It’s been all over the headlines. The Canadian Grocery Rebate (CGR) is here, aiming to help Canadians struggling to make ends meet afford simple essentials like groceries.
But what exactly is it? And if you receive it, what is the best way to put that cash to work?
The CGR explained
In short, the CGR is simply double the amount of the GST/HST credit payment. Therefore, if you’re receiving the GST/HST credit, you likely will receive this payment as well. The amount is calculated based on whatever your family situation was as of January 2023 combined with your 2021 adjusted family net income, according to the Government of Canada website.
Now, I say that it’s likely you’ll receive the payment if you get the GST/HST credit, but as the government states, you could still receive it even if you don’t — and vice versa! It all comes down to what your 2021 tax return stated, so make sure that’s been filed.
As for how much you can receive, Canadians single or married with four children can receive up to $628 as a lump sum payment. You can simply access your My Account through the Canada Revenue Agency (CRA) to check whether you’re due the sum and how much you can expect.
Putting that cash to work
I am certainly not against help for families struggling with paying for groceries. In fact, I wish everyone could receive $628 each month instead of annually. But that’s simply not feasible at this point. However, Canadians can do the work for themselves by putting that $628 to work right away.
Once you receive your benefit, and if you have the ability to invest instead of pay off debts, then put it to work. Invest in fixed-income assets that can increase your bottom line — especially when you invest over long periods of time.
One such investment I would consider is Slate Grocery REIT (TSX: SGR.UN). Slate stock is a solid choice as a grocery-anchored chain across the United States. It has a diverse range across the country, trading at just 6.84 times earnings as of writing. Furthermore, it offers an 8.71% dividend yield, with shares down 13% year to date.
What you could make
If you’re an investor looking to recover funds and create passive income, then Slate stock could be a great option. Let’s look at how much you could receive now and how much in returns later should Slate stock return to 52-week highs.
| COMPANY | RECENT PRICE | NUMBER OF SHARES | DIVIDEND (ANNUAL) | TOTAL PAYOUT (ANNUAL) | FREQUENCY | TOTAL PORTFOLIO |
| SGR.UN | $13.14 | 48 | $1.15 | $55.20 | Monthly | $628 |
| SGR.UN – 52-week highs | $16.38 | 48 | $1.15 | $55.20 | Monthly | $786.24 |
Just reaching highs, and with that small investment, you can gain fairly substantial returns. Your $628 would give you $55.20 instead of if you purchased at 52-week highs. What’s more, you’ll receive fixed income on a monthly basis. Finally, with that $628 turning into $786.24, that’s a total return of $158.24! Do this every year, and you could create enough income to support your family during trying times such as these.
