10 Best Halal Dividend Stocks To Invest In

1. Exxon Mobil Corporation (NYSE:XOM)

Number of Hedge Fund Holders: 86

Exxon Mobil Corporation (NYSE:XOM) is an American oil and gas company that is engaged in the exploration, production, refining, and distribution of petroleum products. In the past year, the stock has surged by over 13% and also reported strong earnings in the third quarter. The company reported $90.02 billion in revenue, surpassing analysts’ expectations by $1.66 billion. It delivered strong financial performance, generating $17.6 billion in operating cash flow and $11.3 billion in free cash flow for the quarter. In addition, the company returned $9.8 billion to shareholders through dividends and stock repurchases. This robust cash flow allowed Exxon to increase its payouts for the 42nd consecutive year.

Though Exxon Mobil Corporation (NYSE:XOM) remains a major player in the global fossil fuel industry, it is also ramping up its investments in lower-carbon energy. The company recently shared its 2030 vision, which aims to allocate up to $30 billion towards low-emission projects between 2025 and 2030. Exxon has also secured the largest offshore carbon dioxide storage site in the U.S. through an agreement with the Texas General Land Office. Furthermore, the company is working on developing the world’s largest low-carbon hydrogen production facility, which would have the capacity to produce up to 1 billion cubic feet of hydrogen daily.

Exxon Mobil Corporation (NYSE:XOM) currently offers a quarterly dividend of $0.99 per share, having raised it by 4% in November 2024. As of January 22, the stock supports a dividend yield of 3.62%.

Insider Monkey’s database of Q3 2024 indicated that 86 hedge funds owned stakes in Exxon Mobil Corporation (NYSE:XOM), compared with 92 a quarter earlier. These stakes have a total value of nearly $7 billion. First Eagle Investment Management was one of the company’s leading stakeholders.

Overall Exxon Mobil Corporation (NYSE:XOM) ranks first on our list of the best halal stocks that pay dividends. While we acknowledge the potential for XOM as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than XOM but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

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