How I’d Create $154 in Monthly Income With a $26,960 TFSA Investment

For creating a reliable stream of income within a Tax-Free Savings Account (TFSA), I’d consider investing in high-yield Canadian dividend stocks that pay out monthly. The frequent payouts (every 30 days) of these companies can help you cover regular expenses or enable you to reinvest dividends promptly, thus boosting your overall returns in the long run.

When combined with the tax-free growth offered by a TFSA, this strategy can transform your account into a dependable source of income over time. The key is to focus on monthly dividend stocks with a track record of sustainable payouts. This will ensure a steady tax-free income in all market conditions.

With this background, here is a top Canadian stock that can help generate $154 in monthly income with a $26,960 TFSA investment.

A high-yield monthly dividend stock for your TFSA

Among the reliable Canadian dividend stocks offering monthly payouts, SmartCentres REIT (TSX: SRU.UN) stands out for its sustainable payouts and attractive yield. Notably, the payouts of this Canadian real estate investment trust (REIT) are driven by its diversified portfolio of high-quality properties that consistently report high occupancy and generate steady net operating income (NOI).

SmartCentres owns 197 properties, many of which are located at prime intersections that attract substantial foot traffic. This ensures high occupancy rates and robust leasing demand, supporting stable revenue. Its portfolio is anchored by large retail centres with significant land holdings, while also generating income from self-storage, apartments, offices, industrial spaces, and condo and townhome sales. This combination of revenue sources provides a solid and predictable cash flow.

The REIT is also branching out into mixed-use developments, which diversifies its portfolio and helps keep its income steady. Investors can earn a monthly dividend of $0.154 per share from SmartCentres, reflecting an attractive yield of around 6.9%.

SmartCentres to maintain its dividends

SmartCentres will continue to maintain and even increase its dividend over time, thanks to its high-quality retail portfolio. The REIT benefits from strong customer traffic and a stable tenant base, resulting in a 4.8% increase in same-property net operating income (NOI) in the most recent quarter compared to the same period in 2024.

During the quarter, SmartCentres leased nearly 148,000 square feet of vacant space, lifting its in-place and committed occupancy to 98.6% as of June 30, 2025. New-build retail demand remains robust, while 82% of leases maturing this year were extended or finalized, achieving a notable 8.5% rent growth.

Looking ahead, its strong development pipeline provides significant opportunities for portfolio expansion and profitable growth. SmartCentres is expected to maintain strong occupancy across its retail properties while generating incremental growth through mixed-use initiatives. The REIT is also strengthening its balance sheet, limiting new financing primarily to refinancing upcoming maturities and advancing development projects slated to begin within the next year.

In addition, its extensive landbank and mixed-use development projects in major Canadian cities position it well to grow funds from operations, support sustainable distributions, and enhance net asset value.

Earn $154 per month

SmartCentres is a dependable stock for your TFSA portfolio to generate steady monthly income. With an investment of roughly $26,960, you could purchase 1,000 shares of SmartCentres REIT. Those shares have the potential to generate about $154 per month.