A 6% monthly yield can turn a Tax-Free Savings Account (TFSA) from a quiet savings bucket into a real income tool. That kind of cash flow gets attention for good reason. A $20,000 TFSA position earning 6% would generate about $1,200 a year before reinvestment. Paid monthly, that works out to roughly $100 a month!
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| SRU.UN | $30.55 | 654 | $1.85 | $1,209.90 | Monthly | $19,979.70 |
No, that will not fund retirement on its own. It can, however, make a TFSA feel more useful when household costs keep climbing.
Source: Getty Images
More important than ever
Statistics Canada reported that the Consumer Price Index rose 3.2% year over year in May, while food purchased from stores rose 4.3%. Grocery inflation has now outpaced headline inflation for 16 straight months.
So monthly income still has appeal. A TFSA can hold qualified investments, including stocks, exchange-traded funds (ETF), and real estate investment trusts (REIT). The Canada Revenue Agency says withdrawals are generally tax-free, but those withdrawals do not create new contribution room until January 1 of the next calendar year.
That said, the TFSA income stock is not simply the one with the biggest yield. A huge payout can look tempting, but it can become a headache if cash flow weakens. A better choice is a business with useful assets, dependable demand, and a payout that has a realistic chance of holding up.
That brings investors to SmartCentres REIT (TSX:SRU.UN).
SRU
SmartCentres stock yields about 6% at writing, trading at just 14.3 times earnings. With that in mind, investors can get meaningful income for a great price.
SmartCentres stock owns one of Canada’s largest retail real estate portfolios. Its investor overview says the REIT has 200 properties, $12.3 billion in assets, 35.5 million square feet of rentable area, 3,500 acres of land, and 114 Walmart-anchored centres.
The latest leasing numbers show the portfolio remains relevant. In the first quarter of 2026, SmartCentres stock reported in-place and committed occupancy of 97.6% as of March 31. The REIT also extended about 80% of leases maturing in 2026, with rent growth of 11.5% excluding anchors and 5.8% including anchors.
Looking ahead
The REIT also has a growth angle beyond monthly cash. SmartCentres stock says new retail development is gaining momentum, with future projects expected in Kingston, Lindsay, and Winnipeg. It also noted construction of a 200,000-square-foot retail building pre-leased to Canadian Tire on Laird Drive in Toronto, with possession expected in the third quarter of 2026.
The payout needs watching. For the first quarter of 2026, SmartCentres reported funds from operations (FFO) per unit of $0.54 and FFO with adjustments per unit of $0.52. Its payout ratio to adjusted FFO was 86.4%, while the payout ratio to AFFO with adjustments was 90.6%.
A payout ratio near 90% leaves less room for mistakes. The broader risks are familiar for REIT investors. Higher rates can pressure valuations and borrowing costs. Retail tenants can struggle if consumer spending weakens. Development projects can also face delays or cost overruns. Even so, SmartCentres stock has a useful setup for TFSA income investors. It offers high occupancy, monthly distributions, everyday retail exposure, and a yield that remains far above many blue-chip dividend stocks.
Bottom line
A TFSA should not be filled only with high-yield REITs. Investors still need diversification, growth, and protection from company-specific risk. For those looking to add monthly income, though, SmartCentres stock deserves a place on the watch list. With a 6% yield, it’s a monthly payer backed by everyday Canadian retail real estate that can still do a lot of heavy lifting.
