The TFSA (Tax-Free Savings Account) is a valuable tool in a family’s plan to accumulate wealth and passive income. When you don’t pay tax on your investment income, you can compound your wealth significantly faster. Likewise, there is no reporting income inside the TFSA, so it drastically simplifies tax season every year.
A single TFSA user who was 18 years or older in 2009 (and a Canadian resident) will be able to contribute an accumulated total of $109,000 (after the $7,000 contribution increase on January 1, 2026). If the same qualifications apply to your partner or spouse, together, you could contribute $218,000 to your TFSAs.
Today, the S&P/TSX Composite Index yields around 2.3%. If you put your combined TFSAs into the index today, you would earn around $5,015 per year in dividend passive income.
Luckily, Canadian investors can do even better by buying individual dividend stocks. For a sum of $218,000, we recommend investors have a diversified portfolio of at least 10-20 stocks.
However, here is a mini four-stock portfolio that a couple could use as a base model. A collective $218,000 invested would earn $9,958.43 of tax-free passive income!
Granite REIT: A solid stock for passive income
Real estate is a great place to look for passive income inside a TFSA. Granite Real Estate Investment Trust (TSX:GRT.UN) is one of the best in Canada.
The REIT has high quality industrial assets with strong tenants, over 97% occupancy, and long-term leases (over five years on average). Likewise, it has an excellent balance sheet and a low payout ratio.
It has raised its distribution for 15 consecutive years. It yields 4.22%. A $54,500 investment in Granite units would earn $199.39 monthly or $2,392.70 annually.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Granite REIT | $80.79 | 674 | $0.2958 | $199.39 | Monthly |
Canadian Natural Resources
Even though energy prices have not been great in 2025, Canadian Natural Resources (TSX:CNQ) has delivered very strong results. Its long-life energy reserves and factory-like production enable it to earn strong cash flows even in a low energy price environment.
Not only is CNQ one of the best energy companies, but it is also one of the best companies in Canada. It has raised its dividend for 25 consecutive years by 21% compounded annual growth rate (CAGR).
It yields 5.2% today. A $54,500 investment would earn $710.29 of quarterly passive income or $2,841.15 annually.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Canadian Natural Resources | $45.07 | 1,209 | $0.5875 | $710.29 | Quarterly |
Mullen Group
Mullen Group (TSX:MTL) is one of Canada’s largest trucking and logistics company. It has built an empire across North America by acquiring smaller transport providers.
Even though it has experienced a tough freight environment, smart acquisitions have helped supplement earnings. The company has a sustainable dividend and its stock should start to turnaround as the freight environment normalizes.
Mullen stock yields 5.18%. A $54,500 investment would earn $235.34 of monthly passive income or $2,824.08 annualized.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Mullen Group | $16.21 | 3,362 | $0.07 | $235.34 | Monthly |
Fortis: A safe anchor for passive income
Fortis (TSX:FTS) is the perfect anchor for a TFSA passive-income portfolio. With nine regulated utilities focused on transmission and distribution, it delivers predictable mid-digit growth every year. Likewise, who can argue with its 52-year record of consecutively increasing its dividend?
Fortis stock yields 3.5% now. A $54,500 investment would earn $475.13 quarterly or $1,900.50 annually.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | TOTAL PAYOUT | FREQUENCY |
| Fortis | $51.86 | 1,050 | $0.4525 | $475.13 | Quarterly |
