Three Dividend-paying Satellite Stocks to Buy Amid a NATO Funding Boost

07/11/2025

Three dividend-paying satellite stocks to buy amid a NATO funding boost feature three American companies that include an industry behemoth.
The three dividend-paying satellite stocks to buy amid a NATO funding boost should benefit significantly from the 32-member bloc's recent decision to increase spending to 5% of GDP by 2035 for each of them, with a floor of 3.5% earmarked for “core military needs.” That decision more than doubles the previous 2% target set in 2014.
The heightened defense spending could become a growth engine for satellite, space and defense companies worldwide. NATO’s plan to increase defense spending is reminiscent of President Reagan more than doubling the U.S. military budget from below $150 billion in 1980 to $300 billion-plus by 1985.
Three Dividend-paying Satellite Stocks to Buy Amid a NATO Funding Boost: Reagan's Reign
In the Reagan administration, the U.S. government invested heavily in B-1 bombers, missiles and an expanded Navy fleet, as well as the Strategic Defense Initiative (SDI), called “Star Wars” by skeptics, intended to create a space-based missile defense system. As the 40th U.S. president, Reagan said that peace needed to be achieved through strength, and history proved him right, wrote Frank Holmes, the CEO and chief investment officer of U.S. Global Investors (NASDAQ: GROW).
"The Americans outspent the Soviets and proved to be more innovative… ultimately outlasting them," Holmes continued. President Reagan’s strategy played out on the international stage recently at the NATO summit in The Hague.
NATO Secretary-General Mark Rutte praised U.S. President Donald Trump during the summit for pushing America’s allies to commit to a boost in spending. The "breakthrough" would not have happened without Trump, Rutte said.
Trump, echoing Reagan’s "peace through strength”" strategy, recently said it is vital for the additional money to be spent on "very serious military hardware"… and hopefully made in America, where the "best" is manufactured.
Three Dividend-paying Satellite Stocks to Buy Amid a NATO Funding Boost: RTX
Bryan Perry, who heads the Cash Machine investment newsletter and Hi-Tech Trader trading service, recommended a fund in his newsletter on Friday, July 11, that includes Arlington, Virginia-based RTX (NYSE: RTX). RTX is a traditional aerospace and defense company that has supported for satellite and launch companies.
Bryan Perry heads the Cash Machine investment newsletter and Hi-Tech Trader.
In addition, the White House recently proposed a $1 trillion defense budget for fiscal year 2026, said Michelle Connell, a charter financial analyst who heads Portia Capital Management in Dallas. NATO countries enhanced the investment story by agreeing early this month to increase their defense spending, she added.
"RTX is supposed to benefit from the recently announced arms agreement with Saudi Arabia," Connell said. "This and other opportunities bode well for strong defense companies like RTX."
Michelle Connell owns and is chief investment officer of Portia Capital Management.
There also has been further good news for RTX, Connell continued. First, Pratt & Whitney, an RTX subsidiary that builds commercial and military aircraft engines, announced an agreement with its labor union. Second, RTX announced a new U.S. Navy contract for AIM-9X Sidewinder missile systems on May 22.
"I would expect that we will see many such announcements," Connell counseled. "And given the current geo-political environment, the announcement pace will also pick up."
Strong advantages for RTX, Connell commented, include:

Three Dividend-paying Satellite Stocks to Buy Amid a NATO Funding Boost: IRDM
Iridium Communications Inc. (NASDAQ: IRDM), a former recommendation of Bryan Perry in his Cash Machine investment newsletter and the Hi-Tech Trader advisory service, is also in the same low-Earth-orbit (LEO) satellite services business that includes Covington, Louisiana-based Globalstar, Inc. (NASDAQ: GSAT).
Iridium is the only provider of satellite communication with complete global coverage, said Connell. IRDM's LEO network allows it to provide consistent and reliable communication across areas not covered by wireless or wireline, she said, adding that mission critical communication can be offered across oceans, remote areas, war zones and geographies suffering from natural disasters.
Iridium only began paying a dividend in March 2024 and currently offers a dividend yield of 1.90%. The mobile satellite services company has been generating strong cash flow from operations dating back to 2017, Connell commented.
"With its revenue and profits growing, I would expect the IRDM to continue increasing its dividend," Connell counseled. "I think the company (management) understands how this will increase their reputation with shareholders."
Three Dividend-paying Satellite Stocks to Buy Amid NATO Funding Boost: Defense Driven
Iridium is also one of the satellite communications that caters to clients in defense, government service and commercial markets. President Trump has proposed a $1 trillion defense budget for fiscal year 2026, continued Connell, a charter financial analyst. In addition, NATO countries are being pressed to increase their defense spending, she added.
The company's customers also span well beyond governments to include travel providers such as airlines and railways, as well as commodity developers in mining, oil and gas, Connell counseled. Demand from these customers is inelastic and growing, Connell added.
In addition, Iridium currently is building out a network to provide the next generation of connectivity between people and devices, she added.
"The services will be delivered through a combination of the company's non-terrestrial network and the technology that was acquired with the Satelle acquisition in 2024," Connell said. "Satelle's technology provides high security for IRDM's customers and compliments IRDM's current technology."
Chart courtesy of www.stockcharts.com.
Three Satellite Stocks to Purchase with NATO Pledging to Boost Defense Funding: New Partnership
A new partnership between Iridium and Syniverse was announced on May 29 to support the rollout of Iridium NTN Direct service with mobile network operators (MNOs) worldwide. The partnership would allow Iridium NTN Direct to integrate with Syniverse’s global platform, facilitating MNOs keeping their customers continuously connected everywhere on the planet.
Iridium is putting the infrastructure in place to allow mobile network operators (MNOs) around the world to roam onto the company’s network with the authentication, billing and related functions, said an Iridium spokesman. According to GSMA’s 2025 Industry Survey, 85% of MNOs plan to pursue non-terrestrial network (NTN) service with a Low-Earth Orbit (LEO) solution that extends their coverage worldwide. As part of 3GPP Release 19, Iridium NTN Direct will provide truly global, standards-based direct-to-device (D2D) and narrow-band Internet of Things (NB-IoT) messaging and SOS for consumer devices, automobiles and industrial applications in agriculture, transportation, logistics, energy and utilities.
The combination of MNO requirements and Iridium NTN Direct capabilities gives their customers access to a fully deployed, owned and operated satellite constellation, rare global coverage, coordinated mobile satellite services (MSS) spectrum and a history of providing reliable safety of life services.
“The integration of Syniverse’s system with the Iridium network will give MNOs a simple path to expand their footprint to the entire planet,” said Matt Desch, Iridium’s CEO.

