How to Pull $265 Per Month Tax-Free From Your TFSA

Want to get an income boost in your TFSA? Here is how you could earn $265 tax-free income per month investing in quality Canadian stocks.

Key Points
  • The TFSA lets your investments grow and be withdrawn completely tax‑free — a $75,000 TFSA invested can generate meaningful tax‑free income.
  • Split $75,000 evenly across Granite REIT (GRT.UN, ~3.8%), Pembina Pipeline (PPL, ~4.88%), Mullen Group (MTL, ~4.6%) and Canadian Tire (CT.A, ~3.7%) to net roughly $265/month of dividend income.
  • The mix pairs real estate, energy infrastructure, transport and retail for a balance of yield, defensive cash flow, and modest growth potential suitable for a long‑term TFSA income sleeve.

The TFSA (Tax-Free Savings Account) can be a serious money-saving (and money-making) tool. As long as you follow the rules, all income earned in the TFSA is protected from the Canada Revenue Agency. You can save as much as 20% on your investment income by keeping your stock investments in a TFSA.

If you like dividend income, here is a simple TFSA portfolio that could earn an average of $265 per month of dividend income. You will need to split $75,000 evenly ($18,750) across four quality stocks. Here’s how I would structure the portfolio.

Blocks conceptualizing Canada's Tax Free Savings Account

Source: Getty Images

A great real estate stock for a TFSA

I’d first put $18,750 of TFSA cash into Granite Real Estate Investment Trust (TSX: GRT.UN). You could buy 204 units today. With a yield of 3.8%, that would earn $60.52 per month.

After a few years of weak price momentum, real estate investment trusts (REITs) have been gaining steam in recent weeks. Granite stock set a high not seen since late 2022. Investors appear to be returning to the sector as real assets with safe distributions become attractive in a world threatened by artificial intelligence.

Granite has an industry-leading balance sheet, a history of good capital allocation, high quality assets, 98% occupancy, and attractive mid-digit growth prospects. It still looks like a nice time to add this stock to a TFSA this year.

A top energy infrastructure stock

The next stock I’d buy in my TFSA with $18,750 is Pembina Pipeline (TSX: PPL). You could buy 322 shares at today’s price. With a yield of 4.9%, you would earn $288.62 quarterly or $76.21 averaged monthly.

Around 10–15% of its business is based on commodity pricing, so it gets an earnings boost when oil and gas prices are elevated. It appears prices could be elevated for some time, so that means Pembina has a good chance of exceeding its guidance this year.

Pembina is a leading provider of energy infrastructure. The pipeline operator has a sector-leading balance sheet and attractive capital growth opportunities. This is a great stock for mid-single-digit earnings and dividend growth ahead.

A top transport stock

Another stock I’d add with $18,750 to my TFSA is Mullen Group (TSX: MTL). You could buy 1,026 shares at today’s price. With a yield of 4.6%, you would earn $71.82 monthly.

Trucking stocks have been in the dumps the past few years due to a tough freight environment. Yet, Mullen’s stock has been very resilient compared to peers. It is up 45% this year.

Its focus on margins and profitability, rather than growth have helped it preserve results. This is a good stock to take a bet on if you think trade and logistics will start to improve in the year ahead.

An essential goods stock for a TFSA

A final stock to round out a $75,000 TFSA income portfolio is Canadian Tire (TSX: CTC.A). An $18,750 investment could buy 1,026 shares today. With a 3.7% yield, you would earn $172.80 quarterly, or $57.60 average monthly.

Canadian Tire is one of Canada’s most important retailers. You can get everything from gardening supplies to dinnerware to care repairs to clothing. While it has discretionary items, it has a focus on consumer basics. CTC.A stock has a 16-year history of annually growing its dividend.

Its business is well-managed, and its dividend stream is growing, which makes it a decent stock to tuck away inside a TFSA for the long term.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
Granite REIT$91.75204$0.2967$60.52Monthly
Pembina Pipeline$58.17322$0.71$228.62Quarterly
Mullen Group$18.271,026$0.07$71.82Monthly
Canadian Tire$194.6096$1.80$172.80Quarterly

Prices as of April 17, 2026

Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mullen Group. The Motley Fool recommends Granite Real Estate Investment Trust and Pembina Pipeline. The Motley Fool has a disclosure policy.

More on Dividend Stocks

people ride a downhill dip on a roller coaster
Dividend Stocks

Why I’m Holding This Dividend Stock Through Market Volatility

Worried about another market decline? Buy Fortis stock for a stable income stream and steady returns over the coming years.

Read more »

A worker gives a business presentation.
Dividend Stocks

Worried About the Economy? Waiting to Invest Could Actually Cost You More

Investing in Canada’s top dividend-paying stocks can calm investors’ fear of economic uncertainty.

Read more »

man shops in a drugstore
Dividend Stocks

TFSA vs. RRSP: Where I’d Put the Next $500 for Retirement

The next $500 can work harder when the account fits your tax situation, with Metro offering a fresh retirement-stock example.

Read more »

shoppers in an indoor mall
Dividend Stocks

A Perfect TFSA Stock: A 6.7% Payout Each Month

This Canadian stock offers a 6.7% annualized yield with monthly distributions, backed by strong retail occupancy and ongoing property developments,…

Read more »

A train passes Morant's curve in Banff National Park in the Canadian Rockies.
Dividend Stocks

2 Dividend Stocks I’d Happily Buy and Hold for Life

CN Rail (TSX:CNR) and another name that could be worth holding onto for decades or perhaps for a lifetime.

Read more »

senior relaxes in hammock with e-book
Dividend Stocks

3 TFSA Stocks for Worry-Free Passive Income

With their consistent cash flows, strong dividend payment histories, and promising growth prospects, these three Canadian dividend stocks offer compelling…

Read more »

Close up of an egg in a nest of twigs on grass with RRSP written on it symbolizing a RRSP contribution.
Dividend Stocks

The RRSP Deadline Is in March: Why Starting in November Gives You the Advantage

Many investors hold stocks like Shopify Inc (TSX:SHOP) in their RRSPs.

Read more »

groceries get more expensive as inflation rises
Dividend Stocks

What $25,000 in Manulife Could Add to Your Annual Dividend Income

A $25,000 Manulife budget provides about $755 annually, with a clear trade-off between spending and reinvesting.

Read more »