category
Dec 9, 2025
TFSA Passive Income: 2 TSX Dividend Stocks to Consider Now
The Motley Fool Canada
RioCan delivers a 6.36% yield from a large, transit-oriented retail/mixed-use portfolio -- about $42/month on $8,000 -- supporting long-term, stable income.
A TFSA packed with stellar TSX dividend stocks can deliver growing, recurring income for years. The market provides plenty of great options to choose from to help make that a reality.
Here are two of those TSX dividend stocks to add to your TFSA portfolio today to start generating that income stream.
Pick #1- The big bank stock
It would be impossible to compile a list of TSX dividend stocks that can generate a passive income stream without mentioning one of Canada's big bank stocks.
That's because the big banks offer stable, growing revenue streams that are diversified between a stable segment at home and a diversified, growing presence abroad.
Tying that domestic and international growth together is the stellar dividends that the big banks offer.
So then, what big bank should investors consider? That would be Bank of Montreal (TSX:BMO). BMO is the oldest of the big bank stocks. As a result, the bank has been paying out dividends without fail for nearly two centuries.
That's an incredible amount of time, adding to the bank's overall appeal and stability. Adding to that appeal is that BMO has provided generous annual upticks to its dividend.
In fact, BMO just announced a 2.4% increase last week. That latest increase brings the yield on that dividend to 3.8%. This means that even a modest investment of $8,000 will generate an income of $300.
That's not enough to retire on, but it is enough to generate a few shares each year from reinvestments alone.
Turning to growth, BMO is equally impressive.
The bank has taken an aggressive stance on expansion. That includes a solid investment to expand further into the U.S. market, primarily from the Bank of the West acquisition.
That deal expanded BMO's presence to 32 state markets, including California. It also elevated BMO into position as one of the largest ba
