UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                  FORM N-30B-2

                             SHAREHOLDER NEWSLETTER

                             Investment Company Act
                              File number 811-6027

                              KAVILCO INCORPORATED
               (Exact name of registrant as specified in charter)

                        600 UNIVERSITY STREET, SUITE 3010
                         SEATTLE, WASHINGTON 98101-1129
               (Address of Principal executive offices) (Zip Code)

                                 (206) 624-6166
               Registrant's telephone number, including area code

Date of fiscal year end: December 31, 2009

Date of reporting period: March 20, 2009



                         KAVILCO INCORPORATED NEWSLETTER
                                   MARCH 2009

DIVIDEND DECLARATION
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I  am pleased to announce that on March 6, 2009, the Board of Directors declared
a  cash dividend of $25.00 per share. This dividend was paid to shareholders  of
record  as  of March 9, 2009. The dividend was payable on March 20,  2009.  Your
dividend check is enclosed with this newsletter unless you have direct deposit.

Please  remember  we were in a global recession last year; a year  plagued  with
massive  losses in the global equity markets, numerous bankruptcies and bailouts
of financial institutions, and a major credit seizure which reduced the value of
our  portfolio  by  $2 million. There wasn't a mutual fund, managed  pension  or
endowment that wasn't touched by this massive economic fallout.

Despite  the  "doom  and  gloom"  of  the  past  year,  this  dividend  reflects
undistributed  earnings  from  2008,  remaining  equal  with  the   March   2008
distribution!

A  Registered  Investment Company (RIC) must distribute at least  90%  of  their
earnings  to  avoid  being  subject  to a  40%  Federal  income  tax  rate.  For
shareholders with 100 shares your dividend is $2,500. If Kavilco was not  a  RIC
and  had  to  pay income tax your dividend after tax would be $1,500. Therefore,
you  receive  an additional $1,000 because Kavilco does not have to pay  Federal
income tax.

For an expanded discussion, see the Portfolio section in this newsletter.

DIRECT DEPOSIT
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*Your money is credited to your bank account on the distribution date.

*Access your money the same day by check, ATM or debit card.

*Eliminate the risk of lost or stolen checks.

*Eliminate delays caused by relying on the mail.

*NO COST to sign up or receive Direct Deposit.

*Request  a  Direct Deposit form by calling Kavilco toll free 1-800-786-9574  or
visit our website and print the form.

PORTFOLIO
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The  economic and financial picture remains bleak. There are no compelling signs
of  an  early end to the U.S. and global recessions. Reports issued so far  this
year-ranging   from   auto  sales  to  homebuilding  to   employment,   and   to
manufacturing-suggest  that the Gross Domestic Product  (measure  of  goods  and
services in our economy) may fall by 5% or more in the first quarter of 2009. It
is a disturbing economic picture by any account.

Housing  remains the key part of the recovery equation. Housing  was  among  the
first  sectors  to struggle in the current sever-down cycle, with  progressively
worse  construction  and  sales numbers being released  since  the  slump  first
surfaced  three years ago. Unfortunately, housing starts are off  80%  in  three
years with no end in sight.

With  each  passing  day, the equity market hits a new low. It  is  particularly
discouraging  that the market has performed so poorly during a  month  when  the
administration announced its initiatives to stabilize the financial and  housing
sectors  (translation:  spend  trillions of dollars  on  anything  in  hopes  of
reversing the economic malaise).

On  the  equity front, capital preservation is our paramount focus for the  time
being.  The  yield  on our money market fund is 1.11%. We anticipate  a  further
reduction  in  this  rate.  In order to offset this  decline  we  are  gradually
investing in high-yielding stock. The best and safest sector to pick up yield is
in the utility sector.

On  the  bond front, our biggest concern is default. We are actively  monitoring
our  bond portfolio for any events that may cause any of the companies  we  have
investments  in  to come under severe economic stress. Needless  to  say,  every
pillar  of  the economy has been shaken by the recession. However, our corporate
bond  investments are in pretty good shape today, but it is tomorrow that  could
cause us some difficulties.

IMPORTANT REMINDERS ABOUT DISTRIBUTIONS
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Shareholders  are  strongly encouraged to keep Kavilco informed  of  their  most
recent contact information. Prior to each distribution, there is a date on which
Kavilco  must close all shareholder records to further changes, as  required  by
corporate policy. This is called a RECORD DATE and it generally falls 3-4  weeks
before a distribution.

Shareholders  may not change their information after the Record Date  until  the
distribution is completed. It is important to make any changes to a  shareholder
record  prior  to the Record Date of any distribution. Payments to  shareholders
might be delayed for any of the following reasons:

CHANGE OF ADDRESS was not submitted prior to Record Date.

CHANGE OF NAME has not been submitted to Kavilco's Shareholder Records.

DIRECT DEPOSIT form contains inaccurate information.

Kavilco's  website  has  a Frequently Asked Questions page  which  answers  many
shareholder questions and provides links to additional information. Please  keep
your  shareholder information current. Contact Kavilco with any changes  at  our
toll free number 800.786.9574.

IN KASAAN
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Kavilco's  and  KHHF's  Board  of Directors discussed  how  to  proceed  on  the
restoration of the Whale House and Totem Park, both temporarily and in the long-
term. It was determined that the Whale House has priority over the totem poles.

Issues affecting the restoration included long-term consequences and expenses.

*Vandalism remains a serious concern.

*What will be done with the old poles and long house wood?

*Is the Totem Park really accessible to the public and shareholders currently in
the area?

*What  construction materials, preservatives, paint, tools would be used?  Would
traditional or modern construction methods be used?

*How are other communities addressing their historical structures?

We  are  waiting  for  a  structural evaluation  and  recommendations  from  MRV
Architects and BBFM Engineers before we move forward.

Funding sources remain a major factor in the restoration and we will continue to
pursue grants and possibly economic stimulus funds once we know the final  scope
and cost of our Joint Project.

Please feel free to call me at the Field Office in Kasaan, 907.542.2214, or toll
free at our Seattle office 800.786.9574.

Sincerely,

/s/ Louis A. Thompson

Louis A. Thompson,
President/CEO