How I’d Structure My $14,000 TFSA for Constant Income

Even a few years of TFSA (Tax-Free Savings Account) contributions can become a lasting investment income stream. You don’t need a massive TFSA to get started. As little as $14,000 (two years of full contributions) is a great starting amount. In fact, you could earn more than $50 per month when invested in the right stocks.

If you are looking for lasting, predictable income, here is one way you could structure your TFSA portfolio.

A top Canadian energy stock for steady TFSA income

You could first put $3,500 to work in Canadian Natural Resources (TSX: CNQ). At $73.75, you could buy 47 shares. With a 3.4% dividend yield, that would earn $29.38 quarterly or $9.79 on average monthly.

Canadian Natural produces over 1.5 million barrels of oil equivalent (BOE) per day. In an industry where scale matters, Canadian Natural is firmly the largest energy producer.

This company is exceptional in almost every metric. It has an industry low cost of production, decades of proven energy reserves, a strong balance sheet, and high streams of cash flow.

It has grown its dividend for 26 consecutive years by a 20% compounded annual rate! This is a solid company to hold for a steady stream of TFSA income.

An energy infrastructure player with an elevated yield

If you are looking for a higher yield, you could buy Gibson Energy (TSX: GEI). At $33.07, you could buy 105 shares. With a 5.5% dividend yield, your TFSA would earn $47.25 quarterly or $15.75 averaged monthly.

Gibson is a leading energy storage company with over 25 million barrels of capacity. A quarter of the energy produced in Western Canada goes through its systems. It serves an essential place in the Canadian energy value chain.

Gibson is aiming for 7% compounded annualized earnings before interest, tax, depreciation, and amortization (EBITDA) growth in the coming years. Combine that with its attractive yield, and shareholders could enjoy nice low-teens returns in the coming years.

A TFSA stock for monthly income

If you want exposure to real estate, Dream Industrial REIT (TSX: DIR.UN) is a solid TFSA pick. At $13, you could buy 269 units of Dream. With a 5.6% yield today, you would earn $16.14 monthly.

The REIT has a great portfolio of quality industrial, distribution, and warehousing assets. These are modern facilities that cater to a wide breadth of tenants. It has a solid balance sheet and just raised its distribution for the first time in years.

This stock trades at a large discount to the private market value of its assets. Dream presents a nice mix of value and income today.

A utility with top-tier dividend growth

Fortis (TSX: FTS) is a perfect stock for an income-focused TFSA. Trading at $77.50, you could buy 45 shares of Fortis. With a 3.3% yield, your $3,500 TFSA investment would earn $28.80 quarterly or $9.60 averaged monthly.

Fortis is a sleep-well-at-night, set-and-forget type of stock. It may not give you the biggest gains, but you will get predictable year-after-year returns.

Fortis is a large, diversified regulated utility across North America. Despite its size, it is still growing at a 7% annualized rate. With a 52-year track record of consecutively growing its dividend, you can expect a rising dividend stream for years to come.