6% Every Month? 1 TFSA Stock Doing Just That

Crombie REIT offers a near-6% monthly payout backed by grocery-anchored properties and steady growth projects.

Key Points
  • Crombie owns grocery-anchored retail, so rent is supported by tenants people use in any economy.
  • Occupancy is very high, and FFO and AFFO per unit both grew in 2025.
  • It pays monthly and yields about 5.7%, but REIT financing costs can still be a risk.

An ideal Tax-Free Savings Account (TFSA) stock usually does three things well. It pays dependable cash, it owns a business people keep using in good markets and bad, and it gives investors a decent shot at long-term growth on top of income. Monthly dividend stocks can be especially attractive here because that steady payout can be reinvested tax free inside a TFSA, which makes compounding feel a lot more productive. So let’s look at a solid option on the TSX today.

shopper looks at paint color samples at home improvement store

Source: Getty Images

CRR

Crombie REIT (TSX: CRR.UN) is a Canadian real estate investment trust (REIT) focused on grocery-anchored retail, with a growing mix of mixed-use and industrial assets. That matters because grocery-based properties tend to hold up well even when the economy gets a little moody. People may cut back on plenty of things, but they still need food, pharmacies, and daily essentials. For TFSA investors, that makes Crombie a fairly practical income play.

Over the last year, Crombie has kept building on that steady profile. In its 2025 results, management highlighted record committed occupancy of 97.7%, commercial same-asset property cash net operating income (NOI) growth of 3.7%, and continued progress under its “Building Together” strategy. It also added to its industrial footprint with the Whitby distribution centre acquisition, while continuing to advance retail and mixed-use development projects tied to its long-standing relationship with Empire and Sobeys.

That is what makes the story more interesting than a plain old retail REIT. Crombie is not just collecting rent and calling it a day. It is gradually reshaping the portfolio, leaning into stronger assets, and using development to create future growth. That gives the dividend stock a little more upside than a simple high-yield income vehicle.

Into earnings

The earnings support the case nicely. For 2025, funds from operations per unit rose 4.8%, while adjusted funds from operations per unit grew 6.5%. Management also pointed to strong commercial same-asset property cash NOI growth and disciplined capital allocation. Those are the kinds of numbers income investors want to see, because they suggest the monthly payout is being supported by a business still moving in the right direction.

The valuation looks fairly reasonable too. The units recently traded around $15.75, with a trailing annual dividend yield of 5.7% at writing, with a $3 billion market cap. That is not bargain-bin cheap, but it also does not look stretched for a REIT with high occupancy, a defensive grocery-heavy portfolio, and visible growth projects.

The future outlook is where Crombie really fits a TFSA. Management is still growing adjusted funds from operations (AFFO), occupancy is excellent, and the portfolio is tied to essential retail rather than fragile discretionary spending. The main risk is the usual one for REITs: interest rates and financing costs can still create pressure. But if rates stay more stable and Crombie keeps executing on development and leasing, this looks like the kind of dividend stock that can keep paying investors steadily while still growing over time.

Bottom line

Put it all together, and Crombie REIT looks like a strong TFSA candidate for investors who want near-6% income paid monthly without diving into something overly risky or overly complicated. It has dependable tenants, improving cash flow, and enough development upside to keep things interesting. And with $7,000, that alone can bring in ample income.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENT
CRR.UN$15.81442$0.90$397.80Monthly$6,987.02

That is a pretty nice combination for one stock to bring to a TFSA.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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