$2,000 CRA CERB Will End Soon But EI Can Save the Day

The 21st century EI will be the next saviour of Canadians after CERB. Again, the new benefit scheme is temporary. If you desire recurring and lasting income, save and invest in the National Bank of Canada stock.

| More on:

Millions of unemployed Canadians are losing their pandemic lifeline. The phase-out of the Canada Emergency Response Benefit (CERB) is at hand and 100% definite. Recipients can expect CERB payments up to the end of August 2020 only. However, the federal government is unveiling a replacement program that will save the day.

Prime Minister Justin Trudeau confirms the winding down of his administration’s flagship COVID-19 income support benefit. His announcement came with good news, however. CERB recipients will transition into an expanded employment insurance system. Hence, the benefits are not stopping for people who are still out of work.

New focus

As the government begins the recovery phase, emergency benefits will proceed, but under a different scheme. According to Employment Minister Carla Qualtrough, people still claiming CERB will move onto the federal Employment Insurance (EI) program in September. The main focus is to wean Canadians from CERB and gradually get them working again.

Trudeau promises that EI would cover every Canadian who is looking for employment or work. For those who don’t qualify for EI at the moment, there will be a transitional, parallel benefit that is very much like EI. Contract and gig workers will not be left out. This time, people can work more hours and earn more money while receiving benefits.

Qualtrough adds the EI system is ready to accept the transitions. The portal can accommodate four million CERB users or the same number the government estimates to be under EI until the fall. The details of the new scheme should be coming out toward the end of August 2020.

Ever ready

If the retooled EI system is prepared to accept four million applications, the sixth-largest bank in Canada is always ready to share its earnings with loyal shareholders. National Bank of Canada (TSX:NA) is a distinguished dividend all-star in the stock market. Canadians who have the means or free cash can start investing in this bank stock.

Although not part of the Big Five clique, this $21.97 billion financial institution has provided recurring income to dividend investors. The current share price is $65.51, while the dividend yield is a respectable 4.34%. Also, the dividends are safe, considering the less than 50% payout ratio.

Canadian banks are not fair-weather friends. The commitment to extend help to people through challenging times and crisis situations is the hallmark of the banking industry. For example, National Bank of Canada is supporting the economic recovery of Quebec. It’s also leading the digital transformation of SMEs in the province.

The bank is active too in promoting the career advancement of women. Female students enrolled in undergraduate or graduate programs at a Canadian university can apply for the bank’s annual Financial Markets Internship Program. Three selected candidates recently received $5,000 each in the 11th edition of the program.

High stakes

Stakes remain high even with the coming transition from CERB to EI. The 21st century EI Trudeau is bragging about will entail costs.

However, the modernized EI should help reinvigorate the economy as it gradually reopens. Likewise, the unemployed will have temporary sustenance while actively seeking employment.

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 Christopher Liew has no position in any of the stocks mentioned.

More on Dividend Stocks

hand stacks coins
Dividend Stocks

3 Ultra-High-Yield Dividend Stocks You Can Buy and Hold for a Decade

These three high-yield dividend stocks still have some work to do, but each are in steady areas that are only…

Read more »

senior man and woman stretch their legs on yoga mats outside
Dividend Stocks

TFSA: 2 Canadian Stocks to Buy and Hold Forever

Here are 2 TFSA-worthy Canadian stocks. Which one is a good buy for your TFSA today?

Read more »

calculate and analyze stock
Dividend Stocks

This 5.5% Dividend Stock Pays Cash Every Single Month!

This REIT may offer monthly dividends, but don't forget about the potential returns in the growth industry its involved with.

Read more »

Silver coins fall into a piggy bank.
Dividend Stocks

How to Use Your TFSA to Earn up to $6,000 Per Year in Tax-Free Passive Income

A high return doesn't mean you have to make a high investment -- or a risky one -- especially with…

Read more »

path road success business
Dividend Stocks

2 High-Yield Dividend Stocks to Buy Hand Over Fist and 1 to Avoid

High yields are great and all, but only if returns come with them. And while two of these might, another…

Read more »

Man holds Canadian dollars in differing amounts
Dividend Stocks

This 7% Dividend Stock Pays Cash Every Month

A high dividend yield isn't everything. But when it pays out each month and offers this stability, it's worth considering!

Read more »

young people stare at smartphones
Dividend Stocks

GST/HST “Vacation”: Everything Canadians Need to Know

The GST/HST "vacation" is a little treat for the holidays, along with a $250 payment. What should you do with…

Read more »

Train cars pass over trestle bridge in the mountains
Dividend Stocks

Is CNR Stock a Buy, Sell, or Hold for 2025?

Can CNR stock continue its long-term outperformance into 2025 and beyond? Let's explore whether now is a good time to…

Read more »