These four halal, Shariah-compliant stocks are best buys after Eid al-Fitr

If you want to invest in some new halal stocks, you know that finding companies compliant with Shariah law can be complicated. 

So, how does one find businesses that truly uphold Islamic principles and Shariah law? 

What are halal, Shariah-compliant stocks?

Halal stocks are the companies which have been declared compliant with Shariah law of the Islam faith. 

Not just any stock can be determined halal, it first must pass certain screening criteria before being declared halal by a team of legal experts or a Shariah law board or some other kind of financial institution. 

There are two components of this criteria. First, the company must derive no funds (or less than 5% of its income) from income sources considered ‘haram’ such as alcohol, gambling, tobacco and prostitution, among others. 

Secondly, the company must keep to the Qur’anic proscription on interest (called ‘riba’). This has several elements, including keeping interest-bearing debt low (no more than 33% of the company’s market cap). 

Given how specific Shariah law is on how companies can operate as halal, it can be difficult to separate out for yourself which companies fit the bill. So, here are our top four picks below.

The top four halal stocks to invest in:

1. Intuitive Surgical
2. Samsung Electronics
3. AbbVie
4. ExxonMobil

1. Intuitive Surgical

Intuitive Surgical is a medical device company based in California, America, which specialises in the making of robotics for patients such as amputees.  

The company is both on the NYSE and made Islamic Finance Guru’s picks for five top halal stocks.

Its stock price is also doing well: up 16.90% (almost $56) this year to date, and almost 50% (roughly $128) in the past year.

2. Samsung Electronics Co

South Korean Samsung Electronics Company, the jewel of the Samsung empire needs no introduction, as the second-largest smartphone maker in the world.

Recently, Samsung Electronics shares were priced as high as 84,100 Korean won in a recent sale, as reported by a MarketScreener news piece.

Overall, the company’s share price up 15.47% (11,200 Korean won) in the past month, and 27.25% in past year (almost 18000 Korean won).

3. AbbVie

AbbVie is a big pharmaceuticals company based in Chicago, USA.

AbbVie’s stock has done reasonably well in 2024 so far, rising 6.2% since January and over 5% (almost $9) in the past year.

April is a good time to keep this pharma company on your radar, too, as it is expected to post its financial results later this month.

4. ExxonMobil

Texan big oil company ExxonMobil is not only a great pick for anyone wanting halal companies to invest in – but also for investors who like dividends.

The company is a ‘dividend aristocrat’, having paid progressively higher dividends every quarter for the past forty-something years.

It’s also one to watch in April in particular. According to a recent filing with the Securities and Exchange Commission, ExxonMobil will announce its Q1 financial results soon on April 26th.