How I’d Structure My TFSA With $14,000 for Consistent Monthly Income

If you want some consistent dividend passive income in your TFSA, these are the top choices I’d go with.

Amy Legate-Wolfe

Author Bio

Amy became interested in investing in 2018 after having her first daughter. After receiving a masters degree in journalism from Western University, she became frustrated that the finance industry remained a confusing place for Canadians like her: new parents, millennials, and other young people who needed to understand their finances. Now, Amy focuses on tech companies and renewable energy for growth opportunities, coupling that with long-term investing strategies and equities. She also provides investors with a daily newsletter, Canada Stock Digest, for daily market updates. Before joining Motley Fool Canada, she wrote for major news organizations including HuffPost, CTVNews.ca, and CBC. When she’s not researching investing strategies, Amy’s time is pretty much monopolized by her two wild daughters, but in what little spare time she has she loves to do yoga, go on walks with her dog, and travel with her husband.

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Favorite Investment Quote

“October: This is one of the particularly dangerous months to speculate in stocks. The others are July, January, September, April, November, May, March, June, December, August and February.” – Mark Twain

Published May 5, 2025 4:30 pm EDT

| More on: APR.UNCRT.UNSRU.UN

Planning for retirement is all about ensuring a steady stream of passive income to support your lifestyle. One effective strategy is to structure your Tax-Free Savings Account (TFSA) with dividend-paying stocks that offer consistent monthly payouts. With $14,000 to invest, focusing on companies that provide reliable dividends can help you achieve financial stability during your retirement years.

Blocks conceptualizing Canada's Tax Free Savings Account — Source: Getty Images

A stock to consider

A prime candidate for such an investment is Automotive Properties Real Estate Investment Trust (TSX:APR.UN). This REIT specializes in owning and acquiring income-producing automotive dealership properties across Canada. As of writing, APR.UN offers a forward dividend yield of approximately 7.73%, translating to an annual dividend of $0.80 per share. The trust has a history of consistent monthly distributions, making it an attractive option for investors seeking regular passive income.

With a payout ratio of around 54.82%, APR.UN demonstrates a sustainable dividend policy, ensuring that earnings sufficiently cover dividend payments. This balance between income distribution and financial prudence is crucial for long-term investment stability. Allocating a portion of your $14,000 investment to APR.UN can provide a solid foundation for monthly passive income. This consistent cash flow can contribute significantly to covering regular expenses during retirement.

More REITs for solid passive income

In addition to APR.UN, diversifying your TFSA with other monthly dividend-paying stocks can enhance income stability and reduce risk. Consider including companies like SmartCentres Real Estate Investment Trust (TSX:SRU.UN) and CT Real Estate Investment Trust (TSX:CRT.UN). Both trusts have a track record of reliable monthly distributions and operate in sectors that provide essential services, contributing to their resilience in various economic conditions.

SmartCentres focuses on retail and mixed-use properties, with a portfolio that includes numerous Walmart-anchored shopping centres across Canada. As of writing, SRU.UN offers a forward dividend yield of approximately 7.25%, with a monthly dividend of $0.154 per share, coming to $1.85 every year. Its strategic locations and long-term leases contribute to steady rental income, supporting its monthly dividend passive income.

CT REIT, primarily engaged in retail properties leased to Canadian Tire, benefits from a stable tenant base and long-term lease agreements. As of writing, CRT.UN offers a forward dividend yield of approximately 6.22%, with a monthly dividend of $0.077 per share, coming out as $0.93 annually. This stability translates into consistent cash flows, underpinning its ability to maintain regular monthly dividend passive income.

Bottom line

By allocating your $14,000 investment across APR.UN, SRU.UN, and CRT.UN, you can create a diversified portfolio that offers reliable monthly passive income. For example, investors could put aside approximately $4,666 in each stock. This approach balances income generation with risk management, ensuring a steady financial foundation for your retirement lifestyle. Plus, it offers up monthly passive income that you can bring in for life!

Investing in these Canadian monthly dividend stocks can be a strategic move to support your retirement lifestyle. The consistent dividends, strong financials, and sector diversification provide a solid foundation for steady income. As always, it’s advisable to conduct thorough research or consult with a financial advisor to ensure these investments align with your individual financial goals and risk tolerance.