Disclaimer: Please be advised that the information provided in this article is relevant as of the time of its composition. However, it is important to recognize that due to the periodic release of new financial reports on a quarterly basis, the status of the mentioned stocks may undergo changes. Therefore, readers are encouraged to exercise diligence and consult updated financial information before making any investment decisions.
Navigating the stock market as a Muslim investor in the United States can be challenging, especially when aiming to adhere to Shariah principles. The demand for halal investing has been on the rise, driven by a growing number of Muslim investors eager to participate in the financial markets without compromising their religious beliefs. The challenge, however, lies in identifying which stocks are truly halal and Shariah-compliant.
Fortunately, the U.S. stock market offers a variety of halal investment opportunities. With thorough research and guidance, Muslim investors can make informed decisions that align with their values. In this comprehensive guide, we’ve compiled a list of 20 halal stocks in the United States, focusing on those that meet Shariah compliance criteria. Whether you’re a seasoned investor or just starting, this guide will help you diversify your portfolio while staying true to your principles.
List of Halal Stocks in the United States by Market Capitalization
| Company Name | Ticker | Market Cap | Shariah-Compliance Status | Halal Ranking |
| Apple Inc | AAPL | $3.54T | Halal | ★ ☆ ☆ ☆ ☆ |
| NVIDIA Corp | NVDA | $3.18T | Halal | ★ ★ ★ ☆ ☆ |
| Eli Lilly and Co | LLY | $901.15B | Halal | ★ ★ ☆ ☆ ☆ |
| Tesla Inc | TSLA | $791.65B | Halal | ★ ★ ★ ★ ☆ |
| Broadcom Inc | AVGO | $791.64B | Halal | ★ ★ ☆ ☆ ☆ |
| Visa Inc | V | $531.75B | Halal | ★ ★ ☆ ☆ ☆ |
| Exxon Mobil Corp | XOM | $508.12B | Halal | ★ ★ ☆ ☆ ☆ |
| Mastercard Inc | MA | $409.10B | Halal | ★ ★ ★ ☆☆ |
| Procter & Gamble Co | PG | $393.22B | Halal | ★ ★ ★ ★ ☆ |
| Johnson & Johnson | JNJ | $360.74B | Halal | ★ ★ ★ ☆☆ |
| Home Depot Inc | HD | $356.75B | Halal | ★ ★ ★ ★☆ |
| Merck & Co Inc | MRK | $323.52B | Halal | ★ ☆ ☆ ☆ ☆ |
| Chevron Corp | CVX | $286.75B | Halal | ★ ★ ☆ ☆ ☆ |
| Coca-Cola Co | KO | $276.87B | Halal | ★ ☆ ☆ ☆ ☆ |
| Adobe Inc | ADBE | $247.88B | Halal | ★ ★ ★ ★ ☆ |
| Salesforce Inc | CRM | $246.17B | Halal | ★ ★ ★ ☆ ☆ |
| Qualcomm Inc | QCOM | $225.91B | Halal | ★ ★ ☆ ☆ ☆ |
| Linde PLC | LIN | $211.85B | Halal | ★ ★ ★ ☆ ☆ |
| Applied Materials Inc | AMAT | $201.53B | Halal | ★ ☆ ☆ ☆ ☆ |
| Cisco Systems Inc | CSCO | $190.89B | Halal | ★ ★ ☆ ☆ ☆ |
What Does Halal Ranking Mean?
Musaffa uses the AAOIFI (Accounting and Auditing Organization for Islamic Financial Institutions) methodology to screen stocks. Our financial analysts review all available information, including annual and quarterly reports, company websites, presentations, and press releases, to provide an accurate and comprehensive analysis of each publicly traded company.
Stocks that meet Shariah compliance are then ranked from 1 to 5, with 1 being the lowest level of compliance and 5 being the highest. This ranking system helps Muslim investors make informed decisions.
A higher rating indicates a stronger adherence to Shariah principles, giving investors more confidence that the stock will remain halal. Conversely, a lower rating suggests that the stock might shift to non-halal if the company’s financials change.
Why Investing Halal is Crucial
Halal investing is essential for Muslim investors who seek to align their financial activities with their faith. Here are some key reasons why it is crucial:
- Adherence to Islamic Principles: Halal investing ensures that investment activities comply with Shariah law, which prohibits earnings from interest (riba), gambling (maysir), and uncertainty (gharar). By avoiding these elements, Muslims can invest without compromising their religious beliefs.
- Ethical and Social Responsibility: Halal investments emphasize ethical considerations, such as avoiding companies involved in alcohol, tobacco, gambling, and other harmful industries. This aligns with broader trends in ethical and socially responsible investing, appealing not only to Muslim investors but also to those who value ethical investment practices.
- Financial Stability and Risk Mitigation: Halal investing often involves avoiding highly leveraged companies and speculative transactions, which can lead to more stable investment portfolios. This conservative approach to risk can provide a cushion against market volatility, making halal investments attractive to those seeking financial stability.
- Growing Demand and Market Potential: The rising global Muslim population has increased the demand for Shariah-compliant financial products. This demographic shift is driving financial markets to offer more halal investment options, providing opportunities for growth and diversification in portfolios.
- Technological Advancements: Advances in fintech have made halal investing more accessible. Digital platforms and apps specializing in Shariah-compliant investments have lowered entry barriers, allowing a broader audience to invest according to Islamic principles. These tools ensure that investments remain compliant with Shariah law through automated screening and real-time monitoring.
- Community and Educational Support: Increased educational resources and community support have raised awareness about halal investing. Financial advisors and Islamic finance experts provide guidance to help investors understand and navigate halal investment options, making it easier for Muslims to integrate these practices into their financial planning.
Investing in halal is not just about adhering to religious principles but also about making ethically sound and financially prudent investment choices that contribute to personal wealth and societal good.
Disclaimer: Important information