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

                                   FORM N-CSR

                   CERTIFIED SHAREHOLDER REPORT OF REGISTERED
                         MANAGEMENT INVESTMENT COMPANIES

                  Investment Company Act file number: 811-5003

                           BLUE CHIP VALUE FUND, INC.
               (Exact name of registrant as specified in charter)

           1225 Seventeenth Street, 26th Floor, Denver, Colorado 80202
           -----------------------------------------------------------
               (Address of principal executive offices) (Zip code)

                                W. Bruce McConnel
                           Drinker Biddle & Reath LLP
                                One Logan Square
                              18th & Cherry Streets
                      Philadelphia, Pennsylvania 19103-6996
                      -------------------------------------
                     (Name and address of agent for service)

       Registrant's Telephone Number, including Area Code: (303) 623-2577

                      Date of fiscal year end: December 31

                     Date of reporting period: June 30, 2003

Form N-CSR is to be used by management investment companies to file reports with
the Commission not later than 10 days after the  transmission to stockholders of
any report that is required to be transmitted to  stockholders  under Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1).  The Commission may
use the information provided on Form N-CSR in its regulatory, disclosure review,
inspection, and policymaking roles.

A registrant  is required to disclose the  information  specified by Form N-CSR,
and the  Commission  will make this  information  public.  A  registrant  is not
required to respond to the  collection  of  information  contained in Form N-CSR
unless the Form  displays a  currently  valid  Office of  Management  and Budget
("OMB")  control number.  Please direct comments  concerning the accuracy of the
information  collection  burden  estimate and any  suggestions  for reducing the
burden to Secretary,  Securities and Exchange Commission,  450 Fifth Street, NW,
Washington,  DC 20549-0609.  The OMB has reviewed this collection of information
under the clearance requirements of 44 U.S.C. ss.3507.


Item 1. Reports to Shareholders

The  following  is a copy of the report to  shareholders  pursuant to Rule 30e-1
under the Investment Company Act of 1940 (17 CFR 270.30e-1).


--------------------------------------------------------------------------------

                               [LOGO]     Blue Chip
                              BlueChip    Value Fund

                               Semi-Annual Report

                                 to Stockholders

                                 June 30, 2003
--------------------------------------------------------------------------------


PORTFOLIO MANAGER COMMENTARY

Dear Fellow Stockholders:

      Patience was finally  rewarded during the first half of our fiscal year as
a dismal  winter slump gave way to an extended  springtime  rally.  Although war
fears, decaying business fundamentals and economic uncertainties  initially took
their  toll,  it  appears  to us that  the  market  later  shrugged  them off in
anticipation of better times ahead.  What fueled this optimism,  in our opinion,
was a positive outcome in Iraq coupled with  surprisingly  strong  first-quarter
earnings  and  nascent  signs of  economic  stability.  With hopes  raised  that
business conditions might soon improve, investor confidence surged.

      Against this backdrop,  the Blue Chip Value Fund realized an 8.11% gain in
net asset value (NAV) for the six-month period ended June 30, 2003,  compared to
an 11.76% advance for its benchmark,  the S&P 500 Index. The Fund's market price
entered  the year  trading at a  discount  to NAV of more than 5%, and ended the
period  trading at a premium of nearly 13%.  While our relative NAV  performance
was disappointing, we are optimistic about the prospects of our relative returns
going forward. Let us explain.

      In the  early  stages of a market  recovery,  it  appears  to us that some
participants  are tempted to "bet" on  beaten-down  or  lower-quality  companies
whose  share  prices  reflect  significant  risks,  such  as  excessive  debt or
weakening  business  fundamentals.  Another  group of  investors  may  choose to
"capture the rally" by "betting" on high volatility or high-beta stocks.  Recent
studies support this notion, as the market assumed heightened risk levels during
the first half of 2003, with the lowest-quality  companies  seemingly  outpacing
their higher-quality counterparts. One report in particular, authored by Merrill
Lynch Chief U.S.  Strategist  Richard  Bernstein,  calculated  that  speculative
companies rose 35.5% while stable ones gained only 8.9%.  Furthermore,  he noted
that  valuation  spreads  between  the  highest  beta stocks and the lowest beta
stocks widened  considerably,  approaching the peak levels of late 1999 (Source:
U.S.  Strategy,  Merrill Lynch, July 2003).  Despite these higher risk premiums,
the  Fund's  absolute  performance,  a  product  of our  disciplined  investment
process,  held its own  during  the  period.  This  process  evaluates  the cash
generation  abilities of prospective  holdings,  the market's valuation of those
free cash flows,  and the risks  inherent in a  company's  business  outlook and
balance sheet.


2


Given  these  strict  criteria,  the  Fund  generally  attempts  to  screen  out
lower-quality and more highly speculative  companies.  In our view, chasing this
theme would neither be prudent nor desired by our stockholders.

      With that in mind, our higher-quality  technology  holdings failed to keep
pace with the  benchmark  during the  period.  Nevertheless,  we  continue to be
vigilant with respect to valuation and believe our  investments  have  intrinsic
value  that is greater  than the  current  market  value.  Within the  financial
sector,  our  position in home  financing  giant  Freddie Mac came under  severe
pressure as the company  faced  allegations  of  accounting  irregularities  and
management turmoil.  Although we underestimated the magnitude of its forthcoming
earnings  restatement,  we still  believe  that the  value of the  franchise  is
greater  than where the stock  currently  trades.  Elsewhere,  our  holdings  in
aerospace and defense  contractor  General  Dynamics  Corp.  struggled  when its
business  jet  unit  experienced  revenue  and  profit  difficulties.  Likewise,
industrial  equipment  supplier Parker Hannifin Corp. fell short of expectations
as the prolonged global economic slowdown  contributed to softness across all of
its markets.

