A Tax-Free Savings Account (TFSA) remains one of the most compelling tools for Canadians to grow their wealth without the drag of taxes on dividends, capital gains, and interest. Moreover, for 2025, the annual contribution limit has been pegged at $7,000. How you choose to deploy this amount will impact your financial trajectory.
If you’re looking for a steady income, consider investing $7,000 in reliable, dividend-paying stocks that offer monthly payouts, which could turn your TFSA into a consistent source of cash.
With this background, here are three stocks that can transform your $7,000 TFSA contribution into a monthly cash machine.
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First National stock
First National (TSX: FN) could be a solid addition to your TFSA portfolio to generate steady monthly cash. The company offers a reliable monthly dividend of $0.208 per share, translating to a 5.9% yield based on its July 9 closing price of $42.12.
The non-bank mortgage lender specializes in residential and commercial financing using a conservative, low-risk lending approach. This strategy, combined with its network of independent brokers, supports stable cash flow and minimizes credit risk.
Its Residential operations benefit from mortgage placement, servicing, and securitization, keeping servicing costs low. On the commercial front, its established market presence ensures ongoing demand and referrals.
Since going public, the company has increased its dividend 18 times. This reflects the strength of its business model and focus on enhancing its shareholder value. With a $107 billion mortgage servicing portfolio and $45 billion in securitized mortgages, First National is well-positioned for growth, supported by a healthy deal pipeline and favourable housing policies that drive loan originations.
Firm Capital Mortgage Investment Corporation
Firm Capital Mortgage Investment Corporation (TSX: FC) is a dependable option for TFSA investors seeking steady monthly income. This non-bank lender specializes in short-term residential and commercial real estate financing, primarily through first mortgages, which tend to carry lower risk. Its portfolio is supported by real estate assets and diversified via loan syndication, helping to reduce potential loan losses.
The company generates consistent earnings from stable sources, such as interest income and lending fees, forming a strong base for regular distributions. Since 2013, Firm Capital has paid consistent dividends, including special payouts. It currently distributes a monthly dividend of $0.078, representing a 7.6% yield.
By focusing on niche markets often overlooked by larger institutions and maintaining disciplined underwriting standards, Firm Capital will likely generate solid earnings. This will help the company to continue delivering a consistent monthly dividend.
SmartCentres REIT
SmartCentres REIT (TSX: SRU.UN) is a top TSX stock offering monthly payouts. The REIT’s high-quality real estate portfolio generates solid same-property net operating income (NOI), supporting its monthly distributions. It pays a monthly dividend of $0.154, reflecting a compelling yield of over 7%.
SmartCentres’ high-quality tenant base, increasing leasing activity, high occupancy, strong tenant retention, and strength in its core retail portfolio position it well to deliver solid NOI, supporting its future payouts.
The REIT’s focus on enhancing the appeal of its properties through the addition of new services will drive foot traffic and its cash flow. Moreover, its premium properties continue to deliver strong growth. Furthermore, SmartCentres’ focus on diversifying its operations through a mixed-use portfolio and its large landbank position it well to deliver solid NOI, which will support its future distributions.
