The best investments in a tax -free savings account (TFSA) for generating recurring income are dividend shares. All dividends earned in the account are tax -free, provided that you follow the rules. Many Canadian companies pay every three -monthly dividends, while a few, including real estate investment trusts (Reit’s), pay monthly.
There is no perfect investment, but a Reit-based Reit focused on the American market can be an ideal TFSA shares. Lei -Boodschap (TSX: SGR.UN) attracts income -oriented investors thanks to the monthly payment frequency and the substantial return. Nowadays the stock price is $ 14.69 and the dividend yield is 8.19% ($ 1.20 annual dividend per share). With $ 14,000 in available TFSA-contributing space you can earn $ 95.55 from tax-free monthly income.
Defensive activa class
Slate Grocery is a defensive company because of the nearly 100% supermarket-worshiped real estate portfolio on American markets with strong demography. Among the anchor tenants of these $ 868.6 million real estate investment confidence are six of the top seven American grocers, including American retail giants Cracker And Walmart. De Reit possesses and operates 116 properties in 23 states.
The Reit is of the opinion that even in a weaker economy and the presence of e-commerce market places, Americans will continue to trust shopping centers in the neighborhood for their daily needs. Purchase in the store accounts for 89% of the sale of supermarkets. Slate predicts online sales of supermarkets to grow to 12.4% of the total turnover by 2027.
Favorable Fundamentals
Need driven tenants and national grocers consistently attract foot traffic, regardless of the economic cycles, which is an advantage for the Reit. What is even more important is that the basic principles of the supermarkets remain favorable. High construction costs and tight credit conditions also hinder new development and availability of the retail trade.
According to Blair Welch, CEO of Slate Grocer, the limited food enables landlords to retain existing tenants and implement meaningful tariff increases as lease contracts lapse. Slate, however, maintains under the market rental. The average rent is $ 12.77 per square foot compared to the market average of $ 24.
Slate has a considerable space for continuous rent increases, which should lead to long -term income growth. WESCH also notes that the vacancy in the sector is historically low. At the end of the second quarter (Q2) of 2025, the occupancy rate of the portfolio is 94%. The weighted average lease period of the portfolio is 4.5 years.
Strong volumes and raving spreads
The rental income of Slate and the net result in the first half of 2025 increased by 1.7% and 5.6% year on year to US $ 105.5 million and US $ 29.2 million. In particular, the successive quarters of strong lease volumes in attractive spreads continue to stimulate the growth of the same ownership results. Q2 has also marked another consecutive quarter of double digit innovation spreads. In the post-Pandemic period, the average free cash flow is from 2021 to 2024 US $ 59.25 million versus US $ 37 million in 2020.
Dividend history
Slate Grocery gives priority to rental growth of underlying rental contracts over aggressive expansion to guarantee sustainable monthly distributions. However, Welch expects the robust pipeline of new leasing opportunities to support a stable occupation in the coming quarters.
Monthly salary
TFSA investors would be happy to know that this Pure-Play supermarket-worshiped Reit has not missed monthly distribution since June 2014. By investing today, you would have a perfect TFSA shares that convert your investment into a monthly salary.
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