With markets feeling a bit unpredictable lately, having investments that generate steady monthly income can make a big difference in how you experience those ups and downs. The good news is you don’t need a huge portfolio or complex strategy to make it work. A few well-chosen holdings, set up the right way, could go a long way toward creating a reliable income stream in Canada. In fact, with the right mix of dividend-paying stocks, even your Tax-Free Savings Account (TFSA) can quietly turn into a steady income generator over time.
In this article, I’ll walk through a straightforward TFSA plan using two stocks that could help you generate monthly payments in 2026 and beyond.
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Monthly income backed by renewable growth
Northland Power (TSX:NPI) is a global power producer with a growing portfolio of renewable energy assets. Its operations span offshore wind, onshore wind, solar, and energy storage projects across Canada and Europe. NPI stock currently trades at $23.57 with a market cap of $6.2 billion. It has delivered 32% year-to-date return and offers a 3.1% dividend yield with monthly payments.
One of the biggest strengths of Northland Power is its ability to generate stable cash flow from long-term contracted assets. This provides visibility into earnings, which supports its consistent dividend payouts. In its latest results for the quarter ended in December 2025, the company delivered adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) of about $1.3 billion with the help of strong wind production in its German offshore projects.
Going forward, Northland continues to focus on expansion. Its long-term strategy targets doubling its operating capacity to 7 gigawatts by 2030. Its major projects, like Baltic Power and Hai Long, are expected to play a key role in this growth. With a mix of reliable income and exposure to the growing renewable energy sector, Northland Power offers a great mix of monthly payments and future upside.
A high monthly yield stock with improving fundamentals
Primaris Real Estate Investment Trust (TSX:PMZ.UN) could add another layer of income stability to your TFSA through real estate. The real estate investment trust (REIT) mainly focuses on enclosed shopping centres across Canada, owning and managing a large portfolio of retail properties. Its shares currently trade at $18.89 with a market cap of $2.2 billion. Over the last 12 months, it has gained around 32% and offers a 4.6% dividend yield, also paid monthly.
What makes Primaris interesting is its improving operating performance. In the fourth quarter of 2025, its same-property cash net operating income rose 6.8%, while its funds from operations (FFO) per unit increased 9.2% year-over-year (YoY). These gains clearly reflected stronger leasing activity, better tenant performance, and the benefits of strategic acquisitions. The REIT has also raised its 2026 FFO guidance, signalling confidence in continued growth.
Its focus on enclosed malls, which are relatively scarce assets, gives it a unique positioning in Canada’s retail real estate space. Combined with disciplined capital allocation, this supports both income stability and long-term value creation.
Overall, the combination of a higher yield and monthly distributions makes Primaris a strong income-focused holding for TFSA investors.
A simple TFSA monthly income plan
Creating monthly income from your TFSA doesn’t require a complex strategy. By focusing on companies that pay regular dividends and continue to grow, you can build a portfolio that works for you over time. Northland Power brings stable, contract-backed cash flows with exposure to renewable energy growth. At the same time, Primaris REIT offers higher income supported by a solid real estate portfolio and improving fundamentals.
Together, these two monthly dividend stocks provide a simple but effective approach to generating monthly payments by 2026 while still leaving room for capital appreciation.
