Is Costco Wholesale Corp. COST stock Halal to invest in?

No, as of September 2026, Costco Wholesale Corp. stock (COST) is not currently classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening Halal stocks. To qualify as Halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Costco Wholesale Corp. currently does not meet the threshold for the non-permissible income screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Costco Wholesale Corp. and discover Shariah compliant alternatives among the Halal stocks in the Tabadulat app.

How often is Costco Wholesale Corp. COST reviewed for Shariah compliance?

Tabadulat reviews Costco Wholesale Corp. COST for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Costco Wholesale Corp. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Costco Wholesale Corp. COST pass the AAOIFI Non Permissible Income criteria?

No, as of September 2026, Costco Wholesale Corp. stock (COST) does not pass the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or Riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Costco Wholesale Corp.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Costco Wholesale Corp. COST pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of September 2026, Costco Wholesale Corp. stock (COST) passes the AAOIFI interest-bearing investments screen. Each month Tabadulat compares Costco Wholesale Corp.'s holdings in interest-earning instruments, such as conventional deposits, bonds and treasury bills, against AAOIFI's 30% market capitalisation cap. The current screening shows the company inside the limit. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Costco Wholesale Corp. COST pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of September 2026, Costco Wholesale Corp. stock (COST) passes the AAOIFI interest-bearing debt screen. AAOIFI tolerates some conventional borrowing but draws the line at 30% of market capitalisation. On the latest data, Costco Wholesale Corp.'s interest-bearing debt stays below the line. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Costco Wholesale Corp. COST stock?

Costco Wholesale Corp. (COST) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (Tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a Halal investment. If Costco Wholesale Corp. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Costco Wholesale Corp. COST pass the AAOIFI Preference Share screen?

Yes, as of September 2026, Costco Wholesale Corp. stock (COST) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Costco Wholesale Corp. has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Is Costco Wholesale (COST) stock Halal?

NASDAQ

Shariah-Compliant

Not Shariah

September 2026 AAOIFI screening result for Costco Wholesale Corp. (COST): non-permissible income, fail. Interest-bearing investments, pass. Interest-bearing debt, pass. Preference shares, pass. Costco Wholesale Corp. is not currently Shariah compliant. Re-screened monthly against AAOIFI Shariah Standard No. 21.

Sector:

Consumer Defensive

Industry:

Discount Stores

Employees:

341000

Website:

https://www.costco.com

Market cap:

$411.8B

P/E ratio:

47.4

Dividend yield:

0.63%

52-week range:

$844.06 - $1096.50

Data as of:

3 September 2026

Screening history:

September 2026: FAIL

Costco Wholesale operates as a membership-only warehouse club, providing a wide selection of merchandise across various categories internationally. As a leading player in the retail sector, Costco emphasizes bulk buying and low prices, offering products ranging from groceries and household items to electronics and apparel. The company is renowned for its efficient operations and minimalistic warehouse design, which contribute to a unique shopping experience aimed at delivering maximum value to its members. Before any of that matters to a Muslim investor, one question comes first: is Costco Wholesale stock Halal?

Is Costco Wholesale Shariah compliant?

Consumer staples companies like Costco Wholesale face the screening question at the shelf, not the balance sheet: does any revenue come from alcohol, tobacco or other impermissible lines? AAOIFI Shariah Standard No. 21 tolerates such income only below 5% of revenue, with the financial ratios checked behind it.

Does Costco Wholesale pass the business activity test?

The activity screen is only part of the picture this month: Costco Wholesale currently fails the non-permissible income screen, so the overall verdict is not compliant regardless of the business itself. The watch item is the product mix: any alcohol, tobacco or similar lines count against the 5% ceiling.

Is Costco Wholesale's income Halal?

No. Costco Wholesale's income from impermissible sources currently exceeds AAOIFI's 5% revenue ceiling, which makes the stock non-compliant on this screen regardless of the others. The screen is reassessed monthly, so the status can change when new financial statements arrive.

Does Costco Wholesale meet AAOIFI's debt and investment ratio requirements?

Yes. Both caps hold this month: interest bearing investments and interest bearing debt each stay below 30% of market capitalisation. Because the caps move with the share price, our Shariah Supervisory Board has COST re-screened every month, and the result above always shows the latest verdict.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the four screens? Read What is Halal Investing? A Guide to Halal Stocks and Islamic Finance

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