Today’s Perfect TFSA Stock: 5% Monthly Income

If you’re hunting for a rock-solid monthly dividend payer to supercharge your TFSA right now, there are really only a handful of top options to consider. That said, Whitecap Resources (TSX:WCP) stands head and shoulders above the crowd, at least in my view.

Here’s why this Calgary-based oil and gas producer providing investors with a 5% dividend yield (paid monthly) is the top dividend stock I think fits most income-hungry investor profiles right now.

A sustainable dividend yield

This impressive aforementioned 5% dividend yield paid monthly is one thing. I think investors are starting to pay attention to the company’s payout ratio under 70%, the quality of its balance sheet, and improving profit margins as reasons to get in now.

Indeed, considering the run WCP stock has been on of late (see chart above), it’s clear this stock had a much higher yield in the past. In fact, I wrote a number of pieces a while back citing the company’s 6% yield. That’s what investing in top dividend stocks near troughs (such as those seen early last year) can do for long-term investors.

With a solid dividend growth trajectory, and plenty of visibility into rising cash flows over time, there’s a lot to like about Whitecap’s dividend sustainability and underlying fundamentals.

Why a TFSA?

Tax-Free Savings Accounts (TFSAs) are generally considered retirement investing vehicles best used for growth stocks. That’s simply due to the fact that capital gains aren’t taxed when funds are pulled out in retirement. So, the faster-growth stocks that appreciate 10 times or more are treated much more favourably in such an account from a taxation perspective.

That said, the same goes for reinvested dividend income over time. So, for those willing to reinvest Whitecap’s dividend into more shares via a dividend reinvestment plan (DRIP), this is a stock that can certainly provide outsized gains over the long term.

I think that Whitecap remains a buy right now, almost regardless of where oil prices go. If we do see a marked decline as global demand for oil wanes, this is a stock I think investors want to be standing at the ready to load up on. That said, WCP stock still looks like a buy to me at oil prices closer to $60 per barrel, based on its current fundamentals.

The post Today’s Perfect TFSA Stock: 5% Monthly Income appeared first on The Motley Fool Canada.

Should you invest $1,000 in Whitecap Resources right now?

Before you buy stock in Whitecap Resources, consider this:

The Motley Fool Canada team has identified what they believe are the top 10 TSX stocks for 2026… and Whitecap Resources 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 $20,155.76!*

Now, it’s worth noting Stock Advisor Canada’s total average return is 90%* – a market-crushing outperformance compared to 81%* 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 February 17th, 2026

More reading

• This TSX Dividend Stock Could Surprise in 2026
• Looking for Real Income Without the Risk? These 3 TSX Stocks Yield Over 5% and Can Back It Up
• Retirees: Here’s a Cheap Safety Stock That Pays Big Dividends
• Got $14,000? Here’s How to Structure a TFSA for Lifelong Monthly Income
• For Monthly Income, a 5.4% Dividend Stock to Consider

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