Halal Stocks: List of Companies — Part 3

Halal stocks are shares of companies that have been screened for compliance with Shariah norms. Let's examine how the screening is conducted and what companies Muslim investors can consider buying.

Two-Tiered Screening

Level 1: Business Screening

The primary activity of the company is checked. Prohibited sectors include:

• Alcohol and its production.
• Tobacco and tobacco products.
• Gambling and casinos.
• Weapons and military equipment.
• Pork and pork products.
• Pornography and adult content.
• Usury (riba) — banking activities.

Level 2: Financial Screening

Financial indicators are checked:

• Interest-bearing debt / market capitalization ≤ 33%.
• Interest income / revenue ≤ 5%.
• Accounts receivable / market capitalization ≤ 49%.
• Cash and interest-bearing securities / market capitalization ≤ 33%.

List of Halal Companies (Examples)

Technology

• Apple (AAPL). Technology, minimal debt.
• Microsoft (MSFT). Software, cloud services.
• NVIDIA (NVDA). AI chips.
• Adobe (ADBE). Software.
• Intel (INTC). Microprocessors.

Healthcare

• Johnson & Johnson (JNJ). Pharmaceuticals.
• Pfizer (PFE). Drugs, vaccines.
• Abbott (ABT). Medical equipment.
• Merck (MRK). Pharmaceuticals.

Consumer Goods

• Nestlé (NSRGY). Food products (alcohol-free).
• Nike (NKE). Sportswear.
• Home Depot (HD). Construction and renovation.
• Procter & Gamble (PG). Household chemicals.

Industry

• Toyota (TM). Cars.
• Caterpillar (CAT). Construction equipment.
• 3M (MMM). Industrial materials.

List of Non-Halal Companies

Banks (Interest-Based Business)

• JPMorgan Chase (JPM)
• Bank of America (BAC)
• Goldman Sachs (GS)
• Citigroup (C)

Alcohol

• Diageo (DEO)
• AB InBev (BUD)
• Carlsberg (CABHF)
• Constellation Brands (STZ)

Tobacco

• Philip Morris (PM)
• British American Tobacco (BTI)
• Altria (MO)

Casinos

• Las Vegas Sands (LVS)
• MGM Resorts (MGM)
• Wynn Resorts (WYNN)

Pork

• Smithfield Foods
• Tyson Foods (TSN) — part of the business is swine farming

Income Purification

Even Halal companies might have a small portion of interest income. According to Shariah norms, this part needs to be donated to charity, usually 1-3% of dividends.

How to Check a Particular Stock

A Halal broker conducts Shariah screening of all available stocks. The app has a "Halal account" filter showing only permitted assets.

Updating the List

Financial indicators change every quarter. The list of Halal stocks is updated after the release of quarterly reports. A company that was once deemed Halal may become non-Halal if it accumulates debt.

Halal ETFs

If you don't want to select individual stocks, there are Halal ETFs:

• iShares MSCI World Islamic. Global Halal stocks.
• SP Funds S&P 500 Sharia. Halal S&P 500 stocks.
• Wahed FTSE USA Sharia. American Halal stocks.

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