Got $14,000? Create Monthly Income in a TFSA

A $14,000 stake in GO Residential REIT could fund monthly TFSA income. Here is how the math works, and why the Manhattan landlord earns a buy rating.

If you have $14,000 sitting in a Tax-Free Savings Account (TFSA), you can easily create a recurring passive-income stream in 2026.

One low-cost strategy that also provides exposure to the real estate sector is to own units of real estate investment trusts (REITs) that pay attractive dividends. Notably, every dollar of income you earn inside the TFSA is exempt from Canada Revenue Agency taxes.

One REIT that should be on the top of your TFSA watchlist is GO Residential REIT (TSX: GO.U), a landlord that owns luxury high-rise apartment towers in Manhattan.

diversification is an important part of building a stable portfolio

Source: Getty Images

Is this dividend stock a good TFSA buy?

GO Residential is an internally managed REIT built around one simple idea: buy the best apartment towers in one of the tightest rental markets in North America, then run them better than anyone else can. The trust owns luxury suites in Manhattan, and its most recent quarter showed just how strong that market has become.

  • Committed occupancy sat at 99% at the end of the first quarter (Q1), and average monthly rent per suite reached $6,876, according to the company’s earnings call.
  • Median rents in Manhattan crossed $5,000 a month for the first time on record in February 2026, and vacancy across the borough stayed under 2% all quarter.
  • This, combined with record pricing, shrinking supply, and rising demand, is what an income investor wants to see behind an attractive distribution.

GO Residential pays a monthly cash distribution of $0.05325 per unit, or $0.639 per unit a year, which translates to a yield of almost 7%.

In the first quarter of 2026, adjusted funds from operations, a cash flow measure that REITs use instead of net income, came in at $0.25 per unit, indicating a payout ratio of 62.8%.

Management targets roughly 65% as its long-term guideline, so the payout currently sits below target, leaving room for the distribution to continue growing.

Now for the math on the $14,000 TFSA contribution. Today, GO Residential REIT stock is priced at $9.40. Using this price, $14,000 allows you to purchase 1,489 units of the REIT.  

Multiply that by the $0.05325 monthly distribution rate, and you get about $79 a month or close to $950 a year, paid directly into your TFSA and completely tax-free.

What’s next for the Canadian dividend stock

Income investors want to know if a distribution is safe today and has room to grow tomorrow. During the first quarter of 2026, GO Residential announced deals to buy Ivy Tower, the Hudson Yards portfolio, 7 Dey Street, and a stake in 409 Eastern Parkway, a group of acquisitions expected to roughly double its building count.

Two of those deals, 7 Dey Street and Ivy Tower, already closed by June 15, 2026, according to a company statement, pushing the portfolio to 2,545 suites from 2,015, a 26% jump in just a few months.

Management called each purchase accretive, meaning it should add more cash flow per unit than it costs to buy, while keeping leverage inside the trust’s target range.

Debt to gross book value stood at 50.3% at quarter end, and liquidity totalled $332.5 million, giving the trust plenty of room to keep growing without straining its balance sheet.

GO Residential REIT checks the boxes income investors care about most. A well-covered monthly distribution, exposure to one of the strongest rental markets on the continent, and a management team that keeps closing accretive deals without overloading the balance sheet.

For anyone building tax-free monthly income with $14,000, this Canadian dividend stock deserves a spot on your watch list and, in my view, is a REIT worth owning today.

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

More on Dividend Stocks

Senior uses a laptop computer
Dividend Stocks

A 4.9% Dividend Stock I Plan to Hold Long Term: What $5,000 Would Collect

This is a solid utility stock to consider on dips for a long-term portfolio with a focus on growing income.

Read more »

shopper carries paper bags with purchases
Dividend Stocks

Your GIC Pays 3% to 4%: This TSX Stock Pays You Every Month Instead

SmartCentres pays more income than an illustrative GIC, but a modest unit-price decline could erase the first-year advantage.

Read more »

the word REIT is an acronym for real estate investment trust
Dividend Stocks

REIT Investing: I’m holding SmartCentres for its 98.1% Occupancy

SmartCentres’ fundamentals remain solid. Besides high occupancy, rental growth and a high-quality tenant base are positives.

Read more »

ETFs can contain investments such as stocks
Dividend Stocks

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

Your $14,000 TFSA can seed tax free monthly income for life. See how to begin a low-cost passive income stream…

Read more »

holding coins in hand for the future
Dividend Stocks

Turning 65 in 2027? Delaying CPP Could Pay You 42% More a Year

Waiting until 70 can increase CPP substantially, but the five-year funding gap deserves as much attention as the bigger cheque.

Read more »

Blocks conceptualizing Canada's Tax Free Savings Account
Dividend Stocks

What the Telus Dividend Cut Means for Your TFSA Income, and What to Do About It

Telus’s steep dividend cut has reduced TFSA income, but its debt-reduction strategy and growth efforts could make the stock worth…

Read more »

Investor wonders if it's safe to buy stocks now
Dividend Stocks

TC Energy: Buy, Sell, or Hold in Late 2026?

A favourable demand environment and strong growth pipeline position TC Energy to deliver solid growth through late 2026 and beyond.

Read more »

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

I’d Put a Big Slice of My TFSA Into This 5.1% Dividend Stock

See why it could be a top TFSA dividend income pick for Canadian investors. Brookfield Infrastructure yields 5.1% and targets…

Read more »