How I’d Turn a TFSA Into $300/Month in Passive Income

A TFSA (Tax-Free Savings Account) is an ideal tool for making long-term investments, as investors can grow their investments (up to a specified amount called the contribution limit) tax-free. In this low-interest-rate environment, investing in high-yielding dividend stocks is an ideal strategy to boost your passive income.

The cumulative contribution limit for an individual who has been eligible since 2009 and has never contributed is $102,000. Of this amount, if investors allocate $60,000 equally in the following three monthly-paying dividend stocks, they can earn over $300 per month in passive income.

SmartCentres Real Estate Investment Trust

Real estate investment trusts (REITs) are well-suited for income-focused investors, as these companies are required to pay out more than 90% of their taxable earnings to shareholders. Therefore, I have chosen SmartCentres Real Estate Investment Trust (TSX: SRU.UN), which owns and operates 197 properties across Canada, as my first pick. Given its strategically located properties and solid customer base, the REIT enjoys a healthy occupancy rate, which stood at 98.6% at the end of the second quarter of 2025.

Meanwhile, demand for retail space continues to grow, while supply remains limited due to high construction costs and elevated interest rates. Amid demand growth, the company is steadily expanding its asset base, holding 58.9 million square feet of approved development projects. Of these approvals, the company has around 0.8 million square feet of properties under construction. The rental growth amid improving customer traffic and strengthening tenant base could also support its financial growth. Considering its healthy growth prospects, I believe SmartCentres, which currently offers a healthy forward dividend yield of 7.03%, is well-equipped to continue paying dividends at a healthy rate.

Whitecap Resources

Another high-yielding dividend stock that I believe would be ideal for income-seeking investors is Whitecap Resources (TSX: WCP), which currently offers a forward dividend yield of 6.95%. The company recently became Canada’s seventh-largest oil and natural gas producer through the strategic combination with Veren. Along with the strengthening of its production capabilities, the merger has strengthened its balance sheet by improving liquidity and reducing leverage.

Moreover, the early synergies from the integration of Veren’s assets and workforce have supported WCP’s cost efficiencies and strengthened its credit profile. Additionally, the company’s management anticipates further improvements in capital efficiency and operating cost savings over the next six to 12 months by leveraging shared expertise and best practices across its integrated portfolio. Along with these growth initiatives, the company’s planned capital investment of $1.2 billion in the second half of this year could boost its production, thereby driving its financials. Considering all these factors, I believe WCP’s future dividend payouts appear well-secured.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX: PZA) is an impressive addition to income-seeking investors due to its highly franchised business model. The company operates Pizza Pizza and Pizza 73 brand restaurants through its franchisees, collecting royalties based on their sales. Therefore, its financial performance is less vulnerable to fluctuations in commodity prices and rising labour costs.

Moreover, PZA is expanding its footprint and expects to raise its traditional restaurant count by 2-3% this year. Along with these expansions, the company’s same-store sales have improved amid menu innovations and strategic sports partnerships. The company is also continuing with its renovation program, which could help boost its same-store sales. Considering all these factors, I believe PZA, which currently offers a healthy forward dividend yield of 5.9%, could continue paying dividends at a healthier rate.