      Performance in our  healthcare-related  holdings  proved to be a source of
strength.   Generic   and   specialty   pharmaceutical   names  such  as  Watson
Pharmaceuticals  Inc.  and Mylan  Laboratories  Inc.  added nicely to the Fund's
returns, while exposure to large-cap drug giants Wyeth, Bristol-Myers Squibb Co.
and  Pharmacia  Corp.  as well as managed  health-care  leader  Aetna Inc.  also
contributed to significant outperformance relative to our benchmark. We remained
underrepresented in consumer staples believing that lofty valuations would cause
the sector to trail the market--a  decision that added value.  At the same time,
we capitalized on a modest  overweight in the energy sector as integrated energy
firm   ConocoPhillips   realized   significant   cost  savings  and  operational
efficiencies  from its  August  2002  merger.  Strong  stock  picking  in select
exploration and production companies emphasizing North American natural gas also
worked in our favor.

      Looking ahead, we remain optimistic that an economic recovery is underway,
and that  existing  monetary  and fiscal  stimulus  will  serve to support  that
recovery.  Although we are conscious of the need to own stocks that will benefit
from a  rebounding  economy,  we plan to continue  to invest in a  portfolio  of
companies we believe are selling at a discount to their


                                                                               3


estimated cash flows,  even assuming the economic  recovery is subdued.  Despite
periodic near-term pressures from the investing "crowd", we remain driven by the
belief that investing is a long-term  endeavor  because we believe  fundamentals
prevail in the end.

Sincerely,


/s/ Mark M. Adelmann

Mark M. Adelmann, CFA, CPA
Portfolio Manager and Vice
President

      The Portfolio Manager Commentary  included in this report contains certain
forward-looking  statements about the factors that may affect the performance of
the  Fund in the  future.  These  statements  are  based  on  Fund  management's
predictions and expectations concerning certain future events and their expected
impact  on the  Fund,  such as  performance  of the  economy  as a whole  and of
specific industry  sectors,  changes in the levels of interest rates, the impact
of  developing  world  events,  and other  factors that may influence the future
performance of the Fund. Management believes these forward-looking statements to
be reasonable,  although they are inherently uncertain and difficult to predict.
Actual events may cause  adjustments  in portfolio  management  strategies  from
those currently expected to be employed.

SEND US YOUR E-MAIL ADDRESS

      If  you  would  like  to  receive   monthly   portfolio   composition  and
characteristic  updates,  press releases and financial reports electronically as
soon as they are  available,  please  send an  e-mail  to  blu@denveria.com  and
include your name and e-mail address. You will still receive paper copies of any
required  communications  and reports in the mail.  This  service is  completely
voluntary  and  you can  cancel  at any  time by  contacting  us via  e-mail  at
blu@denveria.com or toll-free at 1-800-624-4190.


4


--------------------------------------------------------------------------------
                    Sector Diversification in Comparison to
                          S&P 500 as of June 30, 2003*
--------------------------------------------------------------------------------
                                                             Fund        S&P 500
--------------------------------------------------------------------------------
Basic Materials                                               2.6%         2.5%
--------------------------------------------------------------------------------
Capital Goods                                                 7.1%         4.7%
--------------------------------------------------------------------------------
Commercial Services                                           2.5%         2.2%
--------------------------------------------------------------------------------
Communications                                                4.3%         6.6%
--------------------------------------------------------------------------------
Consumer Cyclical                                            12.8%        12.4%
--------------------------------------------------------------------------------
Consumer Staples                                              5.5%         8.9%
--------------------------------------------------------------------------------
Energy                                                        6.3%         5.8%
--------------------------------------------------------------------------------
Financials                                                   21.3%        23.2%
--------------------------------------------------------------------------------
Medical/Healthcare                                           19.6%        14.6%
--------------------------------------------------------------------------------
REITs                                                         0.0%         0.3%
--------------------------------------------------------------------------------
Technology                                                   13.0%        14.3%
--------------------------------------------------------------------------------
Transportation                                                1.9%         1.6%
--------------------------------------------------------------------------------
Utilities                                                     1.1%         2.9%
--------------------------------------------------------------------------------
Short-Term Investments and
Net Other Assets/Liabilities                                  2.0%          --
--------------------------------------------------------------------------------
*Sector  diversification  is subject to change and may not be  representative of
 future investments.
--------------------------------------------------------------------------------

--------------------------------------------------------------------------------
                          Average Annual Total Returns
                              as of June 30, 2003
--------------------------------------------------------------------------------
                 Return      6 Mos.     1-Year     3-Year       5-Year   10-Year
--------------------------------------------------------------------------------
Blue Chip
Value Fund       NAV          8.11%    (5.21%)     (4.67%)     (2.14%)    9.19%
--------------------------------------------------------------------------------
Blue Chip        Market
Value Fund       Price      28.73%      4.90%      (0.91%)     (0.32%)   10.26%
--------------------------------------------------------------------------------
S&P 500
Index                       11.75%      0.25%     (11.19%)     (1.61%)   10.04%
--------------------------------------------------------------------------------
Past performance is no guarantee of future results. Share prices will fluctuate,
so that shares may be worth more or less than its original cost when sold. Total
investment  return is  calculated  assuming  a purchase  of common  stock on the
opening  of the  first  day and a sale on the  closing  of the  last day of each
period reported.  Dividends and distributions,  if any, are assumed for purposes
of this  calculation  to be  reinvested  at prices  obtained  under  the  Fund's
dividend  reinvestment plan. Rights offerings,  if any, are assumed for purposes
of this  calculation  to be fully  subscribed  under  the  terms  of the  rights
offering.  Generally,  total investment  return based on net asset value will be
higher than total investment return based on market value in periods where there
is an increase in the  discount or a decrease in the premium of the market value
to the  net  asset  value  from  the  beginning  to the  end  of  such  periods.
Conversely,  total investment  return based on the net asset value will be lower
than total  investment  return based on market value in periods where there is a
decrease in the  discount  or an increase in the premium of the market  value to
the net asset value from the beginning to the end of such periods.
--------------------------------------------------------------------------------


