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With rumours swirling about a potential wave of Canada Revenue Agency audits, some investors might be feeling nervous about what’s sitting in their portfolios. While the Tax-Free Savings Account (TFSA) protects you from taxes on capital gains and dividends, it doesn’t protect you from scrutiny—especially if you’re seen as trading rather than investing. That’s why now might be a smart time to double down on steady, income-producing assets that are clearly designed for long-term, hands-off investing. One stock that fits the bill is Northland Power Inc. (TSX:NPI).
Northland Power is no newcomer. It’s been producing electricity since 1987 and has grown into one of the country’s largest independent power producers. Its operations span offshore wind, onshore wind, solar, natural gas and battery storage. It also owns a utility in Colombia, adding geographic and revenue diversification. These are real assets generating real income, which is critical for any TFSA holder focused on stability and sustainability.
In the company’s most recent earnings report for the first quarter of 2025, Northland Power posted revenue from energy sales of $648.5 million, down from $754.9 million in the first quarter (Q1) of 2024, largely due to lighter wind conditions in Europe. Net income attributable to shareholders was $66.8 million, down from $75.6 million a year earlier. While the drop caught some off guard, it’s not uncommon in the wind energy space, which can fluctuate seasonally. What matters more is that the company continued to generate solid cash flow, with free cash flow per share of $0.60, compared to $0.88 in the same quarter last year.
Operating income was supported by steady contributions from its onshore wind, solar and natural gas assets. Northland also confirmed that its offshore Hai Long project in Taiwan is progressing, which could add a meaningful source of income once completed. In the meantime, its onshore portfolio and energy storage projects in Ontario are helping to offset weaker offshore conditions. That’s the benefit of a diversified asset mix.
One of the biggest draws for income investors is Northland’s monthly dividend. At a share price near $22.50 and a payout of $0.10 per share each month, the annual yield sits at about 5.3%. That’s respectable for a company in a growth industry with real assets and stable cash flows.
Even better, the dividend appears sustainable on a cash-flow basis. Northland’s cash payout ratio was roughly 40% in Q1 2025, leaving plenty of room for reinvestment and growth. Management hasn’t raised the dividend in years, but it has maintained it consistently. With new projects on the horizon, there’s potential for capital appreciation as well as continued income.
Of course, there are risks. Revenue from offshore wind can be volatile due to weather. The company also carries debt, as most utilities do, and any prolonged period of high interest rates could affect refinancing costs. Regulatory shifts or project delays overseas could also impact earnings. And while the stock trades at a discount compared to recent years, investor sentiment may take time to rebound.
But that’s also where opportunity lies. The market often undervalues consistency, especially when growth slows. Northland still owns billions in infrastructure, has long-term power-purchase agreements in place and operates in regions where demand for clean energy is growing. The long-term trend favours the company’s focus.
For TFSA holders seeking dependable monthly income and long-term relevance, Northland Power offers a smart balance. It won’t shoot the lights out with growth, and it won’t always deliver perfect quarters. But it does pay monthly, operates in an essential industry and invests in the kind of infrastructure the world needs more of—not less.
In uncertain times, companies that generate cash, share it with investors and continue to build for the future are worth a closer look. For $5,000, you’re not just buying a dividend—you’re buying into energy transformation. Northland Power may be one of the few monthly payers that gives you both income now and upside later. For a TFSA focused on both, that’s a valuable combination.
