Top 11 Halal Dividend Stocks You Should Invest In

In this article, we examine the top 11 halal dividend stocks to consider investing in. Halal stocks are those that adhere to Shariah law, meaning they avoid industries like alcohol, gambling, tobacco, and non-Islamic finance, and maintain ethical business practices. The S&P High Yield Dividend Aristocrats Shariah Index tracks the performance of Shariah-compliant companies from the S&P 1500 Composite. These companies have consistently increased their dividend payments for 20 years or more. Companies that grow their dividends over time and pay increasing dividends usually have strong financial foundations, outperforming the broader market.

Companies like Exxon Mobil Corporation (NYSE:XOM), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX) are favored options among investors due to their longstanding history of increasing dividend payouts and adherence to Shariah principles in their investments. We will further take a look at some of the best halal stocks that pay dividends.

To compile this list, we have chosen the top 11 stocks from the S&P High Yield Dividend Aristocrats Shariah Index. These companies are known for consistently providing substantial dividends to their shareholders and demonstrating robust financial stability. Here are some of the companies on the list:

11. Kimberly-Clark Corporation (NYSE:KMB)
Kimberly-Clark Corporation is engaged in the manufacturing and marketing of personal care and consumer tissue products, showing a 2% revenue growth in the third quarter of 2023. As of November 25, the stock has a dividend yield of 3.86%.

10. General Dynamics Corporation (NYSE:GD)
General Dynamics Corporation is a global aerospace and defense company that has been raising its dividends for 26 years consistently, offering a dividend yield of 2.13% as of November 25.

9. Air Products and Chemicals, Inc. (NYSE:APD)
Air Products and Chemicals, Inc. is a global industrial gases company with a dividend growth streak of 41 years, offering a dividend yield of 2.55% as of November 25.

8. 3M Company (NYSE:MMM)
3M Company is a diversified multinational corporation with a 65-year streak of consistent dividend growth, providing a dividend yield of 6.25% as of November 25.

7. The Coca-Cola Company (NYSE:KO)
The Coca-Cola Company is a multinational beverage company that has been rewarding shareholders with growing dividends for 61 years, offering a dividend yield of 3.14% as of November 25.

The ranking of these stocks is based on the number of hedge funds that had invested in them by the end of Q3 2023, using data from Insider Monkey’s database, which provides insight into investor sentiment and confidence in these specific companies. Each of these companies offers a strong potential for consistent, substantial dividend payments.

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Olivia Carter

Olivia Carter revs up excitement in the world of NASCAR. As a dedicated motorsports enthusiast, she covers race results, driver profiles, and the latest developments in the NASCAR world, keeping fans on the edge of their seats.