If you want to build passive income inside a Tax-Free Savings Account (TFSA), you should ideally own stocks that consistently generate cash flow and reward investors with regular payouts. That’s one of the most important reasons why many Canadian investors are drawn toward real estate investment trusts (REITs), especially those operating in sectors with strong long-term demand trends.

Industrial real estate could be a great example of a resilient income-generating sector, especially as the continued growth of e-commerce, logistics, and supply chain infrastructure drives steady demand for warehouses and distribution facilities. And one of the best stocks that continues to gain momentum in this area is Dream Industrial Real Estate Investment Trust (TSX:DIR.UN).

In this article, I’ll explain why this monthly-paying REIT could be a strong TFSA stock to buy right now.

A top monthly-paying REIT for TFSA investors

If you don’t know it already, Dream Industrial REIT is a Toronto-based company that mainly focuses on owning and operating industrial properties across Canada, Europe, and the United States. Its portfolio includes distribution centres, urban logistics facilities, and light industrial buildings located in key global markets.

Its shares have jumped 33% over the last year to currently trade at $13.95 apiece with a market cap of roughly $3.9 billion. At the same time, the REIT offers an attractive monthly distribution yield of about 5%.

Strong leasing activity and rising rents are fueling growth

One of the biggest drivers behind Dream Industrial’s recent rally has been its strong leasing activity. In the latest quarter (ended in March), the company’s net operating income from competitive properties climbed 9% year-over-year (YoY), and its net rental income rose 7% from a year ago.

The REIT’s portfolio now includes roughly 343 industrial properties totaling around 74.1 million square feet of gross leasable area (GLA) spread across several high-demand markets.

Financially, the business continues generating stable cash flow. In the March quarter, its diluted funds from operations per unit rose by 2% YoY, reflecting the REIT’s ability to grow earnings even with expanding operations. At the same time, the company continues to be active on the acquisition front. Dream Industrial completed more than $150 million worth of acquisitions in the latest quarter, adding over one million square feet of GLA to its portfolio.

Moreover, its occupancy levels remained healthy. In Canada, its in-place and committed occupancy climbed to 96.8%, while the company’s European portfolio maintained occupancy around 95%.

Expanding operations could support long-term monthly income

Strong rental growth has become another major tailwind for Dream Industrial REIT in recent quarters. The REIT signed more than 1.8 million square feet of lease renewals and new leases through April 30, at an average rental spread of 26.4%. That pricing power highlights the continued demand for industrial properties across many of its key markets.

Going forward, Dream Industrial remains focused on further expanding through quality acquisitions and private venture growth opportunities. Interestingly, the company currently has more than $500 million of acquisitions either firm or under exclusivity. Given all these positive factors, Dream Industrial REIT remains an attractive monthly dividend stock for TFSA investors in 2026.

The post A TFSA Stock With a 5% Yield and Reliable Monthly Paycheques appeared first on The Motley Fool Canada.

More reading

• 3 TSX Stocks Trading at Bargain Valuations Today
• These 3 Canadian Stocks Could Benefit if Rates Fall Again
• How to Build a Paycheque Portfolio With 2 Stocks That Pay Monthly
• 5 TSX Dividend Stocks to Hold for the Next Decade
• This Dividend Stock Pays 5.1% and Sends Cash Every Month

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Dream Industrial Real Estate Investment Trust. The Motley Fool has a disclosure policy.

Many investors use their Tax-Free Savings Accounts (TFSAs) to focus on long-term wealth creation, but earning consistent passive income along the way can make the journey even more rewarding. That’s why Foolish investors may want to hold some quality monthly dividend stocks in their TFSA that combine reliable payouts with stable underlying businesses.

Real estate investment trusts (REITs) can be especially attractive for monthly income because they generate recurring rental income and often return a large portion of their cash flow to investors. Among Canadian REITs, Crombie Real Estate Investment Trust (TSX:CRR.UN) stands out right now due to its resilient operations, defensive tenant mix, and recently increased monthly distribution. Here’s why Crombie REIT could be a strong TFSA stock to consider in May 2026.

Crombie REIT stock

Based in New Glasgow, Nova Scotia, Crombie owns, operates, and develops commercial real estate properties across Canada. Its portfolio mainly includes grocery-anchored retail properties, retail-related industrial assets, and mixed-use residential developments.

After climbing around 18% over the last year, Crombie stock currently trades near $16.82 per unit with a market cap of roughly $1.9 billion. At the current price, the REIT offers an annualized distribution yield of about 5.3%, with payouts made monthly.

