The S&P/TSX Composite Index recovered in 2023, as the economy didn’t turn out to be as bad as many would have expected. Inflation is moderating, indicating that the Canadian central bank could ease the monetary policy, which could result in the absence of further interest rate hikes. However, the uncertainty about the future trajectory of the economy could continue to pose challenges and keep Canadian stocks volatile.

While the stock market could stay volatile, shares of fundamentally strong companies with stellar dividend payments and growth history appear attractive investments for TFSA (Tax-Free Savings Account) investors.

Thankfully, the TSX has several top dividend-paying stocks that consistently enhance their shareholders’ returns. Moreover, their payouts are well protected, implying that TFSA investors can rely on their yield to generate tax-free passive income.

Against this background, I’ll discuss a top Canadian dividend stock that pays you monthly cash. Adding this TSX stock to your TFSA portfolio will supplement your monthly cash. Let’s begin.

Top stock to earn monthly cash

Before I discuss the stock, investors should note that dividend payments are not guaranteed. Even a fundamentally strong corporation could pause or cut dividend payouts depending on the circumstances. Thus, TFSA investors must carefully assess a stock before investing, as it will ensure steady dividend income in the coming months.

Speaking of top dividend stocks, investors could consider putting money in real estate investment trusts or REITs. In general, REITs offer higher payouts and modest capital gains in the long term. Within the REITs, NorthWest Healthcare Properties (TSX:NWH.UN) could be a solid addition for monthly cash.

The REIT intends to pay a stable and growing dividend to its shareholders. Its monthly dividend of $0.067 translates into a high and attractive yield of 9.5% (based on its closing price of $8.38 on April 21).

Why is NorthWest Healthcare an attractive income stock?

Northwest Healthcare owns a diversified portfolio of healthcare properties spread across North America, Europe, Australia/New Zealand, and Brazil. The company focuses on high-quality tenants encompassing hospital operators, life sciences, rehabilitation clinics, and individual practitioners. Furthermore, over 80% of its tenants are with government support. Its geographically diversified asset base and high-quality tenants add stability to its financial performance.

NorthWest Healthcare has a weighted average lease expiry (WALE) term of approximately 14 years. Its long WALE reduces the vacancy risk and adds stability to future cash flows. What’s more, NorthWest’s occupancy rate remains high at about 97%, and 83% of its rents have protection against inflation. This enables the REIT to grow organically and deliver solid returns for its shareholders.

Bottom line

Overall, NorthWest’s defensive portfolio, ability to acquire high-quality assets, and solid developmental pipeline position it well to enhance its shareholders’ returns through monthly dividend payments. If you buy about 1,492 shares of NorthWest Healthcare right now, you can earn $100 in passive income every month. To buy 1,492 shares of NorthWest near the current market price, one would have to invest about $12.5K.

Company	Recent Price	Number of Shares	Dividend	Total Payout	Frequency
NorthWest Healthcare	$8.38	1,492	$0.067	$100	Monthly

Prices as of 04/21/23

However, as I said earlier, dividends are not guaranteed. Thus, investors should diversify their portfolios and only invest some of their cash into a single stock.