Is zakat obligatory on money invested in stocks if the intention is to receive dividend distributions and sell the stocks only when there is a significant increase?

Stocks are of two types: First: Stocks held with the intention of trading. Zakat is due on their market value when a complete year (hawl) passes. Thus, both the market value and the profit are subject to zakat. Second: Stocks held with the intention of retention and benefiting from their returns. Their zakat differs according to the type of company: 1. Commercial and Industrial Companies: The value of the shares is subject to zakat after deducting equipment, machinery, furniture, and buildings. 2. Real Estate Companies: (Zakat is due) according to their activity, whether selling or leasing. 3. Agricultural Companies: The share of crops and fruits corresponding to the stock is subject to zakat if the shareholder's share reaches the nisab, as well as the cash present in the company's treasury. 4. Service Companies (such as hotels and transportation): Only their revenues and profits are subject to zakat.

If the shares are not held with a firm intention of trading, but with the possibility of either selling or retaining them, then the rulings of the second type apply to them. In summary: The return is subject to zakat, as is your share of the zakatable assets in the company (cash, trade goods, recoverable debts), or the value of the commercial or industrial stock is subject to zakat after deducting what is not zakatable. If it is difficult to ascertain this, one can act based on estimation (taharrī), or the stocks can be subject to zakat based on their market value.