One of Crombie’s biggest strengths is the stability of its portfolio. The REIT focuses heavily on necessity-based real estate, especially grocery-anchored properties, which tend to remain resilient even during periods of economic uncertainty.

That defensive positioning continued to support strong operational performance in the first quarter of 2026.

A stable tenant base is supporting reliable growth

In the quarter ended in March 2026, Crombie’s property revenue rose 3.6% year-over-year (YoY) to $127.1 million, while its operating income attributable to unitholders climbed 12.2% from a year ago to $27.8 million.

The REIT also posted solid growth in key cash flow metrics. Its funds from operations increased 6.5% YoY to $0.33 per unit, while adjusted funds from operations rose 7.4% to $0.29 per unit.

Operationally, the company remained very strong as its committed occupancy rate improved to 97.6%, up from 97.1% a year ago, while economic occupancy reached 96.8%. During the quarter, Crombie renewed 232,000 square feet of leases at rental rates 12.1% above expiring rates. On a weighted average basis, its renewal rents increased 13.2%.

Another positive sign for income-focused investors is Crombie’s improving balance sheet profile. Its debt-to-gross-fair-value ratio stood at 43% at the end of March 2026, improving from 43.6% a year ago despite ongoing investments in acquisitions and development projects.

Growth initiatives continue to expand the portfolio

Meanwhile, Crombie is continuing to invest in long-term growth opportunities. In the first quarter alone, the REIT acquired two retail-related industrial properties in Whitby, Ontario and Saint-Hubert, Quebec, representing 539,000 square feet for approximately $129.8 million.

It’s also progressing with development initiatives, including The Marlstone, a 291-unit residential rental project in downtown Halifax that is now nearing completion, with initial occupancy already underway.

Given all these positive factors, Crombie REIT could be worth a closer look right now, especially for TFSA investors seeking reliable monthly passive income.

The post A Practically Perfect TFSA Stock With a 5.3% Monthly Payout for May 2026 appeared first on The Motley Fool Canada.

More reading

• Here’s an Ideal TFSA Dividend Stock That Pays Consistent Cash
• 3 TSX Superstars That Could Beat the Market in 2026: Get In Now
• 1 Canadian ETF Alternative: A Stock Portfolio in 3 Picks
• How to Make Money in a TFSA With Dividend Stocks
• What the Average Canadian TFSA Looks Like at Age 50

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Generating reliable passive income without worrying about taxes cutting into your returns is one of the biggest advantages of investing through a Tax-Free Savings Account (TFSA). By holding high-yield dividend stocks inside your TFSA, you could build a growing stream of tax-free income while also benefiting from long-term capital appreciation.

However, to achieve this goal, you should ideally focus on companies that combine strong cash flow, dependable dividends, and long-term growth potential. One TSX stock that currently checks all those boxes is Surge Energy (TSX:SGY). This Canadian oil and gas producer has been delivering impressive operational results lately while rewarding shareholders with attractive monthly dividend payments.

In this article, I’ll explain why Surge Energy could be an attractive TFSA stock for investors seeking steady tax-free income.

Surge Energy stock has been gaining momentum

Headquartered in Calgary, Surge Energy is an oil and gas exploration, development, and production company focused mainly on light and medium-gravity crude oil assets in Alberta, Saskatchewan, and Manitoba.

The company’s core producing areas include Sparky and Southeast Saskatchewan, where it continues expanding production through low-risk drilling opportunities and waterflood projects.

Following a solid 92% rally over the last year, SGY stock currently trades at $9.96 per share, giving it a market capitalization of roughly $985 million.

In addition to its strong share-price gains, Surge Energy offers an annualized dividend yield of 5.2%, with monthly payments – making it even more appealing for investors seeking recurring passive income.

Strong drilling results are driving financial growth

In recent quarters, Surge Energy’s operations have strengthened, which has continued to boost its financials. In the first quarter of 2026, the company exceeded its own production expectations by averaging 23,893 barrels of oil equivalent per day (boe/d), ahead of its budgeted target of 23,000 boe/d. This stronger-than-expected production growth was driven largely by successful drilling and waterflood activity in its Sparky and Southeast Saskatchewan operations.

As a result, the company generated adjusted funds flow (AFF) of $70.9 million for the quarter, and its cash flow from operating activities came in at $60 million.

