Monthly dividend stocks can be especially attractive inside a Tax-Free Savings Account (TFSA). They turn the account into something that feels a bit more alive — instead of waiting for a quarterly payout, investors get a steadier stream of cash that can be reinvested more often or simply left to pile up tax-free. A TFSA works best when you give compounding more chances to do its thing. When the stock also offers a solid yield and a business built around recurring rent, the case gets even stronger.
If you’re a Canadian investor building a TFSA for income, Northview Residential REIT is worth a close look right now.
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Northview Residential REIT: Monthly Income From Canadian Rental Housing in Secondary Markets
Northview Residential REIT (TSX: NRR.UN) is a Canadian REIT focused on income-producing rental properties in secondary markets across the country. It owns more than 13,000 multi-residential suites and over 1.23 million square feet of commercial space, operating across 11 provinces and territories with about $2.6 billion in total assets. Secondary markets tend to be more insulated from the supply glut hitting major urban centres right now — a point management made explicitly in its most recent results.
Over the past two years, Northview has quietly been doing the unglamorous work that income investors like to see: selling non-core assets, paying down debt, and letting the operating numbers improve. It completed more than $100 million in non-core asset sales, using the proceeds to reduce credit facility balances and cut its interest rate meaningfully.
2025 Earnings Results: The Momentum Is Real
Excluding insurance proceeds, FFO per basic unit grew 14.9% in 2025 and the FFO payout ratio improved 830 basis points to 56.6%, driven by strong operating performance and significant credit facility interest savings. Total NOI reached $164.1 million, up 2.1% over 2024, with same-door NOI growth of 4.2%. Management described it as another year of exceptional FFO growth and flagged that Northview’s exposure to secondary markets should partially offset the downward pressure on rents and occupancy affecting the broader multi-residential sector from new supply. That’s a meaningful distinction in the current environment.
The payout ratio at 56.6% of FFO is conservative for a REIT of this type — it means the distribution has real coverage and room to grow. That’s the kind of number income investors should want to see before committing a TFSA dollar.
On valuation, current market data shows a yield of 6.7% and a trailing P/E near 11. The units have been trading below book value, which means income investors are getting paid a solid yield while waiting for fundamentals to close the gap. The obvious risk here is leverage — this is still a meaningfully indebted REIT, and interest rates matter. But with rent growth, a healthier payout ratio, and a management team that has demonstrated consistent execution, the risk profile looks better than it did a year ago.
Bottom line
If you’re building a TFSA for income and want a stock that pays you every month while the business quietly improves underneath, Northview makes a compelling case. The 2025 results confirmed the thesis is intact — better coverage, lower leverage costs, and secondary market exposure that’s actually an advantage right now. It’s not risk-free, because real estate never is. But for a TFSA investor who wants cash today and a reasonable shot at better days ahead, this is exactly the kind of holding that earns its place.
Here’s how much you could make in income using a $7,000 of your contribution room.
| COMPANY | RECENT PRICE | NUMBER OF SHARES YOU COULD BUY WITH $7,000 | ANNUAL DIVIDEND | TOTAL ANNUAL PAYOUT ON A $7,000 INVESTMENT | FREQUENCY |
|---|---|---|---|---|---|
| NRR.UN | $16.21 | 431 | $1.09 | $469.79 | Monthly |
Watch for Northview’s Q1 2026 results. The key question is whether commercial occupancy improvement starts showing up in the numbers. If it does, the case gets stronger.
