CRA CERB Extended by $2,000: Finally Some Good News

The CERB extension and the coming emergency measures have prescribed periods. It’s still best to earn perpetual income from reliable dividend payers like the Canadian Natural Resources stock.

Yes, there’s good news for recipients of the Canada Emergency Response Benefit (CERB). If your situation is unchanged since you received CERB and you’re about to exhaust your taxable benefit in August, quit worrying. The Canada Revenue Agency (CRA) will stretch your income support by $2,000 to last until September 2020.

Deputy Prime Minister and Finance Minister Chrystia Freeland praised Canadians for showing tremendous strength in the face of the COVID-19 pandemic. She added, “As we begin to safely reopen our economies and businesses, our government is committed to supporting Canadians.”

The support Ms. Freeland is referring to is the new $37 billion emergency package that includes $8 billion for the second CERB extension. By extending the program for four weeks more, there will no gap before the new schemes open on September 27, 2020. Likewise, the maximum CERB total will increase to $14,000.

Quick rundown                 

Canadians can choose from among four income-support measures in the recovery phase. First is the transition for CERB to Employment Insurance (EI). The rules are flexible now, so many can transition to the revamped EI system. You can qualify for EI with only 120 insurable hours.

If you still don’t qualify, but you’re a displaced worker or self-employed individual with no income, you can apply for the Canada Recovery Benefit (CRB). The benefit will pay you $400 per week for up to 26 weeks provided you’re looking for work.

The Canada Recovery Sickness Benefit (CRSB) is for workers who are falling ill and must isolate but don’t have paid sick leave. This benefit will provide $500 per week for up to two weeks.

If you’re unable to work because your situation requires taking care of a dependent or family member with COVID-related concerns, the Canada Recovery Caregiving Benefit (CRCB) is for you. A household can $500 per week for up to 26 weeks.

Perpetual income support

An investment in Canadian Natural Resources (TSX: CNQ)(NYSE: CNQ) can provide you with perpetual income support. This $30.75 billion producer of crude oil, natural gas, and natural gas liquids is a Dividend Aristocrat. If you invest today, you get value for money.

The share price is $26.04, and the dividend yield is a high 6.44%. You can start with a small position to get you started. $20,000 in capital will produce $1,288 in passive income. In a holding period of 20 years, your money will increase by 229% to $45,890. The best part is that the income will last for years.

Income investors pick Canadian Natural Resources, because the energy stock has consistently raised dividends for 20 years. Despite the oil market crash, the company did not implement a dividend cut. The energy industry is highly volatile today but will eventually recover. Market analysts are bullish and forecast the stock to climb 72.4% to $45 in the next 12 months.

Long-lasting income is best

Start looking out for your financial well-being post-pandemic. Many did not give importance to emergency funds before COVID-19. Creating stable income support from a reliable provider will prepare you for the worst crisis.

Fool contributor Christopher Liew has no position in any of the stocks mentioned.

More on Dividend Stocks

ETFs can contain investments such as stocks
Dividend Stocks

How to Use a TFSA to Generate $200 in Monthly Tax-Free Income

Use a TFSA to build $200 in monthly tax-free income with XEI and ZRE. See how these ETFs work and…

Read more »

Business success of growth metaverse finance and investment profit graph concept or development analysis progress chart on financial market achievement strategy background with increase hand diagram
Dividend Stocks

Smart Ways to Invest Extra Income and Say Goodbye to Financial Stress

Canadians have ways to make their extra income work as hard as they do and say goodbye to financial stress.

Read more »

Two seniors walk in the forest
Dividend Stocks

Sun Life Stock Pays 3.3%: How Much to Invest for $100 a Month in Dividends

Sun Life Financial (TSX:SLF) might be a massive bargain after Thursday's vicious plunge as stock markets sold off hard.

Read more »

TFSA (Tax free savings account) acronym on wooden cubes on the background of stacks of coins
Dividend Stocks

How to Turn Your TFSA Into $1,000 a Month in Tax-Free Income

Build toward $1,000 a month in tax-free income with a TFSA. See how Enbridge, Scotiabank and ZWC could help, and…

Read more »

customer fills up car with gasoline
Dividend Stocks

How Much Emergency Money Do Canadians Actually Need?

A safety fund equivalent to 3 to 6 months of living expenses is generally the baseline buffer that Canadians would…

Read more »

woman holding steering wheel is nervous about the future
Dividend Stocks

Still Up Double Digits This Year: Should You Still Invest in TSX Stocks After Thursday’s Dramatic Drop?

The TSX has gained about 136% over the past decade. So, stay invested, dollar‑cost average, and maintain diversification. 

Read more »

Real estate investment concept
Dividend Stocks

Intact Stock: Would I Buy It for Growth, Income, or Both?

Intact’s modest yield makes profitable long-term growth the main attraction, with catastrophe losses putting the next purchase to a test.

Read more »

hiker with backpack in the mountains
Dividend Stocks

2 Top Canadian Dividend Stocks for $1,850 in Annual Passive Income

With reliable cash flows, high dividend yields, and strong growth prospects, these two Canadian stocks suit income-seeking investors.

Read more »