Are dividends halal?
Dividends from companies that pass a recognised screen are treated as permissible by the major standards, with the incidental impure portion purified.
A screened company may still earn a small amount of interest income. The standard calculates what proportion of the company's income that represents, and that proportion of your dividend is given away rather than kept - the purification rate.
Some funds calculate and donate this on your behalf; others publish the rate and leave the donation to you. Which model applies is disclosed by the fund.
Factual and educational information only. Nothing on this page is financial product advice, a recommendation, or a Shariah ruling. Consider your circumstances and the product's disclosure documents, and seek licensed advice and qualified scholarly guidance before acting.