Here’s How I’d Turn $25,000 in a TFSA Into $151 a Month

To turn a $25,000 investment into $151 in monthly passive income, a portfolio needs to deliver a 7.3% annual dividend yield. Also, holding these investments in a Tax-Free Savings Account (TFSA) makes the income completely tax-free.

While a 7.3% yield is certainly high, it’s still within reach. The TSX has a few top monthly dividend payers offering attractive yields and sustainable payout ratios.

With this background, here’s how I’d turn a $25,000 TFSA portfolio into $151 per month.

A top monthly dividend payer with 6.6% yield

SmartCentres REIT (TSX: SRU.UN) is a must-have in a monthly income portfolio. Its diversified portfolio of retail and mixed-use properties is concentrated in high-demand markets, supporting leasing activity and occupancy. High-quality tenants further strengthen the portfolio through stable rent collection and retention.

SmartCentres REIT appears well-positioned to sustain its distributions month after month. Strong demand for its retail properties is supporting high occupancy, healthy leasing activity, and rental rate growth. These trends should drive continued growth in net operating income (NOI) and funds from operations (FFO), providing a solid foundation for its payouts.

Occupancy stood at 98.1% as of June 30, 2026, reflecting solid demand. Strong leasing activity is also driving higher rents, while demand for new retail space and solid tenant retention support NOI and FFO growth.

The REIT has completed approximately 80% of its 2026 lease renewals, providing visibility into future rental income. More importantly, these renewals are being signed at significantly higher rental rates. Tenant retention also remains strong, while rent collections are close to 99%.

Beyond its existing portfolio, SmartCentres REIT has significant land holdings and a substantial mixed-use development pipeline. These assets provide additional growth opportunities and strengthen the REIT’s ability to sustain and grow its distributions over the long term.

A monthly dividend stock with a 7.9% yield

Firm Capital Mortgage Investment Corporation (TSX: FC) is another TSX stock I’d consider for a TFSA to generate monthly income. Its 7.9% yield and consistent monthly payouts support the investment case. Moreover, it also offers special year-end dividends that provide an additional boost to shareholder returns.

Firm Capital specializes in short-term financing and conventional mortgage lending across residential and commercial real estate. Its portfolio includes construction loans, bridge financing, mezzanine debt, and equity investments.

The company’s key advantage is its focus on niche lending opportunities that traditional banks often underserve. This strategy has helped Firm Capital generate stable cash flow and support consistent monthly dividend payments. Its diversified mortgage portfolio and disciplined underwriting have also contributed to steady operating performance across different economic environments.

Looking ahead, Firm Capital appears well-positioned to sustain its payouts. Its diversified loan portfolio, relatively short-duration mortgages, and growing fee-based income provide a solid foundation for stable cash flow and future dividends.

Earn over $151 in monthly tax-free dividend income

SmartCentres REIT and Firm Capital Mortgage Investment Corporation provide attractive and reliable monthly distributions. Both companies have steadily paid dividends for years, regardless of market conditions.

At a blended yield of roughly 7.3%, a $25,000 investment, spread equally between these two stocks, will generate over $151 in tax-free monthly income.