By choosing such stocks, TFSA investors can create a steady stream of cash flow that meets their budgeting goals. The dividend income can be reinvested to increase returns and build wealth, or can be used to cover regular living expenses without depleting the original investment capital.
Another crucial part of this strategy is diversification. By diversifying your TFSA investment across different sectors, you can reduce exposure to market volatility and reduce the risk of being overly reliant on one stock or sector. A well-diversified portfolio ensures that your income stream remains stable even when certain sectors face headwinds.
Against this backdrop, here are two dividend-paying stocks that can turn a $20,000 TFSA investment into consistent passive income of more than $117 per month.
SmartCentres REIT
SmartCentres REIT (TSX:SRU.UN) is a reliable stock that produces a stable monthly income in a TFSA. The REIT’s well-diversified portfolio is known for consistent payouts and high yields and generates stable net operating income (NOI), which supports payouts.
The REIT owns 197 mixed-use properties across Canada, strategically located in key locations. The properties therefore witness solid rental demand and a high occupancy rate, which translates into reliable rental income. For example, SmartCentres reported a high occupancy rate of 98.6% in the second quarter of 2025. Thanks to its high-quality tenant base, including major retailers, the collection rate was above 99%. In particular, strong lease renewals at higher rates in the second quarter indicate robust demand for properties.
SmartCentres REIT currently pays a dividend of $0.154 per share, which reflects a yield of approximately 7%. Looking ahead, the strength of core retail properties, high occupancy rates and mixed-use development projects bode well for growth and are likely to drive NOI and future distributions. Additionally, the REIT’s substantial land holdings and a strong balance sheet position the REIT to benefit from urbanization and changing consumer trends.
Whitecap Resources
Whitecap Resources (TSX:WCP) is another reliable income stock to add to your TFSA portfolio. The company is known for rewarding shareholders through consistent dividend payments. The oil and gas producer pays a monthly dividend of $0.061 per share, which reflects a high yield of about 7.1%. Notably, WCP returned approximately $2.7 billion to shareholders in the form of dividends between January 2013 and September 2025.
Whitecap focuses on maintaining its payouts over the long term. The company’s emphasis on operational efficiency and careful selection of projects that deliver strong returns bode well for future growth. Furthermore, by optimizing its drilling programs and focusing on high-quality assets, Whitecap has positioned itself to maintain stable revenues to support its payouts.
In addition, Whitecap’s recent acquisition of Veren significantly increases its scale and operational strength. The addition of Veren’s high-quality assets deepens Whitecap’s production capabilities and complements its existing portfolio of premium projects. Overall, Whitecap is well positioned to maintain its payouts in the coming years.
Earn more than $117 per month in tax-free income
SmartCentres REIT and Whitecap Resources are attractive TSX stocks to start a monthly passive income stream. By investing $20,000 and splitting it equally between the two, you can generate approximately $117.25 per month in passive income.
| Company | Recent price | Number of shares | Dividend | Total payouts | Frequency |
| Smartcenters REIT | $26.18 | 381 | $0.154 | $58.67 | Monthly |
| Whitecap Resources | $10.44 | 957 | $0.061 | $58.38 | Monthly |
#Create #Monthly #Income #TFSA #Investment