Blog

You can download the complete Spring 2026 newsletter (pdf)

President’s Report By Jeane Breinig

President Jeane Breinig

We recently completed a multi-year, forest tree thinning project with approximately $3,000,000 grant funding from the NRCS (National Research Conservation Services). In addition, we recently submitted another $95,000 funding proposal to inventory our trees. If our recent proposal is approved, the work would take place this summer. Both projects — tree thinning and tree inventory— will increase our forest’s potential value for future sales or carbon credits.

Speaking of grants, we are still working with the Organized Village of Kasaan (OVK) and the City of Kasaan on securing funding to restore Kavilco’s gray Bunkhouse. Right now, we are accepting bids, so we can include actual restoration costs with our proposal.

In beautiful, snowy Kasaan this spring, the OVK hosted another successful Dagwii Gawtlass Culture Camp March 4-8th with over 150 attendees from across Alaska, Massett, Vancouver, and Aotearoa, enhancing participants ability to practice our traditional Haida skin sewing, food gathering/processing, basket making and other cultural activities.

I hope many of you can come visit Kasaan this year; I look forward to spending time with you in this special place we call home.

Ha’waa,
Jeane Breinig, President

Chief Financial Officer’s Report

Dividend Declaration

We are pleased to announce that on March 6, 2026 the Kavilco Board of Directors declared a cash dividend of $36.00 per share. The dividend was payable on March 18, 2026 and reflects un-distributed earnings from 2025.

A Registered Investment Company (RIC) must distribute at least 90% of their earnings to avoid being subject to a 35% federal income tax rate. For shareholders with 100 shares your dividend is $3,600.00. The Spring dividend completes the 2025 earning distribution; the total earnings for 2025 distribution was $10,100 or $101 per share. Because Kavilco is a RIC, shareholders derive significant federal tax savings, thereby increasing our dividend payout. Without this benefit, our dividends would be significantly lower. This unique status among Alaska Native Settlement Act (ANCSA) corporations provides financial benefits and also places constraints on our ability to operate other businesses. The majority of our profits must come from our investments in stocks and bonds. If we fail to maintain these limits, shareholders will experience negative tax consequences resulting in reduced dividends.

Change in Accounting for Real Estate Investments

In accordance with Accounting Standards Codification (ASC) Topic 946, the Fund historically accounted for its land and timber interests as investments measured at fair value, with changes in fair value recognized in earnings. In September 2025, in partnership with a forester and land management consultant, Kavilco developed a Forest Stewardship Plan, pursuant to which it confirmed that there is currently, and in the foreseeable future, no merchantable timber on the land. Additionally, during the year ended December 31, 2025, management determined that it is no longer practical to obtain a fair value for the Fund’s real estate due to the lack of accessibility to the land and timber, the absence of observable market transactions, limited comparable sales, and increasing uncertainty in valuation inputs. As a result, Kavilco changed its accounting for the land and timber from the fair value method under ASC Topic 946 to the historical cost model under ASC Topic 360, Property, Plant and Equipment, resulting in a write-down of the real estate during the year ended December 31, 2025. During the year ended December 31, 2025 there was no change to the number of acres of land or timber owned and managed by the Fund.

The real estate, which was recorded at its fair value as of the transition date of $8,100,000, was written down to its historical cost of $1,054,089, resulting in an unrealized loss of $7,045,911 during the year ended December 31, 2025. Subsequent to the change in accounting, real estate is carried at cost and is not depreciated. The Company evaluates real estate for impairment in accordance with ASC 360 when events or changes in circumstances indicate that the carrying amount may not be recoverable.

The foregoing will have no impact on future dividends.

Economy

The trend in employment is bearish. Viewed a long-term perspective, year-over-year payroll growth has fallen way below the 1% stall speed threshold that has been a feature of recessions for the last 65-years. Across all of 2025, nonfarm payrolls expanded by less than 600,000 while health care and social assistance additions topped 700,000. Without the health care and social assistance, the economy would have shed over 125,000 jobs.

In 2025, the Fed has been cutting interest rates (in September, the board changed the portfolio strategy from sectors, expansion. T-Bills to dividend paying stocks). The reductions were to stimulate the manufacturing and housing the main economic forces in the economy, remain weaker on average during the last economic

On the inflation front, the US dollar is very weak against major global currencies. This is due to debt that is gaining ground faster than ever. The deficit was nearly $2 trillion 2025 and which aggravated the national debt of nearly $40 trillion (interest payments on the debt are now over $1 trillion). The world is very bearish on the dollar, which, in turn impacts the purchasing power for foreign goods.