At the same time, Surge Energy is also showing strong capital discipline. In the latest quarter, its property, plant, and equipment spending declined 18% year-over-year to $44.6 million. That efficiency helped the company generate free cash flow of $26.3 million during the quarter, representing roughly 37% of AFF.

Long-term growth potential remains strong

Beyond its current financial strength, Surge Energy also continues to focus on future expansion. The company currently has more than 900 internally identified drilling locations, giving it over 12 years of potential development opportunities.

Its ongoing waterflood projects could also help improve recovery rates and support long-term production growth while maintaining operational efficiency. Surge is even evaluating a possible expansion of its 2026 capital program to further increase production growth during the second half of the year.

Meanwhile, the company’s underlying asset value remains attractive. The oil and gas producer estimates its net asset value at US$75 West Texas Intermediate (WTI) oil pricing at $11.04 per share for total proved reserves and $17.10 per share for proved and probable reserves.

Why Surge Energy could fit well inside a TFSA

Surge Energy combines several attractive qualities for TFSA investors including monthly dividend income, strong free cash flow generation, operational momentum, and long-term growth potential. While energy stocks may remain volatile, Surge Energy’s disciplined capital management and improving financial performance could support its future dividend payments and additional upside potential.

At current prices, 11,000 shares of Surge Energy in your TFSA could generate roughly $476.66 in tax-free monthly dividend income or about $5,680 a year. Though with the position costing around $108,790, it would be wiser to diversify your portfolio instead of relying too heavily on one stock.

The post Use a TFSA to Earn $475 a Month With No Tax appeared first on The Motley Fool Canada.

More reading

• 2 High-Yield TSX Stocks Worth Buying if You Have $2,000 to Put to Work

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

When choosing a stock for a Tax-Free Savings Account (TFSA), you should ideally focus on fundamentally strong companies that offer both stable income and long-term growth potential. That’s especially true in today’s uncertain market, where dependable cash flow and resilient business models matter more than ever. Vital Infrastructure Property Trust (TSX:VITL.UN) is one TSX dividend stock that has been doing both recently.

This healthcare-focused real estate investment trust (REIT), formerly known as NorthWest Healthcare Properties REIT, owns a diversified portfolio of healthcare infrastructure assets across North America, Europe, Brazil, and Australia.

Let me explain why Vital Infrastructure Property Trust could be an attractive monthly dividend stock for a TFSA this May and what may continue supporting its long-term recovery.

A healthcare REIT focused on essential infrastructure

If you don’t know it already, Vital Infrastructure Property Trust provides investors with exposure to healthcare real estate assets, including hospitals, outpatient clinics, diagnostic centres, rehabilitation facilities, and medical office buildings.

The REIT currently owns interests in 133 income-producing properties spanning roughly 13 million square feet across several international markets. More importantly, many of these assets operate under long-term indexed leases, helping provide stable and predictable rental income.

At the time of writing, the stock traded at $5.68 per share with a market cap of about $1.4 billion. Over the last year, the stock has climbed by about 15%, while also offering investors an attractive 6.3% annualized dividend yield, paid monthly. That great combination of recurring monthly income and potential recovery upside could make it an appealing TFSA stock for long-term investors.

Operational stability remains encouraging

While Vital Infrastructure is yet to release its first-quarter results (scheduled for May 13), its fourth-quarter 2025 results highlighted improving operational trends despite a challenging interest rate environment.

In the fourth quarter of 2025, the REIT’s revenue from investment properties rose 4.8% year-over-year (YoY) to $107.6 million. Similarly, its same-property net operating income for the quarter climbed by 3% YoY, backed by inflation-linked rent increases, rentalized capital expenditures, and improved recoveries across its portfolio.

Moreover, Vital’s occupancy levels remained strong globally at 96.4%, while it maintained a weighted average lease expiry of 12.3 years. These metrics highlight the stability of its healthcare-focused tenant base and long-term lease structure.

During the quarter, the REIT also made progress in strengthening its financial position as its consolidated debt-to-gross-book-value ratio improved to 46.4% from 50% a year earlier. At the same time, its weighted average interest rate declined to 4.7%.

Strategic initiatives could support future recovery

Beyond operational stability, Vital Infrastructure is also repositioning its business to improve long-term financial flexibility and focus more heavily on healthcare infrastructure opportunities across the Americas.

Meanwhile, the company has also continued working to improve liquidity and reduce leverage. In late 2025, it completed the internalization of Vital Trust management arrangements, generating proceeds that were largely used to repay debt and strengthen liquidity.

