If you want to get paid every month from your Tax-Free Savings Account (TFSA) investments, you may want to consider dividend investing. A $60,000 TFSA split between TSX-listed stocks like Allied Properties REIT (TSX:AP.UN) and Freehold Royalties (TSX:FRU) could currently generate more than $400 in monthly dividend income.
While this calculation may look simple, the investment decision is not. Allied carries a very high yield after a steep share-price decline, while Freehold offers a lower yield backed by royalty cash flow from energy production. That’s why both deserve a careful look before buying.
In this article, I’ll compare these two Canadian monthly payers and explain how each could contribute to your tax-free income strategy.
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Allied Properties stock
For investors willing to accept more risk for a larger monthly payout, Allied Properties REIT is the first stock to consider. It operates urban office properties across major Canadian cities.
Its units recently traded at $10.02 per share with a 25% year-to-date decline, giving the company a market capitalization of about $1.8 billion and an eye-popping annualized dividend yield of 10.8%. The recent declines in Allied stock reflect pressure on office real estate and its weaker operating results.
For a little background, the real estate investment trust’s (REIT) rental revenue in the first quarter fell 4.5% year-over-year (YoY) to about $144 million. Similarly, its operating income dropped 14.3% YoY to $69.6 million as non-renewals, property sales, and lower capitalized operating costs weighed on results. Allied also recorded a $44 million expected credit loss and a $48 million impairment tied to KING Toronto.
Still, the trust is making progress on strengthening its business. In the latest quarter, its net debt-to-annualized adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) fell to 12.3 times from 12.9 times in the previous quarter. At the same time, Allied also completed $46 million of property sales and had another nine properties under firm agreements worth about $201 million, supporting its plan to reduce debt.
If its leasing improves and asset sales continue to reduce debt, Allied stock offers a large yield and recovery potential at the current market price. Although it’s a higher-risk TFSA choice, this income opportunity is hard to ignore.
Freehold Royalties stock
You can balance that higher yield risk with a stable income stock like Freehold Royalties. It owns oil and natural gas royalty interests across Canada and the United States.
Following a 28% gain in the last year, its shares now trade at $17.15 per share with a market cap of about $2.8 billion, and offer an annualized dividend yield of 6.3%.
In the first quarter, Freehold’s production slipped 4.4% YoY to 15,533 barrels of oil equivalent per day as lower crude oil prices in late 2025 led to more moderate drilling activity. Even so, the company’s realized price improved from the previous quarter, and it returned $44.3 million to shareholders through dividends. Its dividend payout ratio also improved to 75% from 87% in the previous quarter.
During the quarter, Freehold also invested $19 million in royalty lands in the Permian Basin. It expects production to remain moderate in the second quarter before improving later in 2026 as well completions increase in the United States.
Overall, Freehold offers a balanced mix of dependable monthly income, resilient cash flow, and long-term growth opportunities, making it an attractive stock for TFSA investors.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND YIELD | MONTHLY PAYOUT | DIVIDEND FREQUENCY |
| Allied Properties REIT | $10.02 | 2,994 | $30,000 | 10.8% | $270 | Monthly |
| Freehold Royalties | $17.15 | 1,749 | $30,000 | 6.3% | $158 | Monthly |
| TOTAL | $60,000 | $428 | ||||
| Prices as of July 23, 2026 |
How to generate $428 in TFSA passive income
If you invested $30,000 in Allied Properties REIT and another $30,000 in Freehold Royalties, the math is simple. Based on their current annualized dividend yields of 10.8% and 6.3%, Allied could generate about $270 a month in dividend income, while Freehold could add roughly $157.50 a month. That brings the total to about $428 every month, or around $5,130 a year, without needing to sell a single share.
However, to minimize your risks, you may want to consider diversifying your TFSA portfolio instead of investing such a large sum of money in just one or two stocks.
