Is Koninklijke Philips NV PHG stock halal to invest in?

No, as of August 2026, Koninklijke Philips NV stock (PHG) is not currently 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. To qualify as halal under this standard, a company must keep non-permissible income below 5% of total revenue, keep both interest-bearing investments and interest-bearing debt below 30% of market capitalisation, and have no impermissible preference share structure. Koninklijke Philips NV currently does not meet the threshold for the interest-bearing debt screen. Because screenings are refreshed monthly as new financial reports are published, a non-compliant stock can regain compliant status if its financial structure changes. You can track the latest status of Koninklijke Philips NV and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Koninklijke Philips NV PHG reviewed for Shariah compliance?

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 Monthly screening ensures the status shown for Koninklijke Philips NV reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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

Yes, as of August 2026, Koninklijke Philips NV stock (PHG) 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. Koninklijke Philips NV'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 Koninklijke Philips NV PHG pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Koninklijke Philips NV stock (PHG) 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). Koninklijke Philips NV'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 Koninklijke Philips NV PHG pass the AAOIFI Interest Bearing Debt criteria?

No, as of August 2026, Koninklijke Philips NV stock (PHG) does not pass 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. Koninklijke Philips NV's interest-bearing debt currently exceeds this 30% limit, meaning the company relies on riba-based financing beyond the level AAOIFI permits for a halal investment. A company can return to compliance by reducing debt or through changes in market capitalisation, and the screen is reassessed monthly.

What is the dividend purification factor for Koninklijke Philips NV PHG stock?

Koninklijke Philips NV (PHG) is currently classified as not Shariah compliant, so no dividend purification factor applies, because purification factors are calculated only for stocks that pass the AAOIFI screens. Purification (tazkiyah) is the practice of donating to charity the small portion of dividend income that stems from incidental non-permissible sources, such as interest earned on a compliant company's cash deposits. For non-compliant stocks the issue is not purification but eligibility: under AAOIFI Shariah Standard No. 21 the stock does not currently qualify as a halal investment. If Koninklijke Philips NV returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Koninklijke Philips NV PHG pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Koninklijke Philips NV stock (PHG) 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. Koninklijke Philips NV 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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Koninklijke Philips NV

NYSE

Shariah-Compliant

Not Shariah

PHG

About

Koninklijke Philips NV

PHG

Koninklijke Philips N.V. is a prominent multinational corporation with a core focus on health technology. Having evolved from its roots in lighting and consumer electronics, the company now spearheads innovations in diagnostic imaging, image-guided therapy, and consumer health products. Philips is instrumental in the healthcare sector, providing integrated solutions that enhance patient care and operational efficiency in medical facilities worldwide. A significant player in the health systems domain, Philips offers a portfolio that includes ultrasound devices, MRIs, and CT scanners, alongside patient monitoring systems and advanced health informatics. By integrating smart technologies into healthcare, Philips supports digital transformation initiatives within medical institutions, thus playing a crucial role in the transition towards more connected and predictive healthcare systems. As a market leader in personal health, Philips delivers a range of products from oral healthcare to maternal and child care. Headquartered in Amsterdam, the Netherlands, Koninklijke Philips N.V. is committed to innovation and sustainability, driving advancements that aim to improve the lives of billions globally while reducing environmental impact.

Sector:

Healthcare

Industry:

Medical Devices

Employees:

67247

Website:

https://www.philips.com

PHG

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Koninklijke Philips NV

About

Koninklijke Philips NV

PHG

Frequently asked questions

Is Koninklijke Philips NV PHG stock halal to invest in?

How often is Koninklijke Philips NV PHG reviewed for Shariah compliance?

Does Koninklijke Philips NV PHG pass the AAOIFI Non Permissible Income criteria?

Does Koninklijke Philips NV PHG pass the AAOIFI Interest Bearing Investments criteria?

Does Koninklijke Philips NV PHG pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Koninklijke Philips NV PHG stock?

Does Koninklijke Philips NV PHG pass the AAOIFI Preference Share screen?

Can I buy Koninklijke Philips (PHG) stock on Tabadulat?

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