Timothy Plan High Dividend Stock ETF (TPHD) seeks to track high-dividend-yielding U.S. stocks while applying faith-based screening criteria that exclude companies involved in activities conflicting with Christian values. This dividend-focused equity ETF combines income generation with values-based investing principles.
How It Works
TPHD employs a rules-based approach that first screens the U.S. equity universe to exclude companies involved in alcohol, tobacco, gambling, pornography, and abortion-related activities. From the remaining universe, the fund selects stocks based on dividend yield and sustainability metrics, weighting holdings by market capitalization. The Timothy Plan methodology emphasizes companies with consistent dividend payment histories while maintaining alignment with Christian investment principles through ongoing screening processes.
Key Features
- Combines faith-based ESG screening with dividend income strategy, excluding alcohol, tobacco, gambling, and other morally objectionable industries
- Focuses on dividend sustainability alongside yield, targeting companies with consistent payment histories rather than just highest yields
- Relatively new fund launched in 2019, offering modern approach to values-based dividend investing with transparent screening methodology
Risks
- This ETF can lose value when dividend-paying stocks underperform growth stocks, particularly during rising interest rate environments or market rallies favoring unprofitable companies
- Faith-based screening significantly reduces investment universe, potentially excluding high-performing dividend stocks and creating concentration risk in approved sectors
- Dividend cuts during economic downturns can cause double impact through both stock price declines and reduced income, as seen in 2020 recession
Who Should Own This
Best suited for faith-based investors with medium risk tolerance seeking dividend income over 3-5+ year horizons. Appropriate as satellite holding (10-25% of equity allocation) for those prioritizing values alignment alongside income generation. Requires acceptance of potentially lower diversification and returns compared to secular dividend ETFs.