TFSA Gameplan: The Canadian Stocks You Need for Consistent Cash

Given their stable cash flows and healthy dividend yields, these three Canadian stocks are ideal additions to your TFSA.

Key Points
  • These three monthly-paying Canadian dividend stocks offer attractive yields for TFSA investors: Pizza Pizza Royalty (5.94% yield from franchise royalties), Sienna Senior Living (5.21% yield benefiting from aging demographics), and SmartCentres REIT (6.88% yield from strategically located retail properties).
  • These companies provide stable income streams through different business models - franchise royalties, seniors' housing demand growth, and essential retail real estate - with expansion plans that should support continued dividend payments in the low-interest environment.

Dividend-paying stocks offer regular income, thereby appealing to income-seeking investors, especially in this low-interest-rate environment. However, dividends are not guaranteed. Therefore, investors should consider investing in high-quality stocks to generate a stable passive income. Meanwhile, investors can avoid paying taxes by making these investments through their TFSA (tax-free savings account).

Against this backdrop, let’s look at three monthly-paying Canadian dividend stocks with higher yields, which could be ideal additions to your TFSA.

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Pizza Pizza Royalty

Pizza Pizza Royalty (TSX: PZA) operates 794 Pizza Pizza and Pizza brand restaurants through its franchisees. It collects royalties from its franchisees based on their sales. Given its highly franchised restaurant business, its financials are less prone to fluctuations in commodity prices and labour wages.

The company also intends to distribute all the available cash to its shareholders. However, given the seasonality issues inherent to the restaurant business, the company makes specific provisions to ensure equal dividend payments, thereby smoothing out shareholders’ income. Currently, it offers a monthly payout of $0.0775/share, translating into a forward dividend yield of 5.9%.

Moreover, PZA’s menu innovations, strategic sports partnership, and marketing initiatives have supported its same-store sales growth. Additionally, the company has also planned to increase its traditional restaurant count by 2–3% this year and is continuing with its restaurant renovation program. These growth initiatives could boost PZA’s financials in the coming years, thereby allowing it to continue paying dividends at a healthier yield.

Sienna Senior Living

Sienna Senior Living (TSX: SIA) owns and operates seniors’ residences in Ontario, Saskatchewan, Alberta, and British Columbia. The demand for the company’s services has been rising amid the growth in the aging population and increasing income levels. Statistics Canada predicts that the population of people over 85 years in Canada will increase from 0.86 million in 2021 to 1.7 million by 2036.

Amid the growing demand, the company has expanded its asset base by acquiring $434 million worth of assets year-to-date. Apart from these acquisitions, the company is expanding its asset base through organic growth. It recently opened two long-term care community centres, one in North Bay, Ontario and another in Brantford, Ontario. Along with these projects, the company is also redeveloping a long-term care centre in Keswick, Ontario, which could become operational in the first quarter of 2027.

Considering these growth initiatives, I believe Sienna will continue paying dividends at a healthier rate. With a monthly payout of $0.078/share, its forward dividend yield translates to a compelling dividend yield of 5.2% as of the September 16 closing price. Besides, it trades at an attractive NTM (next 12 months) price-to-sales multiple of 1.6, making it an excellent buy.

SmartCentres Real Estate Investment Trust

Another monthly-paying dividend stock that I believe would be an excellent addition to your TFSA is SmartCentres Real Estate Investment Trust (TSX: SRU.UN). The Toronto-based REIT owns and operates 197 strategically located properties, with over 90% of Canadians living within 10 kilometres of its shopping centres. Its tenant base also looks solid, with 95% having national or regional presence and 60% offering essential services.

Given its strategically located properties and solid tenant base, the Toronto-based REIT enjoys a healthy occupancy rate, which stood at 98.6% at the end of the second quarter of 2025. Moreover, SmartCentres boasts a strong development pipeline with approvals for 58.9 million square feet, including 0.8 million square feet currently under construction. Along with these expansions, lease-up and renewal activities could boost the REIT’s financial growth, thereby allowing it to continue rewarding its shareholders with healthy dividends. Currently, the company pays a monthly dividend payout of $0.1542/share, translating into a forward dividend yield of 6.9%.

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust. The Motley Fool has a disclosure policy.

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