By Robin Brown at The Motley Fool Canada
The TFSA (Tax-Free Savings Account) is a powerful place to earn investment income because none of that income is taxed. The more income you keep, the better your returns. If you aren’t using your TFSA to the max, now is a perfect time to change that.
If I had $25,000 to invest in a TFSA, I would split that between five equal positions. Here’s how those five positions could earn a combined $1,100 of tax-free cash flow.
A top utility stock for your TFSA
The first stock I would buy with $5,000 in my portfolio is Fortis (TSX:FTS). That investment would earn $40 per quarter or $160 annualized.
This is a reliable anchor stock your portfolio can’t afford to miss. Certainly, with only a 3.2% dividend yield your immediate cash flow won’t be massive.
However, you are buying a company that has increased its dividend for 52 consecutive years. While a dividend is never guaranteed, Fortis’ steady, safe, and consistent utility business ensures its dividend is about as secure as they come. You are likely to enjoy attractive 4–6% annual dividend growth for the coming years ahead.
A retail REIT
The second TFSA stock I’d buy is First Capital Real Estate Investment Trust (TSX:FCR.UN). Your $5,000 investment would earn $17.28 monthly or $207 annualized.
It has one of the highest quality grocery-anchored property portfolios in Canada. Occupancy sits at 97%, rents are rising by a mid-single digit rate, and the REIT has substantial land/development assets that remain mispriced by the market.
This is the second year this REIT has increased its distribution. It yields 4.2% now.
An energy infrastructure stock
The third stock to add in your TFSA is Pembina Pipeline (TSX:PPL). Your $5,000 investment would earn $59.64 quarterly or $238 annually.
Pembina provides Canadian energy producers all the tools they need to get their energy to market. Its toolkit continues to grow as it invests in attractive growth projects like the Cedar LNG terminal or the Greenlight power center for data centers. It is targeting 5–7% annual growth to 2030.
PPL stock has raised its dividend every year since 2022. Given strong cash flows and a great balance sheet, it is likely to raise its dividend again this May. It yields 4.7%.
An industrial REIT
The fourth stock for your TFSA is Dream Industrial Real Estate Investment Trust (TSX:DIR.UN). Your $5,000 investment would earn $21.35 monthly or $256.20 annually.
The REIT owns and manages $16 billion of industrial real estate across Canada, the U.S., and Europe. Dream has well-located assets that fit a wide mix of industrial tenants. It is sitting with 96% occupancy and has several levers for organic growth in the coming years. This stock has a 5% yield right now.
A transport stock for your TFSA
Mullen Group (TSX:MTL) is the final stock to add to your TFSA with $5,000. That investment would earn $19.81 monthly or $237.72 annually.
Mullen is a logistics and transport provider across Canada and the U.S. Despite a tough freight environment and a challenging economy, Mullen has navigated very effectively. It has been able to manage costs and maintain margins, even though growth has moderated.
MTL stock’s dividend is safe, and it has a history of growing its yield. It currently pays a 4.7% yield
| Company | Recent Price | Number of Shares | Dividend | Total Payout | Frequency |
| Fortis | $78.15 | 63 | $0.635 | $40.00 | Quarterly |
| First Capital REIT | $21.84 | 228 | $0.0758 | $17.28 | Monthly |
| Pembina Pipeline | $59.35 | 84 | $0.71 | $59.64 | Quarterly |
| Dream Industrial REIT | $13.66 | 366 | $0.0583 | $21.35 | Monthly |
| Mullen Group | $17.64 | 283 | $0.07 | $19.81 | Monthly |
Prices as of April 15, 2026
The post How to Put $25,000 in a TFSA to Work Generating Meaningful Cash Flow appeared first on The Motley Fool Canada.
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Fool contributor Robin Brown has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mullen Group. The Motley Fool recommends Dream Industrial Real Estate Investment Trust, First Capital Real Estate Investment Trust, Fortis, and Pembina Pipeline. The Motley Fool has a disclosure policy.
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