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How to Convert $25,000 in TFSA Savings Into Reliable Cash Flow

Motley Fool - Fri Jul 24, 6:00PM CDT

By Robin Brown at The Motley Fool Canada

Turning $25,000 of TFSA (Tax-Free Savings Account) savings into reliable cash flow might be easier than you imagine. Focus on owning a diverse mix of quality dividend stocks. Not only will you earn a nice income stream now, but that cash flow stream can grow over time. Here are five stocks I would buy to convert a $25,000 TFSA into regular income.

Fortis: A top TFSA stock for cash flow

Fortis (TSX:FTS) is the ideal base for any TFSA portfolio. You can’t argue with a 52-year consecutive dividend record. This utility has a stability and consistency that investors seek.

It’s growing by a targeted 7% per year. FTS stock is hoping to grow its dividend by 5–7% per year for the coming five years (and hopefully beyond).

Fortis stock yields 3.1%. A $5,000 investment in Fortis would earn $38.10 every quarter.

Choice Properties

If you want a little larger dividend yield, Choice Properties REIT (TSX:CHP.UN) is ideal for a TFSA. It is Canada’s largest real estate investment trust. It primarily owns grocery-anchored retail properties in Canada. However, it also has a high-quality industrial and mixed-use property portfolio.

Choice is about to be considerably larger once it adds First Capital REIT’s properties to its portfolio. It has strong list of tenants, elevated occupancy, and rising rental rates.

This stock yields 4.8%. A $5,000 investment would earn $19.89 monthly (or $59.67 quarterly).

Topaz Energy

Topaz Energy (TSX:TPZ) is a quality dividend stock if you want exposure to energy in your TFSA. It offers a mix of infrastructure and royalty income.

Its land is located in some highly prolific production regions. The royalty company takes a percentage of that production. As Canadian energy producers continue to grow their production, Topaz enjoys a growing income stream.

Topaz has a great history of growing its dividend. It yields 4.4%. A $5,00 investment would earn $53.55 quarterly.

Chartwell Retirement

Chartwell Retirement Residences (TSX:CHP.UN) is a stock exposed to a huge trend, and it pays regular income. It is Canada’s largest provider of high-quality retirement communities.

Canada’s population is rapidly aging. Demand for retirement communities is rising, but supply is not matching the demand. This is ensuring strong occupancy and strong rental rate growth. This is a tailwind that will support growth for decades.

Chartwell stock yields 2.8%. A $5,000 investment would earn $11.57 monthly (or $34.72 quarterly).

Pembina Pipeline

The last dividend stock I’d add to a TFSA is Pembina Pipeline (TSX:PPL). This is one of Canada’s largest diversified energy infrastructure companies.

Its large base of contracted income supports its dividend. The company has a growing backlog of capital projects that will be highly accretive in the long term (including an LNG terminal and a data centre power project). Elevated energy prices should support strong results in 2026.

PPL stock yields 4% today. A $5,000 investment would earn $49.51 quarterly.

The $25,000 TFSA takeaway

Combine these five stocks in a $25,000 TFSA portfolio, and you would be earning $235.55 quarterly or $942.20 annualized. Many of these stocks have established a record raising their dividends regularly, so you are likely to see your TFSA income rise over time.

COMPANYRECENT PRICENUMBER OF SHARESDIVIDENDTOTAL PAYOUTFREQUENCY
Fortis$82.1460$0.635$38.10Quarterly
Choice Properties REIT$16.30306$0.065$19.89Monthly
Topaz Energy$32.59153$0.35$53.55Quarterly
Chartwell Retirement Residences$22.30224$0.0517$11.57Monthly
Pembina Pipeline$71.6369$0.7175$49.50Quarterly

Prices as of June 23, 2026

The post How to Convert $25,000 in TFSA Savings Into Reliable 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 recommends Fortis, Pembina Pipeline, and Topaz Energy. The Motley Fool has a disclosure policy.

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