In addition, the REIT continues advancing selected property sales, including a portfolio of European assets classified as held for sale. These initiatives could help simplify its operations further and improve its balance sheet over time.

Why this TSX stock could fit well in a TFSA

It’s important to note that healthcare infrastructure tends to remain resilient across economic cycles because demand for medical services generally stays stable regardless of broader market conditions. That defensive quality makes healthcare REITs attractive holdings inside a TFSA.

Vital Infrastructure also offers investors a sizable monthly income stream with its 6.3% yield, allowing TFSA investors to compound tax-free income over time. While the stock still carries some risks due mainly to elevated interest rates, refinancing activity, and global operations, its improving leverage profile, stable occupancy, and long-term lease structure suggest the business is moving in the right direction – making it an attractive monthly dividend stock to consider right now.

The post A Perfect May TFSA Stock With a 6.3% Yield appeared first on The Motley Fool Canada.

More reading

• This Perfect TFSA Stock Yields 6.4% Annually and Pays Cash Every Single Month
• 4 Canadian Dividend Stocks to Buy If You Want $500 a Month
• A Perfect TFSA Stock: A 6.7% Yield With Constant Paycheques
• A 6.4% Dividend Stock Paying Out Monthly
• Passive Income Alert: 3 TSX Stocks for Monthly Cash Flow

Fool contributor Jitendra Parashar has no position in any of the stocks mentioned. The Motley Fool recommends Vital Infrastructure Property Trust. The Motley Fool has a disclosure policy.

Investing in quality monthly dividend stocks can help you easily start a low-cost passive-income stream. However, it’s essential to identify and invest in businesses that are positioned to generate cash flows across business cycles.

In this article, I have identified one such TSX dividend stock that pays cash every single month and offers you a dividend yield of 8.6%. Valued at a market cap of $821 million, Slate Grocery (TSX:SGR.UN) is an owner and operator of grocery-anchored real estate south of the border.

The real estate investment trust (REIT) owns over $2.4 billion of real estate infrastructure across major U.S. metro markets that communities rely on for their everyday needs. The REIT’s resilient grocery-anchored portfolio and strong credit tenants provide shareholders with durable cash flows and the potential for capital appreciation over the longer term.

Is the monthly TSX dividend stock a good buy right now?

Slate Grocery REIT, a grocery-anchored retail landlord, reported strong fourth-quarter (Q4) results that highlighted significant leasing momentum and solid operational performance in a market that continues to favour landlords.

It reported same-property net operating income (NOI) growth of 4.3% on a trailing 12-month basis, driven by robust leasing activity at double-digit rental spreads over the past seven consecutive quarters.

“Strong leasing activity at high rental spreads over the last several quarters continued to drive net operating income growth for the REIT,” said Blair Welch, chief executive officer, during the company’s earnings call. “The REIT completed close to three million square feet of total leasing throughout the year at double-digit rental spreads.”

New lease deals were completed at 28% above comparable average in-place rents, while non-option renewals were executed at more than 14% above expiring rents. Portfolio occupancy remained stable at 94.8%, with executives expecting their pipeline of new leasing opportunities to support a continued positive trend in occupancy in the coming quarters.

Slate Grocery explained that a constrained supply environment continues to work in their favour. For instance, retail construction completions in Q4 totalled four million square feet, the lowest quarterly total in more than a decade. This limited new supply is giving retail landlords significant pricing power.

“The constraints on new supply continue to limit the overall retail availability rate. The resulting competition for limited space and high demand for prime locations continue to give retail landlords pricing power,” Welch explained.

What’s next for this TSX dividend stock?

Executives noted that their average in-place rent of $12.65 per square foot remains well below the market average of $23.80, providing a significant runway for continued rent increases and NOI growth, even in a more challenging financing environment.

Slate Grocery successfully financed over $630 million of debt throughout the year at favourable terms, which management attributed to lender confidence in their business model despite broader market challenges in commercial real estate financing.

Looking ahead, the REIT expects transaction activity to increase in 2025, following a muted environment over the past two years. Connor O’Brien, managing director, noted that CBRE (Coldwell Banker Richard Ellis) is forecasting about $10 billion of open-air retail transactions this year.

Analysts remain bullish and expect the TSX stock to gain over 20% in the next 12 months. After adjusting for dividends, cumulative returns could be closer to 30%.

The post This 8.6% Dividend Stock Pays Cash Every Single Month appeared first on The Motley Fool Canada.

