Find list of Shariah Compliant Stocks and Companies in USA- Islamicly (2024)

FAQs

Which stocks are shariah compliant? ›

Johnson & Johnson (JNJ): Johnson & Johnson is the world's 10th and shariah compliant 5th most valuable company with a market cap of $462.29 Billion .

The S&P 500® Shariah includes all Shariah-compliant constituents of the S&P 500, the leading benchmark for the U.S. equity market.

Real estate and ethical funds are practical examples of halal investing, while technology and the pharmaceutical industry are gray areas. Nestle, Unilever, and Johnson & Johnson are some of the best-known publicly traded halal companies.

Coca-Cola (KO) is screened as a halal stock by many screeners. The company manufactures and sells various beverages and concentrates that are non-alcoholic.

Source: All the above information is based on the website of the company and the interim report for the quarter ended 30th June 2021. Conclusion: Given the above information, we at Islamicly believe that Amazon Inc. is a Shariah-compliant company as per the Shariah screening criteria.

So, it meets the last criteria as well. We at Musaffa found that Apple is one of the Halal stocks. However, Apple gets 1 score on the Musaffa platform, which means it is one of the least compliant stocks on our platform. Allah knows best.

Pepsi is fundamentally a halal business.

Is Starbucks stock halal? ›

The company's non-Shariah-Compliant business activities comprise only 4.18% of its overall revenue. And the rest 95.82% of its revenue comes from halal segments. Since not halal and questionable business activities do not exceed 5% of its total revenue, Starbucks successfully passes the first screening criterion.

Halal stocks should be screened for Sharia compliance. You should look at the website of the company you intend to purchase stocks of, and check to see what their business operations entail. Further, examine their trading practices and their sources of income.

Owning stock in Berkshire Hathaway Inc. is forbidden because of its large holdings in property and casualty insurers, which receive substantial interest income from bond investments.

the NASDAQ Official Closing Price (NOCP). The Index contains securities of the NASDAQ-100 Index which are considered Sharia- compliant. The eligibility for the Edbiz NASDAQ-100 Sharia Index is determined in a 2 step process and the security has to meet both criteria in order to become eligible for the Index.

This portfolio is securities and investments are compliant with Islamic finance investment principles as laid down by Sharia laws. Two of the largest index funds are the HSBC Islamic Global Equity Index Fund (halal) and the Vanguard FTSE 100 Index Fund.

What do Islamic scholars say about crypto? Many Islamic scholars seem to agree that, as it stands, cryptocurrency is haram, and should be avoided by Muslims. Indonesia, the world's largest Muslim-majority country, has banned cryptocurrency trading.

Wahed Dow Jones Islamic World ETF (UMMA)

UMMA, is the first Sharia-compliant and ESG-aware ETF available on Nasdaq. The ETF largely tracks the Dow Jones Islamic Market International Titans 100 Index and seeks to provide investors with exposure to global equities across developed and emerging markets.

According to Islamic law, the third requirement that a stock must satisfy in order to be considered halal is the ratio of interest-bearing debt in relation to the total assets of the firm. The entire amount of interest-bearing debt must not exceed 33 percent of total assets in any given year.

Here is why. Apples are naturally Halal without question. But when a natural product is processed with other ingredients / products, it is no longer the same original natural product.

In addition, ExxonMobil manufactures and sells petroleum and petrochemical products. Practical Islamic Finance concludes: None of ExxonMobil's revenue comes from anything inherently haram.

Is Nike a halal stock? ›

The total amount of securities that earn interest should not exceed 30% of its market capitalization. Therefore, we conclude that it passes the last criteria as well. Nike successfully passes all the screening criteria. Therefore, Muslim investors can comfortably invest in this stock.

Is Pepsi suitable for Halal or Kosher diets? We don't manufacture products specifically for such diets, our products in their sold states do not hold a recognised certification of conformity.

Conversation. Hi Taha, In the USA, our products are non-intoxicating (no alcohol) and do not contain meat ingredients. Even if our soft drink products are not formally certified as halal, they are officially recognized and registered as nonalcoholic beverages.

Since the revenue from such non-permissible activity exceeds 5% of total revenue, Paypal Holdings Inc is not Shariah compliant.

Is investing in stocks Halal? Yes, trading in equity stock of companies listed on stock exchanges are absolutely permissible with conditions that such companies qualify the Shariah screening standards set up by the Shariah Scholars. What is the Shariah equity screening methodology?

The company's impermissible business activities comprise only 0.16% of its overall revenue, and 0.00% of its revenue comes from questionable segments. So, we can see that Uber's non-shariah compliant business activities do not exceed 5% of total revenue, and it is found to be halal.

As a whole, the Index and hence the ETFs that mimic SP500 are considered not Shariah compliant.

Apple is one of the companies cleared under socially responsible investing guidelines issued by the U.S. Conference of Catholic Bishops.

Is Lay's halal in usa? ›

Frito-Lay does not have any Halal certified snacks. However, our Kosher lists include products with no animal enzymes or animal flavors. Frito-Lay uses 2 Kosher certification agencies. Click here to view our U.S. Products Certified Kosher - Orthodox Union list and our U.S. Products Certified Kosher - Triangle K list.

