Here’s a TFSA Stock That Pays You 4.5% Every Month

Most Canadian dividend stocks offer shareholders a quarterly payout. However, there are a few TSX dividend stocks that offer a monthly payout in 2026.

Investing in a monthly dividend stock means you can reinvest the dividend payout each month or use the cash to offset recurring expenses. Inside a Tax-Free Savings Account (TFSA), that advantage compounds because every dollar you collect stays completely tax-free.

One such monthly Canadian dividend stock that should be on top of your TFSA watchlist is Whitecap Resources (TSX:WCP).

Whitecap Resources is a midsize Canadian energy producer with oil and natural gas assets spread across the Western Canadian Sedimentary Basin. Unlike most of its peers in the sector, Whitecap pays shareholders every month rather than every quarter.

The company currently distributes $0.061 per share monthly, which works out to $0.73 per share a year. At current prices, that gives investors a yield of roughly 4.5%, paid straight to your account on a predictable monthly schedule.

Put another way, 1,000 shares (about a $16,160 position) would generate roughly $61 a month, or $732 a year, entirely tax-free inside a TFSA. Scale that up to 3,000 shares, and you are collecting more than $180 a month without owing the Canada Revenue Agency a cent.

The monthly TSX dividend stock is a top buy

A high yield only matters if the payout is sustainable across market cycles.  In Q2 2026:

• Whitecap reported funds flow of $1.4 billion or $1.11 per share, while free funds flow stood at $925 million. With a quarterly dividend expense of $220 million, the payout ratio in Q2 stood at just over 20%.
• Production averaged 388,894 barrels of oil equivalent per day, roughly 8,000 barrels above the company’s internal forecast, driven by strong well results and base production optimization.
• Because of that outperformance, Whitecap raised its 2026 production guidance for the second time this year, to 385,000 barrels of oil equivalent per day, while holding capital spending guidance steady at $2 billion to $2.1 billion.
• Operating costs fell to $11.88 per barrel of oil equivalent in the quarter, down 13% year over year, and management now expects full-year operating costs to average $12 per barrel.
• Lower costs combined with strong oil and condensate prices pushed the operating netback to $43.84 per barrel of oil equivalent, up 48% from a year earlier. Net income more than doubled to $890 million, or $0.73 per share.

Whitecap has also been paying down debt aggressively, cutting net debt by $900 million over the past six months to $2.5 billion, or 0.5 times cash flow. A strong balance sheet will help support a reliable monthly dividend through commodity cycles.

Chief Financial Officer Thanh Kang addressed the company’s approach to shareholder returns directly on the second-quarter earnings call. He explained that Whitecap plans to keep growing production and cash flow by 3% to 5% per share, while increasing the dividend over time.

As he put it, “We want to continue to grow that dividend in that 1% to 2% on a long-term basis there. And we still have enough free cash flow to continue to buy back our shares in that 2% to 4%.”

That is a management team talking about growing the payout, not just protecting it, while simultaneously funding buybacks and debt reduction from the same free cash flow stream. For income-focused TFSA investors, that combination is hard to find in the energy sector.

The Foolish bottom line

I like Whitecap Resources as a core income holding for TFSA investors.

The monthly payment schedule, the roughly 4.5% yield, and a balance sheet that keeps getting stronger all point to a dividend that management is actively working to protect and grow, not just maintain.

Combined with disciplined capital spending and a resource base built for decades of production, Whitecap looks like a stock worth owning for anyone building a tax-free income stream.