In the ever-shifting landscape of investments, finding a stable income stream can be a game-changer. And in the context of Canada's Tax-Free Savings Account (TFSA), a well-crafted strategy can turn a simple savings account into a reliable income generator. Today, I'm going to share with you a straightforward TFSA plan that could potentially deliver monthly payments in 2026 and beyond. This plan revolves around two key holdings: Northland Power (TSX:NPI) and Primaris Real Estate Investment Trust (TSX:PMZ.UN).
A Global Power Producer with Renewable Growth
Northland Power is a global power producer with a growing portfolio of renewable energy assets. It operates in the offshore and onshore wind, solar, and energy storage sectors, spanning Canada and Europe. The company's stock currently trades at $23.57 with a market cap of $6.2 billion, and it has delivered a 32% year-to-date return. What makes Northland Power particularly compelling is its ability to generate stable cash flow from long-term contracted assets, providing visibility into earnings and supporting consistent dividend payouts.
In its latest results for the quarter ended in December 2025, Northland Power delivered adjusted EBITDA of about $1.3 billion, thanks to strong wind production in its German offshore projects. The company's long-term strategy targets doubling its operating capacity to 7 gigawatts by 2030, with major projects like Baltic Power and Hai Long expected to play a key role in this growth. This combination of reliable income and exposure to the growing renewable energy sector makes Northland Power a strong candidate for a TFSA income plan.
A High Monthly Yield Stock with Improving Fundamentals
Primaris Real Estate Investment Trust, on the other hand, is a real estate investment trust (REIT) that focuses on enclosed shopping centres across Canada. Its shares currently trade at $18.89 with a market cap of $2.2 billion, and it has gained around 32% over the last 12 months. What makes Primaris particularly interesting is its improving operating performance. In the fourth quarter of 2025, its same-property cash net operating income rose 6.8%, while its funds from operations (FFO) per unit increased 9.2% year-over-year (YoY). This reflects stronger leasing activity, better tenant performance, and the benefits of strategic acquisitions.
Primaris' focus on enclosed malls, which are relatively scarce assets in Canada, gives it a unique positioning in the retail real estate space. Combined with disciplined capital allocation, this supports both income stability and long-term value creation. The REIT has also raised its 2026 FFO guidance, signalling confidence in continued growth. This makes Primaris a strong income-focused holding for TFSA investors.
A Simple TFSA Monthly Income Plan
Creating monthly income from your TFSA doesn't require a complex strategy. By focusing on companies that pay regular dividends and continue to grow, you can build a portfolio that works for you over time. Northland Power brings stable, contract-backed cash flows with exposure to renewable energy growth, while Primaris REIT offers higher income supported by a solid real estate portfolio and improving fundamentals. Together, these two monthly dividend stocks provide a simple but effective approach to generating monthly payments by 2026 while still leaving room for capital appreciation.
In my opinion, this TFSA plan is particularly compelling because it combines the stability of renewable energy with the income potential of real estate. It's a strategy that not only provides a reliable income stream but also offers exposure to growing sectors that are likely to continue to perform well in the future. So, if you're looking for a straightforward way to generate monthly payments from your TFSA, this plan is definitely worth considering.
