In 2021, the Canadian government announced that the annual contribution room in a Tax-Free Savings Account (TFSA) would rise by another $6,000 in 2022. That brought the cumulative contribution room in a TFSA to $81,500. The TFSA is a magnificent growth vehicle, but it can also empower investors to churn out big tax-free income over the long haul. Today, I want to look at two monthly dividend stocks that can work wonders in your TFSA right now.
Extendicare (TSX:EXE) is a Markham-based company that provides care and services for seniors across the country. Shares of this dividend stock have climbed 6.7% in 2022 as of close on April 14. That has pushed the stock into the black in the year-over-year period.
The company released its Q4 and full-year 2021 results on February 24, 2022. Total revenues rose to $1.21 billion – up from $1.10 billion in 2020. Shares of Extendicare are trading in solid value territory over its competitors. It offers a monthly distribution of $0.04 per share. That represents a tasty 6% yield.
Pembina Pipeline (TSX:PPL)(NYSE:PBA) is another dividend stock I’d target in a TFSA this year. The oil and gas sector have been on fire in 2022 in response to geopolitical pressures. Shares of Pembina have increased 29% so far this year.
This stock last paid out a monthly dividend of $0.21 per share. That represents a strong 5% yield. TFSA investors should look to scoop up Pembina in the middle of April.