To further compound the inflationary pressures of a weak currency, monetary policy is very inflationary. Liquidity soared at the end of 2025. This was due to the Fed buying massive amounts of U.S. Treasuries, the most since the covid days.

The anemic estimated Gross Domestic Product for the fourth quarter of 1.5%, the Conference Board’s consumer confidence survey in free fall, the forementioned discussion on employment and inflationary pressures of a declining dollar and major increase in liquidity all translate into the most onerous economic scenario STAGFLATION.

Portfolio

Since September 2024, when the board change the strategy from U.S Treasury bills to dividend yielding stocks, a total of 230,304 shares has been purchased with dividend yields with at least 4%. This has been a long process due to the volatility in the equity and bond markets. To further complicate the investment process, there are various Security and Exchange along with IRS regulations.

The downside to the aforementioned stock strategy, according to the Bank Credit Analysis (a subscription service that analyzes market and economic trends) valuation indicator of stocks and the speculation indicator is extremely overvalued. Eventually, the stock market will have a correction or bear market which will result a regression to the mean. This will have a major impact of the value of the portfolio. Unfortunately, there is no alternative to generate income for the shareholder’s dividends.

Sincerely, Scott Burns, CFO

Reminder

Shareholders submit change of address and bank account information for direct deposit by October 16th.  This can assure your changes are correct for the November dividend.

You can download the complete newsletter (pdf)

Words From Your President, Jeanie Breinig

President Jeane Breinig

Kasaan was lively in March with over 100 people attending events connected to the Dagwii Gawtlass (Fresh Strength) Winter Culture Camp.

Held March 3rd through the 8th, the Organized Village of Kasaan (OVK) and Southeast Island School District invited Prince of Wales Island youth to this special event.

Other guests traveled from across Alaska and from Haida Gwaii, to share, learn and practice Haida traditional village ways. Participants carved, weaved, processed foods, and practiced our Haida language.

The Culture Camp culminated in a pole raising, now standing inside OVK’s Tribal Hall/Totem Trail Café, and ended with feasting, dancing, and singing. The Kavilco Board and Kasaan Haida Heritage Foundation (KHHF) was pleased to support this important event.

In other news, KHHF received a surprise $5,000 donation from Susan Friedenberg in Bradford, New Hampshire. After receiving the donation, I called to thank her and asked her if she had connection to Kasaan or Haida people. She shared she did not, but is generally supportive of Indigenous peoples and may have learned about us from a film she watched. Ha’waa Ms. Friendenberg!

Ha’waa,

Jeane Breinig, President

Dividend Distribution

We are pleased to announce that on March 7, 2025 the Kavilco Board of Directors declared a cash dividend of $13.00 per share (long term capital gains are unknown at this time.) The dividend was payable on March 24, 2025 and reflects un-distributed earnings from 2023.

A Registered Investment Company (RIC) must distribute at least 90% of their earnings to avoid being subject to a 35% federal income tax rate. For shareholders with 100 shares your dividend is $1,300.00. The Spring dividend completes the distribution of earnings for 2024; combined with the Fall dividend the total earnings distribution for 2024 is $83.00 per share.

If Kavilco was not a Registered Investment Company and had to pay income tax your Spring dividend after tax would have been $845.00. You receive an additional $455.00 because Kavilco does not have to pay federal income tax.

New Shareholders

Please Welcome New Shareholders
Barbara West-Gavin, Hailee Micheli and Jenna Miller.

Economy & Portfolio

Scott Burns, CFO

The downside to the T-Bill strategy are actions by the fed reducing Federal Fund Rate which, in turn, reduces short-term interest rates. The following are excerpts from the March 8th board meeting minutes.

Inflation has not been tamed. This is evident in the latest round of price data Scott Burns, CFO that showed notable increases at the producer (wholesale) and consumer levels. On a 12-month basis, the Producer and Consumer Indexes increased 3.5% and 3.05 respectively in January, running well above the Federal Reserve target rate of 2%.

According to one of the tenets of the cause for inflation is too much money chasing too few goods and services. This played a part of the high inflation created by the prior administration that flooded the economy with trillions of dollars for various government programs. However, it is the debt that has accumulated over the years that will be highly inflationary.

There will be $28 trillion in Treasury Bonds that will be maturing over the next four years. That is more than 75% of the total $36 trillion in national debt. These bonds were issued when interest rates were substantially lower than they are today. Accordingly, as these bonds mature, they will be re -issued at a higher rate. This is going to be inflationary because the government will have to print more money to pay for these expenses.

