The federal government introduced the Canada Emergency Response Benefit (CERB), so displaced workers will have emergency money to use during the pandemic. Through the Canada Revenue Agency (CRA), eligible CERB recipients get $2,000 monthly each for up to six months.
You can’t receive more than a maximum of $12,000 within the 24 weeks. Since CERB is ending in August 2020, there are money-making opportunities to earn passive income that could be more than the monthly CRA CERB.
Build an online course
The earning potentials in the e-learning industry are enormous. Canadians with specific talents or expertise can create online courses and offer them to people for a fee. There are several platforms, such as Udemy and Teachable, where you can set up an online course to share your know-how and coach others to develop set skills.
You can even start a career using your tech-savvy and experience to become a course creator and coach. The new entrepreneurs derive the bulk of their income from the online courses they build. According to Research and Markets, the global e-learning market will reach a total market value of $325 billion by 2025.
Own dividend stocks
A more straightforward way to create passive income is through dividend stocks. Publicly listed companies on the TSX share their earnings or profits to investors in the form of dividends. You can get cash and use it as your emergency fund. However, you can also reinvest the dividends, acquire more shares, and allow your money to compound over time.
Before investing, understand that there are risks and rewards. Dividend yields are not constant and could change from time to time. For risk-averse income investors, the logical choices are companies that have a long history of dividend payments. Your passive income from these reliable stocks is recurring and lasting.
Starting point
A consumer-defensive stock like Rogers Sugar (TSX:RSI) is an excellent starting point. You don’t need substantial capital to create passive income. The company has a market capitalization of $503.5 million and has been operating for 23 years. It engages in refining, packaging, and marketing sugar, and, recently, maple products.
Sugar is a slow-growth business but a staple product. Hence, operations are enduring. More so, Rogers Sugar operates in a duopoly, which means the company has little competition and a captured market (consumers and industrial clients). During the pandemic, consumer demand rose significantly.
As of the first nine months of 2020 (quarter ended June 27, 2020), total revenue went by 4.75% to $614.6 million versus the same period in 2019. Net earnings fell 29.5% to $22.45 million. Rogers Sugar cites lower industrial demand as the food service sector remains under pressure.
Regarding the potential income, the stock price is $4.84, while the dividend yield is 7.42%. As mentioned, you can start small and increase your holdings later. Your $20,000 seed money will produce $1,855 in passive income. More importantly, the earnings are lasting with no specific period like CERB.
New urgency
Priorities will change post-pandemic, because CERB taught Canadians to value every dollar. The time is now to be resourceful and find ways to earn passive income or start a new career.
