11 Best Halal Dividend Stocks To Buy

Published on November 26, 2023 at 5:38 am by Vardah Gill in Dividend Stocks, Hedge Funds, News

In this article, we discuss 11 best halal dividend stocks to buy. You can skip our detailed analysis of dividend stocks and their previous performance, and go directly to read 5 Best Halal Dividend Stocks To Buy.

Halal stocks refer to shares of companies that comply with Shariah law. These stocks are from companies that operate in line with Shariah guidelines, meaning they avoid industries like alcohol, gambling, tobacco, and non-Islamic finance. Additionally, they maintain ethical business practices, ensuring their sources of income align with Islamic principles. The S&P High Yield Dividend Aristocrats Shariah Index monitors how certain Shariah-compliant companies, selected from the S&P 1500 Composite, perform in the market. These companies are specifically chosen because they’ve consistently increased their dividend payments for a period of 20 years or longer. This index tracks the performance of long-standing dividend-growing companies that adhere to Shariah principles within the broader market context of the S&P 1500 Composite. The index is down by 0.78% this year so far and its 5-year return came in at 6.98%.

Dividend-growing stocks have historically been popular among investors because they provide a regular income stream for them. As these companies increase their dividends over time, investors benefit from higher payouts. Companies that consistently pay increasing dividends usually have a strong financial foundation. They must not only turn a profit but also generate more cash than they require for their operations. A report conducted by Middlefield Capital Corporation found that dividend growers have shown remarkable performance compared to the broader market over the past three decades. This success isn’t just chance—it’s attributed to the fact that these companies are dedicated to managing their resources and investments with a disciplined approach. The same report also mentioned that chasing high yields without considering the underlying factors can be risky for investors. While a high dividend yield might seem attractive at first glance, it’s essential to look beyond the numbers. Sometimes, stocks offering the highest yields might actually carry greater risk or have unsustainable dividend payments.

The way inflation affects fixed-income and income portfolios differs significantly. A high-quality company that consistently pays dividends has the potential to increase its income over time, acting as a safeguard against the negative effects of inflation. Research from Ned Davis shows that S&P 500 companies have raised their dividends by 9.70% in the past year, surpassing even the relatively high recent inflation rates. Over the last fifty years, the S&P 500® Index’s dividend payments have grown at an average rate of 6%, which notably exceeds the historical inflation rate in the US.

Exxon Mobil Corporation (NYSE:XOM), AbbVie Inc. (NYSE:ABBV), and Chevron Corporation (NYSE:CVX) have a longstanding history of consistently increasing their dividend payouts, making them favored options among investors. Alongside their dividend track records, these companies also adhere to Shariah principles in their investments, appealing to investors seeking Shariah-compliant opportunities. In this article, we will further take a look at some of the best halal stocks that pay dividends.

Photo by Vitaly Taranov on Unsplash

Our Methodology:

To compile this list, we chose the top 11 stocks from the S&P High Yield Dividend Aristocrats Shariah Index. These specific companies are known for consistently providing substantial dividends to their shareholders and demonstrating robust financial stability. We ranked these holdings based on the number of hedge funds that had invested in them by the end of Q3 2023, using data from Insider Monkey’s database. This ranking method helps identify stocks that attract interest from hedge funds, providing insight into investor sentiment and confidence in these particular companies.

11. Kimberly-Clark Corporation (NYSE:KMB)

Number of Hedge Fund Holders: 31

Kimberly-Clark Corporation (NYSE:KMB) is an American multinational corporation that is engaged in the manufacturing and marketing of personal care and consumer tissue products. In the third quarter of 2023, the company posted revenue of $5.2 billion, which showed a 2% growth from the same period last year. Its operating cash flow for the first nine months came in at $2.3 billion and it returned $1.3 billion to shareholders through dividends and share repurchases.

Kimberly-Clark Corporation (NYSE:KMB) currently pays a quarterly dividend of $1.18 per share and has a dividend yield of 3.86%, as of November 25. It is one of the best halal stocks on our list as the company has been growing its dividends for 51 consecutive years.

At the end of Q3 2023, 31 hedge funds tracked by Insider Monkey reported having stakes in Kimberly-Clark Corporation (NYSE:KMB), compared with 38 in the preceding quarter. The consolidated value of these stakes is over $790.4 million.

10. General Dynamics Corporation (NYSE:GD)

Number of Hedge Fund Holders: 39

General Dynamics Corporation (NYSE:GD) is a Virginia-based global aerospace and defense company. It also offers a wide array of IT services, including cloud computing, data analytics, and enterprise IT solutions. The company offers a quarterly dividend of $1.32 per share and has been raising its dividends for 26 years consistently. As of November 25, the stock has a dividend yield of 2.13%.

General Dynamics Corporation (NYSE:GD) generated $10.6 billion in revenues in the third quarter of 2023, which saw a 6% growth from the same period last year. The company’s operating cash flow for the quarter came in at $1.3 billion. It is one of the best halal stocks on our list as the company returned $363 million to shareholders through dividends during the quarter.

