Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine

Got $14,000 in Tax-Free Savings Account (TFSA) room? That’s basically two years of contribution space, and it can do a lot more than sit in cash. A modest TFSA won’t turn into a fortune overnight, but it can start building a stream of tax-free income right away if you focus on businesses with durable cash flow and reliable payouts. That’s the real appeal here: stability.

CPX

Capital Power (TSX:CPX) looks like a strong first pick for that job. It owns and develops power-generation assets across North America, including natural gas, renewables, and battery storage. Over the last year, it stayed busy. The power producer closed the roughly $3 billion acquisition of the Hummel and Rolling Hills facilities in PJM, signed a long-term contract extension for the Midland Cogeneration Venture through 2040, and reached commercial operation on about 60 megawatt (MW) of contracted projects while commissioning 170 MW of battery storage in Ontario. It also announced a 250 MW Alberta electricity supply agreement tied to a data-centre developer, with service expected to start in 2028.

For 2025, revenue and other income came in at $3.7 billion, adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) reached $1.6 billion, and adjusted funds from operations hit $1.1 billion, or $7.08 per share. Net income fell to $159 million from $701 million in 2024, but the cash-flow numbers stayed strong, which matters more for an income investor. In the fourth quarter alone, adjusted EBITDA rose to $414 million from $330 million, while adjusted funds from operations (FFO) climbed to $244 million from $182 million.

The valuation still looks reasonable for a utility-style business with growth levers. The TFSA stock holds a market cap of about $9.6 billion, a forward dividend yield near 4.4%, and a forward price-to-earnings ratio around 22 as of writing. That’s not dirt cheap, but it’s not wild either given the contracted cash flow, dividend growth, and expansion into U.S. power markets. For TFSA investors, it fits because it offers income now and enough growth potential to keep that income moving higher over time.

GRT

Granite REIT (TSX:GRT.UN) brings a different kind of strength. It owns logistics and industrial properties in North America and Europe, which makes it a cleaner way to play warehousing and distribution demand. Over the last year, it stayed active on both the buying and selling side. During the fourth quarter of 2025, the REIT acquired six income-producing properties in the United States and United Kingdom for about $292.3 million, sold three U.S. properties for $189.5 million, and then sold another Dutch property in January 2026 for gross proceeds of $37.6 million. It also renewed its at-the-market equity program and kept its monthly distribution flowing.

Fourth-quarter net operating income (NOI) rose to $133.3 million from $121.2 million, while FFO increased to $96.6 million, or $1.59 per unit, from $92.7 million, or $1.47 per unit. For the full year, FFO climbed to $363 million, or $5.91 per unit, and AFFO rose to $319.8 million, or $5.21 per unit. Occupancy hit 98% at year-end and committed occupancy moved up to 98.6% by Feb. 25, 2026. Even better, Granite achieved average rental spreads of 45% on 2025 lease renewals.

Granite also looks fairly sensible on valuation. The TFSA stock showed a trailing yield around 4.2%, a payout ratio near 60%, and a forward price-to-earnings (P/E) of about 12.6. Its price-to-book sat below 1 at 0.88, which suggests the market still hasn’t fully warmed back up to industrial real estate investment trusts (REIT) despite Granite’s healthy leasing profile. This one fits because it offers monthly income, solid property fundamentals, and a calmer risk profile than many higher-yield names.

Bottom line

Put the two together, and that $14,000 TFSA starts looking a lot more useful. Capital Power adds a growing dividend backed by power assets and long-term contracts. Granite REIT adds monthly income backed by high-quality industrial real estate. Together that $14,000 could look like appealing income.

COMPANYRECENT PRICENUMBER OF SHARESANNUAL DIVIDENDANNUAL TOTAL PAYOUTFREQUENCYTOTAL INVESTMENTCPX$64.09109$2.72$296.48Quarterly$6,985.81GRT.UN$82.1985$3.45$293.25Monthly$6,986.15

Neither stock is risk free, but both look built to keep cash coming in. That’s how a TFSA starts to feel less like parked money and more like a cash-gushing machine.

The post Got $14,000? Turn Your TFSA Into a Cash-Gushing Machine appeared first on The Motley Fool Canada.

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More reading

• 3 Canadian Stocks That Could Win From More Power Demand
• How to Pull $265 Per Month Tax-Free From Your TFSA
• How to Get AI Exposure in Your Portfolio Without Touching Tech Stocks
• How to Set Up a $14,000 TFSA That Could Pay You Monthly for Life
• A Dependable 4% Dividend Stock That Pays You Every Month

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool recommends Capital Power and Granite Real Estate Investment Trust. The Motley Fool has a disclosure policy.