How to Structure a TFSA With $14,000 for Lifelong Monthly Income

Passive income can provide greater financial stability while helping investors preserve their purchasing power during periods of persistent inflation. Reinvesting these consistent payouts can further accelerate wealth creation through compounding, making it easier to achieve long-term financial goals.

One of the simplest and most cost-effective ways to build a reliable passive income stream is by investing in high-yield monthly dividend stocks. Meanwhile, investors can make these investments through their Tax-Free Savings Account (TFSA), which can make this strategy even more attractive, as both dividend income and capital gains can grow tax-free, subject to the account’s annual and cumulative contribution limits.

With that in mind, here are two monthly dividend stocks that could provide dependable income for years to come. A $14,000 investment split equally between these two stocks can generate approximately $60 in monthly passive income while offering the potential for long-term capital appreciation.

SmartCentres Real Estate Investment Trust

SmartCentres Real Estate Investment Trust (TSX: SRU.UN) is an attractive option for income-focused investors due to its resilient cash flows and generous dividend yield. The REIT owns and operates approximately 200 strategically located properties across Canada, comprising 35.5 million square feet of gross leasable area. Its high-quality tenant base, with about 95% of tenants consisting of national or regional retailers, has helped it maintain consistently strong occupancy levels across economic cycles.

Supported by healthy occupancy, steady lease-up activity, and higher rental rates, SmartCentres continues to generate stable cash flows that underpin its monthly distributions. The REIT currently pays a monthly distribution of $0.15 per unit, yielding 6.2%.

Meanwhile, Canada’s retail real estate market remains supported by resilient demand and limited new supply, as elevated construction costs continue to constrain development. Against this backdrop, SmartCentres is expanding its portfolio, with approximately 0.8 million square feet of properties currently under construction, including a 200,000-square-foot retail development pre-sold to Canadian Tire. The REIT has also strengthened its long-term growth pipeline by acquiring an 18.8-acre site in Kingston, Ontario, for approximately $7.1 million. Overall, its development pipeline encompasses roughly 87 million square feet of projects at various stages of planning and construction, providing meaningful long-term growth opportunities.

Given its stable cash flows, attractive monthly distribution, and robust development pipeline, I believe SmartCentres is an excellent choice for investors seeking reliable passive income and long-term growth.

Sienna Senior Living

Another monthly dividend stock that I am bullish on is Sienna Senior Living (TSX: SIA), a leading provider of senior living services in Canada. Favourable demographic trends, including a rapidly aging population and a limited supply of new senior living facilities, continue to drive demand for its services, creating compelling long-term growth opportunities.

To capitalize on these tailwinds, Sienna is expanding through a combination of organic growth and strategic acquisitions. The company has acquired approximately $188 million in assets this year and expects to remain active on the acquisition front, supported by a robust pipeline of opportunities. In addition, the renewal of its At-The-Market (ATM) Equity Distribution Program, which authorizes the issuance of up to $150 million in common shares, provides added financial flexibility to fund future growth initiatives.

At the same time, Sienna continues to optimize its portfolio by increasing occupancy in its retirement segment while improving net operating income (NOI) and operating margins. Management expects retirement occupancy to exceed 95% this year and projects approximately 10% growth in retirement-segment NOI. The long-term care (LTC) segment could deliver low- to mid-single-digit NOI growth, supported by operational improvements and a stable funding environment.

With favourable demographic trends, disciplined expansion initiatives, and ongoing operational improvements, Sienna appears well-positioned to deliver steady, long-term earnings growth. These growth prospects should support the sustainability of its monthly dividend, currently offering $0.078 per share, representing a forward yield of 4.1%.