The TFSA (Tax-Free Savings Account) is a good account to put stocks that generate investment income because you don’t pay any tax on that income. While the tax savings don’t seem huge in the near term, when added up and compounded, they can be a substantial amount over the long term.
If you want to earn monthly income, here is a four-stock portfolio that could collectively earn over $200 of steady, solid income. You will need around $50,000 to invest in your TFSA, but here’s a model portfolio you could follow.
Safe monthly income for a TFSA
I would start by first putting $12,500 of my TFSA cash into Choice Properties Real Estate Investment Trust (TSX:CHP.UN). With a $0.0642 monthly distribution, Choice yields 5.3% right now. A $12,500 investment would buy you 856 shares at a price of $14.59. This investment would earn $54.92 every month!
The great thing is that Choice has been growing its dividend for the past three consecutive years. Choice is Canada’s largest REIT. It has 62 million square feet across retail, industrial, and mixed-use properties.
Its anchor tenant is Loblaw, which is one of Canada’s best and largest grocery/pharmacy operators. The REIT has high occupancy, long-term leases, and a track record of raising its distribution.
A steady monthly dividend payer
Dream Industrial REIT (TSX:DIR.UN) is another solid TFSA stock for income. It pays a $0.0583 per unit monthly distribution. Annualized, that equals a 5.84% yield. A $12,500 investment would buy you 1,041 units in the REIT. That would earn $60.69 monthly.
Dream is one of the largest pure-play industrial REITs in Canada. The REIT has +96% occupancy, a very diverse mix of tenants, and geographic diversification across Canada and Europe.
The REIT’s payout ratio has consistently improved over the years. It may be in a good position to increase its monthly distribution in the next year or so.
A transport stock with a nice yield
Another TFSA dividend stock is Mullen Group (TSX:MTL). It pays a $0.07 per share monthly dividend that equals a 5.5% dividend yield. A $12,500 investment would buy 818 shares and earn $57.26 monthly.
Mullen is one of Canada’s largest transport companies. Over the past few years, it has used a smart acquisition strategy to greatly diversify its business. It is much more resilient than in the past.
Unlike other transport businesses, its stock is up 5.4% this year. It has a great history of growing its dividend, so you are likely to see your TFSA income compound higher.
A perfect TFSA stock for total returns
You will have to sacrifice a bit of yield for higher total returns with Exchange Income Corp. (TSX:EIF). Its stock is up 35% in the year, and that has pushed its yield down to 3.44%. It pays a $0.23 monthly dividend. A $12,500 TFSA investment would earn $35.65 monthly.
Exchange is perfectly positioned to benefit from big investments in Canada’s military and Canada’s north. It operates an essential gateway airline service to many remote northern communities in Canada. Likewise, it has bustling aerospace, defence, and industrial business segments.
It just raised its dividend for the 19th time. 2026 should be another good year, so it’s not a bad time to add this stock to your TFSA now.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Choice Properties REIT | $14.59 | 856 | $0.0642 | $54.92 | Monthly |
| Dream Industrial REIT | $12.00 | 1,041 | $0.0583 | $60.69 | Monthly |
| Mullen Group | $15.28 | 818 | $0.07 | $57.26 | Monthly |
| Exchange Income Corp | $80.27 | 155 | $0.23 | $35.65 | Monthly |
Prices as of December 5, 2025
