Make $250 a Month Tax-Free: The 4-Stock TFSA Plan I’d Follow

Generating $250 a month of tax-free income inside your Tax-Free Savings Plan (TFSA) is an ambitious but achievable goal. You don’t necessarily want to chase the highest-yielding stocks.

Own dividend stocks that sustainably grow your wealth

Rather, look for stocks that have a sustainable growth trajectory, where their dividends will grow alongside their earnings. Over time, you can compound both your capital and income streams.

If you are sticking to that principal, you will probably need around $70,000 invested inside your TFSA. Certainly, it is no small amount. However, a smart saving strategy can get you there sooner than you think.

You will also need a smart stock portfolio. Here’s how I would deploy $17,500 evenly across four quality dividend stocks inside my portfolio to earn $250 per month tax-free!

An energy infrastructure stock perfect for a TFSA

Pembina Pipeline (TSX: PPL) might be one of the most interesting energy infrastructure stocks today. Pembina offers energy suppliers the means to get their production to market, whether it be collection pipelines, processing facilities, or export terminals.

It has exposure to attractive economic dynamics like LNG export terminals, data centre power, and nation-building projects like cross-country pipelines.

This TFSA stock yields 4.5% today. Unlike peers, it never cut its dividend in 2020 when energy prices went negative. Pembina has a strong balance sheet supporting its growth. It has raised its dividend consecutively over the past four years.

A $17,500 investment would earn $194.78 or $64.93 averaged monthly.

A top real estate stock for income

Granite Real Estate Investment Trust (TSX: GRT.UN) is a good TFSA bet if you want to own real estate, but don’t want to be a landlord. You get to own 139 high-quality, institutional-grade logistics, distribution, and manufacturing facilities around the world.

This is a very defensive stock with stable, growing income, strong property metrics, and a great balance sheet. Granite has raised its distribution for 15 consecutive years, which speaks to the quality of its portfolio.

It yields 4.25%. A $17,500 TFSA investment would earn $61.53 monthly.

An energy stock for income growth in a TFSA

Topaz Energy (TSX: TPZ) is an attractive stock for energy exposure, but with lower operational/production risk. It is an infrastructure and land royalty business in Western Canada.

It is positioned in some very productive, long-life energy regions. It should naturally see its income rise over time. Certainly, elevated energy prices contribute to that as well. With low operating overhead, it spins off a lot of cash that it can distribute to shareholders and expand its asset base.

Topaz stock yields 4.9%. It has increased its dividend 10 times since its IPO in 2020! A $17,500 investment in this TFSA stock would earn $214.20 quarterly, or $71.40 averaged monthly.

A utility stock set to become substantially larger

If you want a very defensive stock to cap off your TFSA portfolio, Canadian Utilities (TSX: CU) is interesting. It is a diversified utility and energy company that operates in Canada and Australia.

Roughly 80% of its income is regulated, whereas the remaining is exposed to longer-term merchant power contracts. It has attractive growth prospects with ~7% rate base growth projected for the future.

This TFSA stock yields 3.6% today. It has increased its dividend for a whopping 54 consecutive years! A $17,500 investment would earn $157.71 quarterly or $52.57 averaged monthly.