not mandatory as shareholders can continue to purchase and sell Common Shares in cash transactions on the New York Stock Exchange.

Claymore Advisors, LLC, an affiliate of Claymore Securities, Inc., serves as the Fund’s Investment Adviser. Claymore Securities, Inc. is a privately-held financial services company offering unique investment solutions for financial advisors and their valued clients. Claymore entities have provided supervision, management or servicing on approximately $15.2 billion in assets, as of December 31, 2009. Claymore currently offers closed-end funds, unit investment trusts and exchange-traded funds. Registered investment products are sold by prospectus only and investors should read the prospectus carefully before investing.

Manning & Napier Advisors, Inc. serves as the Fund’s Investment Sub-Adviser. Manning & Napier has been a registered investment adviser since 1970. For more than 35 years, Manning & Napier has focused on managing clients’ investments through a variety of market conditions, including five bear markets. The firm managed approximately $19 billion for individuals, corporations, defined benefit pension plans, 401(k) choice plans, Taft-Hartley accounts, endowments, foundations and municipal retirement plans as of June 30, 2009. It remains an employee-owned firm, with 100% of the firm owned by full-time employees.

There can be no assurance that the Fund will achieve its investment objectives. The net asset value of the Fund will fluctuate with the value of the underlying securities. It is important to note that closed-end funds trade on their market value, not net asset value, and closed-end funds often trade at a discount to their net asset value. Past performance is not indicative of future performance. An investment in the Fund is subject to certain risks and other considerations. Such risks and considerations include, but are not limited to: Investment Risk, Equity Risk, Preferred Securities Risk, Income Risk, “Value Investing” Risk, Interest Rate Risk, Inflation Risk, Lower-Grade Securities Risk, Foreign Securities Risk, Derivatives Risk, Illiquid Securities Risk, Fund Distribution Risk, Market Discount Risk, Industry Concentration Risk, Other Investment Companies Risk, Non-Diversified Status Risk, Financial Leverage Risk, Management Risk, Current Developments Risk, Anti-Takeover Provisions, and Market Disruption Risk and AMPS Risk.

Investors should consider the investment objectives and policies, risk considerations, charges and expenses of the Fund carefully before they invest. For this and more information, please contact a securities representative or Claymore Securities, Inc., 2455 Corporate West Drive, Lisle, Illinois 60532, 800-345-7999.

Member FINRA/SIPC (1/10)

NOT FDIC-INSURED | NOT BANK-GUARANTEED | MAY LOSE VALUE

Contacts

Press and Analyst Inquiries:
William T. Korver
Claymore Securities, Inc.
cefs@claymore.com
630-505-3700

Sharing

Contacts

Press and Analyst Inquiries:
William T. Korver
Claymore Securities, Inc.
cefs@claymore.com
630-505-3700