As of the end of Q3 2023, 39 hedge funds in Insider Monkey’s database reported having stakes in General Dynamics Corporation (NYSE:GD), down from 46 in the previous quarter. The collective value of these stakes is over $7 billion.

9. Air Products and Chemicals, Inc. (NYSE:APD)

Number of Hedge Fund Holders: 43

Air Products and Chemicals, Inc. (NYSE:APD) is a global industrial gases company that provides atmospheric gases, process and specialty gases, performance materials, equipment, and services. The company’s dividend growth streak currently stands at 41 years, which makes ADP one of the best halal stocks to buy. It currently pays a quarterly dividend of $1.75 per share and has a dividend yield of 2.55%, as of November 25.

The number of hedge funds tracked by Insider Monkey owning stakes in Air Products and Chemicals, Inc. (NYSE:APD) stood at 43 in Q3 2023, which remained unchanged from the previous quarter. The total value of these stakes is over $952.3 million. With nearly 1 million shares, Citadel Investment Group was the company’s leading stakeholder in Q3.

8. 3M Company (NYSE:MMM)

Number of Hedge Fund Holders: 54

3M Company (NYSE:MMM) is a diversified multinational corporation operating in various industries. They specialize in the development, manufacturing, and marketing of a wide array of products and solutions across different sectors.

In the third quarter of 2023, 3M Company (NYSE:MMM) reported revenue of $8.31 billion, which beat analysts’ estimates by $280 million. The company generated $1.9 billion in free cash flow during the quarter and returned $828 million to shareholders through dividends. This shows that the company’s cash generation is strong enough to fulfill its shareholder obligation.

3M Company (NYSE:MMM), one of the best halal stocks on our list, currently pays a quarterly dividend of $1.50 per share. The company holds a 65-year streak of consistent dividend growth. As of November 25, the stock has a dividend yield of 6.25%.

The number of hedge funds tracked by Insider Monkey owning stakes in 3M Company (NYSE:MMM) grew to 54 in Q3 2023, from 49 in the preceding quarter. The consolidated value of these stakes is over $818.6 million.

7. The Coca-Cola Company (NYSE:KO)

Number of Hedge Fund Holders: 57

The Coca-Cola Company (NYSE:KO) is a Georgia-based multinational beverage company. In the third quarter of 2023, the company’s revenue showed an 8% year-over-year growth at $12 billion. In the first nine months of the year, the company generated nearly $9 billion in operating cash flow and its free cash flow for the period came in at $7.9 billion.

The Coca-Cola Company (NYSE:KO) has been rewarding shareholders with growing dividends for the past 61 years, which makes KO one of the best halal stocks on our list that pay dividends. The company offers a per-share dividend of $0.46 every quarter and its dividend yield on November 25 came in at 3.14%.

The Coca-Cola Company (NYSE:KO) was a part of 57 hedge fund portfolios at the end of Q3 2023, according to Insider Monkey’s database. The total value of stakes owned by these hedge funds is over $25 billion. Among these hedge funds, Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder in Q3.

6. Target Corporation (NYSE:TGT)

Number of Hedge Fund Holders: 58

Target Corporation (NYSE:TGT) is an American retail company that operates a chain of retail stores offering a wide range of products. The company’s stores are designed to cater to various customer segments, offering both essential items and trendy products.

Target Corporation (NYSE:TGT) has been raising its dividends for 52 consecutive years and currently pays a quarterly dividend of $1.10 per share. The stock’s dividend yield on November 25 came in at 3.35%. During its most recent quarter, the company returned over $507 million through dividends to shareholders.

In the third quarter of 2023, Target Corporation (NYSE:TGT) posted revenue of $25.4 billion, which fell by 4.2% from the same period last year. However, the revenue surpassed analysts’ estimates by $160 million. Through the first three quarters of the year, the company generated over $5.3 billion in operating cash flow.

Target Corporation (NYSE:TGT) was a popular buy among hedge funds during the third quarter of 2023, as the company ended the quarter with 58 hedge fund positions, up from 45 in the preceding quarter, according to Insider Monkey’s database. The total value of stakes owned by these hedge funds is over $1.3 billion. With over 2.8 million shares, Diamond Hill Capital was the company’s leading stakeholder in Q3.

Click to continue reading and see 5 Best Halal Dividend Stocks To Buy.

AI Fire Sale: Insider Monkey’s #1 AI Stock Pick Is On A Steep Discount

Published on May 1, 2024 at by Inan Dogan, PhD

Artificial intelligence is the greatest investment opportunity of our lifetime. The time to invest in groundbreaking AI is now, and this stock is a steal!

The whispers are turning into roars.

Artificial intelligence isn’t science fiction anymore.

It’s the revolution reshaping every industry on the planet.

From driverless cars to medical breakthroughs, AI is on the cusp of a global explosion, and savvy investors stand to reap the rewards.

Here’s why this is the prime moment to jump on the AI bandwagon:

Exponential Growth on the Horizon: Forget linear growth – AI is poised for a hockey stick trajectory.

Imagine every sector, from healthcare to finance, infused with superhuman intelligence.

We’re talking disease prediction, hyper-personalized marketing, and automated logistics that streamline everything.

