Doyon, Limited shareholders will receive a $5.44 per share tax-free payout from the Doyon Settlement Trust, the Alaska Native corporation announced earlier this month.
The Dec. 5 disbursement is the first of two payments reflecting Doyon’s performance in fiscal year 2019, the 33rd year of profitability for the Fairbanks-based corporation. Shareholders will receive another $5.44 per share tax-free payout in July 2020. Most beneficiaries hold 100 shares.
“The distribution is changing to two times per year to reflect the projected growth in our operating companies and the expected growth in the size of the Doyon distribution,” Aaron M. Schutt, Doyon president and CEO said in a news release.
Doyon shareholders adopted the trust in November 2018 in a special meeting. The trusts, which were incorporated in tax reforms established by Congress in December 2017, give Alaska Native corporations the ability to disburse dividends tax-free, in most cases. It also allows the corporation to deduct taxes on disbursements. The 2019 distribution totals $21.9 million.
The trusts are organized under the 1971 Alaska Native Claims Settlement Act “to promote the health, education and welfare of the beneficiaries and preserve the heritage and culture of Alaska Natives.” ANCSA established 12 Alaska-based regional corporations and more than 200 village corporations, which conveyed 44 million acres and $963 million to Alaska Natives to settle land claims.
Today, Doyon has more than 20,100 shareholders and, with an entitlement under ANCSA of 12.5 million acres, is the largest private landowner in Alaska and one of the largest in North America. It operates subsidiaries in oilfield services, government contracting and tourism.