A monthly distribution is only as good as the business supporting it. While plenty of TSX-listed companies could offer attractive yields for a while, the most rewarding long-term investments are usually those that continue growing while returning cash to shareholders year after year. That’s even more important inside a Tax-Free Savings Account (TFSA), where reliable income and long-term capital appreciation could compound without the drag of taxes. That’s why it’s better to own a business with a sustainable payout and improving fundamentals than chase a high dividend yield that may not last.
In this article, I’ll highlight one Canadian monthly income stock and explain why it could be a great choice for TFSA investors seeking tax-free income.
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A monthly income stock worth considering
If your goal is to generate dependable monthly income inside a TFSA, you may want to consider adding Boardwalk Real Estate Investment Trust (TSX: BEI.UN) to your portfolio.
Based in Calgary, this real estate investment trust (REIT) owns more than 200 rental communities with roughly 33,000 residential suites across Canada. Most of its portfolio is in Alberta, with additional properties in Quebec, Saskatchewan, Ontario, and British Columbia.
Boardwalk shares currently trade at $66.84 each, giving the REIT a market capitalization of $3.1 billion. It rewards investors with a 2.5% annualized dividend yield, distributed monthly.
Steady operating growth supports the income
The monthly payout from a stock becomes more appealing when the underlying business continues to produce solid results. In the second quarter of 2026, Boardwalk’s rental revenue rose 2.3% year over year (YoY) to $160.9 million. Its net operating income rose 2.9% YoY to $107.2 million, backed by higher occupied rents and lower leasing incentives.
The REIT also reported funds from operations of $1.19 per share, up 2.6% YoY. Similarly, its adjusted funds from operations inched up by 2% YoY. These figures offer a clearer view of the REIT’s ability to support its monthly distributions.
During the quarter, Boardwalk maintained a strong same-property occupancy rate of 97%. Its average occupied rent also increased to $1,612 from $1,559 a year ago. Strong demand for affordable rental housing helped support those results despite softer conditions in a few markets.
Just as importantly, its dividend distribution remains well covered as its payout ratio in the June quarter was only 37.6% of funds from operations, leaving plenty of room to fund distributions while continuing to invest in its portfolio.
Why Boardwalk still looks attractive
Recently, Boardwalk has completed several asset sales and entered a strategic co-ownership arrangement. These moves give it more flexibility to repurchase undervalued shares and pursue future growth opportunities.
For 2026, the REIT maintained its funds from operations guidance of $4.60 to $4.80 per share. It also expects same-property net operating income growth of 1% to 3.5%.
Put it all together, and Boardwalk offers a reliable monthly income, high occupancy, a conservative payout ratio, and a share price well below reported net asset value. Those qualities make it an attractive TFSA stock for income and long-term growth.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | INVESTMENT | DIVIDEND YIELD | MONTHLY PAYOUT | DIVIDEND FREQUENCY |
| Boardwalk REIT | $66.84 | 299 | $20,000 | 2.5% | $42 | Monthly |
| Prices as of July 30, 2026 |
How the monthly income math works
At the current market price, investing $20,000 at $66.84 per share in Boardwalk REIT would let you buy about 299 Boardwalk shares. With its yield currently standing at around 2.5%, those shares would generate roughly $42 in monthly income, or about $500 per year. Reinvesting those distributions could gradually increase the number of shares you own and help your monthly income grow over time.
