Space pioneer and EV titan Elon Musk recently delivered a devastating blow to the Russian military – all without firing a single shot.

Instead, he provided something incredibly vital for the defense of Ukraine with advanced communications technology.

See, the Russians had hoped to accomplish what any modern invading army would want to do. Destroying or damaging vital communications facilities would keep Ukraine’s government from talking to the outside world.

To stop that from happening, Musk activated several of his SpaceX Starlink satellites over Ukraine. That allowed the nation’s government to relay vital information inside the beleaguered country and talk with the rest of the world.

That last part played a crucial role in getting information about Russian attacks to Western Europe and the U.S., and explains why the $66 billion satellite communications industry is growing at nearly 10% a year.

Of course, SpaceX is privately held. But don’t worry.

I’m going to reveal a stock that is a great market-crushing play on what we call “satcoms” for the Pentagon…

The Military Stock Supporting the Government for Decades

You have to hand it to Musk. He really pulled a fast one on the Russians.

Putin had made severing Ukraine’s communications a priority in the early days of the invasion that began on February 27. For a time, it worked, and Ukraine lacked Internet access.

But the great thing about satellite communications, or satcoms, is they’re wireless. There’s no fiber-optic or copper cables for the invading army to cut. And though Putin’s military has robust missile technology, it cannot shoot down all those civilian satellites.

Not only did he redeploy SpaceX satellites but Musk also sent a shipment of terminals needed to complete the communications network.

Make no mistake. The effort paid off handsomely as top Ukraine leaders were able to talk directly through video chats with U.S. and European leaders to appeal for more aid and weapons.

I believe the effort shows just how important of a role sophisticated satellite and secure radio communications play in today’s modern defense industry.

That’s why the products and services that L3Harris Technologies Inc. (LHX) provided the Pentagon and intelligence agencies is so crucial.

In fact, the firm has been a key player in this space for decades. Let’s start with the firm’s secure walkie talkies.

These handhelds provide forward-deployed troops with critical battlefield communications without fear of eavesdropping by enemy forces.

L3Harris also supplies satellite systems that can be used to track hypersonic weapons in space. Luckily, we haven’t seen the need to use that in Ukraine, as the Russians have so far avoided using the ultra-fast missiles that can fly five-times faster than the speed of sound.

And the firm is set to play a big role in the U.S. Space Force, the Pentagon’s newest agency. It was formed on December 20, 2019, as a recognition that protecting outer space is a vital part of modern defense.

That’s where the L3Harris Counter Communications System (CCS) comes in. The platform gives the U.S. Space Force a sophisticated tool that can shut down an adversary’s satellite connection and help safeguard U.S. interests in space and on the ground.

And L3Harris provides additional technology that plays an integral role in any modern air force. They all need, without electronic warfare systems to disrupt to attack the enemy, to protect friendly forces and to provide critical situational awareness that aids warfighter decision-making.

Trust me, I’m barely scratching the surface of what makes this company such a great supplier to the Pentagon and NATO forces.

Just as an example, L3Harris makes precision weapon systems and components and tactical drones. It provides sensors, processors, hardened electronics, release systems, and antennas for space and airborne systems.

As a long time defense enthusiast and investor, I’ve been following this company and its forerunners for many years. On June 29, 2018, L3 Technologies completed its merger with Harris Corporation, creating L3Harris.

It was a natural fit. Harris and L3 had been significant players in developing the networked battlefield and building secure mobile networks for troops to manage drones and for real-time enemy surveillance.

Last year, the merged firm stepped up its cyber security work. It garnered a contract to supply the recently-formed 915th Cyber Warfare Battalion.

That unit, in turn, consists of military teams that brigade combat units and other are supported with L3Harris electronic warfare and cyber equipment.

And please don’t think L3Harris is ignoring the U.S. Navy. It provides submarines and surface ships with advanced sensors, sonar, imaging communications, and radar.

Meantime, the company is working to create a fortress balance sheet.

A Look Behind the Numbers

Following the 2018 merger, L3Harris set a goal to divest some of the extraneous assets of both companies. Right now, the target totals roughly $1.5 billion.

But that’s not the only thing that makes this such a shareholder-friendly firm.

In a yield-starved market, the firm is giving many investors just what they are looking for, a nice dividend. Now paying a 1.8% yield, the company says it is committed to growing the payout, saying that there are “significant dividend increases ahead.”

Not only that, but in January 2021 the firm authorized buying back its shares totaling $6 billion.

Add it all up, and you can see why this is such a great way to invest in the waterfront of sophisticated military communications technology.

The stock boasts a long-term, market-crushing track record.

Over the past five years, the S&P 500 has gained a respectable 78%. By contrast, LHX gained some 124.6%, beating the broad market over the period by roughly 60%.

That means this is more than just a one-off play on the war in Europe.

It’s a great stock to create wealth for the long haul and should at least be on your watchlist.

Cheers and good investing,

— Michael A. Robinson

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Source: Strategic Tech Investor