Need $1,000 Each Month? How Much You Need to Invest in a TFSA

Want income and growth? Then consider these three options analysts continue to drool over.

| More on:

Many Canadians dream of earning $1,000 a month in passive income. For those using a Tax-Free Savings Account (TFSA), that dream is tax-free. But how much do you really need to invest to make it happen? The answer depends on which stocks you choose and how much they pay. Today, we’ll look at three solid dividend-paying stocks on the TSX, and figure out how much you’d need to invest in each one to hit that $1,000 monthly goal.

Blocks conceptualizing Canada's Tax Free Savings Account

Source: Getty Images

Goeasy

Goeasy (TSX: GSY) is a major player in non-prime consumer lending. It helps Canadians access credit when traditional banks say no. That includes personal loans and leasing furniture or appliances. It’s been around for years and has a reputation for strong performance and rising dividends.

In the first quarter of 2025, the lender posted revenue of $318 million, up 22% from the same time last year. Net income came in at $52.6 million, with earnings per share of $3.08. That’s up from $2.73 in Q1 2024. The dividend stock currently trades around $155 and offers a dividend yield of 3.8%.

The dividend stock has raised its dividend every year for almost a decade, and its payout ratio remains sustainable. If you’re comfortable with a bit more risk for more growth, goeasy could be a strong pick.

EIF

Then there’s Exchange Income (TSX: EIF). It’s a unique dividend stock with operations in aerospace and aviation services, as well as manufacturing.

In Q1 2025, the acquisition-oriented company reported revenue of $668.3 million, up 11% year over year. However, net income dipped slightly to $9.6 million from $11.8 million in Q1 2024, mostly due to acquisition costs and some seasonal slowdowns. The dividend is paid monthly and currently yields about 4.6%. Exchange Income has a long track record of paying dividends and growing through smart acquisitions. It’s not as high-growth as goeasy, but it’s dependable.

Transcontinental

Finally, we have Transcontinental (TSX: TCL.A). This dividend stock used to be known for its printing business, but now it’s more focused on packaging. In Q2 2025, it brought in $703 million in revenue and net earnings of $24.4 million.

While print still brings in revenue, it’s the packaging division that’s helping the company evolve. An investment may appeal to conservative investors who prefer a lower-risk business model. The dividend has remained stable, though it hasn’t shown the kind of rapid growth that goeasy offers.

Bottom line

So how much do you really need? The short answer for a mix of the three is a total investment of $263,085 at writing. Overall, it depends on the stock. Exchange Income gets you there the fastest, while Transcontinental takes longer. Goeasy lands in the middle but offers more long-term upside. Here’s how investors might want to break it down for the best passive income, earning just under $12,000 a year, at $11,563 or $963.55 each month.

CompanyPriceDividend/yrSharesInvestedIncome/yr
EIF$57.83$2.643,500$202,400$9,240
TCL.A$21.16$0.902,500$52,900$2,250
GSY$155.70$1.4650$7,785$73
Total$263,085$11,563

Achieving a $1,000 monthly income in a TFSA isn’t easy, but it’s definitely possible with the right combination of high-yield stocks and a long-term mindset. Whether you focus on growth, stability, or a mix of both, knowing your numbers is the first step. Let your TFSA work smarter, not harder.

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

More on Dividend Stocks

pregnant mother juggles work and childcare
Dividend Stocks

Furniture Just Got a Lot More Expensive in Canada: Is Leon’s Stock a Winner or a Loser?

Leon's Furniture's roughly 3.9% dividend yield and discount to the analyst consensus price target could make it an attractive recovery…

Read more »

alcohol
Dividend Stocks

This Stock Could Be a Retirement Game-Changer

This Canadian retirement stock combines strong recent gains, growing financial businesses, and reliable quarterly dividends.

Read more »

man touches brain to show a good idea
Dividend Stocks

Exporters (Including Canadian National Railway) Face New Tariff Risk This Week: What Investors Need to Know

Canadian National Railway faces fresh tariff-related uncertainty as Canada-U.S. trade tensions escalate, but its strong earnings, cash flow, and growth…

Read more »

u.s. government spending
Dividend Stocks

U.S.-Canada Trade Talks Have Collapsed: Should You Sell Your Exporter Stocks?

U.S.-Canada trade tensions are heating up, but investors may want to look beyond the tariff noise before dumping these two…

Read more »

crisis concept, falling stairs
Dividend Stocks

Down 13% From its All-Time High: Is This High-Yield Dividend Stock a Buy Right Now?

This top energy infrastructure player has attractive growth potential, but faces some near-term headwinds.

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

1 Number Could Tell Investors Whether This Sell-off Is Nearly Over

A small pullback in Canadian National Railway looks more interesting when freight demand is still rising.

Read more »

container trucks and cargo planes are part of global logistics system
Dividend Stocks

I’d Put My Entire $7,000 TFSA Contribution Into This Growth Stock

A single $7,000 TFSA contribution can turn into a much bigger number if it’s invested in a durable grower like…

Read more »

man touches brain to show a good idea
Dividend Stocks

The Smartest Stocks to Buy With $1,000

These three smartest stocks to buy offer durable businesses, long-term growth potential, and a compelling way to invest $1,000 today.

Read more »