How to Build a $25,000 TFSA That Could Generate Monthly Income

Want to turn your TFSA into a monthly income machine? These three dividend stocks could help get you there.

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Generating consistent monthly passive income from your Tax-Free Savings Account (TFSA) might be easier than you think, especially if you focus on the right types of dividend stocks. With a $25,000 portfolio, Canadian investors can tap into stable, income-producing companies that generate tax-free cash flow month after month.

Whether you want to boost your income or reinvest for the future, monthly dividends could offer consistent returns and add more predictability to your financial plan. Here are three top monthly dividend stocks you can buy in a $25,000 TFSA portfolio now to help generate regular, reliable income for years.

Exchange Income stock

One top TSX-listed stock that could fit nicely into a $25,000 TFSA portfolio for monthly income is Exchange Income (TSX:EIF). Its well-diversified operations mainly focus on providing regional air services, aircraft leasing, environmental access solutions, and precision engineering services.

EIF stock currently trades at $59.49 per share with a market cap of $3.1 billion. What makes it even more appealing for monthly income seekers is its regular dividend payout and an annualized yield of about 4.5%.

In the first quarter of 2025, the company posted record results as its revenue climbed 11% YoY (year-over-year) to $668 million while adjusted net profit jumped 49% to $14 million. Despite global uncertainty, Exchange Income’s business is continuing to perform well with the help of recent contract wins and stable demand for aviation and manufacturing services.

With EIF stock up nearly 34% over the past year and a strong long-term growth outlook supported by acquisitions and investments, it could be a solid pick for building monthly tax-free income.

Choice Properties REIT

Choice Properties REIT (TSX:CHP.UN) is another solid pick that could bring reliable monthly income to your TFSA for years to come.

This Toronto-based Real Estate Investment Trust (REIT) manages a portfolio of over 700 commercial, industrial, and residential properties across Canada. It recently declared a monthly dividend with an annualized yield of about 5.3%, with its stock trading at $14.74 per share and a market cap of $4.8 billion.

In the first quarter of 2025, the REIT reported strong occupancy of 97.7% and achieved a 2.9% YoY rise in its same-asset net operating income on a cash basis. Its retail and industrial segments also saw long-term leasing spreads of 10.3% and 16.6%, respectively.

Overall, the REIT continues to invest in growth, with $340 million in acquisitions completed following the end of the first quarter. For income-focused investors with long-term goals, Choice Properties offers consistency and strong upside potential.

Mullen Group stock

Another option that could help you earn extra monthly income is Mullen Group (TSX:MTL), the Okotoks-based freight and logistics services provider. Its wide range of services includes trucking, warehousing, specialized hauling, and industrial logistics across North America.

After rising 7% over the last two months, the shares of this $1.2 billion logistics firm currently trade at $14.16 apiece. MTL stock offers a juicy 5.9% annualized dividend yield with monthly payouts.

Mullen’s revenue rose 7.5% YoY in the first quarter to $497.1 million with the support of recent acquisitions. But profits dipped, as adjusted net profit slipped 19.6% YoY to $18 million.

While its earnings were pressured by higher costs and slower segments last quarter, the company’s steady expansion strategy and strong balance sheet brighten its long-term growth outlook, making this monthly dividend stock worth considering right now.

Fool contributor Jitendra Parashar 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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