Shariah Dividend Stocks

This screen is the intersection of two things: current membership of the KMI All Shares index — the Shariah-compliant universe screened under the AAOIFI methodology by PSX's Shariah advisors and reviewed semi-annually — and a positive trailing twelve-month dividend yield. From that pool we keep companies with a market cap above Rs 1 billion, treat yields above 60% as data artifacts and exclude them, and rank the highest yields that remain. Yield is trailing dividends per share divided by the current price, so it moves with every trading session even though compliance itself only changes at a review. Read a very high yield as a question rather than an answer: it often reflects a price that has fallen hard, or a special dividend that will not repeat. Conventional banks and insurers cannot appear here by construction, so the sector mix looks different from the all-stock yield screen — Islamic banks do qualify and are still labelled "Commercial Banks" in the sector column, which is the sector classification, not a compliance verdict. If you want every dividend payer regardless of compliance, use Highest Dividend Yield; for the full halal universe ranked by size, see All Shariah Stocks or the KMI-30 benchmark. This page is where the two overlap.

Yes. KMI screening is re-run on a semi-annual cycle, so a company whose interest-bearing debt, non-compliant income or liquid-asset ratios drift past the AAOIFI thresholds can be dropped at the next review. A generous dividend payer that qualifies today may therefore not be on this list after the next screening. If you hold for income, re-check your names after each review rather than assuming compliance is permanent.

Not on its own. Yield is a ratio, and it rises just as easily because the price collapsed as because the payout grew — a single unrepeatable special dividend can inflate the trailing figure for a year. Look at the dividend history over several years, whether earnings and cash flow comfortably cover the payout, and what the company has said in recent announcements. A stable, covered payout at a moderate yield is usually worth more than a spectacular one that will not be repeated.

Highest Dividend Yield ranks every PSX company by yield with no compliance filter, so conventional banks and other non-compliant payers appear there. All Shariah Stocks covers the whole halal universe but ranks it by market cap, so the largest names sit on top regardless of what they pay. This page combines both conditions: halal by KMI screening and paying a dividend, ranked by yield.

It is gross — trailing cash dividends per share divided by the current price, before any deduction. Pakistan withholds tax on dividends from listed companies at the rate in force for your filer status, and non-filers are charged more, so the cash reaching your account is lower than the headline figure. Confirm the current rate before comparing these yields with savings schemes or bank profit rates.

Many scholars advise purifying the small share of income attributable to non-compliant sources, even for companies that pass AAOIFI screening, since the thresholds allow a limited amount rather than requiring zero. The purification ratio is usually published by the company or by Shariah advisory firms each year. Consult your own Shariah advisor for the treatment appropriate to your situation.

Open a BSL trading account, keep your buys within this compliant universe, and spread the income across sectors rather than concentrating in the highest single yield. Our research desk can help you check payout sustainability and compliance history before you commit. Nothing on this page is a recommendation to buy — it is a screen, and the decision stays yours. See our disclaimer.