Canadians can create instant passive income using a Tax-Free Savings Account (TFSA) without paying taxes to the Canada Revenue Agency (CRA). Aiming for $300 per month, tax-free, is realistic and does not require taking on excessive capital risk.
For an enduring portfolio, I’d form a dual-income engine with Vital Infrastructure Property Trust (TSX:VITL.UN) and Savaria Corporation (TSX:SIS). Both stocks pay monthly dividends. However, instead of an equal allocation, I’d do a 70/30 income-weighted split, skewed toward Vital Infrastructure for its higher yield.
Given the resulting 5.2% weighted portfolio yield, the required TFSA capital is approximately $68,781. Assuming you max out the $7,000 yearly contribution limit, the accumulation timeline is 7.5 years.
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Vital Infrastructure (70%)
This $1.4 billion real estate investment trust (REIT), formerly known as NorthWest Healthcare Properties, manages healthcare infrastructure consisting of hospitals, medical outpatient buildings, ambulatory care and rehabilitation centres, specialty clinics, and research facilities. VITL.UN trades at $5.46 per share and pays a hefty 6.7% dividend.
Vital Infrastructure’s primary tenants are hospital operators and healthcare practitioners; some receive government funding. Besides North America, the REIT operates in Australia, Brazil, and Europe. Building and modernizing essential healthcare infrastructure to enable critical health services are ongoing concerns.
According to management, three long-term trends, namely aging demographics, rising healthcare expenditures, and a shift toward outpatient and ambulatory care, will drive demand for healthcare real estate. The rebranding in March 2026 was intended to reposition the portfolio toward North America.
As of June 30, 2026, the number of properties was down to 104 following the reduction of the European portfolio. The occupancy rate was 96.4%, while the weighted average lease expiry is 13.1 years. However, for the first half of 2026, net property operating income declined 37% year-over-year to $96.3 million, while net loss reached $3.6 million during the same period.
Vital is eyeing the unpenetrated Canadian outpatient market. The early-stage outpatient migration presents substantial long-term growth potential. Also, the healthcare system is capacity-constrained. The REIT has re-entered the U.S. market by acquiring East New York Health Hub. The purpose-built integrated community health centre is located in Brooklyn, New York.
Savaria Corporation (30%)
Savaria operates in the accessibility industry across seven countries on three continents. The $2.1 billion company manufacture stairlifts, home elevators, and commercial wheelchair lifts for the elderly and physically challenged individuals. It boasts a global manufacturing network and an extensive worldwide dealer network.
In Q2 and the first half of 2026, net earnings rose 54.4% and 66.3% year-over-year to $25.2 million and $47.9 million. Total revenue in the second quarter increased 8.4% to a record $245.8 million compared to Q2 2025. Savaria’s new growth phase targets $1.6 billion in revenue by 2030.
According to its President and CEO, Sébastien Bourassa, Savaria has comfortable liquidity for future investments or acquisitions. Performance-wise, SIS is up 29.1%, outperforming the TSX’s plus-15.8% return. At $29.60 per share, the dividend yield is a modest 1.9%.
Enduring TFSA monthly income
The TFSA is a powerful tool that puts a $300 tax-free monthly paycheque within reach in only 7.5 years. Vital Infrastructure and Savaria Corporation benefit from the same long-term demographic tailwind – the aging population. Your TFSA income and the businesses are built to endure.
