COVID-19 deprived most people in Canada of their income streams. Many Canadian students rely on internships and jobs during their school breaks to make money that they can use to fund their education. Despite gradually reopening economies, companies continue to let go of workers instead of hiring more people. The situation is still bad for everybody.
Jobs are scarce right now. It is challenging for companies to keep existing employees on the payroll, let alone expend funds on stipends. The federal government announced the Canada Emergency Relief Benefit (CERB) for Canadian applicants who qualify. Unfortunately, many students are not eligible to receive the funds.
Emergency funds for students
The Canadian government announced on April 22, 2020, the launch of a $9 billion emergency package catering to students. The Canada Revenue Agency (CRA) would distribute at least $5,000 to each eligible student through the Canada Emergency Student Benefit (CESB).
If you are a student, you might already be receiving the CESB money. The program is similar to CERB. Four four-week CESB periods started on May 10, 2020. Unfortunately, we are past the last eligibility period that lasted from August 2 to August 29.
For students who met the eligibility requirements, the CRA paid up to $1,250 per month for four months for a total of $5,000. Students who have dependents or have disabilities received an additional $750 per eligibility period, totaling $8,000.
It is time to look towards securing your financial future as the CESB ends.
Securing financial freedom as a student
Millennials know the benefit of saving money, but the current global crisis has shown them the actual value of setting aside savings. If you have been savvy with your expenses and saved money, you might have used the CESB money wisely and did not need to dip into your savings. With the CESB and other government benefits ending, you need to do something more enduring to achieve financial freedom.
Stock market investing can be the ideal long-term solution to your problem. You need to invest your savings in a portfolio of carefully chosen stocks that can grow your wealth in the long run. An excellent asset to consider to this end is Canadian Utilities (TSX:CU).
Canadian Utilities is a utility sector company. Many millennials might find it boring, because it does not offer any exciting high growth or exceptional dividends. Tech stocks like Lightspeed POS and Shopify can provide you with fantastic returns with extraordinary growth. However, you are not investing in popular companies.
To secure long-term financial freedom, you need a consistent and recurring income that can flow for years. Canadian Utilities is seven years’ shy of being 100 years old. For almost half of that time, CU has continued to pay dividends to its shareholders without fail. At writing, the stock is trading for $33.32 per share, and it offers a juicy 5.23% dividend yield.
An investment of $10,000 in the stock can earn you $523 per year in dividends alone. You can keep reinvesting your dividends to unlock the power of compounding, and your wealth will grow rapidly over the years.
Foolish takeaway
It is challenging to make an income these days. However, with financial discipline, patience, and a long-term investment horizon, you can secure substantial wealth. With enough returns on your investment, you can earn enough money to finance further studies and life beyond that.
Creating a dividend-income portfolio with reliable returns can create plenty of opportunities for you. I think Canadian Utilities is an ideal stock to begin building such a portfolio.
