Transform $14,000 in TFSA Into Steady Cash Flow
The Tax-Free Savings Account (TFSA) in Canada provides a robust opportunity for tax-exempt income generation. By strategically investing in dividend stocks, users can transform their savings into a steady cash flow. Here, we explore how $14,000 in a TFSA can yield significant returns in 2026.
Key Investment Opportunities
Three prominent stocks stand out for TFSA investments: Firm Capital Mortgage, SmartCentres, and Freehold Royalties. Each offers unique benefits while catering to different risk appetites.
Firm Capital Mortgage (TSX: FC)
Firm Capital Mortgage is an appealing option due to its high yield and consistent dividend payments. As of January 28, 2026, the benchmark interest rate has dropped to 2.25%, presenting an advantageous market for this mortgage investment corporation (MIC).
- Yield: 7.64% per share
- Monthly dividend payments since 2013
- No income taxes due to MIC status
- Focus on residential and commercial financing
Firm Capital has established a diversified mortgage portfolio that has historically provided stable returns, contributing to its reputation as a reliable investment.
SmartCentres (TSX: SRU.UN)
SmartCentres stands out as a real estate investment trust (REIT) with a solid foundation in commercial and residential properties. As of 2025, the REIT encompasses 197 income-producing properties, featuring a remarkable occupancy rate of 98.6%.
- Current dividend yield: 6.8%
- Strong partnership with Walmart, accounting for 23% of revenue
- Year-over-year rental growth of 6.2%
- Upcoming self-storage developments in Quebec and British Columbia
These factors position SmartCentres as a promising investment choice for those seeking both safety and growth.
Freehold Royalties (TSX: FRU)
For lower-risk exposure in the energy sector, Freehold Royalties offers a stable investment strategy. The company operates on a royalty-based model, collecting payments from 380 oil drillers.
- Current share price: $16.56
- Dividend yield: 6.52%
- Diversified portfolio providing cash flow stability
This model minimizes operational risks, making Freehold an attractive selection for conservative investors.
Projected Returns from a $14,000 TFSA Investment
Investing in these three stocks can yield significant benefits. By allocating approximately $4,666.67 to each of the companies, the projected monthly cash flow would be around $81.43.
This translates to an annual income of approximately $977.20, all tax-free within your TFSA. Such a strategy can provide essential financial support when needed most.
Conclusion
Transforming $14,000 in a TFSA into a steady cash flow is achievable through careful selection of high-yield dividend stocks. Firm Capital Mortgage, SmartCentres, and Freehold Royalties collectively offer a balanced approach to investment, catering to various risk tolerances while maximizing potential returns.