                                                                               5


--------------------------------------------------------------------------------
                     Market Price Performance History Since
                   Inception (04/15/87) through June 30, 2003
--------------------------------------------------------------------------------

   [The following table was depicted as a Line Graph in the Printed Material]

                 Adjusted Market Price(1)       Actual Market Price(2)
                            10                            10
                           9.5                           9.5
                           7.8                          7.75
                          5.58                           5.5
                          5.87                          5.75
                          6.31                          6.13
                           6.1                          5.88
                          6.28                             6
                          6.73                          6.25
                          7.62                          6.88
                          8.54                           7.5
                           8.2                             7
                          8.13                          6.75
                          8.21                          6.63
                          6.86                          5.38
                          7.86                             6
                          9.28                          6.88
                          9.88                          7.13
                         10.49                          7.38
                          11.4                          7.63
                         11.77                          7.88
                         12.07                          7.88
                         12.18                          7.75
                         12.81                          7.75
                         13.64                          8.25
                         13.78                          8.13
                         14.51                          8.25
                         14.57                          7.88
                          14.1                          7.63
                         12.54                          6.75
                         12.83                          6.88
                         12.65                          6.13
                         13.68                          6.63
                         14.78                          7.13
                         15.88                          7.63
                         17.91                          7.63
                         19.09                          8.13
                         20.04                           8.5
                         21.89                          9.25
                         24.98                          9.25
                         22.92                          8.38
                         27.37                          9.75
                         31.13                         10.81
                         35.11                         10.94
                         38.12                         11.88
                         37.19                         11.31
                         30.52                          9.06
                         35.58                          9.75
                         35.12                          9.63
                          37.9                         10.13
                         35.79                          9.31
                         37.95                          8.69
                         36.04                          8.25
                         37.62                          8.38
                         38.84                          8.44
                         36.75                          7.55
                         34.06                          6.79
                         41.48                          8.05
                         37.75                          7.14
                         41.92                          7.56
                         39.16                          7.02
                         34.89                           6.1
                         28.26                           4.8
                         28.43                          4.59
                         27.31                          4.41
                          36.6                          5.77

Please Note: line graph points are as of the end of each calendar quarter.

Past performance is no guarantee of future results. Share prices will fluctuate,
so that shares may be worth more or less than its original cost when sold.

(1)   Reflects  the  cumulative   total  return  of  an  investment  made  by  a
      stockholder  who  purchased  one share at inception  ($10.00 IPO) and then
      reinvested all annual  distributions as indicated,  and fully participated
      in primary subscriptions of rights offerings.

(2)   Reflects  the  actual  market  price of one share as it has  traded on the
      NYSE.

(3)   Annual  distribution  totals  represent  actual  amounts.  Please note the
      distribution  total for 2003 is for six months  ended June 30,  2003.  The
      Fund  currently pays 2.5% of its net asset value  quarterly;  however this
      policy may be changed at the discretion of the Fund's Board of Directors.


6


BLUE CHIP VALUE FUND, INC.

STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (Unaudited)

ASSETS
Investments at market value                                       $ 137,428,001
  (identified cost $138,011,160)
Dividends receivable                                                    119,873
Interest receivable                                                       3,139
Other assets                                                             41,101
                                                                  -------------
  TOTAL ASSETS                                                      137,592,114
                                                                  -------------

LIABILITIES
Payable for securities purchased                                        817,305
Advisory fee payable                                                     69,424
Administration fee payable                                                7,945
Accrued expenses and other liabilities                                   36,010
                                                                  -------------
  TOTAL LIABILITIES                                                     930,684
                                                                  -------------
NET ASSETS                                                        $ 136,661,430
                                                                  =============

COMPOSITION OF NET ASSETS
Capital stock, at par                                             $     266,779
Paid-in-capital                                                     158,331,918
Undistributed net investment income                                      61,083
Accumulated net realized loss                                       (18,614,638)
Net unrealized depreciation on investments                             (583,159)
Undesignated distributions                                           (2,800,553)
                                                                  -------------
                                                                  $ 136,661,430
                                                                  =============

SHARES OF COMMON STOCK
  OUTSTANDING (100,000,000 shares
  authorized at $0.01 par value)                                     26,677,937
                                                                  =============

Net asset value per share                                         $        5.12
                                                                  =============

See accompanying notes to financial statements.


                                                                               7


BLUE CHIP VALUE FUND, INC.

STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2003 (Unaudited)

INCOME
  Dividends                                        $  851,411
  Interest                                             30,155
                                                   ----------
TOTAL INCOME                                                     $      881,566
                                                                 --------------

EXPENSES
  Investment advisory fee
    (Note 3)                                          392,958
  Administrative services fee
    (Note 3)                                           44,949
  Stockholder reporting                                70,500
  Legal fees                                           67,500
  Transfer agent fees                                  36,382
  Directors' fees                                      35,734
  NYSE listing fees                                    19,338
  Audit and tax preparation fees                       12,165
  Insurance and fidelity bond                           5,510
  Custodian fees                                        4,786
  Other                                                 4,357
                                                   ----------
    TOTAL EXPENSES                                                      694,179
                                                                 --------------
    NET INVESTMENT INCOME                                               187,387
                                                                 --------------
REALIZED AND UNREALIZED
  GAIN/(LOSS) ON INVESTMENTS
  Net realized loss on investments                                   (2,224,655)
  Change in net unrealized appreciation
    or depreciation of investments                                   12,168,112
                                                                 --------------
    NET GAIN ON INVESTMENTS                                           9,943,457
                                                                 --------------
    NET INCREASE IN NET ASSETS
      RESULTING FROM OPERATIONS                                  $   10,130,844
                                                                 ==============

See accompanying notes to financial statements.


