The TSX Composite has surged 12.3% in just 30 sessions, recently breaking above the 26,000 mark for the first time ever. While this rally is encouraging, it comes with a dose of caution as global trade tensions and economic uncertainties continue to loom. For Canadian investors looking to turn this momentum into something more stable, a monthly income strategy within a Tax-Free Savings Account (TFSA) could offer easy cash flow and tax efficiency.
Fortunately, there are several stocks on the TSX that pay reliable monthly dividends, which could be perfect for transforming your TFSA into a consistent income stream. Let me quickly highlight two such high-yielding stocks that could help turn market momentum into monthly, tax-free income.
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NorthWest Healthcare Properties REIT stock
Let’s start with the first one, NorthWest Healthcare Properties REIT (TSX:NWH.UN) — a stock that fits perfectly for those looking to turn their TFSA into a dependable source of monthly income.
This Toronto-based real estate investment trust owns and operates healthcare infrastructure like hospitals, clinics, and medical office buildings across North America, Brazil, Europe, and Australasia. Its stock currently trades at $4.80 per share with a market cap of $1.2 billion and offers an attractive 7.5% annualized dividend yield, paid out monthly.
In the first quarter of 2025, NorthWest’s adjusted funds from operations improved to $0.10 per unit. This helped the company keep the payout ratio at 92%, a notable improvement from 105% in early 2024 due mainly to its focus on disciplined cost control and asset sales.
While its total revenue dropped to $111.6 million, that was expected as the REIT continues selling non-core assets. Despite this, NorthWest’s same property net operating income actually rose 4.5% YoY (year over year) due mainly to stronger lease income across all regions.
Notably, NorthWest Healthcare has sold over $260 million worth of assets year to date to lower debt. With 96.5% occupancy, a 13.6-year lease maturity, and stable monthly income, it has the potential to continue rewarding investors for years to come.
Whitecap Resources stock
Whitecap Resources (TSX:WCP) could be another great pick for investors wanting to create monthly income from their TFSA.
This Calgary-based energy firm produces crude oil, natural gas liquids, and natural gas across Western Canada. After rising 10.4% over the last 25 sessions, WCP stock currently trades at $10.57 per share with a market cap of $6.2 billion. At this market price, it offers a 6.9% annualized dividend yield, paid out monthly.
Whitecap saw its petroleum and natural gas revenue climb 8.5% YoY in the first quarter to $942.2 million due to stronger production and better realized prices for oil and liquids. As a result, its quarterly profit more than doubled to $162.6 million as higher volumes and disciplined cost control supported margins.
Moreover, Whitecap is advancing new development pads across the Montney and Duvernay while keeping its production levels ahead of forecast. In addition, its recent strategic merger with Veren and WCP stock could set the stage for delivering even stronger performance and more dependable monthly cash flow in the years ahead.