Three Satellite Stocks to Purchase Amid a NATO Funding Boost: GILT
Israel-based Gilat Satellite Networks Ltd. (NASDAQ: GILT) is rated "outperform" by Chicago-based investment firm William Blair & Co.'s Louie DiPalma, an aerospace and defense analyst. DiPalma wrote that Gilat reported strong defense growth of 34% and progress with its Boeing (NYSE: BA) Sidewinder line-fit agreement, but revenue was negatively impacted by temporary renewal delays for operations in Peru.
"Profitability was also depressed due to low initial margins for Stellar Blu during its scaling phase," DiPalma wrote in a recent research note.
Gilat is pursuing multiple large Sidewinder orders to add to its existing backlog, DiPalma wrote. On Jan. 7, Gilat successfully closed the acquisition of Stellar Blu Solutions LLC, a U.S.-based provider of next-generation satellite communications terminal solutions. The acquirer's guidance indicated that annual revenues from Stellar Blu should range between $120 and $150 million in 2025, based on a “robust backlog” from the business.
“In addition, the acquisition is expected to be accretive on non-GAAP results for 2025,” DiPalma wrote.
Furthermore, once Stellar Blu reaches its target manufacturing capacity, which Gilat projects will occur in the second half of 2025, the earnings before interest, taxes, depreciation and amortization (EBITDA) of the acquired business would have margins above 10%.
Chart courtesy of www.stockcharts.com.
"This acquisition is a pivotal step in our strategy to expand Gilat’s presence in the growing In-Flight Connectivity (IFC) market," said Adi Sfadia, Gilat’s CEO, at the time of the purchase.
Stellar Blu is positioned to win a supplier partnership with Airbus over the next two years, DiPalma wrote. Gilat is one of the key global providers of modems, antennas and solid state power amplifiers (SSPAs) in the $3 billion satellite communications infrastructure market, he added.
"Shares of Gilat trade four times our 2025 adjusted EBITDA estimate," DiPalma said. "We believe this valuation presents a buying opportunity given the dynamic growth potential made possible by its recent acquisitions of DataPath and Stellar Blu and the potential to further penetrate the IFC market. We see potential for both long-term organic growth acceleration and margin expansion after integration."
Russia Rackets up Geopolitical Risk
President Trump criticized Russia's President Vladimir Putin for continuing to send his own soldiers off to die and keeps killing their counterparts from the Ukraine. Trump has attempted to help the two sides negotiate a ceasefire, but he complained in the past week that Putin has refused to do so as the death toll mounts on both sides.
Trump criticized Putin in the past week for sounding nice in conversations, but typically ignoring calls to reach a peace agreement. Instead, Putin keeps sending his own troops into high-casualty count combat, while also killing Ukrainian soldiers and civilians, including women and children. Russia recently has engaged in its biggest aerial attacks since its invasion more than three years ago on February 24, 2022.
The fierce bombing campaign further has hurt the optimistic prospects for peace that Trump had aspired to achieve quickly upon him taking office on January 20, 2025. He recently allowed the shipment of additional defensive weapons to Ukraine, after Russia stepped up its attacks on its neighboring nation.
The world also is less one month past the United States bombing three nuclear development sights in Iran in an attempt to thwart progress in enriching uranium that could be used to deploy nuclear weapons. The Republican-led U.S. Senate rejected a Democrat-driven plan to block President Donald Trump from using further military force against Iran, hours after the June 27 remarks of the president that he would not rule out further bombing. The vote defeated a war powers resolution that would have required congressional approval for more military action against Iran.

Sincerely,
Paul Dykewicz, Editor
DividendInvestor.com