The Bloomberg News just released, what would be considered. Negative news on the economy. “U.S. factory actively edged closer to stagnation in February with orders and The Federal Reserve’s (Fed) primary goal is to keep inflation at or below 2%. In the case of an economic slowdown the Fed will reduce short-term interest rates to spur on the economy. Currently, the U.S. economy is confronted with the worst economic scerio – stagflation. Basically, stagflation is inflation combined with weak economic growth. It’s the worst of both worlds and most difficult to correct.

On the portfolio front, equity indicators point to a dangerous level of complacency in the stock market. The Bank Credit Analyst Valuation Indicator has risen into extremely overvalued territory, and their Speculation Indicator has surged back into extremely speculative territory.

Concurrent with this view, Bob Prechter, author and top authority of the Elliot Wave, performed an analysis of the stock market valuation based on S&P companies’ book values and dividends for the period 1927-2024. His conclusion was that stocks have never in history been has overvalued and expensive as they are now.

Reviewing various Treasury bond yields, the 6-month T-Bill yield, the target investment maturity, is still outperforming various short-term Treasury Bond interest rates, commercial paper, and stock dividend yields.

Sincerely,
Scott Burns, CFO

Kavilco’s Mission

“To honor the vision and unselfish actions of our Haida ancestors and elders, the goals of Kavilco Incorporated are to provide dividends and to preserve the assets for all generations.”

You can download the complete newsletter (pdf)

Words From Your President, Jeanie Breinig

The hot, dry Kasaan summer contributed to two summer fires, one on Kavilco property on the Totem Park trail and one next door to the Kavilco double wide on the Braz family property. Fortunately, everyone was safe, and the community quickly pulled together to extinguish them both. Kavilco’s inability to get replacement insurance for Naay Iwaans / Whale House is a concern. The board continues to search options to protect one of the most treasured cultural assets.

The Totem Park now has a new restored Bear pole and the Killer Whale replication in underway, thanks to shareholder donations to Kasaan Haida Heritage Foundation (KHHF). The board is also defining needed repairs and potential costs to restore the Bunkhouse. Options include tearing it down, repairing it, or seeking grant funding due to its historical nature. The board is carefully examining all possibilities.

Carbon credits are once again a topic of investigation in the boardroom. Kavilco’s trees are not ready, either for market or carbon credits, but the board will continue to monitor their progress. Pre-commercial thinning, paid for by grant funding, is underway and should be complete in one year.

Thank you,

by Jeane Breinig, President

Dividend Declaration

On November 9 2024, the board of directors declared a cash dividend of $70.00 per share. Original shareholders with 100 shares have received 515,858 since the first dividend. Kavilco is a registered investment company and derives significant federal tax savings, thereby increasing shareholder dividend payout. This status provides financial benefits, but also places constraints on other operating business options. Kavilco is limited in income derived from sources other than stocks and bonds and if those limits are not maintained, significant negative tax consequences would result in reduced shareholder dividends.

New Shareholders

Please Welcome New Shareholders
Barbara West-Gavin, Hailee Micheli and Jenna Miller.

Chief Financial Officer’s Report

Mr. Burns discussed major topics that were points of discussion at the November board meeting. On the economy, the inflation situation continues to improve with consumer and producer prices easing further in September. This leaves the door open for further reductions in the fed fund which will have a negative impact on our T-Bill strategy. However, US labor market continues to deteriorate.

The October jobs report came in at 12 thousand new jobs created when the consensus of economists predicted 130 thousand. The number of Americans only able to find part-time work is rising as are labor force transitions from employed to unemployed. Also, employees are afraid that if they quit work to seek better employment, they will not be able to find a job.

Deliquent mortgage and credit card debt are on the rise. The consumer savings that accumulated during Covid has been exhausted and is the primary reason why credit card debt has increased.

The foregoing along with the decline in housing sales are all pointing to the possibility of a recession. If a recession does occur, the Fed will be forced to reduce the Federal Fund Rate which will reduce the return on the T-Bill strategy.

On the portfolio front, the loosening of the monetary policies has not put downward pressure on longer term. Treasury yields. The yield for the benchmark 10-year Treasury note has moved higher since the September 50 basis point reduction in the Federal Funds Rate. Treasury bond buyers knowing that the government will need to sell more debt in the future to finance projected deficits, they are not willing to pay higher prices at auction. The yield, which moves inversely to price, rises in this scenario.

