A “good” Tax-Free Financial savings Account (TFSA) dividend inventory turns your contribution room into reliable, tax-free money stream. You need a enterprise that retains amassing income in good instances and unhealthy, plus a payout that traces up with actual money era. The yield ought to look enticing, however the protection ought to look boring. If the distribution solely works when all the pieces goes proper, a TFSA won’t prevent from a reduce.
Think about CHP
Selection Properties REIT (TSX:CHP.UN) suits that income-first mindset as a result of it owns actual property Canadians use in each season. It operates a nationwide portfolio constructed round necessity-based retail, plus industrial and mixed-use belongings, and it leans on a strategic relationship with Loblaw, Canada’s largest retailer. It additionally highlights a grocery-anchored footprint and a tenant combine constructed for resilience when customers tighten up.
That “on a regular basis wants” angle reveals up within the stats earnings traders care about most: occupancy and leasing momentum. On the finish of September 2025, Selection reported 98% occupancy throughout the portfolio, with retail at 97.8% and industrial at 98.3%. It additionally delivered long-term renewal leasing spreads of 9% in retail and 38.3% in industrial, which alerts strong demand for well-located area.
The unit worth has adopted a traditional actual property funding belief (REIT) sample, with rates of interest calling loads of the pictures. The dividend inventory trades up 12% within the final yr on the time of writing. That doesn’t scream “rocket ship,” nevertheless it does present the pullbacks have seemed extra like bumps than blowups. For a TFSA earnings holding, that calmer journey issues greater than individuals admit.
Into earnings
Latest earnings seemed regular the place it counts. Within the third quarter (Q3) of 2025, Selection reported funds from operations (FFO) per diluted unit of $0.278, up 7.8% yr over yr. It additionally reported same-asset internet working earnings (NOI) on a money foundation of $251.5 million, up 2.8% versus the prior-year interval. This factors to modest, actual lease progress as a substitute of one-off wins.
Adjusted funds from operations (AFFO) got here in softer, and it’s best to discover it. The report confirmed AFFO per diluted unit of $0.192 in Q3 2025, down from $0.229 a yr earlier, tied to upkeep capital initiatives beginning earlier within the yr. The quarter’s distribution declared per unit totalled $0.193, which left AFFO protection tight for the interval. That’s the principle threat right here. Reinvestment wants can pinch protection in a given quarter, even when the long-term story stays intact.
On valuation, the best lens is the earnings stream versus the value you pay, plus the REIT’s personal scoreboard for the subsequent few quarters. Selection declared a month-to-month money distribution of $0.064167 per unit, or $0.77 annualized, with a dividend yield at the moment at about 5%.
Backside line
This dividend inventory earns the “good TFSA month-to-month payer” label because it pairs essentials-focused actual property with a predictable money distribution. You get month-to-month earnings, excessive occupancy, and steering that goals for regular progress, not heroics. And proper now, right here’s what $7,000 might herald from dividends alone.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND | ANNUAL TOTAL PAYOUT | FREQUENCY | TOTAL INVESTMENT |
|---|---|---|---|---|---|---|
| CHP.UN | $15.15 | 462 | $0.77 | $355.74 | Month-to-month | $6,999.30 |
The dangers stay actual. Larger charges can stress unit costs, and tight AFFO protection can spook the market if capital spending stays elevated. Nonetheless, inside a TFSA, that month-to-month deposit might help you keep constant, reinvest on autopilot, and compound with out dropping a slice to tax.
