How I’d Transform a $30,000 TFSA Into a Cash-Flow Machine

The Tax-Free Savings Account (TFSA) is a popular registered account in Canada. Launched over 15 years ago, the TFSA can hold various qualified investments, including stocks, bonds, guaranteed income certificates, mutual funds, and exchange-traded funds.

As any returns earned from qualified investments are tax-sheltered, you can consider owning a portfolio of blue-chip dividend stocks in the TFSA. The cumulative TFSA contribution room has increased to $102,000 in 2025. So, you can consider allocating $30,000 towards high-dividend TSX stocks and turn the TFSA into a cash-flow machine. Let’s see how.

Is the TSX dividend stock a good buy right now?

Valued at a market cap of $1.1 billion, Mullen Group (TSX: MTL) offers transportation and logistics services in Canada and the United States. The company has four business segments:

• Less-Than-Truckload: It handles general freight, packages, and pharmaceutical products.
• Logistics & Warehousing: The segment provides full truckload, specialized trucking, and warehousing services through a network of terminals.
• Specialized & Industrial Services: The division delivers essential services to resource industries, including well servicing, fluid transportation, hydrovac excavation, and industrial cleaning. This segment also supports pipeline operations, municipal development, and oversized cargo transportation.
• U.S. & International Logistics: The business operates through professional representatives and utilizes SilverExpress, a proprietary transportation management platform.

Despite a challenging macro environment, Mullen reported revenue of $500 million in the fourth quarter (Q4) of 2024, which was similar to the year-ago period. It also reported an OIBDA (operating income before depreciation and amortization) of $85 million, up $5.8 million year over year.

“We’re mired in a no-growth economy here in Canada,” said Murray Mullen, chair and chief executive officer. “Capital investment is not anywhere near it should be. And in the transportation and warehousing industry, there remain lingering issues associated with the inventory rebalancing by shippers and excess capacity.”

Strategic acquisitions throughout 2024 bolstered Mullen’s performance and helped offset market challenges. Mullen generated $332.2 million in OIBDA for the full year and approximately $340 million in cash flow from operating activities before non-cash working capital items.

The Less-Than-Truckload (LTL) segment saw margins improve by nearly 1% despite slightly lower revenues due to reduced fuel surcharges. The Logistics & Warehousing segment grew 14.3%, primarily due to the acquisition of ContainerWorld. Meanwhile, the Specialized & Industrial Services segment faced headwinds from the completion of major pipeline projects in Western Canada, with revenues down 15.3%.

What’s next for the TSX stock?

Mullen maintained its previously announced business plan, targeting $2.2 billion in revenue and $350 million in OIBDA in 2025. Notably, it expressed concerns about heightened uncertainty due to potential U.S. tariffs but emphasized its strong balance sheet with approximately $126 million in cash and access to $525 million in undrawn credit facilities.

Mullen pays shareholders an annual dividend of $0.84 per share, which translates to a yield of over 6%. Moreover, these payouts have more than doubled in the last five years. In 2025, the TSX stock is forecast to report a free cash flow of $167 million. Comparatively, its annual dividend expense is around $75 million, indicating a payout ratio of just 40%.

An investment of $30,000 in the TSX dividend stock will help you purchase 2,400 company shares and earn $2,016 in annual dividends. Moreover, analysts expect these payouts to increase by 8% annually over the next two years.