A maxed-out Tax-Free Savings Account (TFSA) can become a second paycheque without demanding a single extra shift. At today’s maximum lifetime contribution room, one high-yield Canadian stock could produce an average of nearly $779 per month, with none of that investment income appearing on a tax return.
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Maxing out
The Canada Revenue Agency (CRA) set the 2026 TFSA limit at $7,000, bringing cumulative room to $109,000 for someone who was at least 18 and a Canadian resident in every year since 2009. That maximum isn’t universal. Unused room carries forward, withdrawals generally return as room the following calendar year, and each investor should check their own records before contributing.
Once money is inside a TFSA, dividends, capital gains, and interest can grow tax-free. Withdrawals also don’t count as taxable income, which can make TFSA cash flow especially useful for retirees protecting income-tested benefits.
A large yield still needs a seatbelt. Dividend yield rises when a stock falls, and a spectacular percentage can be the market politely leaving a warning on the windshield. I’d therefore want free cash flow covering the payout and a business capable of recovering before trusting one stock with an income-focused TFSA.
FSZ
Fiera Capital (TSX: FSZ) manages public- and private-market investments for institutions, financial intermediaries, and wealthy clients. Its revenue largely comes from fees charged on assets under management (AUM), so rising markets, new client money, and higher-fee private assets can lift earnings without Fiera stock building another factory or stocking a warehouse.
The latest update provides some welcome movement. Preliminary AUM reached $163.5 billion on June 30, up 2.1% from March and 1.9% year over year. Public-market AUM excluding sub-advised mandates rose 4.3% during the quarter, while private-market AUM increased 6.7% over the year. More assets can mean more fees, which is exactly what this battered manager needs.
The dividend also looks less dramatic underneath the hood. Fiera stock generated $95.6 million in trailing free cash flow through the first quarter, up 10% year over year. Its dividend consumed 48% of that amount after management halved the quarterly payment in 2025. Nobody enjoyed the haircut, yet the smaller payout now has considerably more breathing room.
Earning income
At a recent price near $4.84, Fiera’s $0.43 annualized dividend produces an 8.5% yield. Investing the full $109,000 would leave $4.96 uninvested after rounding down to whole shares.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| FSZ | $4.84 | 22,520 | $0.432 | $9,683.60 | Quarterly | $108,996.80 |
That payout averages $806.97 per month, which rounds to the headline’s $807. Fiera actually pays quarterly, so investors would receive approximately $2,420.90 every three months rather than a neat monthly deposit. Budgeting can tame that lumpy schedule; wishful thinking cannot.
Fiera still reported approximately $2.2 billion of negative net contributions in its core public-market business during the second quarter, plus $5.3 billion of sub-advised outflows. Its net-debt ratio was also 3.6 times in March. Falling markets, additional client withdrawals, or stubborn debt could squeeze fees and put the dividend under renewed scrutiny.
Foolish takeaway
I’d only concentrate my TFSA here if my other accounts already provided broad diversification. Investors building their first portfolio should spread their money among several Canadian dividend stocks, because one company shouldn’t decide whether retirement includes dessert.
For an income-focused TFSA, however, Fiera stock offers a reset dividend, improving coverage, recovering AUM, and a deeply discounted share price. If management turns those returning assets into steadier fees while reducing debt, today’s $807 average monthly income could eventually be joined by something this stock has lacked for a while: rising value.