This isn’t a maybe – it’s an inevitability.

Early investors will be the ones positioned to ride the wave of this technological tsunami.

Ground Floor Opportunity: Remember the early days of the internet?

Those who saw the potential of tech giants back then are sitting pretty today.

AI is at a similar inflection point.

We’re not talking about established players – we’re talking about nimble startups with groundbreaking ideas and the potential to become the next Google or Amazon.

This is your chance to get in before the rockets take off!

Disruption is the New Name of the Game: Let’s face it, complacency breeds stagnation.

AI is the ultimate disruptor, and it’s shaking the foundations of traditional industries.

The companies that embrace AI will thrive, while the dinosaurs clinging to outdated methods will be left in the dust.

As an investor, you want to be on the side of the winners, and AI is the winning ticket.

The Talent Pool is Overflowing: The world’s brightest minds are flocking to AI.

From computer scientists to mathematicians, the next generation of innovators is pouring its energy into this field.

This influx of talent guarantees a constant stream of groundbreaking ideas and rapid advancements.

By investing in AI, you’re essentially backing the future.

The future is powered by artificial intelligence, and the time to invest is NOW.

Don’t be a spectator in this technological revolution.

Dive into the AI gold rush and watch your portfolio soar alongside the brightest minds of our generation.

This isn’t just about making money – it’s about being part of the future.

So, buckle up and get ready for the ride of your investment life!

Act Now and Unlock a Potential 10,000% Return: This AI Stock is a Diamond in the Rough (But Our Help is Key!)

The AI revolution is upon us, and savvy investors stand to make a fortune.

But with so many choices, how do you find the hidden gem – the company poised for explosive growth?

That’s where our expertise comes in.

We’ve got the answer, but there’s a twist…

Imagine an AI company so groundbreaking, so far ahead of the curve, that even if its stock price quadrupled today, it would still be considered ridiculously cheap.

That’s the potential you’re looking at. This isn’t just about a decent return – we’re talking about a 10,000% gain over the next decade!

Our research team has identified a hidden gem – an AI company with cutting-edge technology, massive potential, and a current stock price that screams opportunity.

This company boasts the most advanced technology in the AI sector, putting them leagues ahead of competitors.

It’s like having a race car on a go-kart track.

They have a strong possibility of cornering entire markets, becoming the undisputed leader in their field.

Here’s the catch (it’s a good one): To uncover this sleeping giant, you’ll need our exclusive intel.

We want to make sure none of our valued readers miss out on this groundbreaking opportunity!

That’s why we’re slashing the price of our Premium Readership Newsletter by a whopping 75%.

For a ridiculously low price of just $24, you can unlock a year’s worth of in-depth investment research and exclusive insights – that’s less than a single restaurant meal!

Here’s why this is a deal you can’t afford to pass up:

The Name of the Game-Changing AI Stock: Our in-depth report dives deep into our #1 AI stock’s groundbreaking technology and massive growth potential.
Ad-Free Browsing: Enjoy a year of investment research free from distracting banner and pop-up ads, allowing you to focus on uncovering the next big opportunity.
Lifetime Money-Back Guarantee: If you’re not absolutely satisfied with our service, we’ll provide a full refund ANYTIME, no questions asked.

Space is Limited! Only 1000 spots are available for this exclusive offer. Don’t let this chance slip away – subscribe to our Premium Readership Newsletter today and unlock the potential for a life-changing investment.

Here’s what to do next:

Head over to our website and subscribe to our Premium Readership Newsletter for just $24.
Enjoy a year of ad-free browsing, exclusive access to our in-depth report on the revolutionary AI company, and the upcoming issues of our Premium Readership Newsletter over the next 12 months.
Sit back, relax, and know that you’re backed by our ironclad lifetime money-back guarantee.

Don’t miss out on this incredible opportunity! Subscribe now and take control of your AI investment future!

Subscribe Now!

A New Dawn is Coming to U.S. Stocks

Published on May 2, 2024 at by Insider Monkey Staff

I work for one of the largest independent financial publishers in the world – representing over 1 million people in 148 countries.

We’re independently funding today’s broadcast to address something on the mind of every investor in America right now…

Should I put my money in Artificial Intelligence?

Here to answer that for us… and give away his No. 1 free AI recommendation… is 50-year Wall Street titan, Marc Chaikin.

Marc’s been a trader, stockbroker, and analyst. He was the head of the options department at a major brokerage firm and is a sought-after expert for CNBC, Fox Business, Barron’s, and Yahoo! Finance…

But what Marc’s most known for is his award-winning stock-rating system. Which determines whether a stock could shoot sky-high in the next three to six months… or come crashing down.

That’s why Marc’s work appears in every Bloomberg and Reuters terminal on the planet…

And is still used by hundreds of banks, hedge funds, and brokerages to track the billions of dollars flowing in and out of stocks each day.

He’s used this system to survive nine bear markets… create three new indices for the Nasdaq… and even predict the brutal bear market of 2022, 90 days in advance.

Click to continue reading…

Insider Monkey Ads

Markets

Insider Trading

Hedge Funds

Retirement

Opinion

Log In

Sign Up