For many investors, generating consistent income through investing presents a unique challenge. Conventional bank deposits are not an option for Muslim investors because they involve riba, or interest. Even within the stock market, most publicly listed companies are classified as either non-Shariah-compliant or Questionable, which significantly limits investment choices.

At Musaffa, we aim to help Muslim investors overcome these challenges. While our core service focuses on screening stocks for Shariah compliance, this article highlights 10 Shariah-compliant dividend-paying stocks listed in the United States to help investors build a safer, income-generating portfolio.

Among all U.S.-listed stocks screened, the companies listed below have the highest dividend yields, remain Shariah-compliant under AAOIFI-based standards, and meet minimum sustainability and size requirements at the time of analysis.

• Shariah compliance (AAOIFI-based)
• All stocks included in this article are classified as halal on Musaffa, which applies AAOIFI-based Shariah screening standards.
• Dividend Sustainability & Financial Quality
  To avoid one-time payment dividend stocks, we took stocks that paid a dividend at least quarterly. Also, to find sustainable stocks, we applied a dividend payout ratio of less than 70%.

• Market capitalization & listing
  Lastly, to prioritize financial stability and liquidity, we selected only companies listed on the NYSE or Nasdaq with a market capitalization of more than $5 billion.

1. Best Buy Co Inc (BBY, Halal C+)

Best Buy Co., Inc. is a leading consumer electronics retailer operating primarily in the U.S. and Canada. The company focuses on technology products, consumer electronics, and related services. BBY has a trailing dividend yield of 5.57% and a 5-year dividend growth rate of 15.1%. With 23 years of dividend history, it remains one of the more established dividend payers in the retail sector (Gurufocus).

2. Chord Energy Corp (CHRD, Halal C)

Chord Energy Corporation operates as an independent exploration and production company in the United States. It acquires, explores, develops, and produces crude oil, natural gas, and natural gas liquids in the Williston Basin. Although dividend payments began relatively recently in 2021, CHRD currently offers a strong trailing dividend yield of 5.11%. The company has also delivered a 3-year dividend growth rate of 84.2%. Dividends are paid quarterly, making the stock suitable for investors seeking halal income-oriented opportunities (Gurufocus).

3. Skyworks Solutions Inc (SWKS, Halal B+)

Skyworks Solutions, Inc. designs, manufactures, and markets analog and mixed-signal semiconductor products for global customers. The company currently offers a dividend yield of 4.76%, which is higher than that of 90% of companies in the semiconductor industry (Gurufocus). Skyworks stands out as a dividend-paying option for investors seeking exposure to AI- and technology-related industries while maintaining income stability.

4. EOG Resources Inc (EOG, Halal B+)

EOG Resources, Inc., together with its subsidiaries, explores for, develops, produces, and markets crude oil, natural gas liquids, and natural gas in producing basins in the United States, the Republic of Trinidad and Tobago, and internationally. Alongside consistent dividend payments, the company demonstrates strong profitability relative to industry peers (Gurufocus),

• Gross Margin: 65.46% (better than 89.16% of companies in the industry)
• Operating Margin: 33.39% (better than 86.98% of companies in the industry)
• Net Margin: 24.49% (better than 87.73% of companies in the industry)

The company has a dividend yield of 3.50% (trailing) and a 3-year dividend growth rate of 31.2%. The company has the potential for even higher dividends thanks to its superior profitability.

5. Archer-Daniels-Midland Co (ADM, Halal C-)

Archer-Daniels-Midland Company operates in the agricultural commodities sector, focusing on procurement, transportation, processing, and merchandising of agricultural products. ADM has one of the longest dividend track records in this list, with over 50 years of dividend payments and 50 consecutive years of dividend increases (Gurufocus).

6. DuPont de Nemours Inc (DD, Halal C-)

DuPont de Nemours, Inc. provides technology-based materials and solutions across multiple industries, including electronics and industrial applications. The company has a long history of dividend payments, having paid dividends continuously since 1985. Currently, DuPont offers a dividend yield of 3.00% (Gurufocus). The above-average dividend yield, combined with a proven long history of dividends, makes the stock one of the top dividend companies.

7. Coterra Energy Inc (CTRA, Halal C)

Coterra Energy Inc., an independent oil and gas company, engages in the exploration, development, and production of oil, natural gas, and natural gas liquids in the United States. Similar to Dupont de Nemours Inc, the company has a 2.89% dividend yield (trailing) and a long history of dividend payments (Gurufocus).

8. Merck & Co Inc (MRK, Halal C)

Merck & Co., Inc. is a global healthcare company focused on pharmaceutical products and vaccines. The company stands out for its strong profitability metrics, ranking near the top both relative to peers and its own historical performance (Gurufocus).

• Gross Margin: 77.18% (better than 90.54% of companies in the industry)
• Operating Margin: 34.86% (better than 96.27% of companies in the industry)
• Net Margin: 29.63% (better than 94.20% of companies in the industry)
• ROE: 39.66 (better than 95.78% of companies in the industry)
• ROA: 15.95 (better than 93.20% of companies in the industry)

9. Genuine Parts Co (GPC, Halal C+)

Genuine Parts Company distributes automotive and industrial replacement parts through its Automotive Parts Group and Industrial Parts Group segments. While its dividend yield is lower than some peers on this list, the company has consistently increased its per-share dividend (Gurufocus). And since the company operates in the automotive industry, its business model also adds diversification to a dividend-focused portfolio.

10. McCormick & Co Inc (MKC, Halal B-)

McCormick & Company, Incorporated manufactures, markets, and distributes herbs, spices, seasoning mixes, condiments, and other flavorful products to the food industry. The company’s dividend yield has been increasing since 2020. And very close to the top in the company's history according to Gurufocus.

Sources:

GuruFocus — Dividend Summary & History — https://www.gurufocus.com/stock/BBY/dividend

Musaffa — Stock Profile — https://musaffa.com/stock/BBY

Disclaimer: Musaffa Academy articles are provided for informational purposes only, and are not research reports or legal, tax, investment, or financial advice. Content may include historical or hypothetical data; past performance does not guarantee future results.

Stock screenings, halal status, grades, and classifications are based on AAOIFI methodology and the oversight of Musaffa’s Shariah scholars. The content is not tailored to your financial situation, risk tolerance, or investment objectives. Always conduct your own research or consult a qualified financial advisor before making decisions.

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