Earnings-focused buyers prioritize dividend-payers over growth-oriented shares when structuring a Tax-Free Financial savings Account (TFSA). The purpose is to make sure constant payouts and obtain supplementary tax-free passive revenue along with common or energetic revenue.

A $14,000 funding, or twice the $7,000 TFSA annual contribution in 2025, can generate constant revenue. On this setup, your holdings can embrace an exchange-traded fund (ETF) and an actual property funding belief (REIT) that each pay month-to-month dividends.

Immediate diversification

Immediate diversification is what you get from the iShares S&P/TSX Composite Excessive Dividend Index ETF (TSX:XEI). This ETF replicates the efficiency of the S&P/TSX Composite Excessive Dividend Index. Furthermore, by design, it goals to be a long-term foundational holding, even in a TFSA.

XEI carries a medium threat score, with publicity in high-yield Canadian home shares throughout varied sectors. The highest holdings of this funding fund are business heavyweights such because the Royal Financial institution of Canada, Enbridge, and Nutrien.

The ETF manages $2.4 billion in property and is sort of at par with the broad market, performance-wise. XEI is up 17%-plus year-to-date in comparison with 18.4%-plus for the TSX. At $30.50 per share, the dividend provide is 4.4%. As talked about, the distribution frequency is month-to-month.

Moreover simplifying the choice course of, XEI protects buyers from overexposure or focus in anyone major sector. The regular efficiency so far in 2025 signifies buyers’ belief and confidence within the fund. BlackRock Asset Administration Canada Restricted is the fund supervisor of all iShares ETFs, together with the iShares S&P/TSX Composite Excessive Dividend Index ETF.

Specialised healthcare actual property

The actual property sector (+11% year-to-date) has remained regular this 12 months however NorthWest Healthcare Properties (TSX:NWH.UN) continues to outperform the broader market. NWH.UN is the one REIT within the remedy sector. At $5.15 per share, present buyers take pleasure in a 21.6%-plus return on high of the profitable 7% dividend yield.

This $1.3 billion institutional landlord is the steward of properties that serve a higher objective. NorthWest Healthcare is the specialised proprietor, supervisor, and developer of worldwide healthcare actual property. Along with main healthcare operators, there are tenants within the analysis, schooling, and life sciences sectors.

NorthWest Healthcare invests in main markets and fascinating city centres. The REIT operates in seven international locations, the place it expects demand for important healthcare providers to proceed rising. Demand drivers embrace getting older populations and elevated city migration.

The long-term, inflation-indexed leases generate steady and rising money flows. As a consequence of practically full occupancy (96.6%), money collections stay robust amid financial uncertainty. As of June 30, 2025, the weighted common lease expiry (WALE) of the 168 properties is 13.6 years.

Equal allocation

Assume you make investments $7,000 every in XEI and NWH.UN. The desk beneath reveals the whole payout when you construction $14,000 for constant TFSA payouts. You’ll obtain $66.59 in tax-free month-to-month revenue.

*The dividend/share and whole payout are annual; Divide the payout by 12 to get the month-to-month quantity.

Buyers can select from totally different variations or combos when structuring their TFSAs. The choice is determined by one’s threat tolerance and monetary targets.