Is Kinder Morgan Canada Ltd. A Safe Bet, In this Political Environment?

Investing in companies with very clear and direct political ties in Canada is quite common. Many of the country's largest companies were once owned by various governments at one point in time - from utilities to telecommunications companies, banks, and commodities producers, part and parcel of being one of the big players in Canadian industry is having the backing of not only investors, but the Canadian government, in many cases.

With the need for extra pipeline capacity currently hampering investment in Canada's oil & gas sector, a number of high profile investors have begun to speak up about the role of the Canadian government in protecting national interests (i.e. jobs and economic growth), with Kinder Morgan (Canada) Ltd. (TSX:KML) currently topping the discussion forums at this point in time.

With the Trudeau government continuing to put its support behind Kinder Morgan, the hope of many investors (and those whose jobs are tied to the eventual construction of this pipeline) is that regional/Provincial disputes will part ways for the might of the Federal government.

Like other large companies backed by the Federal government for a variety of reasons (i.e Bombardier, Inc. (TSX:BBD.B) and others), making a bet that such companies are more likely to succeed than fail is typically a solid bet, as such companies have built up political capital, for one reason or another over the years, allowing such firms to benefit from a "Canada put," or reduced chance of catastrophic loss, due to their political/economic importance to the country.

In this particular environment, Kinder Morgan appears to be a safe bet. That being said, I suspect investors will be watching the upcoming 2019 election very closely.

Invest wisely, my friends.