CRA Emergency Payments: Did You Get Your Extra $400 GST Money?

In addition to slashing or eliminating the income of millions of Canadians, the pandemic also increased expenses, so CRA approved and processed an additional GST payment.

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The pandemic has been an unprecedented catastrophe. It has affected the lives of billions of people around the world in several different ways. In Canada, millions of people lost their jobs and had to get by on government aid. But it affected people in other ways as well, like supply shortages and a few additional expenses. Even small additional expenses can be a severe burden for households with low and modest incomes.

One of the things government did to help people out was an additional $400 GST credit. The people, who regularly receive their GST/HST tax credit, would have received a surprise in April, that is, the regular GST credit padded with an additional $400. Did you get yours too? If you did, I hope you put it to good use rather than wasting the extra money on something extra.

One good thing you could have done with the extra $400 was to invest it in a good company. If you had invested in the middle of April in the following two companies, you’d have grown your $400 by more than 50%.

A software company

Ceridian HCM Holdings (TSX:CDAY)(NYSE:CDAY) is a $13.3 billion IT company based in Minnesota, U.S. It’s a Human Capital Management software company that helps businesses hire and groom the best human resources and draw out their employees’ maximum potential. The company’s flagship system, Dayforce, is considered one of the world’s best HCM software.

As a tech stock that showed powerful recovery after the crash, Ceridian is quite overpriced. But if you had bought the company in mid-April with your $400 GST money, you’d now be sitting at about $640. The stock price grew by about 60.6% in the last six months.

It has always been a decent growth stock, and if another crash comes or the price falls somewhere near its fair value, you should consider adding it to your portfolio. The company has the potential to increase the speed of your portfolio’s growth.

A packaging company

Richard Packaging Company (TSX:RPI.UN) has been in business for over a century. The company deals with glass and plastic containers and metal enclosures, and it’s the largest one of its kind in the country. It offers one of the most comprehensive ranges of products in North America and Europe. It has a sizeable footprint in Canada and the U.S., and it also has a plant in Mexico.

While its history before the crash is solid as well, and the company grew magnificently over the past five years, the months following the crash have been something else entirely. From mid-April, the company grew by about 100%. It means, if you had bought into the company then, your $400 would now have doubled.

If you consider the company’s five-year compound annual growth rate (CAGR) of 44.2%, it’s currently too overpriced to touch. Wait for another dip or a market crash if you want to buy into the company.

Foolish takeaway

The government can only help you out in a limited capacity. It’s your job to put what the government has given you to good use and grow from there. For investment, a few well-timed decisions have the potential to expedite your wealth-building goals. If you wait for too long, you may lose once-in-a-decade kind of opportunities.

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 Adam Othman has no position in any of the stocks mentioned. The Motley Fool recommends RICHARDS PACKAGING INCOME FUND.

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