Dividend purification for reinvested money

📈 Investing & Markets
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#1

I have some investments in SPUS, HLAL. For dividend purification, I’ve been paying the purification amount to charity, separately from my bank account. The actual dividend stays in my investment account and gets reinvested.
(For example, if I receive $100 in dividend and $5 is haram, I pay the $5 to charity from a separate bank account. The $100 dividend stays in the investment account and gets auto re-invested.)

Considering that the reinvested amount also earns more money in future, is there any percentage of future earning that needs purification too? (Because technically $5 from my $100 was originally not halal)

Any help or guidance is appreciated!

#2

As far as I know, no specific percentage of future earnings requires additional purification since purifying the original amount is considered sufficient. Just continue purifying future dividends as usual.

If you want to be certain, I’d recommend contacting the funds and asking them to confirm the process with their respective shariah boards.

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#3

Thank you for the reply!

#4

Brother based on what you said, i have to purify all dividend payouts each time i get them. Is that correct?
Jazak Allah Khair.

#5

You could do that. Some people find it easier to do it once a month or quarter for all the dividends paid during that period. But it’s up to you.

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#6

Jazak Allah brother. Now since i just have learned about this. I should account for all past dividends i profited from right?

#7

Brother another question if Zoya app shows 0.11% non compliant income of any particular company, and i get 10$ dividend. I purify 0.11 x 10$ if im not mistaken? Using the Dividend Purification Method.

#8

That would require having historical non-compliance % data. We don’t support this today (maybe a feature we can add later) so you’ll likely have to estimate it for now or do the analysis yourself.

Correct

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