Company: MYI
Filing Date: 2025-04-07
Form Type: N-CSRS
Source: 0001193125-25-074486
Chunk: 0

Company: BLACKROCK MUNIYIELD QUALITY FUND III, INC.
Filing Date: 2025-04-07
Form: N-CSRS
Chunk 0
---
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: 811-06540

Name of Fund: BlackRock MuniYield Quality Fund III, Inc. (MYI)

Fund Address: 100 Bellevue Parkway, Wilmington, DE 19809

Name and address of agent for service: John M. Perlowski, Chief Executive Officer, BlackRock MuniYield Quality Fund III, Inc.,

50 Hudson Yards, New York, NY 10001

Registrant’s telephone
number, including area code: (800) 882-0052, Option 4

Date of fiscal year end: 07/31/2025

Date of reporting period: 01/31/2025

| Item 1 – | Reports to Stockholders |

(a) The Reports to Shareholders are attached herewith.

January 31, 2025

| 2025 Semi-Annual Report(Unaudited) |

| BlackRock Long-Term Municipal Advantage Trust (BTA) |
| BlackRock MuniAssets Fund, Inc. (MUA)               |
| BlackRock Municipal Income Fund, Inc. (MUI)         |
| BlackRock MuniYield Fund, Inc. (MYD)                |
| BlackRock MuniYield Quality Fund, Inc. (MQY)        |
| BlackRock MuniYield Quality Fund III, Inc. (MYI)    |

| Not FDIC Insured • May Lose Value • No Bank Guarantee |

Table of Contents

Page

| Semi-AnnualReport:                    |     |
| Municipal Market Overview             |   3 |
| The Benefits and Risks of Leveraging  |   4 |
| Derivative Financial Instruments      |   4 |
| Fund Summary                          |   5 |
| Financial Statements:                 |     |
| Schedules of Investments              |  17 |
| Statements of Assets and Liabilities  |  65 |
| Statements of Operations              |  67 |
| Statements of Changes in Net Assets   |  69 |
| Statements of Cash Flows              |  72 |
| Financial Highlights                  |  74 |
| Notes to Financial Statements         |  86 |
| Additional Information                |  98 |
| Glossary of Terms