Based on the data we found, we believe Tesla stock is halal (Shariah-compliant) because it passes all the criteria for the stock to be halal.

Is 7UP suitable for Halal or Kosher diets? We don't manufacture products specifically for such diets, therefore our products in their sold states do not hold a recognised certification of conformity.

Although Alphabet Inc passes two financial screenings, more than 5% of its total revenue may come from unknown business activities. Therefore, Google stock is one of the doubtful stocks from a Sharia Perspective, and Muslim investors may want to avoid investing in such questionable investments.

Robinhood

Robinhood is a halal investing app that's famous for its no-commission trades. Founded in 2013, Robinhood is a pioneer in the zero-fee space, which made it possible for everyday people to start investing. Through Robinhood, you can invest in: Individual stocks.

Conclusion. So, is coffee halal or haram? As already elaborated above, coffee is considered halal because it has no ingredients that can lead to drunkenness or inebriating effects.

Among the major cryptocurrencies, Bitcoin, Ethereum, and Dogecoin come under the halal category, while Shiba Inu (SHIB) token, Alpha, and PancakeSwap (CAKE) are labelled haram.

Investing in gold via CFDs, Spread Betting or other derivative products. Investing in CFDs and spread betting is unambiguously haram. This is because there is no real gold trading taking place and the economic effect is exactly symmetrical to that of gambling.

How to Buy SP Funds S&P 500 Sharia Industry Exclusions ETF Shares in India? One can easily invest in SP Funds S&P 500 Sharia Industry Exclusions ETF shares from India by: Direct Investment - Opening an international trading account with Groww which includes KYC verification in the US.

Is Mastercard halal stock? ›

Hence, the payment processor just collects money from the customer and delivers the money to the merchant. This seems to be a Shariah compliant activity. So, companies like Mastercard Inc and Visa Inc and American Express should be Shariah compliant.

Why are Dividends Halal? As mentioned above, dividends only come from a company's profits and have nothing to do with interest. Hence, they are considered halal. However, the company's business practices and overall debt also determine whether a dividend is halal or haram.

Trading in shares on the stock market is absolutely fine from an Islamic view point. Unfortunately, that there is a common perception among Muslims that purchase and sale of shares in the capital market is akin to gambling and hence Islam prohibits it – This is not true!

Investing in stocks is generally considered halal in Islam as long as the stocks represent ownership in companies that engage in permissible business activities and do not involve interest-based transactions or other prohibited financial practices.

From the aforementioned, Practical Islamic Finance finds none of 3M's revenue to come from anything inherently haram.

Some of the factors that make an investment company halal include the business the company is engaged in, the percentage of interest-related income, and trading practices. A mutual fund is halal if it is shariah compliant.

At present, there are three shariah mutual funds in India available for investing, namely, Tata Ethical Fund, Taurus Ethical Fund and Nippon India ETF Nifty 50 Shariah BeES.

The term “Shariah compliant Fund” means a joint pool wherein the investors contribute their money for the purpose of investment to earn halal profits in strict conformity with the precepts of Shariah. The concept of Islamic Mutual Funds has its roots in “Musharaka”, an Islamic investment vehicle.

Halal stocks should be screened for Sharia compliance. You should look at the website of the company you intend to purchase stocks of, and check to see what their business operations entail. Further, examine their trading practices and their sources of income.

Since the threshold for non-permissible income in a Shariah compliant company is 5%, LVMH MOET HENNESSY LOUIS VUITTON SE breaches the Shariah compliance criteria and is classified as Shariah non-compliant.

Is Google stock halal or haram? ›

Although Alphabet Inc passes two financial screenings, more than 5% of its total revenue may come from unknown business activities. Therefore, Google stock is one of the doubtful stocks from a Sharia Perspective, and Muslim investors may want to avoid investing in such questionable investments.

What do Islamic scholars say about crypto? Many Islamic scholars seem to agree that, as it stands, cryptocurrency is haram, and should be avoided by Muslims. Indonesia, the world's largest Muslim-majority country, has banned cryptocurrency trading.

Among the major cryptocurrencies, Bitcoin, Ethereum, and Dogecoin come under the halal category, while Shiba Inu (SHIB) token, Alpha, and PancakeSwap (CAKE) are labelled haram.

Halal Investment Guidelines

Islamic principles require that investors share in profit and loss, that they receive no interest (riba), and that they do not invest in a business that is prohibited by Islamic law, or sharia.

Here are some other large stocks in the financial services sector that aren't Shariah compliant: Bank of America (BAC) Wells Fargo (WFC) Morgan Stanley (MS)

The number of securities that aim to receive interest should not exceed 30% of its market cap. So, it meets the last criteria as well. We at Musaffa found that Apple is one of the Halal stocks. However, Apple gets 1 score on the Musaffa platform, which means it is one of the least compliant stocks on our platform.

This portfolio is securities and investments are compliant with Islamic finance investment principles as laid down by Sharia laws. Two of the largest index funds are the HSBC Islamic Global Equity Index Fund (halal) and the Vanguard FTSE 100 Index Fund.