For first-time investors, the idea of investing an entire Tax-Free Savings Account (TFSA) contribution in just one stock can seem risky. You’ve spent time building those savings, so it’s natural to worry about losing money if the investment doesn’t work out.
Personally, I’d feel more comfortable owning a business that generates recurring cash rather than relying entirely on its share price going up. That’s one reason monthly dividend-paying stocks appeal to me. Such stocks provide you with a steady stream of cash every month without requiring you to sell your investments. You could reinvest those payments to buy more shares or eventually use them to cover everyday expenses.
In this article, I’ll share why this monthly passive-income stock stands out to me and whether it’s worth considering putting your full TFSA contribution into it.
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The TFSA-friendly monthly dividend stock
RioCan REIT (TSX: REI.UN) is the monthly payer I’d consider trusting with a larger TFSA investment, as its juicy yield is backed by highly occupied retail properties and growing rents.
This Toronto-based real estate investment trust (REIT) mainly owns and manages commercial properties across Canada, focusing on shopping centres anchored by essential businesses like grocery stores, pharmacies, and discount retailers.
RioCan stock has climbed 13% so far in 2026 and currently trades at $21.20 per unit with a market cap of $6.1 billion. Besides these positive returns, RioCan offers an attractive 5.5% annualized distribution yield, with payouts arriving every month.
What makes this monthly dividend stock even more interesting is its focus on necessity-based retail properties, which tend to attract consistent customer traffic even during challenging economic conditions. As a result, its business model continues to support strong demand for its rental spaces.
Strong financial growth supports RioCan’s monthly payouts
RioCan’s retail committed occupancy reached a record 98.8% in the second quarter, improving from 98.2% a year ago. The trust also achieved an impressive 23.1% blended leasing spread, reflecting its ability to secure higher rents through new leases and renewals.
These strong leasing trends helped RioCan’s commercial same-property net operating income (NOI) increase by 4.3% year-over-year (YoY) during the quarter.
More importantly, its core funds from operations (FFO) per unit rose 5.3% YoY to $0.40, supported by higher commercial NOI and the positive impact of unit repurchases. Meanwhile, RioCan’s quarterly net profit climbed nearly 4% YoY, mainly benefiting from higher property valuation gains, although lower residential inventory gains weighed on operating performance.
Interestingly, RioCan’s core FFO payout ratio has been at just 73.8% over the trailing 12 months, suggesting its monthly distributions are reasonably supported by underlying earnings.
More reasons to be optimistic about RioCan
Beyond its attractive monthly payouts, RioCan’s efforts to strengthen its core business could make it an even more rewarding TFSA investment over time.
For example, RioCan has been selling residential assets to free up capital and sharpen its focus on necessity-based retail properties. In the first half of 2026, the trust completed residential property sales worth $280.5 million.
Including conditional sale agreements, its planned capital repatriation from residential assets reached about $1.3 billion, representing 96% of its 2025–2026 target.
Why you should consider RioCan for your TFSA
RioCan’s strong retail occupancy, rising rental income, and disciplined capital allocation could support its long-term growth. With a 5.5% annualized yield and consistent monthly payouts, this Canadian real estate stock could be a rewarding TFSA investment for years to come.
