Is The Home Depot, Inc. HD stock halal to invest in?

Yes, as of August 2026, The Home Depot, Inc. stock (HD) is 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. The Home Depot, Inc. currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 99.48%. 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 The Home Depot, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is The Home Depot, Inc. HD reviewed for Shariah compliance?

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 Monthly screening ensures the status shown for The Home Depot, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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

Yes, as of August 2026, The Home Depot, Inc. stock (HD) passes 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. The Home Depot, Inc.'s income from non-permissible sources is currently within this 5% threshold. 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 The Home Depot, Inc. HD pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, The Home Depot, Inc. stock (HD) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). The Home Depot, Inc.'s interest-bearing investments are currently within the 30% threshold. 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 The Home Depot, Inc. HD pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, The Home Depot, Inc. stock (HD) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. The Home Depot, Inc.'s interest-bearing debt is currently within the 30% threshold. 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 The Home Depot, Inc. HD stock?

As of August 2026, the dividend purification factor for The Home Depot, Inc. (HD) is 99.48%. 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 The Home Depot, 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 The Home Depot, Inc. HD pass the AAOIFI Preference Share screen?

Yes, as of August 2026, The Home Depot, Inc. stock (HD) 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. The Home Depot, 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.

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The Home Depot, Inc.

NYSE

Shariah-Compliant

Not Shariah

About

The Home Depot, Inc.

HD

Home Depot Inc. is a multinational home improvement retailer, renowned for offering a comprehensive range of products and services for construction, renovation, and maintenance projects. Its primary function is to provide a wide assortment of building materials, home improvement supplies, and tools, catering to both DIY enthusiasts and professional contractors. The company operates numerous big-box format stores across North America, strategically positioning itself as a crucial supplier in the retail sector. Home Depot's product offerings include appliances, flooring, paint, hardware, plumbing, and garden supplies, enabling homeowners and professionals to tackle projects of varying scale and complexity. Beyond just products, Home Depot also offers installation services, consulting, and how-to clinics, elevating its role from a simple retailer to a comprehensive support platform for home projects. Since its founding in 1978 in Atlanta, Georgia, Home Depot has significantly influenced the home improvement industry, becoming the largest home improvement retailer in the United States by capitalizing on both in-store and online retail channels, driving innovation, and adapting to market trends.

Sector:

Consumer Cyclical

Industry:

Home Improvement Retail

Employees:

470000

Website:

https://www.homedepot.com

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The Home Depot, Inc.

About

The Home Depot, Inc.

HD

Frequently asked questions

Is The Home Depot, Inc. HD stock halal to invest in?

How often is The Home Depot, Inc. HD reviewed for Shariah compliance?

Does The Home Depot, Inc. HD pass the AAOIFI Non Permissible Income criteria?

Does The Home Depot, Inc. HD pass the AAOIFI Interest Bearing Investments criteria?

Does The Home Depot, Inc. HD pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for The Home Depot, Inc. HD stock?

Does The Home Depot, Inc. HD pass the AAOIFI Preference Share screen?

How do I buy The Home Depot (HD) stock?

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