When investing in space stocks, there are a thousand different angles you can take.

In fact, this one pioneered by Elon Musk is gaining steam right now.

Problem is, Musks space company is private meaning, everyday people cant invest in it.

But that doesnt mean youre completely locked out.

The Company That Fuels the New Space Race

Some say the biggest potential out there is in space tourism and shipping. Richard Bransons Virgin Galactic (NASDAQ: SPCE) leads the pack here offering customers the chance to fly out of the stratosphere for a couple hundred thousand dollars and musing about using space travel for ultra-fast commercial flights for the elites.

But the biggest thing out there with the biggest potential in my opinion hides in plain sight.

Im talking about defense contracts.

Defense contracts with the United States government often come in the form of billions of dollars paid out to companies.

And with the advent and formation of the Space Force under the Trump administration, we could see a massive surge in spending in the next couple years.

Already in 2021, the proposed budget of the Space Force is $15 billion for the fiscal year.

That may sound large, but theres a lot of room for that to grow. To put it in context, thats a tenth of the budget the Air Force, the Space Forces sister branch, gets. There are hundreds of billions of dollars out there to be spent, and todays pick has a great shot at getting a chunk of that change in the future.

Whether you need to send up satellites or people or cargo, youre going to need propulsion to get there.

And Aerojet Rocketdyne Holdings (NYSE: AJRD) is in an amazing spot right now to reap the benefits of the expansion of the Space Force.

AJRD has been a key player in the American space program since the very beginning.

In fact, in the mid-1960s, it was nearly the sole supplier of all U.S. rocket engines. It even built the F-1 engine for the Saturn V rocket, which helped carry astronauts to the moon.

Today, its the largest manufacturer of rockets and propellants in the world.

In its arsenal of credentials, its also helped land the Mars rover and is a key supplier of engines for NASAs huge upcoming moon rocket.

On top of this, it has caught the eye of Lockheed Martin (NYSE: LMT), which is set to buy out AJRD by the end of the year.

This is a huge deal for AJRD.

LMT already has a foot in the door with the Space Force, as show earlier this month. LMT was awarded a contract for $4.9 billion to produce three Next-Generation Overhead Persistent Infrared satellites for the Space Force.

AJRDs role will help LMT expand its space business, opening itself up to more contracts with the U.S. government in the future.

Its a game changer for both parties, and theres a lot of potential here.

So if LMT is buying out AJRD, then why not just buy LMT shares?

One of the best parts about AJRD is an upcoming situation that is almost 100% certain to bring in profits.

You see, they put a clause in the deal that guarantees a special $5 dividend for shareholders on March 24, 2021.

This is to be paid to all who own the stock by March 10, 2021.

Thats $5 per share that you own. So if you own 1,000 shares of AJRD by March 10, thats an immediate $5,000 in your pocket. 10,000 shares, $50,000 you get the idea.

On top of that, when AJRD shares are converted to LMT shares, youll get a nice, fat dividend paid out every year.

LMT is still far off its all-time highs after the markets tumble in 2020 and has a lot of room to grow.

The expansion of the Space Force and the additional contracts to be paid out make it a key company for the future.

Consider adding shares of AJRD today!

To a bright future,

Ray Blanco