Here's the Best Space Stock to Buy if You Want Passive Income
When buying space stocks, consider that many companies are in the early stages of building their businesses. Companies like Virgin Galactic and Rocket Lab are options to play the growth of space exploration if you have a long-term investing horizon and are willing to withstand the volatility of owning unprofitable businesses.
However, income investors may want to avoid these speculative stocks and invest in something more established. Lockheed Martin (NYSE: LMT) is one company that can give you space exposure and also delivers a solid dividend yield. The pure-play defense contractor has an established history of growing its dividend payout for nearly two decades -- making it a solid pick for investors looking to generate passive income.
Lockheed Martin is a major defense contractor for the U.S., generating 71% of its net sales from U.S. government contracts in 2021. A portion of the company's revenue comes from its space segment, which researches, designs, and engineers satellites and defensive systems. This year, its $8.3 billion in sales from its space segment makes it one of the world's largest space stocks.
Source Fool.com
