How to get halal dividends?

The most direct way to obtain dividends is to invest in dividend-paying stocks. This is where you look for companies on the stock market that offer dividends to invest in by yourself. However you are responsible for screening them to determine their halal status and also have to do your due diligence on the company’s prospects.

Are halal dividend stocks Shariah-compliant?

Specific criteria need to be considered when labelling a stock as a halal dividend stock or halal dividend ETF. This mainly depends on the company’s business practices, the products they sell, their nature, and how much debt it is under. If a company has all these criteria meeting the Shariah rulings, it is considered Shariah-compliant.

Are dividends halal or haram?

Hence, they are considered halal. However, the company’s business practices and overall debt also determine whether a dividend is halal or haram. As long as the company you’re investing in generates profits from halal sources, its stocks will be considered Islamically lawful to invest in.