Turning a $10,000 Tax-Free Savings Account (TFSA) into a passive income machine doesn’t mean chasing the next meme stock. Far from it. Instead, it means finding dependable income sources that also have room to grow. That’s where a trio like Brookfield Infrastructure Partners (TSX:BIP.UN), Canadian National Railway (TSX:CNR), and the BMO Equal Weight Global Gold Index ETF (TSX:ZGD) comes in. With a mix of infrastructure, transport, and commodity exposure, you get solid diversification, plus a steady stream of income.
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Brookfield Infrastructure
Let’s start with Brookfield Infrastructure Partners. It’s known for its global portfolio of essential assets like utilities, toll roads, ports, and data centres. These are the types of businesses that keep running no matter what the market’s doing. In its most recent earnings for Q1 2025, Brookfield reported funds from operations (FFO) of US$646 million, up from US$615 year over year. That worked out to US$0.82 per unit, with management noting strong performance across its utilities and transport segments.
Brookfield also pays a quarterly distribution that comes to $2.36 annually. That gives Canadian investors a yield of around 5.2%. It’s not monthly, but it’s reliable. And because the dividend stock focuses on long-term, inflation-linked contracts, its cash flow tends to be resilient, even in recessions. For your TFSA, that’s the kind of ballast you want. A $3,500 allocation here could generate about $184 in annual tax-free income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| BIP.UN | $44.50 | 78 | $2.36 | $184.08 | Quarterly | $3,471.00 |
CNR
Next up is Canadian National Railway. CNR isn’t flashy, but it’s the backbone of Canadian freight. The dividend stock moves everything from grain to fuel to finished goods across the country and into the U.S. In Q1 2025, CNR reported revenue of $4.4 billion, a 4% increase from the year before. Diluted EPS came in at $1.85, up 8%. That’s solid growth for a railway, especially when volume was only up slightly. It shows how well CNR manages pricing and efficiency.
CNR also rewards shareholders with a reliable dividend. The current payout is $3.55 annually, which works out to a yield of roughly 2.5%. That’s not high, but the dividend has grown steadily over time, and the company has a long track record of buybacks. CNR trades at about 19 times forward earnings, reasonable for a dividend stock with this level of scale and stability. A $3,500 TFSA allocation could add about $88.75 per year to your tax-free income, with long-term upside from growth and capital gains.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CNR | $136.00 | 25 | $3.55 | $88.75 | Quarterly | $3,400.00 |
BMO Gold
Lastly, the BMO Equal Weight Global Gold Index ETF (TSX:ZGD) offers a different kind of income, and some insurance. This exchange-traded fund (ETF) holds a basket of global gold miners, giving investors diversified exposure to one of the most classic inflation hedges. With central banks still navigating interest rate uncertainty and geopolitical risks simmering, gold remains relevant. ZGD currently yields about 0.42%, with monthly distributions. That makes it an attractive choice for those wanting regular income from a more defensive sector.
Gold stocks tend to move differently than industrials and financials. That means ZGD adds not just income, but diversification. It also benefits when the price of gold climbs, which can happen in times of market stress or currency weakness. Allocating the remaining $3,129 to ZGD could deliver around $13 annually in monthly cash, again all tax-free within a TFSA.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| ZGD | $155.85 | 20 | $0.65 | $13.00 | Annual | $3,117.00 |
Bottom line
Put these three together and you’ve got a powerful portfolio blend. Brookfield gives you exposure to global infrastructure and a solid yield. CNR adds stability and long-term growth from one of Canada’s most important companies. And ZGD gives you a hedge with monthly income and potential upside during uncertain times. The combination is defensive, diversified, and income-focused. Together, these also create $285.83 in annual income.
It’s not just about the current yields. It’s about building a portfolio that pumps out cash while also positioning you for future growth. With $10,000 split between these three names, your TFSA doesn’t just sit idle. It works for you, day in and day out, while you get to enjoy the income, and peace of mind.
