Is United Parcel Service, Inc. UPS stock Halal to invest in?

Yes, as of September 2026, United Parcel Service, Inc. stock (UPS) is classified as a Shariah compliant stock. For a Muslim investor, the question is settled by AAOIFI Shariah Standard No. 21, and United Parcel Service, Inc. satisfies it in full this month: incidental non-permissible income sits inside the 5% threshold, neither interest-bearing debt nor interest-bearing investments breaches the 30% market capitalisation caps, and no impermissible preference share structure exists. The stock's current purification factor is 99.41%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of United Parcel Service, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is United Parcel Service, Inc. UPS reviewed for Shariah compliance?

Tabadulat reviews United Parcel Service, Inc. UPS 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screening ensures the status shown for United Parcel Service, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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 United Parcel Service, Inc. UPS pass the AAOIFI Non Permissible Income criteria?

Yes, as of September 2026, United Parcel Service, Inc. stock (UPS) passes the AAOIFI non-permissible income screen. AAOIFI permits a small tolerance because large companies rarely avoid incidental impermissible income entirely, most often interest on cash balances. The ceiling is 5% of total revenue, and United Parcel Service, Inc. sits inside it in the latest screening. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does United Parcel Service, Inc. UPS pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of September 2026, United Parcel Service, Inc. stock (UPS) passes the AAOIFI interest-bearing investments screen. AAOIFI caps interest-earning holdings at 30% of market capitalisation so that shareholders do not materially profit from Riba. Measured against the latest data, United Parcel Service, Inc.'s interest-bearing investments sit within 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 United Parcel Service, Inc. UPS pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of September 2026, United Parcel Service, Inc. stock (UPS) passes the AAOIFI interest-bearing debt screen. Each month Tabadulat measures United Parcel Service, Inc.'s interest-accruing borrowings against AAOIFI's 30% market capitalisation cap. The current screening shows the company within the limit, so the debt screen passes. 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 United Parcel Service, Inc. UPS stock?

As of September 2026, the dividend purification factor for United Parcel Service, Inc. (UPS) is 99.41%. Purification (Tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure Halal investors use to work out that donation on United Parcel Service, Inc. dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does United Parcel Service, Inc. UPS pass the AAOIFI Preference Share screen?

Yes, as of September 2026, United Parcel Service, Inc. stock (UPS) 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. United Parcel Service, Inc. 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.

Invest Halal, Anytime, Anywhere

Download the Tabadulat app and start building your Shariah-compliant portfolio in minutes.

English

العربية

Is United Parcel Service (UPS) stock Halal?

NYSE

Shariah-Compliant

Not Shariah

As of the September 2026 screening, United Parcel Service, Inc. (UPS) meets every AAOIFI Shariah Standard No. 21 requirement: non-permissible income, interest-bearing investments and interest-bearing debt all sit within the thresholds, and there is no impermissible preference share structure. The dividend purification factor is 99.41%. The stock is re-screened every month.

Sector:

Industrials

Industry:

Integrated Freight & Logistics

Employees:

490000

Website:

https://www.ups.com

Market cap:

$87.6B

P/E ratio:

19.0

Dividend yield:

6.39%

52-week range:

$82.00 - $122.41

Data as of:

3 September 2026

Screening history:

September 2026: PASS

United Parcel Service is a global package delivery and supply chain management company. As one of the world's largest courier companies, it plays a crucial role in e-commerce and international trade by providing time-sensitive delivery services and efficient logistics solutions. UPS operates in various sectors, including retail, healthcare, and industrial manufacturing, offering services such as package delivery, freight transportation, and contract logistics. For Muslim investors, though, the most pressing question is simpler: is United Parcel Service a Halal investment?

Is United Parcel Service Shariah compliant?

For industrial companies like United Parcel Service, the product is rarely the problem; aircraft, vehicles and machinery are permissible. The exposure is leverage: fleets and factories are financed, and the 30% cap that AAOIFI Shariah Standard No. 21 places on interest bearing debt is the screen that decides most verdicts in this sector.

Does United Parcel Service pass the business activity test?

Yes. In the September 2026 screening United Parcel Service holds an overall PASS, which a stock only earns when its core business clears the activity screen. The activity itself raises no Shariah objection; the scrutiny belongs to the financing.

Is United Parcel Service's income Halal?

Yes, within AAOIFI's tolerance. United Parcel Service's income from non-permissible sources stays below 5% of revenue in the September 2026 screening, and the small impure portion is handled through purification: the factor of 99.41% tells holders of UPS what share of each dividend to keep and what remainder to donate to charity.

Does United Parcel Service 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 UPS 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 AAOIFI Standards Explained: What Makes a Stock Halal?

Frequently asked questions

Related stocks

Mobile login screen for Tabadulat with fields to enter email, a Continue button, an option to create an account, and a language selector showing EN.

Step 1

Open your account.

Create your Tabadulat account in minutes: enter your details, complete identity verification, and add funds by secure transfer in multiple currencies. You're ready to start investing in Halal stocks the same day.

Mobile screen showing add money interface with 100 AED amount and Manual Bank Transfer payment method selected, noting 1-2 business days processing.

Step 2

Deposit.

Add funds to your account using a secure payment method. You can deposit in multiple currencies to get started.

Step 3

Screen.

Screen Stocks for Free and explore a wide range of stocks that are ethically screened for Shariah compliance. Use our Halal Stock Screener to find the best opportunities.