How I’d Structure My TFSA With $25,000 for Consistent Monthly Income

If you’re looking to structure a Tax-Free Savings Account (TFSA) with $25,000 to generate consistent monthly income, high-quality dividend stocks are a great place to start. Moreover, look for the ones that pay dividends monthly. Earning tax-free income each month can help you reinvest more often or even cover regular expenses.

That said, it’s important to diversify your TFSA to reduce risk and maintain a consistent income over time.

Against this backdrop, here are two TSX stocks that stand out for their reliable dividend payments and attractive yields.

SmartCentres REIT 

SmartCentres REIT (TSX: SRU.UN) is a top TSX-listed stock to earn consistent monthly income. The real estate investment trust’s (REIT’s) payouts are supported by a diversified portfolio of properties, including grocery-anchored retail centres, which are known for their resilience during economic downturns. These essential businesses help ensure steady rental income even in uncertain times.

The REIT has a high occupancy rate of 98.7%, driven by strong leasing demand for its properties and its ability to retain customers. Thanks to solid demand and its top-quality tenant base, SmartCentres REIT experiences healthy rental growth and high cash collections exceeding 99%.

In addition to retail spaces, SmartCentres has expanded into residential, office, self-storage, and industrial properties. It also earns revenue from condo and townhome developments. This broad mix helps keep income stable, regardless of the economy’s performance. New lifestyle-focused services—like medical clinics, childcare, and fitness centres—are also drawing more people to its properties, boosting foot traffic and long-term demand.

As of June 17, 2025, SmartCentres pays a monthly dividend of $0.154 per share, or $1.85 annually. That works out to a strong, sustainable yield of 7.3%.

Moreover, with a strong balance sheet and a valuable portfolio of land, SmartCentres is well-positioned for future growth and will continue to deliver dependable monthly dividends.

First National

First National (TSX: FN) is another compelling stock to add to your TFSA portfolio for a consistent monthly dividend and attractive 6.3% yield. The non-bank mortgage lender focuses on residential and commercial financing through a conservative lending strategy. By targeting low-risk loans and working with a network of independent brokers, the company ensures steady, recurring income while keeping credit risk low, which helps sustain its monthly dividend.

On the residential side, First National generates dependable cash flow from mortgage placement, servicing, and securitization. These activities help grow its portfolio while driving down servicing costs per loan. On the commercial side, its significant market presence leads to regular referrals and consistent demand.

Since going public, the company has increased its dividend 18 times and currently pays $0.208 per share monthly.

With a strong deal pipeline and supportive housing policies, First National anticipates continued growth in both single-family and commercial loan originations. Its $107 billion mortgage servicing portfolio and $45 billion in securitized mortgages provide a solid foundation for future growth.

Earn Over $140 per month in tax-free income

SmartCentres REIT and First National are top stocks for earning consistent monthly income. If you invest $25,000 and split it evenly between these two stocks, you could earn about $140.68 every month in tax-free income, as shown in the table below.