One of the things I like most about a Tax-Free Savings Account (TFSA) is that you don’t need an enormous portfolio before your investments start producing healthy income. A well-chosen mix of Canadian dividend stocks could turn even a small account into a steady source of tax-free cash, and over time, those payments could grow further as you reinvest them or add new contributions.
But instead of looking for the biggest yields on the TSX, you should ideally own businesses with reliable operations, healthy cash flow, and dividends inside your TFSA that look sustainable for years to come. That approach may produce a little less income today, but it gives you much more confidence in the long run. And if those dividends arrive every month, your portfolio begins to feel like it’s working for you instead of simply sitting in the market.
In this article, I’ll show how I’d invest $24,000 in a TFSA to generate roughly $58 a month in tax-free income using just two monthly dividend stocks.
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Mullen Group stock
If you’re looking to build a dependable monthly income, Mullen Group (TSX:MTL) could be a great stock to add to your TFSA portfolio.
The Canadian company provides transportation, warehousing, customs brokerage, and specialized logistics services across North America. After more than doubling in value over the last year, MTL shares recently traded at $27.39 per share, giving the business a market cap of about $2.6 billion. Income investors also receive a monthly dividend that currently offers a 3.1% annualized yield.
During the second quarter, Mullen’s revenue surged by 12.6% year over year (YoY) to $609 million. Acquisitions contributed $44.7 million in additional revenue, while higher fuel surcharge revenue added another $28.3 million.
More importantly, Mullen’s net profit for the quarter rose 40.6% YoY to $36 million. The company also generated $98.7 million in operating cash flow, up 26.9% from a year ago. Now, the company remains interested in acquisitions that meet its return targets.
Overall, that combination of monthly income, rising earnings, and expansion opportunities makes Mullen Group an attractive stock to own right now.
Chartwell Retirement Residences stock
Another stock worth considering for steady monthly TFSA income is Chartwell Retirement Residences (TSX:CSH.UN), which offers exposure to Canada’s growing seniors housing market.
If you don’t know it already, Chartwell owns and operates retirement communities across Canada. Following a 28% rally over the last year, its stock recently traded at $22.81 per share, giving the REIT a market cap of about $7.4 billion. Its monthly distribution currently provides a 2.7% annualized yield.
During the first quarter, Chartwell’s property revenue climbed 24.4% YoY to $303 million. Funds from operations increased 52.4% YoY to $85.6 million, while funds from operations rose 35% to $0.27 per unit. Those gains were driven by stronger occupancy, improved pricing, and disciplined cost management.
Strong long-term growth prospects remain another important part of Chartwell’s appeal for TFSA investors. The company recently agreed to acquire a 30% interest in a portfolio of 23 retirement residences while continuing to recycle capital through the sale of non-core assets and expanding in key markets. Those strengths make it a compelling long-term holding for investors seeking dependable monthly income.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND YIELD | MONTHLY PAYOUT | DIVIDEND FREQUENCY |
| Mullen Group | $27.39 | 438 | $12,000 | 3.1% | $31 | Monthly |
| Chartwell Retirement Residences | $22.81 | 526 | $12,000 | 2.7% | $27 | Monthly |
| TOTAL | $24,000 | $58 | ||||
| Prices as of July 30, 2026 |
The simple TFSA math
Investing $12,000 in Mullen Group at a 3.1% yield could produce about $372 a year today. Putting the other $12,000 into Chartwell at a 2.7% yield could add roughly $324 annually. Together, that works out to about $696 per year, or close to $58 every month.
Since both stocks pay monthly, investors would not need to wait for a quarterly payout. In fact, holding the shares inside a TFSA means the dividend income can remain tax-free. Investors could spend that cash, save it, or reinvest it to buy more shares and gradually increase future monthly income.
