It’s always a good idea to revisit your investment strategy for a Tax-Free Savings Account (TFSA) every year, especially as market conditions change. And with markets turning highly volatile in recent months, long-term investors are increasingly looking for opportunities that offer reliable income.
That’s where some strong real estate investment trusts (REITs) could help you by providing predictable cash flows along with long-term growth potential. In this article, I’ll talk about one such TSX monthly dividend stock that stands out for its trustworthy income and stable performance.
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A rental housing giant with a strong foundation
Canadian Apartment Properties Real Estate Investment Trust (TSX: CAR.UN), commonly known as CAPREIT, is one of the largest residential landlords in Canada. It owns and manages around 45,500 apartment suites and townhomes across Canada and the Netherlands, making it a major player in the rental housing market.
At the time of writing, its stock trades near $37 per unit with a market cap of about $5.7 billion. What makes CAPREIT even more attractive for TFSA investors is its ability to generate stable rental income backed by essential housing demand. With this rental income, the REIT currently offers a 4.3% annualized dividend yield, paid on a monthly basis.
Resilience supported by steady operations
Despite broader market volatility, CAPREIT has shown resilience, as its stock has inched up by 4.2% so far in April. A key driver behind this stability is its focus on maintaining high occupancy levels while gradually increasing its occupied average monthly rent. This balanced approach allows the REIT to grow revenue without putting too much pressure on tenants.
In addition, CAPREIT continues to improve its portfolio through strategic repositioning. These efforts help improve the quality of its properties while optimizing long-term returns.
Financial strength is driving consistent income
CAPREIT’s financial strategy revolves around growing funds from operations (FFO) and net asset value (NAV) per unit. Its conservative balance sheet has allowed it to manage economic uncertainties effectively while continuing to generate stable cash flows.
Meanwhile, CAPREIT is not only focused on maintaining its current portfolio but is also actively investing in future growth. In 2025, it doubled down on Canada, buying 15 properties with 1,891 suites for about $658.6 million. The company also sold non-core assets aggressively, completing $1.2 billion of dispositions during the year. With this portfolio reshaping, the REIT aimed to build a higher-quality, higher-cash-flow Canadian apartment portfolio.
In addition, CAPREIT ended 2025 with low leverage of 39.3% debt to gross book value, which seems conservative.
Why this stock fits well in a TFSA
CAPREIT offers strong fundamentals that many TFSA investors look for, coupled with reliable monthly dividends. Its large and diversified property base, strong financial discipline, and ongoing investment in its portfolio make it a dependable choice.
That’s why it stands out as a well-rounded option with income and long-term growth potential, especially for investors seeking a stable addition to their TFSA this April.
