With just $ 14,000 on a tax -free savings account (TFSA), you may not think that it is possible to generate a lot of income. But with a little planning and the right dividend payers, that capital can work a lot harder than you would expect. Instead of going for risky flyers or trying to time the market, I would opt for two solid real estate investments (Reit’s). Those are Dream Industrial Reit (TSX: You.un) and Northwest Healthcare Properties Reit (TSX: NWH.UN). Each pays monthly, what helps the ride to smooth out and visit income all year round.
Dream
Starting with Dream Industrial, possesses and manages this Reit Industrial Real Estate in Canada and Europe. In the second quarter of 2025, Dream reported solid growth in the funds of operations (FFO), with an annual increase in FFO per unit, climb to $ 0.26. Comparative net business income also rose by 5% to more than $ 100 million. In addition, the occupation involved increased to 96%, with strong raves spreads, an increase of 41% in Ontario and 52% in Québec. That kind of rental growth is not easy to come by, and Dream is clearly taking advantage of his strong position.
Trust has also been busy. It closed more than $ 540 million in acquisitions since the beginning of 2025 and removed non-core assets to efficiently recycle capital. Debt is well managed, with more than 70% of the 2025 duration, and the payment ratio is on a relatively healthy 68.7%. That is important because it tells me that it is 5.9% dividend yield sustainable, even in more difficult circumstances.
Northwest
Then there are Northwest Healthcare Properties. It has not had a ride so smoothly and the dividend comes with more uncertainty. The payment ratio of the Trust is high, above 90% based on adapted funds from Operations (AFFO), but management has made progress on important statistics. In Q1 2025, the occupation strongly held at 96.5% and the renewed lease contracts with a healthy 89% percentage. It is important that the Trust has sold non-core assets, which yields more than $ 260 million in revenues, which has helped to pay the debts and improve liquidity.
There is still work to do. Leverage remains above 48%and the AFFO per unit is only $ 0.10 quarter. But Northwest has expanded its debt profile and reduced its weighted average interest rate to 5%. It also has $ 268 million in available liquidity. That financial breathing space gives it time to straighten the ship. The current dividend yield is no less than 7.5%, and although some may call it a yield trap, I see it as a calculated bet within a balanced TFSA strategy.
Structuring the TFSA
So how would I split it? I would consider a split into the middle. That is $ 7,000 in every Reit. At the current prices you could get around 1,455 shares of Northwest and 578 shares of Dream Industrial.
| COMPANY | Recent price | Number of shares | DIVIDEND | Total payout | FREQUENCY | Total investment |
|---|---|---|---|---|---|---|
| Say. | $ 12.10 | 578 | $ 0.70 | $ 404.60 | Monthly | $ 6,993.80 |
| NWH.UN. | $ 4.81 | 1,455 | $ 0.36 | $ 523.80 | Monthly | $ 6,999.55 |
Combined that is just over $ 928.40 in annual income from $ 14,000, or $ 77.37 monthly! Not bad for two simple positions, and the monthly cadence helps to reinvest or cover current costs. Moreover, this income is tax -free in a TFSA.
Now it’s not all sunshine. Northwest still digs itself from a difficult place, and even Dream, despite its strong basic principles, is exposed to higher interest rates. Any sharp decline on the real estate market can both lower both. But if the goal is constant income, I prefer two diversified Reit’s with strong tenant bases than the volatility of volatility elsewhere.
Bottom Line
In a low-eval portfolio intended to generate money monthly, this link is difficult to beat. You get the stability of industrial growth with Dream and the income potential of global health characteristics with Northwest. It is not flashy, but it is functional, consistent and TFSA-friendly.
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