What Is Dividend Purification?

Purification means giving away the small share of your investment income that came from impermissible sources, such as a company's interest income.

Even a company that passes screening may earn a little interest on its cash. If 2% of a company's revenue came from interest, roughly 2% of the dividend you received from it is given to charity. Many scholars say this amount is not counted as your zakat or as sadaqah; you are simply removing what was never yours. Some Shariah funds purify inside the fund, and others publish the amount for you.

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