TFSA: Invest $81,500 in These 4 Stocks for $514/Month in Passive Income

Investors looking to utilize all their TFSA room can churn out big passive income with stocks like Freehold Royalties Ltd. (TSX:FRU).

| More on:
Shopping card with boxes labelled REITs, ETFs, Bonds, Stocks

Image source: Getty Images.

The Tax-Free Savings Account (TFSA) was launched as an alternative registered account for Canadians back in January 2009. When it first launched, Canadian investors could only contribute $5,000 in the first year of its existence. Annual contributions have shot up and down in the years since. The cumulative contribution room in a TFSA now stands at $81,500. Today, I want to look at four stocks that will allow you to churn out attractive passive income going forward.

It is important to note that Canadian investors should seek to diversify their portfolios. This article offers an example of how these four stocks combined can serve up nice passive income in your TFSA. In this hypothetical scenario, we’re going to utilize all our cumulative room of $81,500. Let’s jump in.

This stock is a promising target for the future, which makes it perfect for a TFSA

Sienna Senior Living (TSX:SIA) is a Markham-based company that provides senior living and long-term care (LTC) services in Canada. Seniors are set to grow to nearly a quarter of the total Canadian population by 2030. Shares of this TSX stock have plunged 21% in 2022 as of close on October 25. That has pushed the stock into negative territory in the year-over-year period.

This dividend stock closed at $11.97 on October 25. In our hypothetical, we’ll look to snatch up 1,750 shares of Sienna Senior Living for a purchase price of $20,947.50. Sienna offers a monthly distribution of $0.078 per share. That represents a huge 7.8% yield. This investment will allow us to generate monthly passive income of $136.50 in our TFSA.

Here’s an energy stock that is designed to provide passive income to its shareholders

Freehold Royalties (TSX:FRU) is a Calgary-based oil and gas royalty company that owns working interests in oil, natural gas, natural gas liquids, and potash properties in Western Canada and the United States. This energy stock has shot up 39% in the year-to-date period. That has pushed Freehold Royalties into the black year over year.

Shares of Freehold closed at $16.83 on October 25. We can snag 1,100 shares of this stock for a purchase price of $18,513. Freehold currently offers a monthly dividend of $0.09 per share, which represents a tasty 6.4% yield. TFSA investors can now churn out passive income of $99/month.

TFSA investors: Don’t sleep on this construction-focused dividend stock

Bird Construction (TSX:BDT) is a Mississauga-based company that operates as a general contractor across Canada. Its shares have dropped 37% so far in 2022. The stock has plunged 41% year over year.

This stock closed at $6.10 per share on October 25. In our hypothetical, we can look to purchase 3,300 shares of Bird for a total price of $20,130. Bird Construction offers a monthly dividend of $0.033 per share, representing a very strong 6.3% yield. This investment will allow us to make monthly passive income of $108.90 in our TFSA.

One more stock that can provide mouth-watering passive income going forward

Timbercreek Financial (TSX:TF) is the fourth stock I’d look to target in our passive-income-focused TFSA. This Toronto-based company provides shorter-duration structured financing solutions to commercial real estate investors in Canada. Its shares are down 21% in the year-to-date period.

This stock closed at $7.48 per share on October 25. We can snatch up 2,925 shares for a total price of $21,879. Timbercreek offers a monthly dividend of $0.058 per share. That represents a monster 9.2% yield. We can now generate tax-free passive income of $169.65 per month.


These investments will allow us to churn out monthly passive income of $514 in our TFSA for the remainder of 2022.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Ambrose O'Callaghan has no position in any of the stocks mentioned. The Motley Fool recommends FREEHOLD ROYALTIES LTD. The Motley Fool has a disclosure policy.

More on Investing

A worker gives a business presentation.
Dividend Stocks

TSX Communications in April 2024: The Best Stocks to Buy Right Now

Here are two of the best TSX communication stocks you can buy in April 2024 and hold for years to…

Read more »

Man holding magnifying glass over a document
Tech Stocks

Watching This 1 Key Metric Could Help You Beat the Stock Market

One key metric that Buffett looks at is the return on equity. Here's why you should watch it.

Read more »

Man considering whether to sell or buy
Dividend Stocks

Royal Bank of Canada Stock: Buy, Sell, or Hold?

Royal Bank of Canada (TSX:RY) has a high dividend yield. Should you buy it?

Read more »

oil tank at night
Energy Stocks

Is Suncor a Buy, Sell, or Hold?

Suncor Energy stock is off to a strong start in 2024. Is the TSX energy stock a good buy right…

Read more »

Daffodils in bloom
Tech Stocks

2 Best “Magnificent Seven” Stocks to Buy in April

Two surging mega-cap tech stocks are the best buys among the “Magnificent Seven” this April.

Read more »

A golden egg in a nest
Stocks for Beginners

Got $5,000? 5 Stocks to Buy for Lasting Wealth

Got $5,000 to build a long-term compounding stock portfolio? Here are five top Canadian stocks to building lasting lifetime wealth.

Read more »

Businessman looking at a red arrow crashing through the floor
Dividend Stocks

BCE’s Stock Price Has Fallen to its 10-Year Low of $44: How Low Can it Go?

BCE stock price has dipped 39% in two years and shows no signs of growth in the next few months.…

Read more »

Dollar symbol and Canadian flag on keyboard
Dividend Stocks

Invest $10,000 in This Dividend Stock for $3,974.80 in Passive Income

This dividend stock gives you far more passive income than just from dividends alone, so consider it if you want…

Read more »