For Foolish Investors who want their portfolio to generate cash without waiting too long between payouts, monthly dividend stocks are the answer. The Tax-Free Savings Account (TFSA) gives Canadians the extra advantage of keeping those returns completely tax-free. The real key, though, is finding companies that not only pay regularly but also have the financial strength to keep growing.
In this article, I’ll talk about three TFSA-friendly stocks paying monthly dividends that you can rely on long term.
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Whitecap Resources stock
Let’s start with Whitecap Resources (TSX: WCP), which has been delivering consistent monthly dividends while investing in long-term projects. If you don’t know it already, it’s a Canadian energy producer focused on oil and natural gas development. WCP stock is currently trading at $10.73 per share with a market cap of about $6.9 billion. It offers investors a solid 7% annualized dividend yield, with monthly payouts.
Despite the ongoing macroeconomic uncertainties, the company’s second quarter of 2025 reflected its ability to generate strong free cash flow, which supports its dividends and debt reduction. Its revenues and earnings for the quarter were mainly driven by steady demand for energy and cost control efforts, allowing the company to maintain its monthly dividends without strain.
Whitecap is investing in carbon capture and storage projects, while also expanding its Montney and Duvernay resource plays. These initiatives clearly show that its strategy is not built just on current energy demand but on preparing for a lower-carbon future. For TFSA investors, this blend of immediate income and long-term growth prospects makes Whitecap stock a solid pick.
Mullen stock
My next monthly dividend pick, Mullen Group (TSX: MTL), operates in the trucking and logistics industry, serving as a backbone for Canada’s supply chains. As one of Canada’s largest logistics providers, it operates in trucking, warehousing, specialized services, and international freight segments. At the time of writing, MTL stock traded at $12.91 per share with a market cap close to $1.1 billion. It also offers monthly dividend payouts with an annualized yield of about 6.6%.
In the second quarter, Mullen’s revenue rose 9.1% YoY (year over year) to $540.9 million, mostly with the help of acquisitions like the Cole Group. Still, its net profit dipped 22% YoY to $25.6 million, as competitive pricing and higher costs pressured its margins.
Mullen is using acquisitions as its growth engine. While near-term conditions remain challenging for the company with pricing pressure across freight markets, it’s positioning itself for stronger margins once supply and demand rebalance. For TFSA investors, this makes MTL stock a way to capture monthly dividends now, while betting on growth later.
Choice Properties REIT stock
To complete the list, Choice Properties REIT (TSX: CHP.UN) could be another great monthly dividend stock that thrives on necessity-based tenants and strong occupancy. Most of the properties in its portfolio are anchored by grocery retailers and industrial assets. Currently, its stock trades near $14.38 per unit with a market cap of about $10.4 billion. With monthly payouts, it has an annualized yield close to 6.4%.
For the second quarter, the REIT (real estate Investment trust) delivered a 3.9% YoY increase in its funds from operations to $0.265 per unit. Recently, Choice completed $427 million in transactions, including industrial acquisitions and retail developments, further diversifying its income stream.
With stable tenants like Loblaw and a disciplined balance sheet, the REIT is targeting 2% to 3% net operating income growth and consistent cash distributions. For TFSA investors, Choice Properties stock offers a reliable way to earn monthly income for years to come.
