If you use the TFSA (Tax-Free Savings Account) to build a passive income stream, there is something satisfying about earning dividends monthly. Luckily, a few select Canadian stocks make that possible.
REITs (real estate investment trusts) and industrial stocks are a smart place to find monthly income. Some of the most interesting monthly dividend stocks are Dream Industrial REIT (TSX:DIR.UN), Choice Properties REIT (TSX:CHP.UN), and Mullen Group (TSX:MTL). Each of these offer a yield of 5% or more and they have solid business models.
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This TFSA stock has a safe 5.8% yield
Industrial has become a resilient segment of the real estate market thanks to e-commerce, on-shoring, and logistics/last mile distribution.
Dream Industrial owns a substantial portfolio of multi-tenanted warehouses and distribution centres across Canada, the U.S., and Europe. Its diversification by tenant and geography helps to spread out risk.
The REIT has 95%-plus occupancy. Its average lease is considerably under market rents, so it will have attractive organic growth from rental increases in the coming years.
Dream’s payout ratio has dropped over the past few years, making its $0.0583 per unit monthly distribution very sustainable. This TFSA stock yields 5.8% right now.
A recession-resilient stock for a 5.3% yield
Choice Properties REIT is another great real estate pick for safe and solid monthly TFSA income. Choice is the largest REIT in Canada with retail, industrial, and multi-use properties in its portfolio.
It largely operates essential retail centres anchored by Loblaws grocery and pharmacy branches. Loblaws is one of Canada’s most successful and profitable grocers, so it is a great tenant to have.
Choice also has a large $4.4 billion portfolio of high-end industrial properties that help to balance out the portfolio. It has 98% occupancy and long-term leases (average 5.9-year lease terms). Current in-place rents average 48% below market, so it too has a big organic growth lever on tenant turnover or renewal.
Choice pays a $0.064 per unit monthly distribution. That equates to a 5.3% yield. It has grown its distribution for the past three consecutive years, so distribution growth is likely ahead.
A monthly TFSA income stock that is not a REIT
Then there’s Mullen Group. It is a bit of a change-up because it is not a REIT, but it still pays a monthly dividend. Mullen runs an extensive network of trucking, logistics, and industrial services businesses.
It’s a cash flow machine. It is not a flashy business, but it is well run. The company has faced a tough freight recession that has put pressure on earnings in 2025. Yet, its stock has performed reasonably well. It is up 5.6% this year. That is better than most freight and transport peers, which are largely in the red in 2025.
Mullen pays a $0.07 per share monthly dividend. That equates to a 5.5% yield right now. Its dividend is well-protected by operating cash flows and income. Mullen has a 20-year history of growing that dividend, making it a quality stock for a TFSA.
The Foolish bottom line
Put these three stocks together and you end up with a surprisingly well-rounded monthly-income setup: industrial real estate for steady income, essential-service retail for stability, and logistics for economic exposure that isn’t overly cyclical. You get a meaningful yield, predictable payments, and sector diversification, all inside a TFSA where the dividends can compound tax-free!
