The Best Dividend Stocks for a TFSA Right Now

A Tax-Free Savings Account (TFSA) is built for income that doesn’t get taxed. That’s why dividend stocks can work so well inside one. The 2026 contribution limit is $7,000, and even a modest yield can turn that room into a steady stream of tax-free cash. The trick is not just chasing the biggest payout. It’s finding businesses with enough cash flow, demand, and discipline to keep paying.

Three Canadian dividend stocks that look attractive for a TFSA right now are IGM Financial (TSX:IGM), Chartwell Retirement Residences (TSX:CSH.UN), and Killam Apartment REIT (TSX:KMP.UN). So let’s get right into it.

IGM

IGM is the financial-income pick. The company owns major wealth and asset-management businesses, including IG Wealth Management and Mackenzie Investments. That gives investors exposure to Canadians saving, investing, planning for retirement, and using advice over long periods.

The dividend looks appealing. IGM raised its quarterly dividend to $0.62 per share earlier in 2026. That works out to $2.48 annually, yielding 3.2%. That gives TFSA investors meaningful income without reaching into the highest-risk part of the market.

The business also has scale. IGM reported assets under management including strategic investments of $423.6 billion at the end of the first quarter. That’s the number that makes the opportunity feel real. A company managing hundreds of billions of dollars can produce recurring fees, earnings, and capital returns when markets co-operate.

CSH

Chartwell is the seniors-housing pick. This is Canada’s largest retirement-residence operator, and its business connects to one of the strongest demographic themes in the country. Canada is aging, and demand for retirement living, assisted living, and support services should keep growing over time.

Chartwell pays monthly, which makes it especially useful for TFSA investors building passive income. The current monthly distribution is just over $0.05 per unit, or roughly $0.62 annually, yielding about 2.9%. So this isn’t a high-yield real estate investment trust (REIT), but more of a recovery and income stock.

The recovery is the story. In the first quarter of 2026, Chartwell’s same-property adjusted net operating income rose 15.6%, while funds from operations per unit climbed 35%. That growth came from better occupancy and stronger execution. If occupancy keeps improving, the monthly distribution could become more attractive returns over time.

KMP

Killam Apartment REIT rounds out the group with rental housing. Killam owns apartments, manufactured home communities, and commercial properties, mostly in Atlantic Canada, Ontario, Alberta, and British Columbia. Apartments remain one of the simplest long-term income themes in Canada because people need places to live.

Killam pays $0.06 per unit each month, or $0.72 annually coming to a yield around 3.9% at writing. That monthly payout can be reinvested inside a TFSA, helping investors slowly build more income without triggering tax.

The payout also looks reasonably supported. In the first quarter, Killam earned adjusted funds from operations of $0.24 per unit, up 4.3% from last year. Its rolling 12-month adjusted funds from operations (AFFO) payout ratio improved to 68%, down from 70% a year earlier. Killam’s properties serve a durable need, and rental demand remains a powerful long-term tailwind.

Bottom line

Together, these three dividend stocks offer a useful TFSA mix. IGM brings financial income and market upside. Chartwell adds monthly income tied to Canada’s aging population. Killam adds monthly rental-housing cash flow. Each pays investors while they wait, and each is tied to a long-term theme that should outlast the next market cycle. Even $7,000 can create immense income among dividend stocks.

COMPANY	RECENT PRICE	NUMBER OF SHARES	ANNUAL DIVIDEND	ANNUAL TOTAL PAYOUT	FREQUENCY	TOTAL INVESTMENT
IGM	$78.66	89	$2.48	$220.72	Quarterly	$7,001.74
CSH.UN	$22.27	314	$0.62	$194.68	Monthly	$6,994.78
KMP.UN	$18.93	369	$0.72	$265.68	Monthly	$6,985.17

For TFSA investors looking for income right now, that’s a strong place to start.

The post The Best Dividend Stocks for a TFSA Right Now appeared first on The Motley Fool Canada.

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More reading

• A Perfect TFSA Stock: A 4% Yield With Constant Paycheques
• 3 Growth Stocks Worth Adding to a TFSA This Summer
• The Top Canadian Stock to Buy in 2026 With $26,000
• How Much Does a Typical 45-Year-Old British Columbia Resident Have Saved in a TFSA?
• My 3 Favourite Canadian Stocks for Passive Income

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.