Canada Revenue Agency News: CRB Extension 2021

Justin Trudeau’s government proposed extending the maximum eligibility period for receiving the Canada Recovery Benefit by 12 weeks.

On June 19, the Canada Recovery Benefit (CRB) program is set to expire.

The CRB took effect after the Canada Emergency Response Benefit (CERB) program ended last September. Both programs were designed to help Canadians whose income had been eliminated or decreased due to the COVID-19 pandemic.

The CRB offered eligible Canadians $500 per week for a maximum of 38 weeks.

CRB extension

Although Canada’s unemployment rate has declined to its lowest level of 8.1% in April 2021, Canada’s economy has not fully recovered from the devastating effects of the pandemic. In addition, there are potentially new strains of the coronavirus emerging in Canada’s population, which largely has not received the recommended full doses of the vaccine.

In the recently released fiscal-year budget, Justin Trudeau’s government proposed extending the maximum eligibility period for receiving the CRB by 12 weeks.

For the first four of the 12 additional weeks, Canadians would continue to receive $500 per week worth of pre-tax benefits. However, for the final eight weeks, the benefit would be reduced to a gross $300 a week. Starting July 17, 2021, new eligible applicants would receive the $300-a-week payment.

Additional income

If there is one lesson learned from the COVID-19 pandemic, it is the importance of having a solid financial plan and investments, which could offset the financial hardship of a job loss or reduced income.

As we saw during the first quarter of 2020, an unexpected global economic crisis can develop seemingly overnight. Any disaster can affect all industries and the entire workforce of a nation as well as the global economy at large.

If you are looking for an investment that pays income, which could offset the financial hardship of a job loss or reduced income, look into high-quality, dividend-paying stocks.

Brookfield Renewable

As the G7 leaders of the world’s richest democratic nations are gathered together this week, one hot topic of discussion is the effect of climate change in the world.

As the world turns away from fossil fuels and toward renewable energy, companies like Brookfield Renewable (TSX: BEP.UN)(NYSE: BEP) should perform well.

Brookfield Renewable is one of the largest renewable power companies in the world. The company’s renewable capacity stands at 19 gigawatts (GW) with an annualized long-term average generation of 56,300 GW hours — enough to power around 5.3 million homes in the U.S. each year.

Although Brookfield Renewable derived over 70% of its power from hydroelectric assets located across North America, Columbia, and Brazil in the first quarter of 2021, the company is also increasing its wind and solar capabilities.

Shares of Brookfield are trading at $49.03, as of this writing. At this price, the dividend yield is a respectable 3.14%.

Brookfield Renewable boasts reliable income streams, since the company’s free cash flow is tied to long-term, fixed-price power-purchase agreements (PPAs). The company’s average PPA has a remaining life of nearly 15 years, and over 80% of 2021 output is tied to long-term contracts.

These long-term contracts allow Brookfield Renewable to confidently distribute approximately 70% of its funds from operations back to its shareholders in the form of dividends. And the company expects to be able to grow its dividend by between 5% and 9% annually.

The Motley Fool has no position in any of the stocks mentioned. Fool contributor Cindy Dye does not own shares of any stock mentioned.

More on Energy Stocks

Trans Alaska Pipeline with Autumn Colors
Energy Stocks

Here’s the 5.9% Dividend Stock I Can’t Get Enough Of

With this Canadian dividend stock yielding 5.9% again after a recent pullback, here’s why it could be one of the…

Read more »

Canadian energy stocks are rising with oil prices
Energy Stocks

1 Dividend Stock That’s Beaten the Big Banks for Income Investors

This Canadian stock offers a 26-year dividend-growth streak with record production, strong cash flow, and meaningful long-term growth potential.

Read more »

Senior uses a laptop computer
Energy Stocks

Taking CPP at 70 Isn’t Automatically Smarter: Here’s the Number I’d Check First

Delaying CPP until 70 produces a much larger payment, but retirees give up five full years of income.

Read more »

some investments are riskier than others
Energy Stocks

3 High-Yield Dividend Stocks Worth the Risk Right Now

These three high-yield dividend stocks offer income and different risk profiles across pipelines, banking, and Canadian real estate.

Read more »

dreaming of financial success
Energy Stocks

Government Bonds Are Paying More: I’d Still Buy This Canadian Dividend Stock for the Next 10 Years

Government bonds now offer competitive income, but a growing dividend can become more valuable over a long investing horizon.

Read more »

golden sunset in crude oil refinery with pipeline system
Energy Stocks

TC Energy Is Selling its Mexican Pipeline for $560 Million: What Investors Need to Know

TC Energy keeps its broader Mexican network, trades about 17% below analyst targets, and yields roughly 4.2%. Notably, the stock…

Read more »

senior couple looks at investing statements
Energy Stocks

Your GIC Just Matured: Should You Lock the Money Up Again?

Lower GIC rates make maturity a useful moment to reconsider how much money really needs a guaranteed return.

Read more »

you're never too young or old to start investing in stocks
Energy Stocks

Can You Help Your Kids Without Falling Behind on Retirement?

Parents can help fund their children’s future without sacrificing the retirement savings they’ll eventually need themselves.

Read more »