Before the Federal Reserve started reducing short-term interest rates, six-month T-Bills with a yield 5.25% range is where most of the re-investment in T-Bills was made. When the Fed did reduce rates by .5%, short-term interest rates fell across the T-Bill yield curve. The 4-month T-Bill yield of 4.5% range outperformed various bond interest rates, commercial paper, and stock dividend yields. Accordingly, this is where future investments will be made.

Kavilco has paid out $61,902,979 in shareholder dividends. In 1990, Kavilco’s full year of operation as a Registered Investment Company and not subject to Federal Income Tax, each shareholder with 100 shares received and additional $152,373 in tax savings.

Sincerely,
Scott Burns, CFO

Kavilco’s Privacy Policy

The Company has adopted the following privacy Policy:

This Privacy Policy sets forth our policies with respect to non-public personal information of our shareholders and former shareholders. These policies apply to individuals only and may be changed at any time, provided a notice of such change is provided to you.

You may provide us from time to time with personal, non-public information about you, such as your address, your social security number, and information about your family. We do not disclose your personal non-public information to anyone, except as follows:

• We may disclose your personal non-public information if you direct us to do so, or if we are required by applicable law to do so.

We seek carefully to safeguard your private information and, to that end, we restrict access to non-public personal information about you to those employees who need to know the information to enable us to provide services to you.

None of your personal, non-public information may be accessed by anyone on our website.

This Privacy Policy will be mailed to all shareholders in this annual fall newsletter.

Prize Winners

$1000 ea. Early Bird Draw
Aiden Jones-Hadden, Randell Jones, Danielle Mooney

$500 ea. Early Bird Draw
Patrick Olsen, Kimberly Thomas, Kaarsten Smith, Audrey Escoffon, Luke Breinig

$300 ea. All Ballots Draw
Luke Breinig, Diane Demmert, Victor Johnson, Rebecca Culbertson,

$200 ea. All Ballots Draw
John Lawrence, Audrey Escoffon, Kassy Gordon, Kayleen Gordon, Keith Gordon,

$200 ea. In Person Drawing
Jennifer Hadden, Ardath Peterson, Julia Spigai, Melinda White

Kavilco Election Results

Ken Gordon, Jr., Janelle Hyatt and Fred Olson, Jr. were all
re-elected to the Kavilco Board of Directors.

Frederick O. Olsen, Jr.

Janellle Hyatt

Ken Gordon

A total of 57.0% of the vote was returned this year by shareholders Anything under 30% will require that Kavilco hold a second Annual Meeting and may result in a lower dividend distribution to shareholders.

IT IS IMPORTANT THAT YOU VOTE EVERY YEAR!

You can download the complete newsletter (pdf)

President’s Report

by Jeane Breinig, President

As your newly elected President, it is my honor and pleasure to serve you. I follow in the footsteps of two fine leaders, Louis L. Jones Sr., and Louis A. Thompson. Both men contributed significantly to Kavilco’s successful 50-year track record. My goals as your President are simple: to stay the course on what has worked well and to pursue new economic opportunities.

Pursuing economic opportunities beyond stocks and bonds is tricky because we are a SEC Registered Investment Company. We face treacherous tax consequences if we are not thoughtful and careful. But Kavilco has always been a little bit different than other Alaska Native corporations, to our benefit, and at some point, that may very well play to our advantage again.

I return to Kasaan in April. Having spent my childhood and many recent summers there, it is an easy stretch to return with new responsibilities and new goals. Kasaan is a special, magical place and it gives me great joy to know I am on the same land where our ancestors and relatives built their lives. Kavilco exists against tremendous odds because our people had the vision and foresight to fight for Kasaan’s inclusion in the Alaska Native Claims Settlement Act (ANSCA). Many did not live to enjoy the benefits we now do. Kasaan is place to which shareholders can always return and call home. I hope many of you come to Kasaan and reconnect with the rich history of our village.

Dividend Distribution

We are pleased to announce that on March 1, 2024 the Kavilco Board of Directors declared a cash dividend of $17.30 per share (long term capital gains are unknown at this time.) This dividend was paid to shareholder of record as of March 1, 2024. The dividend was payable on March 7, 2024 and reflects un- distributed earnings from 2023.

A Registered Investment Company (RIC) must distribute at least 90% of their earnings to avoid being subject to a 21% federal income tax rate. For shareholders with 100 shares your dividend is $1,730.00. The Spring dividend completes the distribution of earnings for 2023; combined with the Fall dividend the total earnings distribution for 2023 is $79.30 per share.

