Is Telephone & Data Systems, Inc. TDS stock halal to invest in?

No, as of August 2026, Telephone & Data Systems, Inc. stock (TDS) 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. Telephone & Data Systems, Inc. currently does not meet the threshold for the non-permissible income 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 Telephone & Data Systems, Inc. and discover Shariah compliant alternatives among the halal stocks in the Tabadulat app.

How often is Telephone & Data Systems, Inc. TDS reviewed for Shariah compliance?

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screening ensures the status shown for Telephone & Data Systems, Inc. reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.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

No, as of August 2026, Telephone & Data Systems, Inc. stock (TDS) does not pass 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. Telephone & Data Systems, Inc.'s income from non-permissible sources currently exceeds this 5% ceiling, which makes the stock non-compliant on this criterion regardless of how it performs on the other screens. The screen is reassessed monthly, so the status can change when the company releases new financial statements.

Does Telephone & Data Systems, Inc. TDS pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Telephone & Data Systems, Inc. stock (TDS) 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). Telephone & Data Systems, 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 Telephone & Data Systems, Inc. TDS pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Telephone & Data Systems, Inc. stock (TDS) 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. Telephone & Data Systems, 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 Telephone & Data Systems, Inc. TDS stock?

Telephone & Data Systems, Inc. (TDS) 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 Telephone & Data Systems, Inc. returns to compliance in a future monthly screening, its purification factor will be published alongside its updated status in the Tabadulat app.

Does Telephone & Data Systems, Inc. TDS pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Telephone & Data Systems, Inc. stock (TDS) 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. Telephone & Data Systems, 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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Telephone & Data Systems, Inc.

NYSE

Shariah-Compliant

Not Shariah

TDS

About

Telephone & Data Systems, Inc.

TDS

Telephone and Data Systems, Inc. is a diversified telecommunications company that provides a wide array of communication services. Its primary function is to offer both wireless and wireline services, catering to individual consumers as well as business entities. Key features of its offerings include high-speed internet, voice services, and data solutions that support an increasingly digital economy. The company operates across several sectors, significantly impacting rural and suburban regions where it provides vital connectivity solutions. As a parent company, Telephone and Data Systems also owns and operates U.S. Cellular, which extends its influence within the mobile service industry. The organization’s role in the financial market is notable for its ability to adapt to technological advancements and changing consumer demands, making it an important player in the telecommunications sector. Founded with a mission to facilitate effective communication, Telephone and Data Systems continues to drive innovation and growth within the communications industry.

Sector:

Communication Services

Industry:

Telecom Services

Employees:

7900

Website:

https://www.tdsinc.com

TDS

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Telephone & Data Systems, Inc.

About

Telephone & Data Systems, Inc.

TDS

Frequently asked questions

Is Telephone & Data Systems, Inc. TDS stock halal to invest in?

How often is Telephone & Data Systems, Inc. TDS reviewed for Shariah compliance?

Does Telephone & Data Systems, Inc. TDS pass the AAOIFI Non Permissible Income criteria?

Does Telephone & Data Systems, Inc. TDS pass the AAOIFI Interest Bearing Investments criteria?

Does Telephone & Data Systems, Inc. TDS pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Telephone & Data Systems, Inc. TDS stock?

Does Telephone & Data Systems, Inc. TDS pass the AAOIFI Preference Share screen?

Can I buy Telephone & Data Systems (TDS) stock on Tabadulat?

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