BlackRock MuniYield Quality (NYSE: MQY) logs phantom share reallocations

Rhea-AI Filing Summary

BLACKROCK MUNIYIELD QUALITY FUND, INC. reported administrative changes to phantom share holdings for portfolio manager Walter O’Connor tied to fund reorganizations. On February 23, 2026, three separate blocks of phantom shares were recorded at $11.74 per unit.

The transactions reflect reallocations of previously awarded phantom stock units from three predecessor BlackRock municipal funds into BlackRock MuniYield Quality Fund, Inc., using the applicable exchange ratios. After these reallocations, O’Connor directly held 1,427.06 phantom shares, which are economically equivalent to common shares and payable in cash, with no additional consideration paid by him.

SEC Form 4

FORM 4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

STATEMENT OF CHANGES IN BENEFICIAL OWNERSHIP

Filed pursuant to Section 16(a) of the Securities Exchange Act of 1934
or Section 30(h) of the Investment Company Act of 1940

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Check this box if no longer subject to Section 16. Form 4 or Form 5 obligations may continue. See Instruction 1(b).

Check this box to indicate that a transaction was made pursuant to a contract, instruction or written plan for the purchase or sale of equity securities of the issuer that is intended to satisfy the affirmative defense conditions of Rule 10b5-1(c). See Instruction 10.

1. Name and Address of Reporting Person^*

OCONNOR WALTER

(Last) (First) (Middle)

50 HUDSON YARDS

(Street)

NEW YORK NY 10001

(City) (State) (Zip)

2. Issuer Name and Ticker or Trading Symbol
BLACKROCK MUNIYIELD QUALITY FUND, INC. [ MQY ]

5. Relationship of Reporting Person(s) to Issuer
(Check all applicable)

	Director		10% Owner
	Officer (give title below)	X	Other (specify below)
			Portfolio Manager

3. Date of Earliest Transaction (Month/Day/Year)
02/23/2026

4. If Amendment, Date of Original Filed (Month/Day/Year)

6. Individual or Joint/Group Filing (Check Applicable Line)

X	Form filed by One Reporting Person
	Form filed by More than One Reporting Person

Table I - Non-Derivative Securities Acquired, Disposed of, or Beneficially Owned
1. Title of Security (Instr. 3)	2. Transaction Date (Month/Day/Year)	2A. Deemed Execution Date, if any (Month/Day/Year)	3. Transaction Code (Instr. 8)		4. Securities Acquired (A) or Disposed Of (D) (Instr. 3, 4 and 5)			5. Amount of Securities Beneficially Owned Following Reported Transaction(s) (Instr. 3 and 4)	6. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	7. Nature of Indirect Beneficial Ownership (Instr. 4)
			Code	V	Amount	(A) or (D)	Price

Table II - Derivative Securities Acquired, Disposed of, or Beneficially Owned (e.g., puts, calls, warrants, options, convertible securities)
1. Title of Derivative Security (Instr. 3)	2. Conversion or Exercise Price of Derivative Security	3. Transaction Date (Month/Day/Year)	3A. Deemed Execution Date, if any (Month/Day/Year)	4. Transaction Code (Instr. 8)		5. Number of Derivative Securities Acquired (A) or Disposed of (D) (Instr. 3, 4 and 5)		6. Date Exercisable and Expiration Date (Month/Day/Year)		7. Title and Amount of Securities Underlying Derivative Security (Instr. 3 and 4)		8. Price of Derivative Security (Instr. 5)	9. Number of derivative Securities Beneficially Owned Following Reported Transaction(s) (Instr. 4)	10. Ownership Form: Direct (D) or Indirect (I) (Instr. 4)	11. Nature of Indirect Beneficial Ownership (Instr. 4)
				Code	V	(A)	(D)	Date Exercisable	Expiration Date	Title	Amount or Number of Shares
Phantom Shares	(1)	02/23/2026		J(2)		365.84		(1)(2)	(1)(2)	Common Stock	365.84	$11.74(2)	365.84	D
Phantom Shares	(1)	02/23/2026		J(3)		530.41		(1)(3)	(1)(3)	Common Stock	530.41	$11.74(3)	896.25	D
Phantom Shares	(1)	02/23/2026		J(4)		530.81		(1)(4)	(1)(4)	Common Stock	530.81	$11.74(4)	1,427.06	D

Explanation of Responses:

1. A phantom share is the economic equivalent of one share of common stock and, subject to the applicable vesting requirements, becomes payable in cash.

