Is The Home Depot (HD) Halal?

Is The Home Depot (HD) stock halal to invest in?

As of March 2026, yes, HD stock is halal to invest in. The Home Depot makes its money from permissible activities and its financial ratios are within AAOIFI limits. This is reviewed every quarter.

Are dividends from The Home Depot (HD) stock halal?

Yes, dividends from HD are considered halal since the stock is currently Shariah-compliant. However, if the company earns any impure income (up to the 5% AAOIFI threshold), you may need to purify a small portion of your dividends by donating the equivalent percentage to charity. For the exact purification amount for The Home Depot, check the Amal Invest app.

How often is The Home Depot stock reviewed for Shariah compliance?

The Home Depot is reviewed at minimum once per quarter. The most recent review was completed on March 24, 2026. If there are any significant changes in the company's operations, acquisitions, or financial structure, an immediate review is conducted. On Amal Invest, compliance is monitored round the clock and non-compliant stocks are automatically removed from your portfolio.

Can I invest in HD through halal investment platforms?

Yes, since HD is Shariah-compliant, you can invest in it through Islamic investment platforms and halal brokers. Amal Invest includes The Home Depot in its screened halal portfolios. Always verify the current compliance status before investing, as it can change based on quarterly reviews.

Do I need to pay Zakat on HD stock?

If you hold HD stock as a long-term investment, Zakat is generally calculated on the Zakatable portion of the company's assets (cash, receivables, inventory) proportional to your shares. If you actively trade HD, Zakat is due on the full market value. Consult a qualified Islamic scholar for your specific situation. Learn more in our guide to Zakat on stocks.

How can I stay updated on The Home Depot's compliance status?

Shariah compliance can change due to shifts in a company's financial ratios, business activities, or corporate structure. With Amal Invest, compliance ratings are monitored round the clock for all stocks you're invested in. Non-compliant ones are automatically removed for you. You can also check back on this page, which is updated quarterly.

What should I do if HD becomes non-compliant?

If HD or any stock you hold becomes non-compliant:

1. Sell within a reasonable timeframe. Most scholars recommend 30 to 90 days.
2. Purify your gains. Calculate any profits earned during the non-compliant period and donate that amount to charity.
3. Find alternatives. Look for Shariah-compliant stocks in the same sector.

On Amal Invest, non-compliant stocks are automatically removed from your portfolio, so this is handled for you.