Key Takeaways
Hey there, dividend enthusiasts! 👋 Are you on the hunt for some juicy dividend stocks but want to keep an eye on Shariah compliance? Well, you're in for a treat! We've rounded up the top 10 high-yield dividend stocks, including both Shariah compliant options and those with questionable status.
Remember, when we say "Shariah compliant," we're not slapping a "100% halal" sticker on these companies. They've passed certain financial screens, but as always, it's up to you to do your due diligence. Now, let's dive into this dividend smorgasbord! 🍽️
Leading our list with an eye-popping yield is Artisan Partners. But before you get too excited, let's talk about why it's on our "questionable" list.
Artisan Partners is a global investment management firm, known for its high-value-added investment strategies. While their dividend yield is certainly attractive, their compliance status raises some eyebrows.
Why it's questionable: Asset management firms often deal with interest-based financial products, which can be problematic from a Shariah compliance perspective. Additionally, their involvement in conventional financial markets might lead to excessive exposure to non-compliant activities.
Next up is Buckle, the fashion retailer that's been making waves in the dividend world. With a yield of 4.49%, it's not just their jeans that are looking good!
Buckle has been around since 1948, selling medium to better-priced casual apparel, footwear, and accessories. They've managed to stay relevant in the ever-changing fashion landscape, and their dividend game is equally strong.
Why it's compliant: Buckle's business model focuses on retail sales, which is generally considered permissible under Shariah law. They don't deal with interest-based income or prohibited goods.
Now we've got Chevron, the oil giant that's been fueling both cars and dividend portfolios for years. With a yield of 3.97%, it's clear they're not just pumping oil – they're pumping out dividends too!
Chevron is one of the world's largest integrated energy companies, involved in every facet of the oil and natural gas industries. They've been paying dividends for over 30 consecutive years, making them a dividend aristocrat.
Why it's compliant: While oil and gas can be controversial, Chevron's primary business of energy production and distribution is generally considered permissible. Their financials also meet the necessary criteria for Shariah compliance.
Who said biotech can't pay dividends? Certainly not Gilead Sciences! With a yield of 3.94%, they're proving that you can innovate in healthcare and reward shareholders at the same time.
Gilead is a research-based biopharmaceutical company that discovers, develops, and commercializes innovative medicines. They're known for their groundbreaking work in HIV/AIDS treatments and hepatitis C cures.
Why it's compliant: Gilead's focus on developing and selling medicines aligns with the Islamic principle of preserving life. Their financial structure also meets Shariah compliance criteria.
Another oil giant graces our list – Exxon Mobil. With a dividend yield of 3.50%, they're showing that size doesn't hinder generosity when it comes to shareholder returns.
Exxon Mobil is one of the world's largest publicly traded international oil and gas companies. They've been paying dividends for over 100 years and have increased their dividend for 37 consecutive years.
Why it's compliant: Similar to Chevron, Exxon Mobil's primary business in energy production and distribution is generally considered permissible under Shariah law.
Target, the retail giant, makes an appearance on our list with an attractive 3.42% yield. But there's a catch – it's in the questionable category.
Target is one of the largest retailers in the United States, offering a wide range of products from groceries to electronics and clothing. They've been increasing their dividend for 53 consecutive years, earning them the title of dividend king.
Why it's questionable: While retail is generally permissible, Target's diverse product range might include items considered non-compliant under Shariah law (like alcohol or pork products). Additionally, their financial structure or debt levels might not meet strict Shariah compliance criteria.
From retail to tech, Cisco Systems proves that technology companies can be dividend powerhouses too. With a yield of 3.14%, they're serving up a slice of pi for dividend lovers! 🥧
Cisco is the worldwide leader in IT and networking, providing a wide range of technology solutions. They've been paying dividends since 2011 and have consistently increased them ever since.
Why it's compliant: Cisco's business model focused on technology and services aligns well with Shariah principles. Their financial ratios also meet the necessary criteria for compliance.
Johnson & Johnson isn't just a household name – it's a dividend investor's dream. With a yield of 3.08%, they're bandaging up portfolios one dividend at a time.
J&J is a multinational corporation that develops medical devices, pharmaceutical, and consumer packaged goods. They're a dividend king, having increased their dividend for 58 consecutive years.
Why it's compliant: J&J's focus on healthcare and consumer goods aligns with Islamic principles of preserving health. Their financial structure also meets Shariah compliance standards.
Coca-Cola isn't just refreshing for consumers – it's refreshing for dividend investors too! With a yield of 3.06%, they're proving that carbonated beverages can lead to effervescent returns.
Coca-Cola is the world's largest beverage company, offering over 500 brands in more than 200 countries. They've been increasing their dividend for 58 consecutive years, making them another dividend king.
Why it's compliant: Coca-Cola's primary business of producing and selling beverages is generally permissible under Shariah law. Their financial ratios also meet the necessary criteria for compliance.
Rounding out our list is Clorox, proving that cleaning up can indeed pay off. With a yield of 2.98%, they're making portfolios sparkle!
Clorox is a global manufacturer and marketer of consumer and professional products. They've been increasing their dividend for 43 consecutive years, earning them the title of dividend aristocrat.
Why it's compliant: Clorox's business model focusing on household and professional products aligns well with Shariah principles. Their financial structure also meets the necessary compliance criteria.
A Note on Questionable Stocks
As you've seen, two stocks on our list - Artisan Partners Asset Management (APAM) and Target Corporation (TGT) - are marked as questionable from a Shariah compliance perspective. This doesn't necessarily mean they're "haram" or forbidden, but rather that they require closer scrutiny and may not pass stricter Shariah screening criteria. Always consult with a knowledgeable advisor for the most up-to-date compliance information and to determine if these investments align with your personal ethical and religious standards.
There you have it, folks – a diverse list of high-yield dividend stocks, viewed through the lens of Shariah compliance. From the clearly compliant to the questionable, this list offers a range of options for dividend-hungry investors to consider. But remember, a high yield doesn't always mean a good investment. Always do your own research and consider factors like dividend sustainability, company financials, and growth prospects.
And hey, if you're looking to invest in these dividend dynamos but want to ensure you're getting a filtered, Shariah compliant version, why not check out Amal Invest? They offer access to filtered versions of popular ETFs and Mutual Funds, excluding non-Shariah compliant holdings. It's like getting the best of both worlds – potentially juicy dividends and peace of mind! 🌟
Just remember, investing always comes with risks, and past performance doesn't guarantee future results. So, invest wisely, stay informed, and may your portfolio be ever green and halal! 💚📈