The Canada Emergency Response Benefit (CERB) served its purpose, and more than eight million Canadians are thankful. However, the all-important reprieve of displaced Canadian workers for up to 24 weeks is due to terminate in August.
According to Employment Minister Carla Qualtrough, the federal government will transition as many people as possible from CERB to Employment Insurance (EI) beginning in September. The government is hoping that others will shift to the Canada Emergency Wage Subsidy (CEWS) following its extension until December 2020.
The Canadian government is starting to move from emergency to recovery phase. Minister Qualtrough said there would be no CERB extension, although the new federal aid offering will contribute to returning to work and the workplace. For Canadians, however, it doesn’t have to be the final curtain.
Dividend stocks National Bank of Canada (TSX:NA) and Emera (TSX:EMA) can provide non-stop income. Given the identical 4.4% dividend yields, your $12,000 can generate $528 in lasting monetary provision.
Partner in economic recovery
National Bank is the sixth-largest bank in Canada, but it’s as reliable as the Big Five when it comes to providing steady cash inflow to income-investors. This $21.21 billion has a five-year compound annual growth rate (CAGR) of 11.28%, no less. Likewise, you’re investing in a dividend all-star that boasts more than 10 years of dividend growth streak.
Now is the perfect time to take a position in National Bank because it is trading at a discount (10%). The low price, however, is not the key takeaway. This bank has been increasing its top and bottom lines in each of the last three years. Income, like its industry peers, will take a hit in 2020 due to higher credit loss provision.
The bank is taking an active role in Quebec’s economic recovery. It’s in equal partnership with the provincial government to create the National Bank SME Growth Fund, L.P. to help SMEs’ growth and digital transformation.
Resilient as ever
Utility company Emera is not only a dependable income generator but also a safety net for risk-averse investors. The nature of the business is low risk, resilient, and enduring. This $13.64 billion energy and services company generates, transmits, and distributes electricity, gas, and other utility energy services to customers in North America and the Caribbean.
There’s no fear factor when you invest because the demand for Emera’s services is constant. The utility stock is also holding up well and outperforming the broad market so far in 2020. Investors are winning by 3.18% year-to-date. Utility stocks are not flashy in terms of price movement, but the dividend payouts are rock-solid.
The company will present its Q2 2020 earnings results on August 12, 2020. In Q1 2020, Emera reported a $523 million net income, which was 67.6% better than the $312 million in Q1 2019. The cash flow grew by 20% (from $484 million to $502 million) during the same period.
The EI enhancement has been in the works over the last few months. Its portal should be ready to accept applications in the fall. But if you need more income permanently basis, the National Bank of Canada and Emera are among the steady providers of long-term income. The current stock prices are good entry points.
Speaking of 8 million Canadians that are thankful for the CERB...
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This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.
Fool contributor Christopher Liew has no position in any of the stocks mentioned.