8


BLUE CHIP VALUE FUND, INC.

STATEMENTS OF CHANGES IN NET ASSETS

                                               For the Six          For the
                                              Months Ended         Year Ended
                                                 June 30,         December 31,
                                                 2003(1)              2002
                                              -------------       -------------
Increase/(decrease) in net
  assets from operations:
  Net investment income                       $     187,387       $     930,340
  Net realized loss from
    securities transactions                      (2,224,655)        (16,214,221)
  Change in net unrealized
    appreciation or depreciation
    of investments                               12,168,112         (21,320,777)
                                              -------------       -------------
                                                 10,130,844         (36,604,658)
                                              -------------       -------------

Decrease in net assets
  from distributions to
  stockholders from:
  Net investment income                            (126,304)           (930,340)
  Return of capital                                       0         (13,857,137)
  Undesignated (Note 1)                          (2,800,553)                  0
                                              -------------       -------------
                                                 (2,926,857)        (14,787,477)
                                              -------------       -------------

Increase in net assets from
  common stock transactions:
Proceeds from the sale of
  0 and 5,262,771 shares
  respectively, net of offering
  expenses (Note 4)                                       0          32,797,247
Net asset value of common
  stock issued to stockholders
  from reinvestment of
  dividends (157,387 and
  295,323 shares issued,
  respectively)                                     744,533           1,790,086
                                              -------------       -------------
                                                    744,533          34,587,333
                                              -------------       -------------
NET INCREASE/(DECREASE)
  IN NET ASSETS                                   7,948,520         (16,804,802)

NET ASSETS
  Beginning of period                           128,712,910         145,517,712
                                              -------------       -------------
  End of period (including
    $61,083 and $0 of
    undistributed net
    investment income,
    respectively)                             $ 136,661,430       $ 128,712,910
                                              =============       =============

See accompanying notes to financial statements.

(1)   Unaudited.


                                                                               9


BLUE CHIP VALUE FUND, INC.

FINANCIAL HIGHLIGHTS

                                                                  For the Six
                                                                  Months Ended
Per Share Data                                                      June 30,
(for a share outstanding throughout each period)                    2003(1)
                                                                  ------------
Net asset value - beginning of period                             $      4.85
Investment operations
Net investment income                                                    0.01
Net gain (loss) on investments                                           0.37
                                                                  -----------
Total from investment operations                                         0.38
                                                                  -----------
Distributions
From net investment income                                              (0.01)
From net realized gains on investments                                     --
Return of capital                                                          --
Undesignated                                                            (0.10)
                                                                  -----------
Total distributions                                                     (0.11)
                                                                  -----------
Capital Share Transactions
Dilutive effects of rights offerings                                       --
Offering costs charged to paid in capital                                  --
                                                                  -----------
Total capital share transactions                                           --
                                                                  -----------
  Net asset value, end of period                                  $      5.12
                                                                  ===========
  Per share market value, end of period                           $      5.77
                                                                  ===========
Total investment return(2) based on:
  Net Asset Value                                                         8.1%
  Market Value                                                           28.7%
Ratios/Supplemental data:
Ratios of expenses to average net assets                                 1.09%*
Ratio of net investment income to average net  assets                    0.29%*
Ratio of total distributions to average net assets                       2.28%
Portfolio turnover rate(3)                                              26.95%
Net assets - end of period (in thousands)                         $   136,661

See accompanying notes to financial statements.

*     Annualized.

(1)   Unaudited.

(2)   Total investment return is calculated  assuming a purchase of common stock
      on the  opening of the first day and a sale on the closing of the last day
      of each period reported. Dividends and distributions,  if any, are assumed
      for purposes of this calculation to be reinvested at prices obtained under
      the Fund's  dividend  reinvestment  plan.  Rights  offerings,  if any, are
      assumed for purposes of this  calculation to be fully subscribed under the
      terms of the rights offering.  Generally, total investment return based on
      net asset  value will be higher  than  total  investment  return  based on
      market  value in periods  where there is an increase in the  discount or a
      decrease in the premium of the market value to the net asset value


10


                         For the year ended December 31,
-------------------------------------------------------------------------------
    2002             2001             2000            1999              1998
-----------      -----------      -----------      -----------      -----------
$      6.94      $      8.17      $      9.09      $     10.25      $      9.76

       0.04             0.04             0.05             0.03             0.05
      (1.40)           (0.29)           (0.08)            0.49             1.62
-----------      -----------      -----------      -----------      -----------
      (1.36)           (0.25)           (0.03)            0.52             1.67
-----------      -----------      -----------      -----------      -----------

      (0.04)           (0.04)           (0.05)           (0.03)           (0.05)
         --            (0.36)           (0.84)           (1.65)           (1.08)
      (0.52)           (0.34)              --               --               --
         --               --               --               --               --
-----------      -----------      -----------      -----------      -----------
      (0.56)           (0.74)           (0.89)           (1.68)           (1.13)
-----------      -----------      -----------      -----------      -----------

