Turn Your TFSA Into a Cash Vending Machine With 2 Dividend Stocks

Turning your Tax-Free Savings Account (TFSA) into an income stream might sound like a dream. But with the right dividend stocks, it’s entirely doable. In fact, a pair of steady performers like Choice Properties REIT (TSX:CHP.UN) and Brookfield Infrastructure Partners (TSX:BIP.UN) are set up to deliver exactly that. Both pay reliable distributions and have a history of supporting income investors through thick and thin.

Choice

Let’s start with Choice Properties REIT. This real estate investment trust (REIT) owns and manages over 64 million square feet of retail and industrial space across Canada. As of the first quarter of 2025, it reported net income of $274.2 million, compared to $289.4 million in the same period last year. Adjusted funds from operations came in at $182.2 million or $0.248 per unit. This was stable, even with higher interest costs.

Its occupancy rate remains high at 97.9%, and it continues to benefit from long-term leases, especially with anchor tenant Loblaw. Its distribution of $0.77 annually, giving it a yield of about 5.2% based on a recent share price near $14.75. That’s solid for investors looking for income right now.

Choice Properties is also expanding its development pipeline. It had about 4.9 million square feet in active projects this past quarter, focusing on mixed-use and industrial developments. Despite economic headwinds, the REIT’s financial position remains strong. It reported $11.3 billion in total assets and a debt-to-total-assets ratio of 39.5%. These numbers point to a REIT that’s balancing income stability with strategic growth.

Brookfield Infrastructure

Now, let’s look at Brookfield Infrastructure Partners. This one offers exposure to global infrastructure, from data centres to natural gas pipelines and rail operations. It gives you a different angle from real estate, with many of its assets producing inflation-linked cash flows.

In its first-quarter (Q1) 2025 report, Brookfield Infrastructure posted funds from operations of US$554 million, or US$0.71 per unit. That’s up from US$0.70 the year before. Its utility and midstream segments showed solid growth, while the transport segment held steady. It also increased its quarterly distribution by 6% to $2.36 annually. Based on a recent price of around $44.46, that’s a yield of about 5.2%.

Brookfield Infrastructure benefits from being globally diversified and operating under long-term contracts. That makes cash flow more predictable. It’s also insulated somewhat from regional slowdowns, which is a plus when Canadian growth looks uncertain. One thing to note, however, is currency risk. Distributions are in U.S. dollars, which may lead to fluctuations in income for Canadian investors depending on exchange rates.

Still, this is a company that has grown its distribution at a 6% compound annual rate since inception. It targets an 11% to 13% total return, and its payout ratio remains comfortably in check. In Q1, it reported US$2.8 billion in liquidity and US$1.1 billion in new investments, showing it’s not just sitting on its assets.

Bottom line

Put these two together, and you’ve got monthly and quarterly income from two high-quality names. Choice Properties handles the real estate side with predictable rent income. Brookfield Infrastructure offers exposure to essential global services with a touch of inflation protection. Both have growth plans in place. Both are backed by strong financials. And both are committed to long-term distributions.

With a $20,000 TFSA split evenly between these two, you could collect roughly $1,050 annually in tax-free income. Reinvest those dividends or use them to offset costs; the choice is yours. But either way, it’s a clear path toward building a reliable income stream without the headaches of speculation.

For investors tired of the market’s ups and downs, a TFSA filled with income-generating assets offers peace of mind. And with these two stocks, that peace comes with a monthly cash flow that can help fund whatever matters most, whether that’s groceries, getaways, or just a bit more breathing room.