I’d Put My Entire TFSA Into This 6% Dividend Giant

If you’re hoping for income, dividend stocks are the way to go. And this is a top option.

With Canadians growing more concerned about their finances, it’s no surprise that many are looking for reliable places to park their money. In this kind of environment, it’s understandable that people want stable, income-generating investments. That’s why I’d put my entire Tax-Free Savings Account (TFSA) into one dividend giant on the TSX: Mullen Group (TSX: MTL).

Person uses a tablet in a blurred warehouse as background

Source: Getty Images

About Mullen

Mullen Group is a logistics and transportation dividend stock that’s been quietly delivering value for years. It operates across Canada and the U.S., offering everything from less-than-truckload shipping to warehousing, specialized transportation, and energy services. It’s not flashy, but it is essential. And in a world that’s constantly moving goods from place to place, that’s the kind of company you want in your corner. More importantly for investors, it offers a juicy dividend yield and has consistently increased its payout.

At the time of writing, Mullen Group trades at around $14.55 per share and offers a dividend yield close to 6%. That’s well above the average on the TSX and would provide steady, tax-free income inside a TFSA. If you invested about $85,000 in this dividend stock, you could gain $4,906.12 annually, or $408.84 per month! And if you reinvested that money, you’d be well on your way to compounding that return year after year. That kind of income is particularly appealing when inflation eats away at purchasing power and interest rates remain unpredictable.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCYINVESTMENT TOTAL
MTL.TO$14.555,843$0.84$4,906.12Monthly$85,000.00

Get in on growth

The dividend stock’s most recent earnings report was solid, especially given ongoing economic challenges. In the first quarter of 2025, Mullen Group posted $497.1 million in revenue, up 7.5% from the same period in 2024. While net income fell to $17.7 million from $22.2 million a year earlier, that drop was largely due to higher depreciation and financing costs. The core operations remain strong, and the company continues to generate healthy cash flow. It reported $39.9 million in cash from operations, up 3.4% year over year. That’s a good sign that the dividend is well supported.

The dividend stock also continues to grow strategically. In May 2025, it completed the acquisition of the Cole Group of Companies. This move expands its logistics network and further diversifies its revenue streams. With economic uncertainty still hanging over Canada and much of the world, it’s helpful to own a company that doesn’t rely on just one source of income. Mullen’s diversity across transportation, warehousing, and specialized industrial services adds a layer of resilience that many other companies can’t match.

A perfect pair

What makes Mullen Group especially appealing for a TFSA investment is how tax efficient it is. Dividend income inside a TFSA isn’t taxed, which means you get to keep every dollar. And because the dividend stock pays monthly dividends, the cash flow is steady. That can help smooth out market volatility, especially during times when stock prices might swing wildly. Instead of focusing on short-term moves, you can focus on the regular cash coming in.

While no stock is risk-free, Mullen Group’s business is stable, its balance sheet is strong, and its dividend has a long history of being paid, and raised. That’s the kind of foundation that can help investors sleep better at night.

Bottom line

In a year marked by inflation concerns, economic pressure, and uncertainty around trade, a solid dividend stock like Mullen Group offers an attractive combination of income and stability. It’s not just about chasing yield. It’s about owning something reliable. If I had to put my entire TFSA into one stock right now, Mullen Group would be it. In a shaky market, it delivers something a lot of Canadians are looking for: confidence.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mullen Group. The Motley Fool has a disclosure policy.

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