If I had to invest $20K to maximize my passive income, I would focus on high-quality dividend stocks with attractive yields and sustainable payouts. Moreover, investing through a Tax-Free Savings Account (TFSA) can further maximize the income. When dividend-paying stocks are held inside a TFSA, the income they generate isn’t taxed, allowing every dollar of dividends to stay invested or be used as income. Over the long run, that tax advantage can make a meaningful difference to your overall returns.
Against this background, here are a few high-quality Canadian stocks offering sustainable yields that can help maximize your passive income.
Passive income stock #1: Whitecap Resources
Whitecap Resources (TSX:WCP) is a dependable stock to buy and hold in a TFSA to maximize your passive income. The oil and gas producer has been rewarding shareholders through consistent monthly payouts. It currently pays $0.061 a share in dividends every month, yielding about 6.2%. Notably, between January 2013 and November 2025, the company returned approximately $2.9 billion to investors through dividends, reflecting management’s commitment to enhancing shareholder value across market cycles.
The company targets a base dividend payout ratio of 20–25%, leaving ample room to fund operations, reinvest in the business, and manage volatility in commodity prices. Over the long term, management also aims to grow its base dividend by 1–3% annually.
Whitecap’s diversified asset base and ongoing efforts to improve efficiency, optimize drilling performance, and maintain tight control over capital spending are expected to support earnings growth. This, in turn, will cover its payouts.
In addition, the company is focusing on allocating capital to its highest-return projects, which is likely to support its payouts. Whitecap’s low leverage and a large inventory of high-quality drilling locations provide additional financial flexibility and a solid base for earnings and dividend growth.
Passive income stock #2: SmartCentres REIT
SmartCentres REIT (TSX:SRU.UN) is another reliable dividend stock to boost your passive income. Known for its consistent monthly distributions, the REIT currently pays a dividend of $0.154 per unit, yielding roughly 7.3%.
Its distributions are supported by a high-quality, diversified real estate portfolio. It owns 197 mixed-use properties across Canada, primarily located in densely populated areas. These high-traffic locations support strong tenant demand, helping SmartCentres maintain high occupancy and reliable rental income.
A significant portion of the portfolio is anchored by retailers and well-known national brands, which tend to remain resilient even during economic slowdowns. As a result, the REIT benefits from predictable cash generation year after year.
SmartCentres’ recent third-quarter results show continued strength. Occupancy remained exceptionally high at 98.6%, rent collections were close to 99%, and same-property net operating income continued to grow. Leasing momentum has been encouraging, with most upcoming lease expiries already renewed at higher rents. Alongside its core retail strength, SmartCentres is advancing a mixed-use development pipeline that adds long-term growth potential. Supported by a solid balance sheet and valuable land holdings, the REIT appears well-positioned to sustain its monthly dividends.
Earn over $112 per month in tax-free passive income
By investing $20K and splitting it evenly between Whitecap Resources and SmartCentres REIT, you could generate over $112 per month in passive income. Holding these investments inside a TFSA means those dividends can be collected completely tax-free, allowing you to keep more of what you earn and potentially reinvest it to accelerate long-term growth.
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| Whitecap Resources | $11.73 | 852 | $0.061 | $51.97 | Monthly |
| SmartCentres REIT | $25.31 | 395 | $0.154 | 60.83 | Monthly |
