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$500/Week CRA CRB Is Temporary: Do This for Longer-Lasting Income

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The value of the Canada Recovery Benefit (CRB), which the Canada Revenue Agency (CRA) is dishing out in October 2020, is more than its actual dollar amount. If not for CRB, Canadian workers that will not qualify for Employment Insurance (EI) after the Canada Emergency Response Benefit (CERB) will be left behind.

Like CERB, however, CRB is also temporary. The taxable benefit is available for one year only. When it ends, and the need for federal aid is still there, people will again worry. If you desire longer-lasting income and reduce over-dependence on government dole-outs, the thing you can do is to invest in dividend stocks.

Good for 26 weeks

CRB is one of two emergency payouts available to employed and self-employed individuals affected by COVID-19, EI being the other. This new benefit pays $500 per week, too, although the payment is $1,000 every two weeks. Unlike with CERB, the CRA deducts the 10% tax upon release, so the actual receipt is $900 every time.

Renewal is not automatic, and you’ll need to apply again for CRB past the two-week period if your situation is the same. People experiencing a reduction of at 50% in income can be eligible. There are 13 eligibility periods in total or 26 weeks at most.

CRB will run from September 27, 2020, until September 25, 2021. Assuming you’re unlucky finding work within the period, the maximum you will receive is $11,700 ($1,300 deducted upfront). When you apply with the CRA, you must attest that you’re available to and actively seeking work. You will also not refuse a reasonable job offer.

Finally, the CRA will deny your CRB application if you quit your job voluntarily after September 27, 2020. You must have a valid or justifiable reason for leaving that warrants reconsideration.

Suitable for 50 years or more

Income investors and retirees will not exchange Fortis (TSX:FTS)(NYSE:FTS) for the world. The top-notch utility stock is the best bet if you want enduring income. This $25.23 billion company is not only a Dividend Aristocrat, but a defensive all-star as well.

Fortis has consistently increased its dividend for 46 consecutive years. The outstanding track record is its main selling point. Second, the business model is low-risk and pandemic-resistant. The company engages in regulated power generation, electric transmission, and energy distribution across North America.

More important, only 6% of the business is non-regulated. The bulk or 94% operates through regulated utilities. Furthermore, the operations in the U.S. accounts for almost 60% of Fortis’ business. The remaining 40% are in Canada.

The infrastructure is quite extensive and capable of delivering safe and cost-effective energy to residential and commercial end-users that number over three million. The EPS is growing at a rate of 8% CAGR over the last five years. Currently, Fortis pays a 3.72% dividend. Would-be investors must know that management plans to increase Fortis’ dividends by 6% annually through 2024.

Everlasting income

The CRB has a prescriptive period because it’s only a stop-gap measure to tide Canadians over while looking for work. A Dividend Aristocrat is for keeps, and your earnings could be for a lifetime. If you have the means, you know what to do.

Speaking of the best thing to do to earn a longer-lasting income than the temporary CRB...

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Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends FORTIS INC.

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