Starting in 1982, dividends from the fund's annual growth have been paid out each year to eligible Alaskans, ranging from an initial $1,000 in 1982 (equal to three years' payout, as the distribution of payments was held up in a lawsuit over the distribution scheme) to $3,269 in 2008 (which included a one-time $1,200 "Resource Rebate"). Every year, the state legislature takes out 8% from the earnings, puts 3% back into the principal for inflation proofing, and the remaining 5% is distributed to all qualifying Alaskans. To qualify for the Permanent Fund Dividend, one must have lived in the state for a minimum of 12 months, maintain constant residency subject to allowable absences, and not be subject to court judgments or criminal convictions which fall under various disqualifying classifications or may subject the payment amount to civil garnishment.

How long must an Alaskan have lived in the state in order to receive a Permanent Fund Dividend?