      (0.16)           (0.23)              --               --            (0.04)
      (0.01)           (0.01)              --               --            (0.01)
-----------      -----------      -----------      -----------      -----------
      (0.17)           (0.24)              --               --            (0.05)
-----------      -----------      -----------      -----------      -----------
$      4.85      $      6.94      $      8.17      $      9.09      $     10.25
===========      ===========      ===========      ===========      ===========
$      4.59      $      7.56      $      7.55      $      8.69      $      9.75
===========      ===========      ===========      ===========      ===========

     (20.6%)           (3.0%)            0.2%             6.2%            17.6%
     (32.2%)           14.1%            (3.2%)            6.7%             1.3%

      0.93%            0.91%            0.88%            0.85%            0.94%
      0.64%            0.56%            0.63%            0.32%            0.56%
     10.15%           10.21%           10.46%           16.86%           11.62%
     65.86%           73.30%          127.55%           54.24%           76.02%
$   128,713      $   145,517      $   140,863      $   153,002      $   171,512

      from  the  beginning  to  the  end  of  such  periods.  Conversely,  total
      investment  return  based on the net asset  value will be lower than total
      investment  return  based on  market  value in  periods  where  there is a
      decrease in the discount or an increase in the premium of the market value
      to the net asset value from the beginning to the end of such periods.

(3)   A portfolio turnover rate is the percentage  computed by taking the lesser
      of  purchases  or  sales of  portfolio  securities  (excluding  short-term
      investments)  for a year and  dividing  it by the  monthly  average of the
      market value of the portfolio  securities  during the year.  Purchases and
      sales of investment securities  (excluding short-term  securities) for the
      six  months  ended  June  30,  2003  were   $33,283,577  and  $35,028,346,
      respectively.


                                                                              11


BLUE CHIP VALUE FUND, INC.

STATEMENT OF INVESTMENTS
June 30, 2003 (Unaudited)

                                                                      Market
                                      Shares           Cost            Value
                                     ---------       ---------       ---------
COMMON STOCKS - 97.98%
BASIC MATERIALS - 2.56%
Forestry & Paper - 2.56%
Bowater Inc.                            93,500     $ 4,423,466    $  3,501,575
TOTAL BASIC MATERIALS                                4,423,466       3,501,575
------------------------------------------------------------------------------

CAPITAL GOODS - 7.15%
Aerospace & Defense - 4.24%
General Dynamics Corp.                  34,800       2,461,195       2,523,000
Raytheon Co.                            99,500       3,429,852       3,267,580
                                                   -----------     -----------
                                                     5,891,047       5,790,580
Electrical Equipment - 2.91%
Parker Hannifin Corp.                   94,800       4,519,195       3,980,652
TOTAL CAPITAL GOODS                                 10,410,242       9,771,232
------------------------------------------------------------------------------

COMMERCIAL SERVICES - 2.51%
Business Products & Services - 2.51%
Accenture Ltd.*                        189,600       4,227,692       3,429,864
TOTAL COMMERCIAL
  SERVICES                                           4,227,692       3,429,864
------------------------------------------------------------------------------

COMMUNICATIONS - 4.28%
Telecomm Service Providers - 4.28%
ALLTEL Corp.                            66,100       3,347,105       3,187,342
BellSouth Corp.                         99,800       3,723,365       2,657,674
                                                   -----------     -----------
                                                     7,070,470       5,845,016
TOTAL COMMUNICATIONS                                 7,070,470       5,845,016
------------------------------------------------------------------------------

CONSUMER CYCLICAL - 12.81%
Clothing & Accessories - 2.36%
TJX Companies Inc.                     171,300       2,590,532       3,227,292
General Merchandise - 2.58%
Target Corp.                            93,300       3,209,526       3,530,472
Hotels & Gaming - 3.05%
Starwood Hotels &
  Resorts Inc.                         145,600       4,472,957       4,162,704
Publishing & Media - 4.82%
Dow Jones &
  Company Inc.                          62,800       3,396,231       2,702,284
Viacom Inc. - Class B*                  58,800       2,889,801       2,567,208
Walt Disney Co.                         66,800       1,393,508       1,319,300
                                                   -----------     -----------
                                                     7,679,540       6,588,792
TOTAL CONSUMER CYCLICAL                             17,952,555      17,509,260
------------------------------------------------------------------------------

12


                                                                       Market
                                      Shares           Cost            Value
                                     ---------       ---------       ---------
CONSUMER STAPLES - 5.51%
Food & Agricultural Products - 5.51%
Bunge Ltd.                             123,800     $ 2,963,252    $  3,540,680
Kraft Foods Inc.                        83,500       2,627,196       2,717,925
Sara Lee Corp.                          67,400       1,321,225       1,267,794
                                                   -----------     -----------
                                                     6,911,673       7,526,399
TOTAL CONSUMER STAPLES                               6,911,673       7,526,399
------------------------------------------------------------------------------

ENERGY - 6.35%
Exploration & Production - 2.05%
Devon Energy Corp.                      52,412       2,528,822       2,798,822
Integrated Oils - 2.79%
ConocoPhillips                          69,519       3,961,318       3,809,641
Oil Services - 1.51%
Transocean Inc.*                        94,300       2,171,769       2,071,771
TOTAL ENERGY                                         8,661,909       8,680,234
------------------------------------------------------------------------------

FINANCIALS - 21.35%
Integrated Financial Services - 2.74%
Citigroup Inc.                          87,500       3,751,033       3,745,000
Life & Health Insurance - 2.00%
Nationwide Financial
  Services - Class A                    42,200       1,747,900       1,371,500
Principal Financial Group               42,500       1,149,789       1,370,625
                                                   -----------     -----------
                                                     2,897,689       2,742,125

