A $200 monthly paycheque doesn’t sound life-changing until you realize it can cover a phone bill, a few grocery runs, or an increasingly suspicious number of streaming subscriptions. Better yet, inside a Tax-Free Savings Account (TFSA), the Canada Revenue Agency (CRA) doesn’t get its usual invitation.
That works out to $2,400 a year in tax-free income. Getting there doesn’t necessarily require a six-figure portfolio either, particularly when investors combine decent yields with businesses capable of maintaining and growing their payouts.
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Why it works
The TFSA makes the math even friendlier. The 2026 contribution limit is $7,000, but unused room carries forward. Someone who has been eligible every year since the TFSA launched in 2009 and has never contributed could have as much as $109,000 of room today. Not every Canadian does, of course, so check your own records before contributing. Investors wanting more background on investing inside a TFSA should also remember that investment growth doesn’t use additional contribution room.
Withdrawals are generally tax-free as well, and the amount withdrawn gets added back to the contribution room the following calendar year. TFSA income and withdrawals also do not affect federal income-tested benefits and credits. That makes dividend income particularly handy in retirement.
Now for the fun bit. At a blended yield of roughly 5%, about $47,500 can produce our $2,400 annual target. I’d split that money between two rather boring businesses, which is exactly what I want from money expected to keep showing up.
CT REIT keeps collecting
CT Real Estate Investment Trust (TSX: CRT.UN) owns more than 370 properties, with Canadian Tire as its overwhelmingly largest tenant. Think stores, distribution centres, and other properties occupied by a company that would rather keep selling tires than start packing boxes.
Its latest quarter looked reassuringly dull. Occupancy stood at 99.5%, while adjusted funds from operations (AFFO) per unit rose 2.5%. Its AFFO payout ratio was just 72.7%, leaving a healthy cushion beneath the distribution.
That helped CT REIT raise its monthly distribution another 3.5% this year to $0.08 per unit. At a recent $17.16 unit price, the annualized $0.10 distribution produces a yield around 5.7%. Investors hunting for Canadian dividend stocks, therefore, get both an attractive starting yield and evidence the payment can still grow.
Pembina growth engine
Pembina Pipeline (TSX: PPL) adds energy infrastructure to the mix. It owns pipelines, processing facilities, fractionation assets, and export infrastructure moving oil, natural gas, and natural gas liquids across North America.
Its newest opportunity stretches beyond traditional pipelines. Pembina and its partners recently approved the $4.6 billion Greenlight Electricity Centre, a 932-megawatt (MW) natural-gas power plant providing dedicated electricity to Meta’s Alberta data centre. That gives Pembina stock a new cash-flow stream while potentially increasing demand across its existing natural-gas infrastructure.
Meanwhile, second-quarter adjusted cash flow from operating activities reached $778 million. Pembina also increased its quarterly dividend 3.5% this year to $0.74 per share, producing $2.94 annually and a yield around 4.4% at a recent $66.95 share price.
Bottom line
Together, those positions would produce about $2,401.25 per year, or roughly $200.10 per month on average with a $47,515 investment. The cash won’t arrive evenly because Pembina stock pays quarterly, while CT REIT pays monthly.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CRT.UN | $17.16 | 1,380 | $0.98 | $1,354.61 | Monthly | $23,680.80 |
| PPL | $66.95 | 356 | $2.94 | $1,046.64 | Quarterly | $23,834.20 |
| TOTAL | — | — | — | — | — | $47,515.00 |
CT REIT remains heavily dependent on Canadian Tire, while Pembina stock carries energy-sector, project-execution, and financing risks. Neither payout is guaranteed, and both share prices can fall.
Still, $200 a month is no longer some distant TFSA milestone requiring a millionaire-sized account. With enough accumulated room, two durable cash-producing businesses can turn roughly $47,500 into a tax-free paycheque that has room to grow.
