Twelve tax-free paydays a year can turn a dormant $14,000 Tax-Free Savings Account (TFSA) balance into a portfolio that never really clocks out. Split between two monthly payers, that amount could send about $47.80 back into the account every month, even while the original investments remain in place. But, how can investors get there?
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A monthly income rhythm
The 2026 TFSA dollar limit is $7,000, so investing $14,000 would require at least $7,000 of unused room from earlier years. That room carries forward, giving many Canadians the flexibility to invest more than the annual limit without overcontributing.
Once the money enters a TFSA, dividends, distributions, and capital gains can grow without Canadian tax. That shelter becomes especially useful when monthly payments get reinvested, since every new share can begin producing its own income.
To create that recurring cash flow without relying on one industry, I’d divide the money equally between Exchange Income Corporation (TSX:EIF) and SmartCentres Real Estate Investment Trust (TSX:SRU.UN).
Exchange Income
EIF stock owns aviation, aerospace, and manufacturing businesses that provide services ranging from northern passenger flights and medevac transportation to surveillance and aircraft maintenance. Many of those operations serve remote communities or government customers, creating demand that doesn’t disappear simply because consumers tighten their wallets.
First-quarter revenue climbed 30% to a record $867 million, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) rose 28% to $166 million. Its trailing free-cash-flow payout ratio also improved to 57%, supporting the company’s $0.23 monthly dividend.
The shares have already enjoyed a substantial run, leaving the current yield near 2.2%. That lower yield buys access to faster earnings growth, which pairs well with a higher-paying real estate position.
SmartCentres
SmartCentres owns 200 properties across Canada, including 114 centres anchored by Walmart. Its necessity-focused tenants help bring shoppers onto the properties regularly, while a large land portfolio gives the real estate investment trust (REIT) room to add housing, self-storage, and mixed-use developments.
Committed occupancy reached 97.6% at the end of the first quarter and subsequently climbed to 98%. SmartCentres pays $0.15 per unit monthly, equal to $1.85 annually and a yield near 6.1% at the recent unit price.
That larger distribution supplies most of the immediate income, while EIF stock brings stronger operating growth. Together, the two holdings create a more balanced approach than simply chasing the highest name among Canadian monthly dividend stocks.
The $14,000 plan
Investing roughly $7,000 in each company would produce about $573.63 annually, assuming both payments remain unchanged. That works out to approximately $47.80 per month.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| TSX:EIF | $131.06 | 53 | $2.76 | $146.28 | Monthly | $6,946.18 |
| TSX:SRU.UN | $30.26 | 231 | $1.85 | $427.35 | Monthly | $6,990.06 |
| TOTAL | $573.63 | $13,936.24 |
There are risks that come with the cash. EIF stock must integrate acquisitions while managing aircraft, fuel, and contract risks. SmartCentres carries substantial debt and depends heavily on major tenants, while higher borrowing costs could slow its development plans. Monthly payments may feel dependable, but neither company guarantees them.
Bottom line
EIF stock offers expanding aerospace and essential aviation operations, while SmartCentres supplies a larger yield backed by highly occupied Canadian retail properties. Reinvesting their monthly payments could steadily add shares, turning $14,000 today into a much stronger income stream by retirement.