Money Center Banks - 1.02%
Bank of America Corp.                   17,600       1,191,759       1,390,928
Property Casualty Insurance - 10.49%
Allstate Corp.                          68,300       2,455,295       2,434,895
AMBAC Financial
  Group Inc.                            46,200       2,518,371       3,060,750
American
  International Group                   45,600       2,943,285       2,516,208
Radian Group Inc.                       97,300       3,402,595       3,566,045
Travelers Property and
  Casualty Corp.                       173,800       2,512,932       2,763,420
                                                   -----------     -----------
                                                    13,832,478      14,341,318

Regional Banks - 1.44%
SouthTrust Corp.                        72,200       1,649,525       1,963,840

Securities & Asset Management - 2.00%
Goldman Sachs Group Inc.                13,600         919,330       1,139,000
Lehman Brothers
  Holdings Inc.                         24,000       1,379,233       1,595,520
                                                   -----------     -----------
                                                     2,298,563       2,734,520

Specialty Finance - 1.66%
Freddie Mac                             44,600       2,825,903       2,264,342
TOTAL FINANCIALS                                    28,446,950      29,182,073
------------------------------------------------------------------------------


                                                                              13


                                                                       Market
                                      Shares           Cost            Value
                                     ---------       ---------       ---------
MEDICAL - HEALTHCARE - 19.55%
Healthcare Services - 6.25%
Aetna Inc.                              60,900     $ 2,675,986    $  3,666,180
Caremark RX Inc.*                       60,100       1,393,635       1,543,368
Omnicare Inc.                           98,819       2,408,501       3,339,094
                                                   -----------     -----------
                                                     6,478,122       8,548,642

Pharmaceuticals - 13.30%
Bristol-Myers Squibb Co.                86,380       3,495,709       2,345,217
King
  Pharmaceuticals Inc.*                183,300       2,314,437       2,705,508
Mylan Laboratories Inc.                 93,600       2,713,945       3,254,472
Pfizer Inc.                            154,560       4,311,411       5,278,224
Watson
  Pharmaceuticals Inc.*                 44,200       1,269,685       1,784,354
Wyeth                                   61,600       2,181,344       2,805,880
                                                   -----------     -----------
                                                    16,286,531      18,173,655
TOTAL MEDICAL -
  HEALTHCARE                                        22,764,653      26,722,297
------------------------------------------------------------------------------

TECHNOLOGY - 12.96%
Computer Software - 3.08%
Microsoft Corp.                        164,200       5,018,589       4,205,162
Electronic Equipment - 1.88%
American Power
  Conversion*                          164,600       2,291,097       2,566,114
IT Services - 0.96%
Computer
Sciences Corp.*                         34,500       1,431,602       1,315,140
Semiconductors - 5.00%
Intel Corp.                            168,200       4,798,360       3,495,869
National
  Semiconductor Corp.*                  67,500       1,278,794       1,331,100
Xilinx Inc.*                            79,500       2,117,355       2,012,145
                                                   -----------     -----------
                                                     8,194,509       6,839,114

Technology Resellers - Distributors - 2.04%
Tech Data Corp.*                       104,200       2,822,347       2,783,182
TOTAL TECHNOLOGY                                    19,758,144      17,708,712
------------------------------------------------------------------------------

TRANSPORTATION - 1.87%
Railroads - 1.87%
Union Pacific Corp.                     44,000       2,552,640       2,552,880
TOTAL TRANSPORTATION                                 2,552,640       2,552,880
------------------------------------------------------------------------------


14


                                                                      Market
                                      Shares           Cost            Value
                                     ---------       ---------       ---------
UTILITIES - 1.08%
Electric - Gas Utilities - 1.08%
Exelon Corp.                            24,600    $  1,303,633     $ 1,471,326
TOTAL UTILITIES                                      1,303,633       1,471,326
------------------------------------------------------------------------------
TOTAL COMMON STOCKS                                134,484,027     133,900,868
------------------------------------------------------------------------------

SHORT-TERM INVESTMENTS - 2.58%
Goldman Sachs Financial
  Square Prime Obligations
  Fund - FST Shares                                  3,527,133       3,527,133
TOTAL SHORT-TERM
  INVESTMENTS                                        3,527,133       3,527,133
------------------------------------------------------------------------------

TOTAL
INVESTMENTS                             100.56%    138,011,160     137,428,001
Liabilities in Excess of
  Other Assets                           (0.56%)                      (766,571)
                                        ------                    ------------
NET ASSETS                              100.00%                   $136,661,430
                                        ======                    ============

*     Denotes non-income producing security.


                                                                              15


BLUE CHIP VALUE FUND, INC.

NOTES TO FINANCIAL STATEMENTS
June 30, 2003 (Unaudited)

1.    ORGANIZATION AND SIGNIFICANT ACCOUNTING POLICIES

      Blue Chip Value Fund, Inc. (the "Fund") is registered under the Investment
Company  Act of  1940,  as  amended,  as a  diversified,  closed-end  management
investment company.

      The following is a summary of significant  accounting policies followed by
the Fund in the preparation of its financial statements.

Security  Valuation - All  securities  of the Fund are valued as of the close of
regular  trading on the New York Stock  Exchange  ("NYSE"),  currently 4:00 p.m.
(Eastern  Time),  on each  day that the  NYSE is  open.  Listed  securities  are
generally  valued at the last sales price as of the close of regular  trading on
the NYSE.  Securities traded on the National  Association of Securities  Dealers
Automated  Quotation  ("NASDAQ")  are  generally  valued at the NASDAQ  Official
Closing Price  ("NOCP").  In the absence of sales and NOCP,  such securities are
valued at the mean of the bid and asked prices.

      Securities  having a  remaining  maturity of 60 days or less are valued at
amortized cost which approximates market value.

