Contributions from tax -free savings account (TFSA) cannot be deducted from taxable income for tax -saving purposes. Nevertheless, TFSA framers that the registered account was simple and more flexible compared to the older registered pension savings plan (RRSP). Users pay zero taxes on power gains, dividends or interest earned with qualified investments.
Nowadays, the TFSA is not only the ultimate investment vehicle for Canadians aged 18 or older, but also an efficient tool savings. Most TFSA investors prefer to keep dividend shares to take advantage of tax-free money growth (and tax-free admission) function.
In addition to improving investment returns by the power of compiling, dividend shares support the accumulation of wealth or the accrual of pension savings. TFSA users can select from different dividend-paying Canadian shares. However, a purely dividend game can continue your TFSA pension savings in 2025 and then ignite.
AI shares with a high level
Artificial intelligence, or AI, is the in-what, if not the most desirable technology nowadays. For income-oriented Canadian investors, however, AI is the ticker symbol for Atrium Mortgage Investment Company (TSX: AI). The $ 561 million company is one of the largest non-banking lenders in Canada.
Atrium MIC offers financing solutions for customers of real estate and development. In addition to home mortgages, the financing of land and development financing and building and mezzanine financing offers, as well as commercial term and bridge financing.
AI is eligible for TFSA and RRSP. The current share price is $ 11.73 (+12.9% years to date), while the dividend offer is a substantial 7.9%. Because the payment frequency is monthly, an investment of $ 7,000 will produce $ 46.30 every month. Assuming your available TFSA contribution space is $ 35,000, your money will generate $ 230.13 in tax-free monthly income.
Solid income and a portfolio with a low risk
The defensive credit strategy of Atrium Mic enables the company to keep track of its track record of consistent income and dividends. According to his CEO, Rob Goodall, atrium profit per share (EPS) continues to generate far above the dividend. “We are aimed at maintaining a profile with a low risk for the overall portfolio by maintaining a conservative portfolio loan value ratio and a very high percentage of conventional mortgages,” he added.
In the first half of 2025 (six months ending on June 30, 2025), net and extensive income rose by 6.1% on an annual basis to year to $ 25 million. It is remarkable that 96.8% of the total portfolio consists of first mortgages, with a loan / value ratio of less than 75% for 94.8% of the loans. Goodall said that Atrium remains disciplined in his insurance, given the weak real estate market and a stagnant economy.
A successful strategy is to borrow in major metropolitan areas (British Columbia and Ontario) where the stability and liquidity of real estate are at the highest level. The mortgage conditions are generally no longer than 10 years.
Added bonus
The defensive credit approach of Atrium supports its consistent income and dividend record. MICs do not pay income tax if they distribute all their annual taxable income.
TFSA investors can benefit from special dividends that can stimulate pension savings. Atrium has explained them every year since 2013. This is the best income -generating deal for the TSX.
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