TFSA Passive Income: 3 Incredible Stocks That Earn $2,148/Year

A diversified Tax-Free Savings Account (TFSA) portfolio built around high-quality dividend stocks can help investors earn tax-free passive income for years. The strategy is to add financially sound companies with durable businesses, dependable cash flows, and dividend policies that can withstand changing economic conditions. Over time, these stocks can help turn a TFSA portfolio into a growing income stream.

Against this backdrop, here are three incredible stocks to earn $2,148/year in passive income.

TFSA passive income stock #1

SmartCentres REIT (TSX: SRU.UN) is worth considering for investors seeking passive income from a TFSA. The REIT offers monthly distributions and a relatively high yield of around 6.9%, making it an attractive option for income-focused investors.

Its properties are strategically located, helping the REIT generate relatively steady net operating income (NOI) and funds from operations (FFO). These consistent cash flows provide support for its regular distributions. Its real estate portfolio witnesses steady demand. Strong leasing activity, tenant retention, healthy occupancy rates, and the ability to raise rents can help support the REIT’s cash flow over time.

Looking ahead, its retail properties are likely to sustain steady demand. Further, the REIT also has significant land holdings and a large pipeline of mixed-use development projects. As these projects are developed, they could add new income-producing properties, increase cash flow, and create opportunities for distribution growth over the long run.

TFSA passive income stock #2

Canadian Utilities (TSX: CU) could also be a solid addition to a TFSA for passive income. It operates a defensive utility business and has a long history of returning cash to shareholders through regular dividend increases.

Canadian Utilities has increased its dividends for 54 years in a row and has the longest dividend-growth streak among publicly traded Canadian companies. Its regulated and contracted assets provide relatively stable earnings, helping support dividends through different market conditions.

From 2026 to 2030, Canadian Utilities plans to invest nearly $12 billion in regulated infrastructure. This spending could expand its rate base and support sustainable earnings growth. In addition, additional long-term contracts may further strengthen cash flow.

Together, these factors provide a solid foundation for continued dividend growth, making Canadian Utilities a reliable income stock.

TFSA passive income stock #3

TC Energy (TSX: TRP) could be a reliable addition to a TFSA focused on long-term passive income. Its regulated and contracted infrastructure produces relatively stable cash flow, reducing exposure to short-term commodity price volatility and supporting dividends.

The company has raised its dividend for 26 straight years, with strong asset utilization and contractual revenues providing a foundation for continued growth. Its roughly $23 billion backlog of secured projects also offers visibility into future earnings and cash flow.

Growing energy demand and increasing LNG exports could further support earnings. Management anticipates annual dividend growth of approximately 3%–5% in the years ahead, making it a reliable income source.

Earn $2,148 in tax-free income per year

SmartCentres REIT, Canadian Utilities, and TC Energy are reliable stocks to add to a TFSA for passive income. Holding 300 shares of each company could generate around $2,148 in annual dividend income within a TFSA.