An income portfolio doesn’t need every holding to arrive offering a double-digit yield. It needs enough capital, payments the businesses can afford, and a sensible way to turn those payments into spending money. I’d use roughly $75,000 to target $250 a month, spreading the work across three businesses. That’s a larger starting balance than a high-yield shortcut demands, with less pressure on any single payout.

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Let the capital do its share
The target is $3,000 annually. A 4% yield requires $75,000, while an 8% yield needs half as much. The second number is more exciting until a dividend cut rewrites the budget. I’d accept the larger capital requirement and choose companies with different earnings sources, giving the portfolio a better chance of handling an uneven economy.
If the money goes into a Tax-Free Savings Account (TFSA), the contribution must fit your available room. Unused room can accumulate, so a balance this size is possible for some investors, but it isn’t an automatic entitlement. The Canada Revenue Agency (CRA) also allows investments to grow within the account without that growth counting as a fresh contribution. That’s useful when the income is being built over years.
Three jobs, three businesses
Canadian Natural Resources (TSX: CNQ) provides energy-production exposure. Its long-life assets can generate cash for dividends and repurchases, although oil and gas prices set the mood. I’d use it for income with growth potential, keeping its allocation limited enough that a weaker commodity market doesn’t decide the entire portfolio’s payment.
Fortis (TSX: FTS) adds regulated electricity and gas utilities. Its newly raised $0.67 quarterly dividend comes with management’s extended 4% to 6% annual growth guidance through 2031. That gives the portfolio a slower, more predictable route towards rising income, supported by investment in assets customers keep using through different economic conditions.
CT REIT (TSX: CRT.UN) supplies actual monthly payments from property rent. Its second-quarter distribution used 72.7% of adjusted funds from operations (AFFO), leaving some room after the payout. Canadian Tire is central to its tenant base, so I wouldn’t let the convenience of a monthly payment turn this into an oversized position.
The dollars on the page
Here’s an equal $25,000 budget for each holding, using recent closing prices and current annualized payments. Shares and units are rounded down, with fees excluded.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | ANNUAL DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CNQ | $75.12 | 332 | $2.50 | $830.00 | Quarterly | $24,939.84 |
| FTS | $82.95 | 301 | $2.66 | $800.66 | Quarterly | $24,967.95 |
| CRT.UN | $17.51 | 1,427 | $0.9816 | $1,400.74 | Monthly | $24,986.77 |
| TOTAL | 2,060 | $3,031.40 | $74,894.56 |
The plan leaves $105.44 in cash and averages $252.62 monthly. Its yield on the invested amount is about 4.1%. CT REIT supplies around $116.73 each month, with the other payments arriving quarterly. I’d collect everything in a cash balance and transfer $250 monthly, making the spending schedule smoother than the companies’ payment dates.
Before starting those withdrawals, I’d build a separate $750 buffer, equal to three months of spending. That buffer is in addition to the investment budget. It reduces the temptation to sell shares simply because a household bill arrives before a dividend, which makes monthly income planning more practical than matching every company’s calendar to your own.
Bottom line
Commodity weakness could pressure Canadian Natural’s payment, while tenant concentration is CT REIT’s clearest business risk. I’d keep emergency savings outside this portfolio and add more sectors as the account grows. Three businesses are a starting plan, with future contributions providing a chance to improve diversification without disturbing the income already being collected.
I’d build the capital first, then let covered payments fund the monthly allowance. This mix reaches the target without demanding unusually large yields, and future increases could gradually lift the spending available. Held inside a TFSA with sufficient room, the plan can turn patient saving into a useful tax-free contribution to everyday life.