How I would turn a TFSA into a $300 per month passive income

A TFSA (tax-free savings account) is an ideal tool for making long-term investments because investors can grow their investments tax-free (up to a certain amount called the contribution limit). In this low interest rate environment, investing in high-yield dividend stocks is an ideal strategy to increase your passive income.

The cumulative contribution limit for an individual who has been eligible since 2009 and has never contributed is $102,000. If investors divide $60,000 of this amount evenly among the next three monthly paying dividend stocks, they could earn more than $300 per month in passive income.

SmartCentres Real Estate Investment Trust

Real estate investment trusts (REITs) are great for income-oriented investors because these companies must pay out more than 90% of their taxable profits to shareholders. That’s why I chose SmartCentres Real Estate Investment Trust (TSX:SRU.UN), which owns and operates 197 properties across Canada, as my top choice. Given its strategically located properties and solid customer base, the REIT enjoys a healthy occupancy rate, which stood at 98.6% at the end of the second quarter of 2025.

Meanwhile, demand for retail space continues to grow, while supply remains limited due to high construction costs and high interest rates. Amid growing demand, the company is steadily expanding its asset base, with 58.9 million square feet of approved development projects. Of these approvals, the company has approximately 0.8 million square feet of properties under construction. Rental growth combined with improving customer traffic and a strengthening tenant base could also support financial growth. Given the healthy growth prospects, I believe SmartCentres, which currently offers a healthy dividend yield of 7.03%, is well equipped to continue paying dividends at a healthy rate.

Whitecap Resources

Another high-yielding dividend stock that I think would be ideal for income-seeking investors is Whitecap Resources (TSX:WCP), which currently offers a dividend yield of 6.95%. The company recently became Canada’s seventh largest oil and natural gas producer through its strategic combination with Veren. In addition to strengthening production capabilities, the merger has also strengthened the balance sheet by improving liquidity and reducing debt.

In addition, early synergies from the integration of Veren’s assets and workforce have supported WCP’s cost efficiency and strengthened its credit profile. In addition, the company’s management expects further improvements in capital efficiency and operating cost savings over the next six to twelve months by leveraging shared expertise and best practices across the integrated portfolio. Together with these growth initiatives, the planned capital investment of $1.2 billion in the second half of this year could boost production and thus boost financial results. Considering all these factors, I think WCP’s future dividend payments appear well secured.

Pizza Pizza Royalty

Pizza Pizza Royalty (TSX:PZA) is an impressive addition for investors looking for income due to its highly franchised business model. The company operates the Pizza Pizza and Pizza 73 branded restaurants through its franchisees and collects royalties based on their sales. Therefore, the country’s financial performance is less vulnerable to fluctuations in commodity prices and rising labor costs.

In addition, PZA is expanding its presence and expects to increase the number of traditional restaurants by 2-3% this year. Along with these expansions, the company’s same-store sales have improved through menu innovations and strategic sports partnerships. The company is also continuing its renovation program, which could help boost same-store sales. Considering all these factors, I believe that PZA, which currently offers a healthy dividend yield of 5.9%, could continue paying dividends at a healthier pace.