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Since 1982, residents of Alaska have received a combined $31.3 billion from the Alaska Permanent Fund, a unique revenue-sharing program fueled by oil and mineral royalties.
As the largest sovereign wealth fund in America, it distributes dividends to Alaskans, with the amount fluctuating annually based on its performance. If you’re a full-time resident of the state, you’re eligible for annual dividends, making Alaska the only U.S. state that effectively pays you to live there. This could result in significant earnings over a lifetime.
On average, residents have received $1,229 per year since the fund launched in 1982, or roughly $4,916 annually for a family of four.
Key Takeaways
- Alaska residents earn an annual dividend from the Alaska Permanent Fund, which has averaged $1,229 annually since its launch in 1982.
- Dividends are distributed to all residents of Alaska, including children, and the amount fluctuates each year based on the fund’s performance.
- The fund generates income from the oil and mining sector, with the revenue invested in a combination of stocks, bonds, private equity, and other assets.
How the Alaska Permanent Fund Generates Money
As of April 30, 2025, the Alaska Permanent Fund held $81.45 billion in assets, driven primarily by royalties in the oil and gas sector. In 2024, this revenue totaled $532.6 million, equivalent to at least 25% of the state’s revenue from oil and minerals.
Over the past five years, the fund has returned 9.46% on average, driven by investments in eight distinct portfolios listed below, based on market values as of June 11, 2025:
| Alaska Permanent Fund Portfolio Holdings | |
|---|---|
| Portfolio Name | Value (as of June 2025) |
| Stocks | $27.3 billion |
| Bonds | $16.5 billion |
| Private Equity | $14.6 billion |
| Real Estate | $9.4 billion |
| Private Income and Infrastructure | $7.6 billion |
| Absolute Return | $5.9 billion |
| Tactical Opportunities | $578 million |
| Cash | $1.7 billion |
Together, the royalties and the fund’s annual performance determine the dividend for the fund. For instance, residents received $2,072 during the 2015 oil boom, but this fell to $992 when oil prices plummeted.
How Have Dividends Changed Over Time?
Annual payments vary widely depending on fund returns and oil prices. During oil booms, residents may receive more than double the average. During downturns, payouts shrink.
| Alaska Permanent Dividend Payments | |||
|---|---|---|---|
| Year | Dividend Amount | Applications Paid | Total Disbursement |
| 2024 | $1,702 | 624,489 | $1,062,880,278 |
| 2023 | $1,312 | 624,354 | $819,152,448 |
| 2022 | $3,284 | 625,912 | $2,055,495,008 |
| 2021 | $1,114 | 636,895 | $709,501,030 |
| 2020 | $992 | 630,937 | $625,889,504 |
| 2019 | $1,606 | 633,243 | $1,016,988,258 |
| 2018 | $1,600 | 639,247 | $1,022,795,200 |
| 2017 | $1,100 | 633,005 | $696,305,500 |
| 2016 | $1,022 | 638,178 | $652,217,916 |
| 2015 | $2,072 | 641,561 | $1,329,314,392 |
In 2024, Alaskans received a dividend of $1,702, with over $1 billion in total disbursements paid that year. While the historical average dividend amount stands at $1,229, the growth of these earnings over time can be substantial. Consider if you received $1,229 in dividends each year for 50 years, you would end up with $61,450. For a couple, this amounts to $122,900.
Fast Fact
In 2022, the annual dividend from the Alaska Permanent Fund hit a record high of $3,284, which included a $662 one-time energy relief payment amid inflationary pressures.
To make this money grow even further, you can funnel these dividends into a number of different investment accounts, such as tax-advantaged retirement savings accounts, high-yield savings accounts, money market funds, or a broad index that tracks the S&P 500. In addition to receiving free money, your earnings can benefit from the power of compounding over time.
The Bottom Line
Not only does Alaska have no income tax or sales tax, but it also runs a multi-billion-dollar sovereign wealth fund that provides significant cash transfers to residents each year. While its harsh climate has disincentivized many from living there, those who stay the course can receive tens of thousands over their lifetime, which can be strategically channelled into high-yielding investments to grow their wealth even further.
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