Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs

07/18/2025

Four dividend-paying aerospace stocks to buy amid NATO funding hike and tariffs feature U.S.-based companies poised to improve their performance.
The four dividend-paying aerospace stocks to buy amid NATO funding hike and tariffs should gain a boost from the 32-member bloc's recent decision to increase spending for each of them to 5% of their respective gross domestic products (GDP) by 2035, with a floor of 3.5% earmarked for "core military needs." The decision by members of NATO, the acronym for the North Atlantic Treaty Organization, more than doubles the previous 2% target set in 2014.
Such heightened defense spending could become a growth engine for aerospace and defense companies globally. NATO’s plan to increase defense spending is reminiscent of President Ronald Reagan more than doubling the U.S. military budget from below $150 billion in 1980 to $300 billion-plus by 1985.
Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: Reagan's Reign
During 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) that skeptics called "Star Wars" with a goal of becoming 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 President Trump, Rutte said.
Trump, echoing Reagan’s "peace through strength" strategy, recently said it is vital for the extra money to be spent on "very serious military hardware"… and hopefully made in America, where he added the "best" equipment is manufactured.
Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: GE
Boston-based General Electric Co. (NYSE: GE) is rated a Citi Research "buy" recommendation that topped its fiscal second-quarter forecasts, spurring increased 2025 guidance by the company’s management. Order trends and a less bearish macro-outlook than espoused following first-quarter results aided the investment firm’s favorable forecast on the stock.
GE also revised its 2028 targets, which now point to a 10% compound annual growth rate (CAGR) for revenue, earnings before interest and taxes (EBIT), and free cash flow over the next several years, according to Citi Research aerospace and its defense analyst Jason Gursky. There is much to like in GE’s performance, he added.
Reasons to be bullish on GE, according to Gursky, are: 1) flight hour growth remains healthy at customers (mid-single-digit percentages), 2) retirements continue to track below assumptions embedded in 2028 targets, 3) supply chain and productivity continue to improve, 4) price / cost dynamics remain robust and look likely to offset potential tariff impacts, 5) maintenance, repair and overhaul capacity continues to expand and 6) global defense spending is on the rise.
As a result, Gursky boosted his price target on GE to $309.
A 45.66% gain in GE call options was achieved by Bryan Perry in his Breakout Options Alert service within just one week. Perry, who also heads the Cash Machine investment newsletter and the Hi-Tech Trader trading service, recommended the options in his Breakout Options Alert service on Wednesday, July 9, then recommended their sale on the following Wednesday, July 16.
Chart courtesy of www.StockCharts.com.

Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: PLTR
Denver-based Palantir Technologies (PLTR) is a recommendation of the Investing Edge newsletter led by Jim Woods, a former Army officer. He expects further gains ahead.
"PLTR continues to deliver," Woods told me.
Jim Woods heads the Investing Edge newsletter and Bullseye Stock Trader.
Palantir's partnership with the U.S. Army began in 2008 to design and deploy modern mission software with improved capabilities. The company’s solutions are used across nearly every Army mission, ensuring data is accessible for fast decision-making that allows the warfighter to out-think and out-pace the adversary, Palantir officials said.
Palantir seeks to operate as the “connective tissue” between Army personnel, data and resources by delivering critical information to the key decision-makers when needed, company officials stated. It enhances the preparedness of soldiers who use wearable sensor and mobile technologies in the battlefield.
However, the immense amount of data produced risks overwhelming both the individual soldiers and the battlefield decision-makers who lead them. Palantir tries to harness hardware solutions, reduce system complexity and provide improved human-machine interfaces to aid soldiers in the field and commanders at a forward-operating base (FOB). Situational awareness powered by visual augmentation, sensor optimization and secure capabilities helps to reduce cognitive challenges, as well as to protect and to connect warfighters.
Those who remember the U.S. special forces locating al-Qaeda founder Osama bin Laden's compound in Abbottabad, Pakistan, where he was killed on May 2, 2011, may be interested to know that a Palantir software product called "Gotham" was rumored to have been used by counterterrorism analysts at U.S. government agencies to integrate and analyze data. The information could have included intelligence reports, surveillance and reconnaissance.
Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: Ground Support
Woods, who launched the Investing Edge newsletter early this year, is a former Army paratrooper and combat veteran who tracks the defense industry closely. When it comes to military operations, aggression, manpower and firepower still require the right intelligence to win battles, Woods said. Palantir is star performer in the Top 10 Growth Accelerators portfolio of Investing Edge.
"What Palantir does so well is provide the right intel," Woods continued.
Intelligent ground systems are at the heart of the Army’s realization of a multi-domain operations concept, Palantir officials said. To empower commanders to make sense of a complex battlefield, ground systems are key to aid understanding.
Palantir is investing in bringing software to the core of critical command and control nodes by connecting them to assets across space, high altitude, aerial and terrestrial layers to improve targeting, situational awareness and understanding, the officials added.
Chart courtesy of www.StockCharts.com.
Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: Airborne AI
New aviation modernization efforts extend the reach of Army intelligence, manpower and equipment to deter threats at extended range. Palantir deploys artificial intelligence (AI)/machine learning-enabled solutions onto airborne platforms to let users see farther, generate insights faster and react quickly, the company reported.
Its technologies are helping to advance aviation capabilities for the United States and its allies by fielding and managing on-platform software solutions, as well as advancing distributed Command and Control (C2) through teaming and collaboration across platforms. The military emphasizes decentralized command and control structures to improve resilience and survivability in complex operational environments.
As more sensors are deployed to an expanded battlefield, networks must adapt to physical and environmental challenges, company officials said. Palantir Edge AI aids users in maintaining uninterrupted access to data.
Palantir's AI is designed to scale and operate in austere environments and in situations where time and efficiency matter. The company operates in low-bandwidth and low-power conditions, including on drones, aircraft, ships, robots, buildings and satellites.
Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: 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.
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:

Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: IRDM
McLean, Virginia-based 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).
Dividend-paying 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."
Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: 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.
Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: 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.
Four Dividend-paying Aerospace Stocks to Buy Amid NATO Funding Hike and Tariffs: Risk from Russia
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 than 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