Is PepsiCo, Inc. PEP stock halal to invest in?

Yes, as of August 2026, PepsiCo, Inc. stock (PEP) 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. PepsiCo, 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 99.9%. 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 PepsiCo, Inc. and explore other Shariah compliant stocks in the Tabadulat app.

How often is PepsiCo, Inc. PEP reviewed for Shariah compliance?

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 Monthly screening ensures the status shown for PepsiCo, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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

Yes, as of August 2026, PepsiCo, Inc. stock (PEP) 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. PepsiCo, 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 PepsiCo, Inc. PEP pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, PepsiCo, Inc. stock (PEP) 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). PepsiCo, 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 PepsiCo, Inc. PEP pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, PepsiCo, Inc. stock (PEP) 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. PepsiCo, 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 PepsiCo, Inc. PEP stock?

As of August 2026, the dividend purification factor for PepsiCo, Inc. (PEP) is 99.9%. 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 PepsiCo, 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 PepsiCo, Inc. PEP pass the AAOIFI Preference Share screen?

Yes, as of August 2026, PepsiCo, Inc. stock (PEP) 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. PepsiCo, 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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PepsiCo, Inc.

NASDAQ

Shariah-Compliant

Not Shariah

PEP

About

PepsiCo, Inc.

PEP

PepsiCo, Inc. is a global food and beverage leader known for its diverse portfolio of iconic brands. With its roots in the beverage industry, PepsiCo's primary function centers around manufacturing and distributing a vast range of soft drinks, including the renowned Pepsi cola. Beyond beverages, the company significantly impacts the food sector, offering well-known snacks through its Frito-Lay division, with products like Lay’s, Doritos, and Cheetos. PepsiCo also operates in segments like Quaker Foods, providing nutritious grains and cereals, and Tropicana Products, offering quality juices. The company's operations span multiple regions, including North America, Europe, Latin America, and the Asia, Middle East, and Africa sectors. PepsiCo stands as a market significant entity due to its extensive distribution networks, innovative product development, and sustainable business practices. Founded in 1965 and headquartered in Purchase, New York, PepsiCo continues to influence the global food and beverage industry, addressing evolving consumer preferences and advancing health and wellness initiatives throughout its product lines.

Sector:

Consumer Defensive

Industry:

Beverages - Non-Alcoholic

Employees:

319000

Website:

https://www.pepsico.com

PEP

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PepsiCo, Inc.

About

PepsiCo, Inc.

PEP

Frequently asked questions

Is PepsiCo, Inc. PEP stock halal to invest in?

How often is PepsiCo, Inc. PEP reviewed for Shariah compliance?

Does PepsiCo, Inc. PEP pass the AAOIFI Non Permissible Income criteria?

Does PepsiCo, Inc. PEP pass the AAOIFI Interest Bearing Investments criteria?

Does PepsiCo, Inc. PEP pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for PepsiCo, Inc. PEP stock?

Does PepsiCo, Inc. PEP pass the AAOIFI Preference Share screen?

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