The Short Answer
Yes, dividends from halal stocks are halal. BUT you need to purify them because most companies earn some interest income.
Why Dividends Aren't 100% Clean
Even halal companies earn interest on cash reserves. Example: Apple holds $30 billion in cash earning 4-5% interest annually.
When Apple pays dividends, a small portion comes from interest income (haram). Islamic law requires you to purify this.
How Much Should You Purify?
Check ZakatInvest screener for each company's interest income percentage. Typical purification:
- Apple (AAPL): Purify ~1-2% of dividends
- Microsoft (MSFT): Purify ~1-2% of dividends
- Tesla (TSLA): Purify 0% (minimal interest income)
How to Purify
- Calculate total annual dividends received
- Multiply by company's interest income %
- Donate to charity (zakat or sadaqah)
Example
You receive $1,000 dividends from Apple. Apple's interest income = 1.5%.
Purification amount: $1,000 × 1.5% = $15
Donate $15 to charity. Keep $985.