I Found a Way to Pull $300 a Month, Tax-Free, From My TFSA

The Tax-Free Savings Account (TFSA) can be the quintessential place to earn passive, tax-free income. You don’t pay tax on your gains or dividends. Likewise, you don’t pay anything when you withdraw from the account. That way if you need the income from the account, you can get it without any penalties (other than you lose that year’s contribution space).

If I had $80,000 to invest in my TFSA, here is how I would set it up to earn over $300 per month in passive income.

An infrastructure stock for safe TFSA income

I would firstly look to add Pembina Pipeline (TSX: PPL) with $20,000 of TFSA cash. It yields 4.4%. Your investment would earn $219 quarterly or $73.01 averaged monthly.

Pembina is an energy infrastructure giant in Western Canada. It provides energy producers everything they need to get their oil/gas to market. It has collection and egress pipelines, storage facilities, fractionation facilities, midstream assets, export terminals, and an LNG terminal in construction.

It is also planning to help power data centres in Central Alberta. With energy prices elevated, it has the benefit of better margins and higher volumes through its assets. PPL stock’s dividend is well funded by contracted income. Its dividend is solid.

Real estate for monthly dividends

Dream Industrial Real Estate Investment Trust (TSX: DIR.UN) would be another $20,000 addition to the TFSA. It yields 5.2% today. Your investment would earn $87.08 monthly.

Dream operates and manages an industrial property portfolio worth over $17 billion. Its assets are very well-located and leased to a wide diversity of high-quality tenants.

The REIT sees good potential for mid-single-digit cash flow growth over the coming few years. Its average lease rate is around 15% below market, so it has embedded growth mechanisms as it renews and leases vacant space.

Dream’s balance sheet and payout ratio are in a strong position. Its dividend is very sustainable, making it a great bet for predictable TFSA income.

A low-risk energy play

Topaz Energy (TSX: TPZ) is another stock I’d buy with $20,000. It yields 4.3% today. Your investment would earn $218.75 quarterly or $72.92 monthly.

With Topaz, you get exposure to the energy industry. Yet, you don’t have any operational or exploration risk that a typical energy stock would have. Topaz operates a royalty and infrastructure business.

It owns land rights where it collects a percentage of the production produced. It is in some very prolific regions that provide attractive organic growth over time.

Topaz has grown its dividend every year since inception. For a growing income stream, it’s a great TFSA stock to hold.

An industrial turnaround stock for my TFSA

Richards Group (TSX: RIC) is the last stock I’d buy with $20,000. It yields 4% today. Your TFSA investment would earn $68.75 monthly.

Richards has predominantly been a distributor of containers and packaging solutions. However, it has been quietly pivoting its acquisition strategy towards higher-margin medical devices and reusables. The market has yet to notice. You can buy this stock for only 13 times trailing earnings.

This stock does have exposure to tariffs and the broader economy, so that is one area to monitor. Yet, if it can complete its turnaround strategy and increase its medical portfolio revenues, it could be due for a re-rate. You collect a nice tax-free dividend stream in your TFSA while you wait.