If you’ve managed to build a $50,000 Tax-Free Savings Account (TFSA), you’re already in a strong position. But the next step you should ideally take is to make that money work harder for you. Instead of relying only on capital gains, I would use that TFSA to generate a reliable stream of tax-free monthly income.
This approach is surprisingly simple. Invest in high-quality monthly dividend stocks, collect regular cash distributions, and let the tax-free nature of the TFSA do the rest.
In this article, I’ll highlight two reliable Canadian dividend stocks with monthly payouts that could help turn a $50,000 TFSA into a dependable income generator.
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Crombie REIT stock
The first monthly income stock I’d consider for this TFSA strategy is Crombie REIT (TSX: CRR.UN). This real estate investment trust (REIT) owns grocery-anchored retail, retail-related industrial, and mixed-use residential properties across Canada.
Following a 24% jump over the last year, its shares currently trade at $17.72 each, giving Crombie a market cap of about $2 billion and an attractive annualized dividend yield of 5.1%.
The recent rally has been backed by improving business fundamentals. In the first quarter, Crombie’s property revenue inched up by 3.6% year-over-year (YoY) to $127 million. Its funds from operations (FFO) climbed 6.5% to $0.33 per unit, while adjusted funds from operations (AFFO) climbed 7.4% to $0.29 per unit. Those gains were driven by contractual rent increases, strong leasing activity, property acquisitions, development service revenue, and higher occupancy. The REIT also posted a 3.7% YoY increase in its commercial same-asset property cash net operating income.
On top of that, the REIT expanded its portfolio by acquiring two industrial properties for $129.8 million and continues advancing development projects, including the 291-unit Marlstone community.
With its stable operations and long-term growth initiatives, Crombie remains an attractive stock for investors seeking dependable monthly cash flow.
BSR REIT stock
If you’re looking to add another reliable monthly income stock to your TFSA, BSR REIT (TSX: HOM.UN) is another stock worth considering.
The REIT owns multifamily apartment communities across high-growth U.S. Sunbelt markets. Its shares currently trade at $16.50 apiece, giving the company a market cap of $646.1 million and an annualized dividend yield of 4.8%. Although the stock has slipped 7% over the last year, that weakness largely reflects property sales and temporary lease-up costs rather than a deterioration in its long-term strategy.
During the March 2026 quarter, BSR’s FFO rose to US$0.18 per unit from US$0.14 in the previous quarter, while its AFFO improved from US$0.11 to US$0.17 per unit as net operating income strengthened and maintenance capital spending declined.
The REIT also continues making progress on its long-term growth plans. Occupancy at The Ownsby property improved to 73.1%, while its same-community occupancy reached 94.7% by the end of April. BSR also expects its recently acquired communities to contribute more as lease-up activity continues.
Combined with Crombie REIT, BSR offers investors another attractive source of dependable monthly cash flow while providing upside as its newer properties continue to stabilize.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND YIELD | MONTHLY PAYOUT | DIVIDEND FREQUENCY |
| Crombie REIT | $17.72 | 1,411 | $25,000 | 5.1% | $106 | Monthly |
| BSR REIT | $16.50 | 1,515 | $25,000 | 4.8% | $100 | Monthly |
| TOTAL | $50,000 | $206 | ||||
| Prices as of July 28, 2026 |
How the numbers add up
By investing $25,000 each in Crombie REIT and BSR REIT, you would spread your money across two monthly dividend payers with attractive yields. Based on their current annualized distribution yields of 5.1% and 4.8%, Crombie could generate about $1,275 in yearly tax-free income, while BSR could contribute roughly $1,200. That adds up to approximately $2,475 annually, or about $206 to $207 every month.
In fact, if you reinvest those monthly payouts instead of spending them, your TFSA can continue compounding over time, helping you build an even larger stream of tax-free passive income in the years ahead. That said, you should always try to minimize your risks by diversifying your TFSA portfolio instead of investing such a large amount in one or two stocks.
