Here’s How I’d Structure $14,000 in a TFSA for Steady Payouts

Passive income can play an increasingly important role in strengthening investors’ financial security amid persistent inflation, geopolitical uncertainty, and ongoing trade tensions. A steady stream of income can help offset rising living costs, while reinvesting those proceeds can further enhance long-term returns through the power of compounding.

For income-focused investors, high-yield dividend stocks that pay monthly can be an attractive source of regular passive income. Moreover, Canadians can hold these investments within a Tax-Free Savings Account (TFSA), subject to available contribution room, allowing eligible investors to earn dividend income and capital gains tax-free. The TFSA contribution limit for 2026 is $7,000, while the cumulative contribution room for eligible investors stands at $109,000.

Against this backdrop, let’s look at two top monthly-paying dividend stocks that could appeal to income-seeking investors. A $14,000 investment, split equally between these two stocks, could generate approximately $60 in monthly dividend income.

SmartCentres Real Estate Investment Trust

SmartCentres Real Estate Investment Trust (TSX:SRU.UN) owns and operates 201 strategically located properties across Canada, encompassing approximately 35.5 million square feet of gross leasable area. The REIT also benefits from a high-quality tenant base, with 95% of its tenants having regional or national operations and approximately 80% providing essential goods and services. This resilient tenant mix supports strong occupancy and collection rates across economic cycles, helping SmartCentres generate stable and predictable cash flows. These cash flows underpin its attractive distribution profile, with the REIT currently paying a monthly distribution of $0.15417 per unit, translating into a forward yield of 6.61%.

SmartCentres also has a favourable growth outlook, supported by resilient demand for retail space and limited new supply amid elevated construction costs. The REIT is capitalizing on these conditions by advancing several development projects. It is currently constructing a 200,000-square-foot Canadian Tire store in Toronto, which could be completed and handed over in the fourth quarter of this year. In addition, SmartCentres is developing two self-storage facilities in British Columbia, both of which could become operational next year.

Along with these projects, the REIT has approximately 0.8 million square feet of properties under construction and another 87 million square feet of projects at various stages in its development pipeline. This sizeable pipeline provides SmartCentres with considerable opportunities to expand its asset base and strengthen long-term cash flow generation.

Given its resilient tenant base, stable cash flows, attractive monthly distribution, and substantial development pipeline, I believe SmartCentres is well positioned to deliver sustainable growth and remains an appealing option for income-focused investors.

Whitecap Resources

Another monthly dividend stock worth considering is Whitecap Resources (TSX:WCP), which has paid approximately $3.4 billion in dividends since 2013 and repurchased roughly $935 million of its shares since May 2017. The company’s premier multi-basin asset portfolio and diversified commodity exposure provide a strong foundation for its business. Its low-decline, capital-efficient assets support resilient production and reliable cash flows, enabling Whitecap to maintain consistent shareholder distributions. The company currently pays a monthly dividend of $0.0608 per share, representing a forward yield of 4.05%.

Whitecap is also benefiting from a supportive commodity-price environment, as heightened geopolitical tensions in the Middle East have contributed to stronger oil and natural gas prices. The company continues to invest in expanding and enhancing its production capacity. After deploying approximately $1.1 billion in capital during the first two quarters, Whitecap expects to invest around $2.1 billion for the full year. Meanwhile, the company continues to integrate the assets acquired through its Veren transaction, while pursuing cost synergies and operational efficiencies that could strengthen profitability and cash-flow generation.

Whitecap has also made meaningful progress in strengthening its balance sheet, reducing net debt by approximately $900 million to $2.5 billion and bringing its net debt-to-annualized funds flow ratio down to just 0.5. With a high-quality asset base, resilient cash flows, an improving balance sheet, and solid production growth opportunities, Whitecap appears well positioned to sustain its shareholder distributions.