In this blog article, you can check out halal stocks in the USA that you can consider investing in. The given list is by no means a list of top Islamic stocks in the USA, but a list of larger blue-chip companies is seen on the Nasdaq and New York Stock Exchanges (you can also check with the Musaffa Screening tool).
Musaffa is both a trading platform and a screening tool that help you to find and invest specifically in halal securities such as stocks. All investments at Musaffa are screened and offered as long as the stock passes all the criteria for the stock to be halal.
What is Halal?
HALAL means permissible or lawful from a Shariah law perspective.
Is investing in stocks Halal?
Of course, yes. As long as the company passes all the Shariah Screening Criteria, trading and you only engage in the halal stocks, then it is permissible.
What is the Shariah Screening methodology?
According to AAOIFI, the shares of a company whose core activities are Shariah-compliant is permitted under the following conditions:
- The company’s goal does not aim to trade in interest of forbidden product and activities.
- The total amount of revenue from prohibited activities should not exceed 5% of the company’s overall revenue.
- The total debt is less than 30% of market capitalization.
- Total interest-bearing securities are less than 30% of market capitalization.
- Impermissible income as a percentage of total income or revenue is less than 5%
The stocks listed below pass all the criteria, and we find them completely Shariah-compliant (you can also use the Musaffa Stock Screening tool to check).
5 Samples of Halal Stocks in the USA:
Dupont – NYSE: DD
DuPont de Nemours & Corporation, Inc. is a holding company that develops specialty materials, chemicals, and agricultural products. The corporation has 34,000 full-time employees and is based in Wilmington, Delaware. On September 1, 2017, the company went public (IPO). Electronics and Imaging, Safety and Construction, and Transportation and Industrial are the three segments through which the company sells its goods and services.
Abbott Labs – NYSE: ABT
Abbott Laboratories is a healthcare company that researches, develops, manufactures, and sells a wide range of goods. The corporation has 109,000 full-time employees and is based in Abbott Park, Illinois. The company has four segments, namely, Established Pharmaceutical Products, Diagnostic Products, Nutritional Products, and Medical Devices.
Intel Corp – NASDAQ: INTC
Intel Corp. is a company that creates, manufactures, and sells computer hardware and software. The corporation has 110,600 full-time employees and is based in Santa Clara, California. The company’s segments are including Data Center Group (DCG), Internet of Things Group (IOTG), Mobileye, Non-Volatile Memory Solutions Group (NSG), and Programmable Solutions Group (PSG).
Adobe Inc. – NASDAQ: ADBE
Adobe is a company that specializes in digital marketing and media solutions. The company has 22,516 full-time employees and is based in San Jose, California. Additionally, Professionals, marketers, application developers, corporations, and consumers use the company’s products and services to create, manage, measure, optimize, and engage with compelling content and experiences. Digital Media, Digital Experience, and Publishing and Advertising are the company’s three segments.
Pfizer Inc – NYSE: PFE
Pfizer Inc. is a pharmaceutical company that specializes in the discovery, development, and manufacture of medicines, vaccines, and consumer healthcare. The company has 78,500 full-time employees and is based in New York City, New York. In addition, biopharmaceutical products are discovered, developed, manufactured, marketed, sold, and distributed by the company. Medicines and vaccines are part of the company’s global portfolio. The company develops wellness, prevention, treatments, and cures for a variety of markets. Moreover, to assist and give access to healthcare, the company engages with healthcare providers, governments, and local communities.
To read more about Islamic Finance related topics, please click here and visit our academy.
Besides, feel free to sign up for our free stock screening services at musaffa.com.