Monthly income feels different when it lands tax-free.
Now, of course, there’s no confetti and no giant cheque with balloons — just cash arriving in a Tax-Free Savings Account (TFSA) while bills continue their little monthly parade. For investors who want passive income, that kind of predictability can feel oddly luxurious.
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The ideal portfolio
The TFSA makes this especially useful. The Canada Revenue Agency (CRA) says the 2026 TFSA dollar limit is $7,000, added on January 1, 2026. So a $14,000 contribution only works if investors have unused room carried forward, or if two eligible investors each use their own $7,000 room. The CRA also says investors should calculate available room using their own records, since CRA account information updates only once per year.
That detail is worth taking seriously. A TFSA is wonderful, but an over-contribution penalty is not. That is less “monthly income machine” and more “CRA-themed jump scare.” Once the room is there, the next question becomes simple. What kind of investment can turn $14,000 into regular tax-free cash? One option is CT Real Estate Investment Trust (TSX: CRT.UN).
CRT
CT REIT is not a regular stock, but a real estate investment trust (REIT), which means investors buy units in a business that owns income-producing properties. In this case, CT REIT owns a Canada-wide portfolio leased primarily to Canadian Tire, its most important tenant. The REIT says its leases include annual rental growth built into long-term agreements.
That setup gives CT REIT a very clear income profile. It owns properties, tenants pay rent, and the trust distributes cash to unitholders. The monthly part is the real draw. CT REIT says distributions are paid on or about the 15th day of each month to unitholders of record at the close of business on the last business day of the previous month. It also announced a 3.5% distribution increase starting with the July 2026 payment.
The new monthly distribution is $0.0818 per unit, or $0.9816 annually. That brings the dividend to an annual yield of about 5.3%. On a $14,000 TFSA investment, that works out to roughly $753 a year, or about $63 a month.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CRT.UN | $18.21 | 768 | $0.98 | $752.64 | Monthly | $13,985.28 |
Growth and stability
Granted, that will not pay the mortgage. It might help cover a phone bill, a utility bill, or part of the grocery run. More importantly, it can start the habit of turning savings into cash flow. Reinvest those monthly distributions, add future TFSA contributions, and the machine gets a little larger over time.
The latest results support the income case. In the first quarter of 2026, CT REIT reported adjusted funds from operations (AFFO) of $78.1 million, up 3.5% from the year before. Its AFFO payout ratio was 72.5%, almost unchanged from 72.6% a year earlier.
That payout ratio is the number to watch. It suggests CT REIT covered its distributions with room left over, which gives income investors more comfort than a giant yield with mystery meat underneath. The portfolio also remains heavily occupied. CT REIT reported committed occupancy of 99.4% as of March 31, 2026. Canadian Tire represented 90.9% of annualized base minimum rent, which gives the REIT stability but also creates concentration risk.
Bottom line
In short, this is exactly the kind of monthly payer TFSA investors may want to study. It offers a real monthly distribution, a yield near 5.3%, high occupancy, and a business tied to everyday Canadian retail real estate.
A $14,000 TFSA contribution will not build a massive income stream overnight. Yet it can start sending tax-free monthly cash into an account built for patience. For investors who want their TFSA to do more than sit politely, CT REIT looks like a strong place to begin.
