Did you know that your Tax-Free Savings Account (TFSA) can become a powerful monthly income machine? Many Canadians still consider the TFSA as a savings tool or a place for a few trades here and there. But used correctly, it can do much more than that. With the right monthly dividend stocks, your TFSA can generate consistent, tax-free income that flows into your account every month, without ever triggering a tax bill.
In this article, I’ll highlight two of the best monthly paying dividend stocks to consider for your TFSA and show exactly how much you’d need to invest to hit that $800 per month target.
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SmartCentres REIT stock
One stock that could help you reach that monthly income goal is SmartCentres Real Estate Investment Trust (TSX:SRU.UN). This Vaughan-based REIT owns a portfolio of nearly 200 retail-focused properties across Canada.
At around $25.55 per share, SmartCentres stock offers a solid 7.2% annualized dividend yield, distributed monthly. That alone makes it an attractive choice for anyone looking to turn their TFSA into a monthly income stream. The stock has climbed over 15% in the last year, and the REIT currently holds a market cap of about $3.7 billion.
Even in a slower real estate market, SmartCentres managed to grow its same property net operating income by 4.1% YoY (year-over-year) in the first quarter of 2025. This growth was mainly backed by strong leasing demand and an impressive 8.4% average rent growth on renewed leases.
Similarly, the REIT’s quarterly net rental income also grew on a YoY basis, largely due to lease-up activities and higher occupancy, which now sits at 98.4%. In addition, development continues to be a key part of SmartCentres’ growth plan, with construction progressing on multiple self-storage sites and the ArtWalk condo project in Vaughan. For long-term TFSA investors who want reliable income without sacrificing the long-term upside potential, SmartCentres REIT offers a healthy mix of both.
Whitecap Resources stock
Another stock that could help turn your TFSA into a reliable monthly income source is Whitecap Resources (TSX:WCP). This Calgary-based oil and gas producer offers a strong 8% annualized dividend yield and pays it monthly. At around $9.22 per share and a market cap of $11.3 billion, Whitecap has seen a sharp bounce lately, climbing nearly 18% in the last two months.
In the first quarter, the energy firm posted a 172% YoY jump in its adjusted net profit with the help of better production from new wells and higher base volumes. Its production averaged over 179,000 barrels of oil equivalent per day, topping its internal forecasts.
Moreover, Whitecap’s combination with Veren is expected to create Canada’s largest Alberta Montney and Duvernay landholder, adding even more to its long-term upside.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND PER SHARE | MONTHLY PAYOUT | DIVIDEND FREQUENCY |
| SmartCentres REIT | $25.55 | 2,480 | $63,364 | $0.15417 | $382.3 | Monthly |
| Whitecap Resources | $9.22 | 6,870 | $63,341 | $0.0608 | $417.7 | Monthly |
| TOTAL | $126,705 | $800.04 | ||||
| Prices as of July 2, 2025 |
How much would you need to invest for $800 per month in dividends?
To earn $800 a month, or $9,600 annually, you’d need to invest about $126,705 split evenly between SmartCentres and Whitecap. That works out to roughly 2,480 shares of SmartCentres and 6,870 shares of Whitecap. While this example shows how monthly passive income is possible through your TFSA, it’s much wiser to diversify across more stocks than rely on just two.
