Is Hershey (HSY) stock Halal?

Hershey is a leading multinational in the confectionery industry, recognized for its extensive portfolio of iconic chocolate, candy, and snack brands. Founded by Milton S. Hershey in 1894, the company has grown to become one of the world’s largest producers of chocolate and sweets, marketing its products in over 60 countries and maintaining a presence in approximately 85 markets worldwide. For Muslim investors, though, the most pressing question is simpler: is Hershey a Halal investment?

Is Hershey Shariah compliant?

Yes. In the October 2026 screening Hershey (HSY) passes AAOIFI Shariah Standard No. 21: the business activity screen and every financial ratio screen hold. Food, household goods and everyday retail are permissible activities, with one watch item: incidental revenue from alcohol, tobacco or conventional financial services must stay below the 5% ceiling of AAOIFI Shariah Standard No. 21. For Hershey, that is usually the screen worth reading first.

Does Hershey pass the business activity test?

Yes. In the October 2026 screening Hershey holds an overall PASS, which a stock only earns when its core business clears the activity screen. The watch item is the product mix: any alcohol, tobacco or similar lines count against the 5% ceiling.

Is Hershey's income Halal?

Yes, within AAOIFI's tolerance. Hershey's income from non-permissible sources stays below 5% of revenue in the October 2026 screening, and the small impure portion is handled through purification: the factor of 99.79% tells holders of HSY what share of each dividend to keep and what remainder to donate to charity. On a dividend yield of around 3.63%, the purification amount is modest but real.

Does Hershey 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, measured against a market capitalisation of $31.7B (market data as of 1 October 2026). Because the caps move with the share price, our Shariah Supervisory Board has HSY re-screened every month, and the result above always shows the latest verdict.

Why do other halal screeners show a different verdict for Hershey?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

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 screening method? Read What is Halal Investing? A Guide to Halal Stocks and Islamic Finance