Turn Your TFSA Into a Monthly Cash Machine With These 3 Stocks

Every Canadian can turn their TFSA (Tax-Free Savings Account) into a monthly cash machine. Canada has a plethora of dividend stocks that pay attractive monthly income. The best part is that all that income can be completely tax-free inside a TFSA.

Many investors buy costly investment properties that demand their time, energy, and money, with only modest returns. Yet, they can buy just as good (or better) assets in the stock market and earn better long-term yields and returns. If you are wondering what stocks could be attractive for monthly income right now, here are three to contemplate buying.

A REIT for monthly TFSA income

Real estate stocks are ideal for monthly income. These companies collect rents monthly and then distribute their net operating income straight back to shareholders.

First Capital Real Estate Investment Trust (TSX: FCR.UN) pays a 4.78% yield today. A $10,000 investment in this stock would earn around $41 per month or $492 annually.

First Capital operates some of Canada’s most in-demand urban retail properties. This REIT is very defensive given that its properties are anchored by grocery stores and essential goods retailers. Attractive, well-located properties bring in top tenants, keep strong occupancy, and deliver steady single-digit rent growth.

This REIT has a gold mine of development and land assets. These are barely valued in the stock price right now. You get to collect its attractive distribution stream while you wait for the market to warm up to this stock again.

Renewable energy for dividends

Another TFSA cash machine is Northland Power (TSX: NPI). This stock yields 5.2% right now. If you put $10,000 in Northland stock, you would earn nearly $44 per month, or $528 annualized.

Northland operates a diversified portfolio of renewable power assets across the world. These include onshore and offshore wind farms, solar farms, an electric utility, and battery storage assets. Its assets produce 3.2 gigawatts (GWs) of power. However, it has another 2.2 GWs of power assets under construction in Taiwan and Poland.

Most of these major projects are expected to come online in the next couple of years. While it has been spending a lot on development, it is set to start yielding significant cash as the assets begin operation. It is targeting 7-10% compounded earnings growth over the next few years. Now is a great time to add this cash cow to your TFSA.

A diversified stock for monthly TFSA income

Another great monthly dividend stock for a TFSA is Exchange Income Corporation (TSX: EIF). It yields 4% right now. Put $10,000 to work in this stock, and you would earn $33 per month or close to $400 annually.

Exchange has a mix of businesses, but it is best known for its northern Canadian air transportation services. It operates a near monopoly of services to northern Canadian communities. As a result, it has been able to operate a very profitable air business. It also has several industrial companies that tend to be leaders in their niche segments.

If you want a diversified operating business that supports a growing dividend, Exchange is an interesting play for a TFSA.

Prices as of July 28, 2025