How to Build a $50,000 TFSA That Pays You Consistently

In today’s uncertain environment — shaped by rising geopolitical tensions, persistent inflation, and workforce reductions driven by accelerating AI adoption — building passive income has become increasingly essential. Beyond offering financial stability, passive income can also serve as an effective hedge against inflation. Moreover, reinvesting steady payouts allows investors to harness compounding, thereby enhancing long-term returns.

One of the simplest and most cost-effective ways to generate passive income is to invest in high-quality monthly dividend stocks. By allocating $50,000 evenly across the following two Canadian companies, investors could generate more than $220 in monthly dividend income. Additionally, holding these investments in a Tax-Free Savings Account (TFSA) enables investors to earn this income tax-free.

COMPANYRECENT PRICENUMBER OF SHARESINVESTMENTDIVIDENDTOTAL PAYOUTFREQUENCYREI.UN$20.151,240$24,986.00$0.0965$119.66MonthlyWCP$14.611,711$24997.71$0.0608$103.03MonthlyTotal$223.7Monthly

With this in mind, let’s take a closer look at these two monthly dividend-paying stocks.

RioCan Real Estate Investment Trust

Real estate investment trusts (REITs) are particularly attractive to income-focused investors because they are mandated to distribute at least 90% of their taxable income as dividends. With that in mind, RioCan Real Estate Investment Trust (TSX:REI.UN) stands out as a compelling option. The REIT owns and operates 168 properties, comprising approximately 31 million square feet of net leasable area, with most assets strategically located in Canada’s major urban markets.

RioCan also benefits from a well-diversified tenant base, with no single tenant contributing more than 5% of total revenue. Supported by its retail-focused portfolio, the REIT reported a strong 97.8% occupancy rate at year-end 2025.

In addition, the supply of new retail space remains historically low due to elevated construction costs, which is helping sustain demand for existing properties — an encouraging trend for RioCan. The company also plans to recycle between $1.3 billion and $1.4 billion this year, primarily generated through RioCan Living sales and condo proceeds.

Combined with its expansion initiatives, growth in same-property net operating income, favourable leasing spreads on renewals, and consistently high occupancy levels, these factors could support RioCan’s financial performance in the years ahead. Management anticipates diluted core FFO (funds from operations) to grow at an annualized rate of 3.5% through 2028, reinforcing the sustainability of its dividend payouts. Currently, RioCan pays a monthly distribution of $0.0965 per unit, yielding approximately 5.7%.

Whitecap Resources

Another attractive monthly dividend stock to consider right now is Whitecap Resources (TSX:WCP), which operates oil and natural gas-producing assets across Western Canada. While crude oil and natural gas prices have moderated from their recent highs following the announcement of a ceasefire involving Israel, Iran, and the United States, they remain relatively elevated — continuing to support producers like Whitecap.

The company also boasts a strong resource base, with proven reserves of 2.2 billion barrels of oil equivalent, representing a reserve life index of more than 16 years. In addition, Whitecap has enhanced its production profile through its merger with Veren and plans to invest between $2 billion and $2.1 billion this year to boost its output.

At the same time, the ongoing integration of Whitecap and Veren’s assets is already delivering meaningful synergies, with annualized cost savings of around $300 million — roughly 43% higher than initial expectations. Supported by these operational improvements and growth initiatives, Whitecap appears well-positioned to sustain its dividend payouts.

The post How to Build a $50,000 TFSA That Pays You Consistently appeared first on The Motley Fool Canada.

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

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

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and RioCan Real Estate Investment Trust wasn’t one of them. The 10 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 over $16,000!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 87%* – a market-crushing outperformance compared to 76%* for the S&P/TSX Composite Index. Don’t miss out on our top 10 stocks, available when you join our mailing list!

Get the 10 stocks instantly #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 March 24th, 2026

More reading

• A Practical Way to Use Your TFSA to Generate $300 a Month – Tax-Free
• The 3 Stocks I’d Choose First If I Wanted Reliable Monthly Passive Income
• 5 TSX Energy Stocks to Buy as Oil Pulls Back on Ceasefire News
• 3 High-Yield Dividend Stocks to Power Your Income Stream in 2026
• How to Use a TFSA to Earn $500 a Month — Completely Tax-Free

Fool contributor Rajiv Nanjapla has no position in any of the stocks mentioned. The Motley Fool recommends Whitecap Resources. The Motley Fool has a disclosure policy.