Transform Your TFSA Into a Money-Making Machine With Just $15,000

Here is a simple TFSA (Tax-Free Savings Account) strategy most Canadian investors overlook. You can allocate $15,000 towards two reliable dividend payers, collect the income every month or quarter, and pay zero tax on these gains.

I think splitting that $15,000 between Keyera (TSX:KEY) and SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is one of the smartest moves a Canadian income investor can make right now.

Let’s see why.

Use the TFSA contribution room to own TSX dividend stocks

Most Canadians use their TFSA as a savings account, which is a mistake. The real power of a TFSA comes from holding quality dividend stocks.

When you own a dividend stock in a regular investment account, the Canada Revenue Agency takes a cut of every distribution you receive. The TFSA is tax-sheltered, which means that any gains earned in the registered account are exempt from CRA taxes.

With a $15,000 investment split across two stocks yielding an average of around 5.5%, you could collect roughly $810 per year in tax-free passive income. Reinvest that, and the compounding effect builds quietly year after year.

Is this TSX dividend stock a good buy?

Keyera is a Calgary-based midstream energy company. Basically, it gathers natural gas and natural gas liquids from producers in Western Canada, processes them, and then moves them through its network of pipelines, storage facilities, and fractionation plants to end markets.

In 2025, Keyera delivered record results in both its Gathering and Processing and Liquids Infrastructure segments.

Distributable cash flow came in at $767 million, or $3.35 per share for the full year. By comparison, Keyera’s annualized dividend per share is much lower at $2.16, indicating a payout ratio of 64%.

Annual adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), excluding deal costs tied to its Plains NGL acquisition, reached $1.16 billion.

Management is targeting 7%–8% fee-for-service EBITDA growth through 2027, backed by three sanctioned capital projects already under construction. Those projects include two fractionation expansions and a pipeline zone expansion, all of which are highly contracted under take-or-pay agreements.

Keyera has been growing its dividend consistently, with the dividend standing at $0.71 per share in 2006. With a payout ratio sitting comfortably within management’s 50% to 70% target range, there is room for more dividend increases ahead.

And once the transformational Plains Canadian NGL acquisition closes, CEO Dean Setoguchi made clear that dividend growth remains a top priority.

At current levels, Keyera yields approximately 4.4%, meaning $7,500 invested in Keyera would generate around $326 per year in tax-free income within a TFSA.

Become a landlord with this TSX stock

SmartCentres is one of Canada’s largest REITs. It owns a national portfolio of open-format retail centres, anchored primarily by Walmart locations, as well as growing self-storage, industrial, and mixed-use developments across the country.

According to the company’s Q4 2025 earnings call, occupancy hit 98.6% at year-end, unchanged from the prior quarter. Same-property net operating income grew 3.7% for the full year, or 5.6% excluding anchor tenants. Cash collections remained at nearly 99%.

The distribution is $1.85 per unit on an annualized basis, which translates to a yield of approximately 6.5% at current prices. CEO Mitch Goldhar noted on the call that retail demand from major grocers, including Loblaws, Sobeys, and Costco, is driving a significant pipeline of new retail development.

Canada has seen very little physical retail construction over the past 12 years, despite strong population growth, making SmartCentres one of the primary beneficiaries of that catch-up.

The $7,500 SmartCentres allocation inside your TFSA would generate approximately $482 per year in tax-free distributions.

The Foolish takeaway

A $15,000 TFSA split between Keyera and SmartCentres puts roughly $937 in annual tax-free passive income into your pocket. That is before any dividend growth, reinvestment, or capital appreciation.

Both businesses are well-run, financially solid, and built to pay and grow their distributions over time.