2. Effective as of February 23, 2026 BlackRock Investment Quality Municipal Trust (the "Target Fund") was reorganized into BlackRock MuniYield Quality Fund, Inc. (the "Acquiring Fund"). In connection with this reorganization, phantom stock units previously awarded to Walter O'Connor in the Target Fund were reallocated to the Acquiring Fund. The number of phantom stock units in the Acquiring Fund (365.84 units at $11.74 per share) represents the value of the reporting person's former Target Fund phantom stock units converted at the exchange ratio used in the reorganization. No additional consideration was paid by the reporting person in connection with this reallocation.

3. Effective as of February 23, 2026 BlackRock MuniYield Quality Fund II, Inc. Income Trust (the "Target Fund") was reorganized into BlackRock MuniYield Quality Fund, Inc. (the "Acquiring Fund"). In connection with this reorganization, phantom stock units previously awarded to Walter O'Connor in the Target Fund were reallocated to the Acquiring Fund. The number of phantom stock units in the Acquiring Fund (530.41 units at $11.74 per share) represents the value of the reporting person's former Target Fund phantom stock units converted at the exchange ratio used in the reorganization. No additional consideration was paid by the reporting person in connection with this reallocation.

4. Effective as of February 23, 2026, BlackRock MuniYield Fund, Inc. (the "Target Fund") was reorganized into BlackRock MuniYield Quality Fund, Inc. (the "Acquiring Fund"). In connection with this reorganization, phantom stock units previously awarded to Walter O'Connor in the Target Fund were reallocated to the Acquiring Fund. The number of phantom stock units in the Acquiring Fund (530.81 units at $11.74 per share) represents the value of the reporting person's former Target Fund phantom stock units converted at the exchange ratio used in the reorganization. No additional consideration was paid by the reporting person in connection with this reallocation.

	/s/ Gladys Chang as Attorney-in-Fact	02/25/2026
	** Signature of Reporting Person	Date
Reminder: Report on a separate line for each class of securities beneficially owned directly or indirectly.
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FAQ

What did Walter O’Connor report on his Form 4 for MQY?

Walter O’Connor reported reallocations of previously awarded phantom shares into BlackRock MuniYield Quality Fund, Inc. on February 23, 2026. These entries arise from fund reorganizations and do not reflect open-market purchases or sales by the portfolio manager.

How many phantom shares does Walter O’Connor hold in MQY after the transactions?

After the reported transactions, Walter O’Connor held 1,427.06 phantom shares of BlackRock MuniYield Quality Fund, Inc. These phantom shares are economically equivalent to common stock and become payable in cash, subject to the applicable vesting requirements described in the footnotes.

What are phantom shares in the context of MQY’s Form 4 filing?

In this filing, a phantom share is described as the economic equivalent of one share of common stock. Subject to vesting requirements, these phantom shares are payable in cash rather than delivering actual fund shares to the portfolio manager, Walter O’Connor.

Why were MQY phantom shares reallocated to Walter O’Connor on February 23, 2026?

The phantom shares were reallocated because several BlackRock municipal funds were reorganized into BlackRock MuniYield Quality Fund, Inc. O’Connor’s existing phantom units in each target fund were converted into MQY phantom units at the applicable exchange ratios used in the reorganizations.

Did Walter O’Connor pay any additional consideration for the MQY phantom shares?

According to the footnotes, no additional consideration was paid by Walter O’Connor for these reallocations. The number of MQY phantom units simply reflects the value of his prior phantom units converted at the exchange ratios used in each fund reorganization.

Were MQY phantom share transactions on this Form 4 classified as buys or sells?

The transactions are coded as “J” – other acquisition or disposition and summarized as “other” rather than buys or sells. They represent administrative reallocations of existing phantom stock units due to fund reorganizations, not market purchases or sales.