If Kavilco was not a Registered Investment Company and had to pay income tax your Spring dividend after tax would have been $1,384.00. You receive an additional $346.00 because Kavilco does not have to pay federal income tax.

Janelle Hyatt, Kavilco’s Newest Director

Ha’waa for the excellent open-board seat applications. We had several high caliber candidates in the pool. This is good news because it tells us we have many engaged, successful shareholders offering their talents to our corporation.

After careful deliberation, the board selected Janelle S. Hyatt. Her professional and life accomplishments are impressive.

Janelle’s current position is Nurse Practitioner (NP) in a pain management clinic in Richland, Washington. To earn the NP credential, she received her Master of Science in Nursing from Simmons College, Boston, 2018, after earning a Bachelor of Science in Nursing, Magna Cum Laude, 2014, and an Associate of Applied Science, 2011, in Alaska. Janelle completed her practicums in Anchorage at Southcentral Foundation, Jordon Creek Health Center, and Benteh Nutah Native Primary Clinic. In 2013, she won the Practice Excellence Award Program (PEAP) honor from Alaska Native Medical Center. Janelle is a licensed NP in Alaska, Oregon, and Washington.

Nurse Practitioner is Janelle’s second career and second degree. After graduating from Ketchikan HS in 1985, she earned a Bachelor of Arts in Communication from Washington State University. Janelle then spent 15+ years in technology support in San Francisco, serving companies such as Microsoft, Walmart, and many dot.com startups.

Between careers, Janelle traveled the world backpacking across South America, Europe, Thailand, Australia, and New Zealand before returning to Alaska to pursue her dreams in the medical field.

Janelle’s track record includes leadership and prior board service. As past President of San Francisco Triathlon Club, Janelle is herself a noted triathlete (swimming, cycling, running) competing successfully in multiple IronMan races. She now serves as Secretary and board member of Columbia River Nurse Practitioner Association. Since 2000 Janelle has played an important role fundraising for KHHF through her donations and volunteer contributions.

Significantly, Janelle is our first “second generation” (inherited or gifted shares) board member. Her qualifications, and those of other top-notch submissions this year, bodes well for Kavilco’s future.

Please join us in welcoming Janelle S. Hyatt to the Kavilco board.

Shareholder Passages …

RIP Shareholder Mary Kathleen (Kathy) Davis Young
L to R Melanie Young, Kathleen Young, and Marie Miller

Economy & Portfolio, by Scott Burns, CFO

Kavilco’s portfolio strategy is based on an inflationary environment. The latest Consumer Price Index (CPI) shows that inflation increased 3.1% on an annualized basis, far more than the 2% target range of the Federal Reserve Board (Fed). In the next six months the Fed is unlikely to decrease interest rates because consumer prices are still rising, the economy continues to expand at a solid pace with Gross Domestic Product increasing 3.35% in the final quarter of 2023. Also, there were strong job gains in January. In other words, the fed’s actions have not resulted in a decrease in inflation approaching the targeted 2% range.

The financial markets are discounting at least two reductions in the Federal Fund Rate even though inflation has not been tamed. This may have to do with the politization of the Fed reducing interest rates to aid the current administration during the election year.

On the portfolio front, one investment service the company subscribes to is the Aden Forecast. Aden recommends that equity investors should transition from stocks to treasuries to preserve capital with higher yields than most stocks. This coincides with the strategy approved by the board of directors at the November 2022 board meeting. The investment service we used was Bank Credit Analysis. The most recent edition still recommends this strategy.

Treasury market yields have moved notably lower. This was a reaction to the continued moderation in price growth and that the Fed is done raising rates. However, a senior Federal Reserve official continues to say that short-term rates need to stay high for an extended period to tame inflation. This is good news for our Treasury Bill strategy

Kavilco’s portfolio strategy is based on an inflationary environment. The latest Consumer Price Index (CPI) shows that inflation increased 3.1% on an annualized basis, far more than the 2% target range of the Federal Reserve Board (Fed). In the next six months the Fed is unlikely to decrease interest rates because consumer prices providing the Fed officials that support this view are not out voted by other members of the Fed.

Reviewing various treasury and corporate yields, the 6-month yield (the target investment maturity) is still outperforming various investments grade corporate and treasury bond interest rates and stock dividend yields and, as an additional bonus, is risk free.

The portfolio has $21 million of par t-bills. The maturities range from April 25, 2024 to September 12, 2024.

All reinvestment of matured Bills and proceeds from the sale of equities have been at a higher than 5.11% interest rate.