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Dec 9, 2025
How to Build a TFSA That Earns +$200 of Safe Monthly Income
The Motley Fool Canada
Robin Brown has been a Motley Fool contributor since January 2020. He has lived in Canada, Norway, and Australia where he studied theology and business management. Robin works as a commercial real estate manager, as well as an investment research advisor for a private investment manager. Today, he provides equity research and analysis for a private family office. He enjoys traveling, hiking, fishing, and spending time with his wife and children.
The TFSA (Tax-Free Savings Account) is a good account to put stocks that generate investment income because you don't pay any tax on that income. While the tax savings don't seem huge in the near term, when added up and compounded, they can be a substantial amount over the long term.
If you want to earn monthly income, here is a four-stock portfolio that could collectively earn over $200 of steady, solid income. You will need around $50,000 to invest in your TFSA, but here's a model portfolio you could follow.
Safe monthly income for a TFSA
I would start by first putting $12,500 of my TFSA cash into Choice Properties Real Estate Investment Trust (TSX:CHP.UN). With a $0.0642 monthly distribution, Choice yields 5.3% right now. A $12,500 investment would buy you 856 shares at a price of $14.59. This investment would earn $54.92 every month!
The great thing is that Choice has been growing its dividend for the past three consecutive years. Choice is Canada's largest REIT. It has 62 million square feet across retail, industrial, and mixed-use properties.
Its anchor tenant is Loblaw, which is one of Canada's best and largest grocery/pharmacy operators. The REIT has high occupancy, long-term leases, and a track record of raising its distribution.
A steady monthly dividend payer
Dream Industrial REIT (TSX:DIR.UN) is another solid TFSA stock for income. It pays a $0.0583 per unit monthly distribution. Annualized, that equals a 5.84% yield. A $12,500 investment would buy you 1,041 units in the REIT. That would earn $60.69 month
