2 Brilliant Growth Stocks to Buy Now and Hold for the Long Term
Dividends that reward investor patience
Lockheed raised its quarterly dividend by 4.5% in 2025 to $3.45 a share, giving it a yield of around 2.5% at its current share price.
That yield has come down somewhat because the stock is up more than 36% so far this year. The company has increased its dividend for 24 consecutive years, for a total of 684%, so if it raises it again this year, it will join the Dividend Aristocrats®, the select group of S&P 500 companies that have increased their payouts for 25 or more consecutive years. (The term Dividend Aristocrats® is a registered trademark of Standard & Poor’s Financial Services LLC.)
The sky isn't the limit for BlackSky
BlackSky Technology, through its low Earth orbit satellites and Spectra software platform, provides high-frequency, high-resolution imagery and automated AI-powered analytics for defense and other purposes. It grew its backlog by 32% in 2025 to $345 million. The stock has climbed more than 29% so far in 2026.
The small-cap company can provide satellite imagery in real time, unlike traditional satellite systems, which may have significant lag times before they are in position to photograph the specific spot desired. BlackSky's system captures up to 15 images of each targeted location per day, which can be particularly helpful when monitoring moving targets, such as aircraft, ships, or forest fires.
BlackSky is on the road to being profitable
One thing that may cause investors to be hesitant about buying BlackSky is that it hasn't turned a profit since it went public in 2021 through a reverse merger with a special purpose acquisition company (SPAC).
That should change soon. In 2025, it reported revenue of $106.5 million, up 4.4%, and a loss of $2.09 per share, contracting from its loss of $2.67 per share in 2024. It also had its second consecutive year of positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) at $990,000. The company also booked a fourth-quarter loss of just $868,000 compared to its loss of $24.2 million in the prior-year period.
For 2026, management is predicting revenue to be between $120 million and $145 million, up 22% at the midpoint, and adjusted EBITDA between $6 million and $18 million, an increase of 122% at the midpoint.
A shift to high-margin SaaS and AI insights
Instead of just selling satellite photos, BlackSky is now moving to a software-as-a-service (SaaS) model, with tools that automatically highlight what has changed at a given location between satellite passes, and it provides the update within 90 minutes. Its move to a subscription-based model will likely result in higher gross margins that are more comparable to what software companies produce than the typical aerospace firm.
Diverse client bases help Lockheed and BlackSky
Over the past few years, the number of global conflicts has grown, requiring countries to reassess their defense needs. While Lockheed and BlackSky primarily market to the U.S. government, both have long-term contracts with U.S. allies.
Lockheed works with 50 countries, and BlackSky (though it keeps some of its deals confidential) has customers in the U.S., Europe, and Asia. That means even if the U.S. at some point trims its defense budget, these companies will have other customers to help them deliver growth.
Should you buy stock in BlackSky Technology right now?
Before you buy stock in BlackSky Technology, consider this:
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James Halley has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends BlackSky Technology. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy.
2 Brilliant Growth Stocks to Buy Now and Hold for the Long Term was originally published by The Motley Fool
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