Utilizing your Tax-Free Financial savings Account (TFSA) to construct a dependable passive earnings turns into far simpler once you deal with high-quality dividend shares that pay month-to-month. As a result of TFSA earnings are utterly tax-free, each greenback of dividend earnings stays in your pocket, making it a perfect account for compounding wealth over time.

Begin by defining how a lot earnings you need your TFSA to generate. As an example, an annual goal of $3,600, equal to $300 monthly, would require roughly $90,000 invested at a 4% common yield. As soon as that quantity, you may start constructing a resilient earnings portfolio with a mixture of basically sturdy dividend payers with sustainable payouts to generate regular earnings.

With this background, listed here are two Canadian shares that pay month-to-month dividends and supply excessive and sustainable yields.

SmartCentres REIT

SmartCentres REIT (TSX:SRU.UN) could possibly be a stable addition to your TFSA portfolio to generate tax-free month-to-month earnings. The true property funding belief (REIT) is thought for its regular dividend funds no matter market situations. It distributes $0.154 per share month-to-month, yielding about 7%. Notably, it has maintained its payouts in a high-interest-rate surroundings and amid macro uncertainty, demonstrating the resilience of its working earnings.

SmartCentres’s dependable month-to-month distributions are supported by a diversified actual property portfolio, a high-quality tenant base, and constantly sturdy occupancy. With 197 mixed-use properties situated in high-traffic, in-demand areas, SmartCentres maintains sturdy leasing exercise. As of September 30, 2025, the REIT reported a powerful 98.6% occupancy charge, reflecting the stable demand for its belongings.

Leasing momentum has been regular all through 2025, with almost 394,000 sq. toes of house crammed to date and robust demand for brand spanking new developments. The REIT has additionally secured renewals on roughly 85% of leases set to run out in 2025, supported by wholesome hire progress of 8.4% for non-anchor tenants and a 99% rent-collection charge.

Backed by stable operations, high-quality tenants, together with high retailers, a powerful mixed-use growth pipeline, and a big land financial institution, SmartCentres seems well-positioned to keep up its month-to-month payouts.

Whitecap Assets 

Whitecap Assets (TSX:WCP) is one other reliable inventory so as to add to your TFSA portfolio for month-to-month earnings. The vitality producer pays a month-to-month dividend of $0.061 per share, yielding about 6.2%.

Since 2013, the corporate has returned roughly $2.7 billion to buyers, supported by a disciplined payout ratio of 20–25% and a long-term plan for 1–3% annual dividend progress.

Whitecap’s deal with operational effectivity and disciplined challenge choice helps its capacity to generate constant earnings, thereby strengthening the inspiration for future payouts. Its current acquisition of Veren additional expands its scale, boosts manufacturing capability, and enhances its portfolio of high-quality belongings. With these benefits, Whitecap seems well-positioned to maintain and progressively improve its month-to-month dividends within the years forward. Its excessive yield and dependable payouts make it an interesting possibility for TFSA buyers searching for common earnings.

Earn $331 monthly in tax-free earnings

For TFSA buyers, SmartCentres REIT and Whitecap Assets are dependable high-yield dividend shares to generate tax-free month-to-month earnings. The desk under reveals that in case you make investments $60,000 and break up it evenly between the 2, the mixed dividends may herald $3,972 per yr or roughly $331 every month.