Is Illinois Tool Works Inc. ITW stock halal to invest in?

Yes, as of August 2026, Illinois Tool Works Inc. stock (ITW) 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. Illinois Tool Works 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 99.75%. 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 Illinois Tool Works Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is Illinois Tool Works Inc. ITW reviewed for Shariah compliance?

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Monthly screening ensures the status shown for Illinois Tool Works Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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

Yes, as of August 2026, Illinois Tool Works Inc. stock (ITW) 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. Illinois Tool Works 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 Illinois Tool Works Inc. ITW pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Illinois Tool Works Inc. stock (ITW) 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). Illinois Tool Works 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 Illinois Tool Works Inc. ITW pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Illinois Tool Works Inc. stock (ITW) 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. Illinois Tool Works 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 Illinois Tool Works Inc. ITW stock?

As of August 2026, the dividend purification factor for Illinois Tool Works Inc. (ITW) is 99.75%. 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 Illinois Tool Works 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 Illinois Tool Works Inc. ITW pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Illinois Tool Works Inc. stock (ITW) 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. Illinois Tool Works 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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Illinois Tool Works Inc.

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ITW

About

Illinois Tool Works Inc.

ITW

Illinois Tool Works Inc. is a multinational manufacturer specializing in industrial equipment and tools. The company is renowned for creating engineered products and systems, serving diverse sectors such as automotive, food, construction, and electronics. Illinois Tool Works Inc. focuses on an 80/20 business process, aiming to generate 80% of its results from its top 20% of products, which allows for efficient operations and concentrated growth. The company's product range includes welding equipment, polymers, fasteners, and warewashing machinery, providing essential solutions that enhance productivity and quality in production processes. Operating globally, Illinois Tool Works Inc. plays a pivotal role in industrial supply chains, driving advancements through innovation and streamlined operations. Founded in 1912 and headquartered in Glenview, Illinois, the organization has solidified its position as a leader in industrial manufacturing, continually impacting key industries with its comprehensive and sustainable solutions.

Sector:

Industrials

Industry:

Specialty Industrial Machinery

Employees:

44000

Website:

https://www.itw.com

ITW

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Illinois Tool Works Inc.

About

Illinois Tool Works Inc.

ITW

Frequently asked questions

Is Illinois Tool Works Inc. ITW stock halal to invest in?

How often is Illinois Tool Works Inc. ITW reviewed for Shariah compliance?

Does Illinois Tool Works Inc. ITW pass the AAOIFI Non Permissible Income criteria?

Does Illinois Tool Works Inc. ITW pass the AAOIFI Interest Bearing Investments criteria?

Does Illinois Tool Works Inc. ITW pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Illinois Tool Works Inc. ITW stock?

Does Illinois Tool Works Inc. ITW pass the AAOIFI Preference Share screen?

How do I buy Illinois Tool Works (ITW) stock?

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