Best Halal Dividend Stocks: 7 Shariah-Compliant High-Yield Picks

Last updated: October 23, 2026

The highest-yielding Shariah-compliant dividend stocks in our screen are Buckle (BKE), Chevron (CVX), Gilead (GILD), Exxon Mobil (XOM) and Cisco (CSCO), with yields between about 3.1% and 4.5% when this list was compiled in September 2024. Artisan Partners (APAM) and Target (TGT) yield as much or more, and Clorox (CLX) is a long-time dividend aristocrat, but as of October 2026 none of the three passes AAOIFI screening cleanly. For halal dividend income, you should also purify the non-permissible share of each dividend by donating it to charity.

A note on the numbers: the dividend yields below are from September 2024, when this list was put together, and move with the share price, so check the current yield before you buy. The compliance status on each stock comes from our screen, which follows AAOIFI standards, as of the refresh date shown below (last refreshed 23 Oct 2026; the explanations beside each stock were written in October 2026). The screen checks a permissible core business, interest-bearing debt and interest-bearing securities each under 30% of market cap, and non-permissible income under 5% of revenue. "Compliant" means a company passed those screens, not that anyone has stamped it 100% halal, so do your own due diligence too.

The 7 halal dividend stocks

1. Buckle, Inc. (BKE): 4.49% yield

Compliance status: Halal

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 (as of October 2026): 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.

2. Chevron Corporation (CVX): 3.97% yield

Compliance status: Halal

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 (as of October 2026): 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.

3. Gilead Sciences (GILD): 3.94% yield

Compliance status: Halal

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 (as of October 2026): Gilead's focus on developing and selling medicines aligns with the Islamic principle of preserving life. Their financial structure also meets Shariah compliance criteria.

4. Exxon Mobil Corporation (XOM): 3.50% yield

Compliance status: Halal

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 (as of October 2026): Similar to Chevron, Exxon Mobil's primary business in energy production and distribution is generally considered permissible under Shariah law.

5. Cisco Systems (CSCO): 3.14% yield

Compliance status: Halal

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 (as of October 2026): Cisco's business model focused on technology and services aligns well with Shariah principles. Their financial ratios also meet the necessary criteria for compliance.

6. Johnson & Johnson (JNJ): 3.08% yield

Compliance status: Halal

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 (as of October 2026): J&J's focus on healthcare and consumer goods aligns with Islamic principles of preserving health. Their financial structure also meets Shariah compliance standards.

7. Coca-Cola Company (KO): 3.06% yield

Compliance status: Halal

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 (as of October 2026): 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.

Three high yielders that don't make the cut

These three show up on most "best dividend stocks" lists, and their yields are tempting, but as of October 2026 none passes AAOIFI screening cleanly. "Not Halal" means the stock fails the business-activity or financial-ratio screens; "Doubtful" means it sits at the edge of the financial ratios, and whether you hold it depends on how strict your own screening is. On Amal Invest, doubtful stocks are included by default and you can exclude them in your filter settings. Compliance is re-checked quarterly, so a name can move in either direction.

Artisan Partners Asset Management Inc (APAM): 6.87% yield

Compliance status: Not Halal

Artisan Partners has the highest yield of any stock here. Before you get too excited, here is why it does not pass the screen.

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 fails (as of October 2026): 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.

Target Corporation (TGT): 3.42% yield

Compliance status: Doubtful

Target, the retail giant, pays an attractive 3.42% yield. The catch is its compliance status.

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 doubtful (as of October 2026): 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.

The Clorox Company (CLX): 2.98% yield

Compliance status: Not Halal

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.

Business screen: Clorox's household and professional products are permissible, so it clears the business-activity test.

Why it fails (as of October 2026): Clorox passed the business-activity screen when this list was first written, but its financial ratios now put it outside AAOIFI limits, which is exactly why the status above matters more than any list.

Wrapping it up

Seven compliant high-yield names and three to be careful with, all viewed through AAOIFI screening. A high yield is not the same as a good investment: look at dividend sustainability, the company's financials and growth prospects before you commit, and remember that compliance is re-checked every quarter and can change.

If you want these dividend payers inside a diversified, Shariah-compliant portfolio without screening each holding yourself, Amal Invest offers filtered versions of popular ETFs and mutual funds with non-compliant companies removed automatically.

Investing always comes with risk, and past performance doesn't guarantee future results. Invest wisely and stay informed.

Continue Your Halal Investing Research

• Compare halal REIT stocks if you want another source of dividend income.
• Learn how Shariah stock screening works before relying on any list.
• Understand the common problems with off-the-shelf halal ETFs before switching from stocks to a fund.
• Read why funds can be a practical first investment if picking individual stocks feels too concentrated.
• Work through the common worries first-time investors have before you commit money.