Got $25,000? Transform a TFSA Into a Cash-Gushing Machine

The Tax-Free Savings Account (TFSA) is more than a place to park cash. With the right portfolio, you can turn $25,000 into a reliable stream of growing cash flows. If I had $25,000, here’s a diversified, five-stock portfolio that would earn around $1,000 ($997 to be exact) every year. All of these stocks have been growing their dividend, so there is income upside if you hold them.

A top retail real estate stock for a TFSA

If you ever wanted to be a real estate investor, Choice Properties REIT (TSX: CHP.UN) is a perfect stock to start with in your TFSA. It yields 4.9% today. A $5,000 investment would earn $20.41 monthly or $244.92 annually.

With a market cap of $11.5 billion, Choice is Canada’s largest REIT. Most of its portfolio is grocery-anchored retail properties. However, it has a mix of quality industrial and mixed-use assets as well.

This is a recession-resilient portfolio with long-term leases and high occupancy. It’s a great stock for an elevated monthly payout.

A top play on seniors

Chartwell Retirement Residences (TSX: CHP.UN) is another real estate play with a totally different tailwind. With a market cap of $7 billion, it is Canada’s largest provider of retirement living communities.

This stock yields 2.9% right now. Your $5,000 TFSA investment would earn $11.99 monthly or $143.84 annually.

The Baby Boomer generation is aging. It is creating a tidal wave of demand for senior living options. High occupancy and rising demand are translating into rising rental rates. Its cash flows (and dividend) should only keep rising as it grows its portfolio in the coming years.

A top energy infrastructure stock for a TFSA

If you want exposure to energy, but with lower commodity risk, Pembina Pipeline (TSX: PPL) is a perfect TFSA income play. It yields 4.3% now. A $5,000 TFSA investment would earn $53.10 quarterly or $212.38 annually.

Pembina has a market cap of $39 billion, making it a substantial energy infrastructure player in Western Canada. Over 85% of its income is contracted and that widely supports its dividend.

It expects contracted income to grow by at least 5–7% per annum over the coming four years. As its income rises, so too should its dividend.

A top energy stock

Topaz Energy (TSX: TPZ) is another lower-risk bet on Canadian energy. It yields 4.3%. A $5,000 TFSA investment would earn $54.25 quarterly or $217 annually.

Topaz has a market cap of $5 billion. It is an infrastructure and land royalty business with no direct drilling or operational risk. However, it owns very productive acreage that has years and even decades of production growth.

Topaz has a great record raising its dividend annually ever since inception. It’s a well-run, low-capital intensity business worth holding for income.

A top industrial stock

Mullen Group (TSX: MTL) is a final dividend stock I’d be happy holding in a TFSA. It yields 3.6%. Your $5,000 investment earns $14.98 monthly or $179 annualized.

With a market cap of $2.2 billion, this is one of Canada’s largest transportation and logistics companies. It is just coming out of a tough freight environment. Results are starting to rapidly improve.

Its stock is up 47% this year. However, it still trades at a discount to peers and could be a good add if you believe a better freight cycle is around the corner.