My Blueprint for Generating $113/Month Using a $20,000 TFSA Investment

Investing $20,000 in dividend stocks can turn your Tax-Free Savings Account (TFSA) into an income-generating machine. Moreover, when you focus on Canadian stocks offering reliable dividends every single month, the benefits are even more compelling. Monthly payouts provide a steady stream of cash that can help cover day-to-day expenses or be reinvested more frequently. Over time, those reinvestments supercharge compounding and support stronger long-term returns.

My blueprint for generating income via a TFSA is to focus on companies with strong fundamentals, consistent earnings growth, a proven track record of dividend payments, and sustainable payout ratios. These companies are more likely to maintain their distributions over time. Also, diversifying across different sectors reduces the risk of relying too heavily on any one industry.

Against this backdrop, here are two stocks that can help generate worry-free monthly passive income.

SmartCentres REIT

SmartCentres REIT (TSX:SRU.UN) is one of the most reliable stocks to generate steady monthly income in a TFSA. The REIT operates a well-diversified real estate portfolio that generates steady net operating income (NOI), supporting its payouts. Besides its consistent payouts, it also offers a high yield of 7.3%.

Thanks to its 197 mixed-use properties, strategically located across Canada, the company experiences high traffic and generates dependable rental income. Moreover, its high-quality properties witness high occupancy rates (98.6% in the third quarter) and strong tenant demand. Thanks to its resilient tenant base, including large retailers, the company’s cash collection rate remains high, adding stability to its income regardless of economic conditions and driving leasing activity.

SmartCentres’s core retail portfolio could continue to perform well. Moreover, its strong mixed-use development pipeline positions it well to deliver strong growth. Also, its substantial land holdings and a strong balance sheet provide a solid base for future growth.

Whitecap Resources

Whitecap Resources (TSX:WCP) is another dependable monthly income stock to add to your TFSA portfolio. The company is known for rewarding shareholders through consistent dividend payments. The oil and gas producer pays a monthly dividend of $0.061 per share, yielding about 6.2%. Notably, from January 2013 to September 2025, WCP has returned approximately $2.7 billion to shareholders through dividends.

Whitecap also maintains a sustainable payout ratio of 20–25% for its base dividend. Moreover, it targets an annual 1–3% increase in its base dividend for the long term.

The company’s emphasis on improving operational efficiency, optimizing drilling performance, and maintaining disciplined capital spending augurs well for future earnings growth and will support its payouts.

WCP’s diversified assets and a focus on allocating capital to the highest-return projects position it well to deliver sustainable growth. Further, its low leverage and substantial inventory of high-quality drilling locations provide a strong base for future expansion while maintaining shareholder returns. Whitecap’s recent acquisition of Veren brings additional scale and premium assets, broadening its base of long-life, high-productivity projects, and is likely to support its earnings and payouts.

Earn about $113 per month in tax-free income

SmartCentres REIT and Whitecap Resources are compelling dividend stocks to add to your TFSA for generating a solid monthly passive-income stream. By investing $20,000 and dividing it equally between the two, you could generate about $113 per month in passive income.

CompanyRecent PriceNumber of SharesDividendTotal PayoutsFrequencySmartcentres REIT$25.23396$0.154$60.98MonthlyWhitecap Resources$11.84844$0.061$51.84MonthlyPrice as of 12/05/2025

The post My Blueprint for Generating $113/Month Using a $20,000 TFSA Investment appeared first on The Motley Fool Canada.

Should you invest $1,000 in SmartCentres Real Estate Investment Trust right now?

Before you buy stock in SmartCentres Real Estate Investment Trust, consider this:

The Motley Fool Stock Advisor Canada analyst team identified what they believe are the 15 best stocks for investors to buy now… and SmartCentres Real Estate Investment Trust wasn’t one of them. The 15 stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 … if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $21,105.89!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 95%* – a market-crushing outperformance compared to 72%* for the S&P/TSX Composite Index. Don’t miss out on our top 15 list, available when you join Stock Advisor Canada.

See the 15 Stocks #start_btn6 { background: #0e6d04 none repeat scroll 0 0; color: #fff; font-size: 1.2em; font-family: 'Montserrat', sans-serif; font-weight: 600; height: auto; line-height: 1.2em; margin: 30px 0; max-width: 350px; text-align: center; width: auto; box-shadow: 0 1px 0 rgba(0, 0, 0, 0.5), 0 1px 0 #fff inset, 0 0 2px rgba(0, 0, 0, 0.2); border-radius: 5px; } #start_btn6 a { color: #fff; display: block; padding: 20px; padding-right:1em; padding-left:1em; } #start_btn6 a:hover { background: #FFE300 none repeat scroll 0 0; color: #000; } @media (max-width: 480px) { div#start_btn6 { font-size:1.1em; max-width: 320px;} } margin_bottom_5 { margin-bottom:5px; } margin_top_10 { margin-top:10px; }

* Returns as of November 17th, 2025

More reading

• This 7.3% Dividend Stock Could Pay Me Every Month Like Clockwork
• Why I’m Watching These Dividend All-Stars Very Closely
• Monthly Income: Top Dividend Stocks to Buy in December
• High Yield, Low Stress: 3 Income Stocks Ideal for Retirees
• Invest $15,000 in This Dividend Stock: Create $78 in Passive Income

Fool contributor Sneha Nahata has no position in any of the stocks mentioned. The Motley Fool recommends SmartCentres Real Estate Investment Trust and Whitecap Resources. The Motley Fool has a disclosure policy.