News from the world – UA – Canada Recovery Benefit (CRB): can you get it?

The Motley Fool Canada »Dividend Stocks» Canada Restoration Benefit (CRB): Can You Get It?

Adam Othman | October 14, 2020 | Find out more: ENB ENB

Employment Insurance has been around for a long time in one form or another You can trace its history back to 1940. Yet when the pandemic struck and millions of people lost their jobs, CERB was made Noticed as a ‘Savior’ Benefit Program for Canadian Residents Now that it’s over, millions of people who are still unemployed due to the pandemic are somewhat worried about switching to EI, especially those that do not fully meet EI requirements and may not be eligible

The abbreviation CRB is far too similar to CERB We don’t know if this is intentional or just a happy accident, but the CRB should be just as powerful in helping those in desperate need as the CERB The main raison d’être of the CRB is to help people who do not match the EI bill, which was designed for « conventional sources of income », mainly day jobs

But the concert economy has grown pretty strong in recent years In 2016, there were around 17 million construction workers in Canada The number is said to have grown rapidly in recent years as more platforms concerts were introduced and allowed Canadians other ways to earn

Since concert work is very different from normal daytime jobs, we do not know how effectively the government will monitor the efforts of CRB beneficiaries to find paid work. But the government will most likely be stricter with CRB requirements and more insightful with its distribution than with CERB

One of the reasons everyone chose EI was to make sure Canadians start making all reasonable efforts to find work The CRB will most likely follow the same attitude

With CRB you will receive $ 900 for two weeks (for a total of 13 instances at most) The actual amount is $ 1000 (or $ 500 per week just like CERB), but unlike the old program, the CRB is paid after a 10% withholding tax at source But that does not mean that it is tax free The actual tax amount may be higher for you, and you will have to declare it and pay like your regular income

While it doesn’t quite hit the target, if you had invested $ 10,000 in Enbridge (TSX: ENB) (NYSE: ENB) about 24 years ago (early 1996) when the company started her series of dividend growth she has supported to date and chose to reinvest dividends, you would now be sitting at around $ 261,000 (and almost 6,514 stocks) This means that at her current yield of 815% you would get over $ 1,750 in dividends each month That’s just $ 50 less than CRB

Although it is in a very secure position compared to many other companies in its industry, Enbridge’s revenues are suffering due to the uncertainty surrounding oil and the depletion of demand for oil But the company still managed to reward investor loyalty by not reducing its dividends, even at such a high payout rate.

The government does its duty and ensures that its citizens are taken care of But whether it is its CRB or its CERB, these are all temporary advantages To become self-sufficient, you must have your own nest egg and sources of income passive And the best way to get both is to save and invest and make full use of the power of registered accounts

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Canada Revenue Agency, Stocks, Employee Benefits, TSX