Specializing in month-to-month dividend payers is a sound technique for February, significantly for income-focused buyers. Given financial uncertainties in 2026 stemming from world commerce tensions and geopolitical dangers, a sustained month-to-month revenue stream can present a significant monetary buffer.
Nonetheless, to maximise the affect of the month-to-month payouts, use the Tax-Free Financial savings Account (TFSA) to make sure tax exemption from the Canada Income Company (CRA). The 12 funds, slightly than 4, could be included into your month-to-month finances to cowl recurring bills and enhance day-to-day life.
Advisable TFSA inventory
All dividend revenue inside a TFSA, whether or not month-to-month or quarterly, is tax-free. Whitecap Assets (TSX:WCP) stands out at this time for its beneficiant dividend provide and month-to-month payout frequency. So far in 2026, power is the second-best-performing sector, trailing solely fundamental supplies with a strong +15% return.
As of this writing, WCP is up 12.3%. The share value is $12.85, whereas the yield is 5.8%. A $21,000 funding, or thrice the $7,000 TFSA contribution restrict in 2026, will generate $99.75 in month-to-month passive revenue. You pay zero taxes if you want to make month-to-month withdrawals.
Constant payouts
There must be confidence in investing in Whitecap Assets as a result of it’s a large-cap inventory. Extra importantly, the $15.3 billion Canadian power firm prioritizes month-to-month distributions to shareholders. The 64.6% payout ratio signifies a “margin of security.” It implies that about two-thirds of earnings can cowl month-to-month dividend funds.
WCP has an extended historical past of dividend funds, relationship again to 2013. The corporate, nevertheless, slashed payouts twice (2016 and 2020) as a result of excessive oil value crashes. In October 2023, the dividend stage was restored, together with a 26% dividend hike. The debt-reduction technique, with roughly $1 billion paid, considerably improved its monetary place.
Enterprise highlights
Along with the improved monetary place, Whitecap Assets has enhanced its manufacturing energy. In March 2025, it acquired Veren Inc. to turn out to be Canada’s seventh-largest oil and fuel producer. The mixed asset base following the $15 billion transaction ought to drive profitability and shareholder returns. Administration added that it’s the pathway for long-term development.
On January 5, 2026, Whitecap Assets introduced it was establishing a capital-allocation technique to supply further worth. This yr’s technique features a $300 million share-repurchase program and a $900 million dividend dedication. Once more, it reinforces WCP’s shareholder-first mindset.
The brand new capital mechanism goals to ship significant returns and for the bottom dividend to develop with the enterprise in the long run. The goal payout ratio is 20-25%. With a “counter-cyclical” strategy, Whitecap Assets is assured that it could possibly take in oil costs at US$60 per barrel and preserve its present dividend funds.
Extra importantly, Whitecap Assets has capital flexibility if commodity costs enhance. In a decrease pricing atmosphere, share repurchases to reinforce per-share development take priority over increasing natural manufacturing. Within the first three quarters of 2025, web revenue and free funds stream elevated 17% to $677.5 million in comparison with the identical interval in 2024. In the meantime, free funds stream climbed 101% yr over yr to $702.5 million.
Excellent revenue play
Take into account including Whitecap Assets to your TFSA for month-to-month revenue. Its fortified steadiness sheet, shareholder-first dedication, and resilience in opposition to commodity value volatility are the core funding takeaways.