An Ideal TFSA Stock Paying 8.3% Each Month

If you’re hunting for a monthly dividend stock to hold in your Tax-Free Savings Account (TFSA), Bridgemarq Real Estate Services (TSX:BRE) deserves a close look. The company pays $0.1125 per share each month, or $1.35 per year, which works out to a juicy 8.3% yield at current prices.

Better still, owning it in a TFSA means every dollar of that income lands in your pocket completely tax-free. I think BRE is one of the better income plays in Canada right now, though it’s not without risk. Read on for the full picture.

Is the TSX dividend stock a good buy?

Bridgemarq is not a real estate developer or a property landlord. Instead, it runs the back office of Canadian real estate.

The company provides realtors with the tools, technology, training, and brand power they need to do their jobs. It operates under well-known names like Royal LePage, Via Capitale, Proprio Direct, Johnston & Daniel, and Les Immeubles Mont-Tremblant.

Its business breaks into two segments.

• The Franchise Operations side collects fees from independent brokerages that operate under its banner brands.
• The Brokerage Operations side runs company-owned brokerages directly, mostly in the Greater Toronto Area, Greater Vancouver, and Quebec.

This dual structure is important as it provides Bridgemarq with steady franchise fee income and direct exposure to transaction volumes in Canada’s biggest markets.

In 2025, Bridgemarq reported revenue of $407 million, up from $351 million in 2024. The revenue growth was driven by brokerage acquisitions completed in March 2024. It reported a net income of $7.3 million in 2025, compared to a loss of $10.3 million in 2024.

However, the bottom-line improvement was tied to a non-cash valuation gain on exchangeable units rather than stronger operations.

Bridgemarq ended 2025 with free cash flow of $10.6 million in 2025, down from $16.8 million in the year-ago period. By comparison, its annual dividend expense is approximately $12.8 million, indicating an unsustainable payout ratio of over 100%.

The company grew its agent network by 470 professionals, a 2% increase, even as the broader Canadian realtor population shrank by 3%. Quebec was a standout, with its residential real estate market growing 16% year over year. Toronto and Vancouver, on the other hand, contracted by 12% and 14%, respectively.

Should you hold BRE stock in your TFSA?

The TFSA is one of the most powerful investment accounts Canadians can access. Any dividends earned inside it are completely sheltered from tax, no matter how large they grow over time.

Monthly dividend payments also make budgeting easier. Instead of waiting for quarterly cheques, BRE pays you each month, making it attractive to those building a passive income stream.

However, no 8.3% yield comes without trade-offs, and BRE operates in a cyclical sector. Its income depends heavily on the health of the Canadian housing market.

When transaction volumes drop, as they did in Toronto and Vancouver in 2025, Bridgemarq is directly impacted. Free cash flow already slipped meaningfully last year, and if housing activity remains soft in 2026, that trend could continue, potentially forcing the real estate company to lower its dividend.

The Bank of Canada has held its overnight rate at 2.25% since October 2025. If rate cuts don’t stimulate buying activity, key housing markets may stay sluggish.

The Foolish takeaway

Bridgemarq is a high-risk investment due to falling free cash flows and slowing housing demand.

Alternatively, the brand network is growing, management held the dividend steady through a difficult year, and Quebec’s strength partly offsets weakness elsewhere.

If used wisely as part of a diversified TFSA portfolio, BRE could be a reliable income engine for years to come.

The post An Ideal TFSA Stock Paying 8.3% Each Month appeared first on The Motley Fool Canada.

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More reading

• 3 TSX Stocks Yielding Over 5% That Appear to Have the Strength to Back It Up

Fool contributor Aditya Raghunath has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bridgemarq Real Estate Services. The Motley Fool has a disclosure policy.