Transform your TFSA into a CashCreate machine with $ 7,000

If you want your tax -free savings account (TFSA) to be a steady income for years without constantly checking the market, you need a dividend share that combines growth, stability and reliable dividends. Sun Life Financial (TSX: SLF) Checks all three courses. And invested with $ 7,000, it could be a strong building block for a portfolio that generates money.

Sun company

Sun Life is not just an insurance company. It is a diversified global financial service giant with activities in Canada, the US and fast -growing Asian markets. In the last quarter, the $ 1,015 billion in underlying net income, an increase of 2% after year, with a robust return of 17.6% on equity. Assets in Management (AUM) climbed to $ 1.54 trillion, powered by both the sale of power and asset management.

The dividend share currently yields around 4.5% annually. This means that $ 7,000 could be invested at around $ 313 per year in tax -free income if they are held in a TFSA. And because Sun Life has a long history of a steady dividend growth, those payments can rise over time without adding another cent. In the past five years it has on average a dividend yield of 4%, but the current payout is above that, which suggests that you lock an attractive access point.

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There are catalysts in the game that can keep this income stream healthy. Sun Life sees strength in his Asian Affairs, with a record underlying net income in the region and a jump of 15% in banc-advertisement turnover in markets such as Hong Kong and India. The asset management arm, including SLC management and MFS, continues to collect assets and launch innovative investment products, which generate income-based income that supports long-term dividend growth. The dividend stock also leans in artificial intelligence (AI) and digital initiatives to improve customer service and efficiency, which may reduce the costs and stimulates profit.

The balance is another force. With a Life Insurance Capital Adequacy Test (Licat) ratio of 151%, Sun Life is well capitalized, giving it flexibility to grow organically, to pursue acquisitions and continue to pay shareholders. It has even purchased almost $ 400 million in shares in the last quarter. This supports the growth in profit per share (EPS) over time.

Consideration

Of course no dividend stock is risk -free. The Fortuinen of Sun Life are partly bound by market performance, which can influence the turnover of assets management. Economic delays can also achieve the sale of insurance and investment returns. And although Asian expansion is a growth motor, it also comes with exposure to legal and economic shifts in those markets. Nevertheless, the worldwide diversification of the dividend share and the strong capital position offer a buffer against shocks.

With today’s appreciation with a forward price-gain ratio (p/e) of around 10.6, Sun Life is not priced as a growing socket, but rather as a steady compounder. For long-term TFSA investors, that is exactly what you want. You don’t gamble on winnings about the night. You set up a stream of tax -free money that can grow due to reinvestment and dividend increases.

Bottom Line

The beauty of a dividend supply such as Sun Life in A TFSA is that it works quietly in the background. Those quarterly dividends countries without a tax assessment, and over time, reinvesting a composite effect can create that accelerates your wealth structure. Even if you never add money again, the combination of yield and growth can make a meaningful difference for your financial future.

Simply put, $ 7,000 in Sun Life Today is a down payment on a income flow that could last for decades. You buy a company with a worldwide reach, a history of rewarding shareholders and the financial strength to continue to do this. The sooner you start, the more time your TFSA must turn into a reliable, tax -free cash machine.