2 Monthly Dividend Stocks to Buy for a TFSA Income Portfolio

Monthly income can make a Tax-Free Savings Account (TFSA) feel more useful. Instead of waiting for quarterly dividends, investors see cash arrive every month. That can help build a tax-free income stream, fund reinvestments, or create a small reserve inside the account. The best monthly dividend stocks also need something more important: a business that can keep producing cash.

That’s why apartment real estate investment trusts (REIT) deserve attention. Two monthly dividend stocks I’d consider for a TFSA income portfolio are Canadian Apartment Properties REIT (TSX:CAR.UN) and Boardwalk REIT (TSX:BEI.UN). Neither is the highest-yield REIT on the TSX. But both offer exposure to residential real estate, which can be a strong base for long-term passive income.

CAR

CAPREIT is one of Canada’s largest publicly traded residential landlords. It owns apartments and townhomes across the country, with some exposure outside Canada as well. As of March 31, 2026, CAPREIT owned about 45,400 apartment suites and townhomes.

The monthly payout is the first attraction. CAPREIT pays about $0.13 per unit each month, or roughly $1.55 annualized, yielding about 4.5% at writing. The payout looks reasonably covered as well. In the first quarter of 2026, CAPREIT reported funds from operations (FFO) per unit of $0.60 and an FFO payout ratio of 65.1%. That gives the REIT room to keep funding distributions while managing maintenance, debt, and property investments.

The growth case comes from rent increases, occupancy, property repositioning, and capital recycling. CAPREIT sold non-core assets in recent years, including properties in Canada and Europe, which can help simplify the portfolio and strengthen the balance sheet. If management keeps improving the property base, the REIT can support both income and long-term value.

BEI

Boardwalk offers a different apartment REIT profile. It owns and operates rental communities, with a strong presence in Western Canada. That gives investors exposure to markets such as Alberta, where population growth and rental demand have been strong.

Boardwalk pays $0.15 per unit monthly, or $1.80 annualized, yielding about 2.6% at recent prices. Again, this is not a huge yield. But the payout coverage is excellent at just 36.4% of FFO in the first quarter. That conservative payout is the main appeal. A low payout ratio gives Boardwalk flexibility to reinvest in its buildings, reduce risk, and potentially raise distributions over time. Investors looking for maximum income today may prefer other REITs. Investors looking for income plus growth may find Boardwalk more attractive.

The first-quarter numbers were strong as well. Boardwalk reported FFO of $1.15 per unit, up 8.5% from last year. That shows the business is still producing better cash flow even as the distribution remains conservative. The growth catalyst is rental demand in its core markets. Alberta continues to attract people looking for jobs, housing affordability, and lower living costs compared with some other provinces. If demand stays firm, Boardwalk can benefit from higher rents, strong occupancy, and operating leverage.

Bottom line

Together, CAPREIT and Boardwalk offer a useful mix. CAPREIT brings scale, a higher current yield, and broad residential exposure. Boardwalk brings stronger payout coverage and more growth potential from Western Canadian rental markets.

For a TFSA income portfolio, that combination makes sense. Monthly distributions can be reinvested tax-free, while the underlying apartment assets provide exposure to one of Canada’s most persistent needs: housing. And right now, even $7,000 in each can bring in enough to start compounding.

Investors should still diversify. No REIT is immune to interest rates, debt costs, or regulation. But for those building a monthly income stream inside a TFSA, these two REITs look worth buying and holding with patience.