More reading

• Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine
• Here’s How Much You May Need in Your TFSA to Retire – and 3 Stocks That Could Help
• How to Put $14,000 in a TFSA to Work for Monthly Income
• 3 Dividend Stocks to Buy if Rates Stay Higher for Longer
• A TFSA Stock With a 7% Yield and Reliable Monthly Paycheques

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Slate Grocery REIT. The Motley Fool has a disclosure policy.

Investing in fundamentally strong dividend stocks can help Canadians begin a passive-income stream at a low cost. As dividend payments are not guaranteed, it’s crucial to look beyond a company’s forward yield and analyze other factors such as the payout ratio, cash flow growth, and debt levels.

In this article, I have identified three top TSX stocks that offer you a monthly payout in 2025.

TSX monthly dividend stock #1

Valued at a market cap of $2.5 billion, Exchange Income (TSX:EIF) offers you a tasty dividend yield of 5.4%. Exchange Income is part of the aerospace manufacturing sector and has focused on accretive acquisitions to accelerate top-line growth.

Exchange Income reported record results for 2024, posting its highest-ever adjusted EBITDA (earnings before interest, tax, depreciation, and amortization), free cash flow, and adjusted net earnings despite what Chief Executive Officer Mike Pyle called “challenging” macroeconomic conditions.

EIC’s fourth-quarter revenue reached $688 million, while adjusted EBITDA hit $167 million and free cash flow was $111 million — all quarterly records for the company.

The strong performance was primarily driven by EIC’s Aerospace & Aviation segment, with the Essential Air Services and Aircraft Sales & Leasing business lines leading growth. The Manufacturing segment showed “positive momentum” in the latter half of 2024, particularly in the multi-storey window solutions business.

In a significant move, EIC recently announced its agreement to acquire Canadian North, which Pyle called “one of the most significant” acquisitions in company history. The deal will expand EIC’s northern aviation presence with highly complementary routes.

Looking ahead, EIC expects adjusted EBITDA between $690 million and $730 million for fiscal 2025, excluding the Canadian North acquisition, which is still subject to regulatory approval.

TSX monthly dividend stock #2

The second TSX dividend stock on the list is Whitecap Resources (TSX:WCP), which offers you a forward yield of almost 9%. Whitecap is engaged in the acquisition, development, and production of petroleum and natural gas properties and assets, primarily in Western Canada.

The mid-cap energy company reported “exceptional” performance for 2024, with production results that consistently exceeded expectations, leading to four guidance increases throughout the year.

The Canadian oil and gas producer returned over $560 million to shareholders in 2024, including $430 million in dividends and $130 million in share repurchases.

Whitecap’s unconventional assets showed particular strength, with Montney and Duvernay wells outperforming internal expectations by over 20% and 15%, respectively.

Whitecap unlocked value from its infrastructure portfolio in 2024, selling down partial interests in three facilities for total proceeds of $520 million while maintaining operatorship.

TSX monthly dividend stock #3

Sienna Senior Living (TSX:SIA) provides senior living services in Canada. It operates through retirement and long-term care segments and offers independent living, supportive living, assisted living, memory care, and more.

Sienna Senior Living reported strong fourth-quarter results, marking its eighth consecutive quarter of net operating income (NOI) growth amid rising demand for senior housing across Canada.

The company saw adjusted same-property NOI increase by 29% in its long-term Care segment and 15.3% in its retirement segment during Q4. Same-property occupancy in the retirement segment rose by 300 basis points year over year to 92.9%.

Sienna announced two new acquisitions: Wildpine Retirement Residence in Ottawa for approximately $48 million and Kawartha Gardens, a long-term care home in Mississauga, for about $32.6 million.

It also has $300 million in acquisitions under contract and expects to complete two development projects by the end of 2025, which should drive cash flows and dividends higher.

For 2025, Sienna expects same-property NOI growth of approximately 10% in its retirement segment, with margins improving by 100-150 basis points compared to 2024. Today, it offers you a dividend yield of 5.7%.

The post How I’d Invest $15,000 in These 3 Stocks That Pay Monthly Dividends appeared first on The Motley Fool Canada.

More reading

• 3 TSX Stocks Trading at Bargain Valuations Today
• 4 Canadian Dividend Stocks to Buy If You Want $500 a Month
• Don’t Overthink it: 1 Canadian Stock for Inflation-Proof Growth
• Got $14,000? Here’s How to Structure a TFSA for Lifelong Monthly Income
• My 2 Favourite Stocks for Monthly Passive Income

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool recommends Whitecap Resources. The Motley Fool has a disclosure policy.