CRA CERB Program Ending: Prepare Now!

Prepare for the end of the CRAโ€™s Canada Emergency Response Benefit by investing in shares of dividend stocks like BCE Inc. (TSX:BCE)(NYSE:BCE).

| More on:

Youโ€™re reading a free article with opinions that may differ from The Motley Foolโ€™s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Canada Emergency Response Benefit (CERB) is not going to last forever. The Canada Revenue Agency (CRA) is giving $2,000 per month to Canadians impacted by COVID-19 pandemic today. Those benefits will end in September whether you are ready or not.

Therefore, you should prepare your finances to weather the remaining months in 2020. Investing can be a great strategy to earn extra income. There are some great dividend stocks to buy on the Toronto Stock Exchange.

Wouldnโ€™t it be nice to find a way to earn passive income from your Tax-Free Savings Account, or boost your Registered Retirement Savings Plan with top dividend stocks?

Here are two great dividend stocks to buy with any extra cash that you may have to invest. Saving your money is the best way to prepare for the end of CERB.

CIBC

Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) is a 150-year-old bank that offers many personal and enterprise financial products. Banking has been hard hit this year on concerns about rising default risks during the COVID-19 pandemic.

Nevertheless, Canadian banks are some of the strongest in the world. They also have an outstanding reputation for maintaining dividend payouts, even in hard times. Right now, CIBC issues a dividend yield of 6% per year at the current share price of $96.97.

Solid dividend payers like CIBC are the best way to prepare for the end of CERB payments. After falling to a 52-week low of $67.52 during the March 2020 selloff, this financial stock with a market capitalization of $43.17 billion has been steadily regaining its value. If you want to get in now, there is still room for CIBC to rise to its prior high of $115.96 per share.

BCE

BCE (TSX:BCE)(NYSE:BCE) is a telecommunications and media company that provides wireless cellular, internet, and TV services in Canada. This stock has been recently hurt by a substantial loss in sports and entertainment revenue.

When the world returns to the pre-crisis norms, BCE will benefit from a sustained rebound in its share price. The only question is when this return to normal will occur and how quickly the economy can recover from this setback. Nevertheless, when CERB does end, youโ€™ll be happy that you have a top dividend payer in your stock market portfolio.

Still, BCEโ€™s telecommunications business is very secure. BCE is in an oligopolistic industry with peers such as Rogers and Telus. This market power gives the company an advantage, even when the economy isnโ€™t doing so well.

Today, BCE is trading for $42.91 and a dividend yield of 5.83%. This would be an excellent income stock to buy to prepare for the end of CERB payments.

Canada Revenue Agency: CERB will end

The Canadian Emergency Response Benefit will end. Are you prepared? If you doubt that your savings will be enough to get you through an emergency, then now would be a good time to start saving any spare cash.

You can easily start investing today and earning strong returns in the stock market. Imagine putting $50 into your Tax-Free Savings Account and having that money appreciate faster than a regular savings account. Then when an emergency arises, you will be prepared to pay whatever necessary expenses.

Should you invest $1,000 in Acadian Timber Corp. right now?

Before you buy stock in Acadian Timber Corp., consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy nowโ€ฆ and Acadian Timber Corp. wasnโ€™t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the โ€œeBay of Latin Americaโ€ at the time of our recommendation, youโ€™d have $21,058.57!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month โ€“ one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 38 percentage points since 2013*.

See the Top Stocks * Returns as of 2/20/25

This article represents the opinion of the writer, who may disagree with the โ€œofficialโ€ recommendation position of a Motley Fool premium service or advisor. Weโ€™re Motley! Questioning an investing thesis โ€” even one of our own โ€” 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 Debra Ray has no position in any of the stocks mentioned.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? Youโ€™re not alone. At The Motley Fool Canada, we get it โ€” and weโ€™re here to help. Weโ€™ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

Silver coins fall into a piggy bank.
Dividend Stocks

TFSA: 3 Top-Tier TSX Stocks for That $7,000 Contribution

The market is full of great long-term stock to fuel your TFSA. Hereโ€™s a look at three top-tier TSX stocksโ€ฆ

Read more ยป

A plant grows from coins.
Dividend Stocks

3 Top Growth Stocks to Buy for March

These three growth stocks might be excellent holdings to add to your self-directed portfolio this month.

Read more ยป

dividends can compound over time
Dividend Stocks

Sell-Off Opportunity: Why This Beaten-Down Canadian Stock Could Rebound

Nutrien stock might be down now, but long-term investors will certainly reap some major rewards.

Read more ยป

man in suit looks at a computer with an anxious expression
Dividend Stocks

U.S. Stock Market Correction: Hereโ€™s Where We Stand

U.S. stocks are pricey. Canadian stocks like Alimentation Couche-Tard Inc (TSX:ATD) are less pricey.

Read more ยป

A red umbrella stands higher than a crowd of black umbrellas.
Dividend Stocks

Market Correction Coming? These 2 Defensive Stocks Can Protect Your Portfolio

When it comes to essential defensive stocks, these two take the top spots.

Read more ยป

Canadian dollars are printed
Dividend Stocks

Is Passive Income From Stocks Legit? Hereโ€™s How Much You Can Really Make

You can get about 5% per year in passive income, maybe more with high-yield stocks like Enbridge Inc (TSX:ENB).

Read more ยป

dividends grow over time
Dividend Stocks

2 Canadian Value Stocks for 2025

These two value stocks are prime opportunities for investors looking for strength as well as dividends.

Read more ยป

chart reflected in eyeglass lenses
Dividend Stocks

TFSA $7K: Where to Invest Right Now

TFSA users can invest their $7K annual limits in two profitable large-cap dividend stocks right now.

Read more ยป