      When market quotations are not readily available or when events occur that
make established  valuation  methods  unreliable,  securities of the Fund may be
valued at fair value  determined  in good faith by or under the direction of the
Board of Directors.

Investment  Transactions - Investment transactions are accounted for on the date
the  investments  are purchased or sold (trade date).  Realized gains and losses
from investment  transactions  and unrealized  appreciation  and depreciation of
investments  are determined on the first-in,  first-out basis for both financial
statement and federal  income tax purposes.  Dividend  income is recorded on the
ex-dividend  date.  Interest  income,  which includes  interest  earned on money
market funds, is accrued and recorded daily.

Federal Income Taxes - The Fund intends to comply with the  requirements  of the
Internal Revenue Code that are applicable to regulated  investment companies and
to  distribute  all of its taxable  income to its  stockholders.  Therefore,  no
provision  has been made for federal  income  taxes.


16


      The Fund had available for federal income tax purposes unused capital loss
carryovers of approximately $15,485,000, which will expire in 2010.

      The Fund intends to elect to defer to its fiscal year ending  December 31,
2003,  approximately $468,000 of losses recognized during the period November 1,
2002 to December 31, 2002, which will expire in 2011 if unutilized.

      The tax character of the distributions paid was as follows:

                                               Six Months Ended      Year Ended
                                                   June 30,         December 31,
                                                     2003               2002
--------------------------------------------------------------------------------
Distributions paid from:
Ordinary income                                  $   126,304       $    930,340
Long-term capital gain                                     0                  0
Undesignated                                       2,800,553                  0
Return of capital                                          0         13,857,137
                                                 -----------       ------------
Total                                            $ 2,926,857       $ 14,787,477
                                                 ===========       ============

      As of June 30, 2003,  the  components of  distributable  earnings on a tax
basis was as follows:

Undistributed net investment income                                $     61,083
Accumulated net realized loss                                       (18,177,084)
Net unrealized depreciation                                          (1,020,713)
Undesignated distributions                                           (2,800,553)
                                                                   ------------
Total                                                              $(21,937,267)
                                                                   ============

      The difference between book basis and tax basis is attributable to the tax
deferral of losses on wash sales.

Distributions  to Stockholders - Distributions  to stockholders  are recorded on
the  ex-dividend  date.  Distributions  are  classified  to  conform  to the tax
reporting  requirements  of the  Internal  Revenue  Code.  If the  Fund's  total
distributions  for the year  (exclusive of long-term  capital  gains  dividends)
exceed its net investment income and short-term capital gains for such year, all
or a portion of such  undesignated  distributions  may  constitute a non-taxable
return of capital.  Management  currently  believes it is likely that all of the
undesignated portion will be a non-taxable return of capital, however the actual
determination of the source of the undesignated  distributions  can be made only
at year-end.

      The Fund distributes at least 2.5% of its net asset value quarterly to its
stockholders.


                                                                              17


Use of Estimates - The  preparation of financial  statements in conformity  with
accounting  principles  generally  accepted  in the  United  Stated  of  America
requires  management to make estimates and  assumptions  that affect the amounts
reported in the financial  statements and disclosures  made in the  accompanying
notes to the  financial  statements.  Actual  results  could  differ  from those
estimates.

2.    UNREALIZED APPRECIATION AND DEPRECIATION OF INVESTMENTS (TAX BASIS)

As of June 30, 2003:
Gross appreciation (excess of value over tax cost)                $  10,858,668
Gross depreciation (excess of tax cost over value)                  (11,879,381)
                                                                  -------------
Net unrealized appreciation                                       $  (1,020,713)
                                                                  -------------
Cost of investments for income tax purposes                       $ 138,448,714
                                                                  =============

3.    INVESTMENT ADVISORY AND ADMINISTRATION SERVICES

      The Fund has an  Investment  Advisory  Agreement  with  Denver  Investment
Advisors LLC ("DIA"), whereby a management fee is paid to DIA based on an annual
rate of 0.65% of the Fund's  average  weekly net assets up to  $100,000,000  and
0.50% of the Fund's  average  weekly net assets in excess of  $100,000,000.  The
management  fee is paid  monthly  based on the  average of the net assets of the
Fund  computed as of the last  business day the New York Stock  Exchange is open
each week. Certain officers and directors of the Fund are also officers of DIA.

      Effective September 1, 1999, ALPS Mutual Funds Services, Inc. ("ALPS") and
DIA  entered   into  an   Administrative   Agreement  to  serve  as  the  Fund's
co-administrators.    The   Administrative   Agreement   includes   the   Fund's
administrative and fund accounting services. The administrative  services fee is
based on an annual  rate for ALPS and DIA,  respectively,  of 0.08% and 0.01% of
the Fund's average daily net assets up to  $75,000,000,  0.04% and 0.005% of the
Fund's average daily net assets between $75,000,000 and $125,000,000,  and 0.02%
and 0.005% of the Fund's average daily net assets in excess of $125,000,000. The
administrative services fee is paid monthly.

4.    ANNUAL MEETING OF STOCKHOLDERS

      The Annual Meeting of Stockholders of the Fund (the "Annual  Meeting") was
held May 20, 2003 pursuant to notice


18


given to all  stockholders of record at the close of business on March 14, 2003.
At the Annual Meeting, stockholders were asked to approve the following:

Proposal 1.

      To elect two Class III  directors,  Kenneth  V.  Penland  and  Roberta  M.
Wilson, to serve until the Annual Meeting in the year 2006. The number of shares
voting for the election of Mr.  Penland was  14,632,422 and the number of shares
withholding  authority  was  1,178,300.  The  number  of shares  voting  for the
election  of Ms.  Wilson was  14,615,164  and the  number of shares  withholding
authority was 1,195,558.

      The name of each other director whose term of office  continued  after the
Annual Meeting was Todger Anderson, Gary P. McDaniel, Robert J. Greenebaum,  Lee
W. Mather, Jr. and Richard C. Schulte.

Proposal 2.

      To approve an amendment to the Fund's Articles of  Incorporation to permit
the Fund to issue additional  classes of stock,  including  preferred stock. The
number of shares  voting for the proposal was  11,660,910,  the number of shares
voting against the proposal was 3,585,886 and the number of shares abstaining on
the proposal was  505,290.  The number of shares  needed to approve the proposal
was 13,303,894 so the proposal was not approved.

Proposal 3.

      To approve the elimination of the Fund's fundamental policy that restricts
its ability to purchase  securities  on margin.  The number of shares voting for
the proposal was  10,764,964,  the number of shares voting  against the proposal
was 4,372,860  and the number of shares  abstaining on the proposal was 614,262.
The number of shares  needed to  approve  the  proposal  was  10,553,898  so the
proposal was approved.

Proposal 4.

      To  approve  an  amendment  to the Fund's  investment  advisory  agreement
between the Fund and Denver Investment Advisors LLC to increase the advisory fee
payable to Denver Investment Advisors LLC by authorizing it to be compensated on
the  assets of the Fund  related to debt.  The  number of shares  voting for the
proposal was  9,993,905,  the number of shares  voting  against the proposal was
4,831,328 and the number of shares  abstaining on the proposal was 926,853.  The
number of shares  needed to approve the proposal was  10,553,898 so the proposal
was not approved.


                                                                              19


--------------------------------------------------------------------------------

                               BOARD OF DIRECTORS

              Kenneth V. Penland, Chairman
              Todger Anderson, Director
              Robert J. Greenebaum, Director
              Lee W. Mather, Jr, Director
              Gary P. McDaniel, Director
              Richard C. Schulte, Director
              Roberta M. Wilson, Director

                                    OFFICERS

              Kenneth V. Penland, Chairman
              Todger Anderson, President
              Mark M. Adelmann, Vice President
              W. Bruce McConnel, Secretary
              Jasper R. Frontz, Treasurer

              Investment Adviser/Co-Administrator
              Denver Investment Advisors LLC
              1225 17th Street, 26th Floor
              Denver, CO 80202
              (303) 312-5100

              Stockholder Relations
              Margaret R. Jurado
              (800) 624-4190               (303) 312-5100
              e-mail: blu@denveria.com

              Custodian
              Bank of New York
              One Wall Street
              New York, NY 10286

              Co-Administrator
              ALPS Mutual Funds Services, Inc.
              1625 Broadway, Suite 2200
              Denver, CO 80202

              Transfer Agent
              Dividend Reinvestment Plan Agent
              (Questions regarding your Account)
              Mellon Investor Services, LLC
              Overpeck Centre
              85 Challenger Road
              Ridgefield Park, NJ 07660
              (800) 288-9541
              www.melloninvestor.com

                                NYSE Symbol--BLU

                        [LOGO]                Blue Chip
                        BlueChip              Value Fund

                                  www.blu.com

--------------------------------------------------------------------------------


Item 2.  Code of Ethics

Form  N-CSR  disclosure  requirement  not  yet  effective  with  respect  to the
registrant.

Item 3.  Audit Committee Financial Expert

Form  N-CSR  disclosure  requirement  not  yet  effective  with  respect  to the
registrant.

Item 4.  Principal Accountant Fees and Services

Form  N-CSR  disclosure  requirement  not  yet  effective  with  respect  to the
registrant.

Item 5.  Audit Committee of Listed Registrants. Not Applicable.

Item 6.  [Reserved]

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

To be provided with the registrant's filing of its annual report on Form N-CSR.

Item 8.  [Reserved]

Item 9.  Controls and Procedures

(a)      The registrant's  principal  executive officer and principal  financial
         officer have concluded that the  registrant's  disclosure  controls and
         procedures (as defined in Rule 30a-3(c)  under the  Investment  Company
         Act of 1940,  as amended) are  effective  based on their  evaluation of
         these controls and procedures as of a date within 90 days of the filing
         date of this document.

(b)      There  were  no  changes  in the  registrant's  internal  control  over
         financial  reporting (as defined in Rule 30a-3(d) under the Act (17 CFR
         270.30a-3(d))  during  the  registrant's  last  fiscal  half-year  (the
         registrant's  second fiscal  half-year in the case of an annual report)
         that has  materially  affected,  or is reasonably  likely to materially
         affect, the registrant's internal control over financial reporting.

Item 10. Exhibits

(a)(1)   Form N-CSR disclosure requirement not yet effective with respect to the
         registrant.

(a)(2)   The certifications required by Rule 30a-2 of the Investment Company Act
         of 1940, as amended,  and Section 302 of the Sarbanes-Oxley Act of 2002
         are attached hereto as EX- 99.CERT.

(b)      Attached hereto as Exhibit 99.906CERT are the  certifications  pursuant
         to Section 906 of the Sarbanes-Oxley Act of 2002.


                                   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.

BLUE CHIP VALUE FUND, INC.


By: /s/Todger Anderson
    ---------------------------------
    Todger Anderson
    President/Chief Executive Officer

Date: August 29, 2003

      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/Todger Anderson
    ---------------------------------
    Todger Anderson
    President/Chief Executive Officer

Date: August 29, 2003


By: /s/Jasper Frontz
    ---------------------------------
    Jasper Frontz
    Treasurer/Chief Financial Officer

Date: August 29, 2003