1 Stock That's Quietly Paying Investors a Monster 5.5% Dividend Yield
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By Todd Shriber – Dec 18, 2025 at 9:32AM ESTKey PointsMany investors probably haven't heard of this high-yielding mid-cap, but some gamblers know its products well.The shares sport an eye-catching dividend yield, and the company is showing commitment to growing the payout.It operates in a recession-resilient corner of the wagering world.These 10 Stocks Could Mint the Next Wave of Millionaires ›NYSE: BRSLBrightstar Lottery PlcMarket Cap$3.0BToday's Changeangle-down(1.63%) $0.26Current Price$15.94Price as of December 18, 2025 at 10:45 AM ETBrightstar Lottery isn't the most popular betting stock on the market, but dividend investors could hit jackpots with it.Following some 2015 tinkering with the game format, the odds of winning a Powerball jackpot lengthened to 1-in-292.2 million from 1-in-175.2 million. Given those ratios, it's pretty clear that buyers of lottery tickets aren't investing (and they are also fighting some extremely long odds). Even with odds clearly stacked against them, Americans continue to indulge in the lottery. In 2023, the average American doled out $320 on lottery tickets. Clearly, that cash would be better allocated to a basic index fund, where it can generate long-term returns, particularly when compounded to the tune of $320 per year, but some folks just like to shoot for the stars. What if there were a way to actually profit from the lottery without hitting jackpots? There is, thanks to Brightstar Lottery (BRSL +1.63%), a relatively anonymous mid-cap stock with an eye-catching dividend yield of 5.51%. This overlooked lottery stock has a big dividend yield. Image source: Getty Images. Brightstar could be a bright spot for dividend investors Brightstar was previously known as International Game Technology (IGT). The name change was implemented after the company sold its digital gaming and slot machine businesses to Apollo Global Management in a deal that wrapped up in July. That makes Brightstar, the company behind Powerball, a pure-play lottery stock. It operates eight of the world's 10 largest lotteries. While lottery isn't nearly as "sexy" as internet casinos, prediction markets, or sports betting, dividend investors don't need glitz and glamor. They demand dependability and the potential for payout growth. Brightstar can deliver.Advertisement Through the Apollo transaction, the company generated $4 billion in proceeds, with half of the proceeds directed toward debt elimination, while the dividend remains a priority as well. In a recent investor presentation, Brightstar management used the word "protect" when discussing the dividend yield and the phrase "consistent to growing" when discussing the payout and share repurchases. ExpandNYSE: BRSLBrightstar Lottery PlcToday's Change(1.63%) $0.26Current Price$15.94Key Data PointsMarket Cap$3.0BDay's Range$15.69 - $15.9552wk Range$11.53 - $18.57Volume216KAvg Vol1.7MGross Margin43.42%Dividend Yield4.81% From 2025 through 2028, the company expects to generate $7.1 billion in cash, of which $1.7 billion will go toward shareholder rewards. Brightstar's yearly dividend obligation will hover around $160 million, but by executing significant buybacks (reducing its shares outstanding tally), the payout can grow. That potential growth has a solid foundation in Brightstar's forecast of $400 million in annual free cash flow (FCF) through 2028. Brightstar offers recession protection Some stocks are often viewed as recession-resistant ideas. The consumer staples sector comes to mind, but Brightstar Lottery could offer investors some protection if the economy goes haywire in 2026. Remember that $320 the average American spent on lotto tickets in 2023? That was only $11 higher than the average spend in 2022, while a bear market in stocks unfolded and as inflation spiked, resulting in a wave of interest rate hikes. Believe it or not, that's not a one-off example. Studies confirm that, despite various economic calamities, including the global financial crisis, state lottery sales have modestly risen. Here's to hoping a recession doesn't arrive anytime soon, but if one does, investors may not want to overlook the dividend growth and protection offered by Brightstar Lottery.Read NextSep 14, 2023 •By John BallardWhy International Game Technology Stock Jumped on ThursdayJun 8, 2023 •By Rich SmithWhy International Game Technology Stock Just PoppedNov 8, 2022 •By John BallardWhy International Game Technology Stock Jumped Higher TodayMay 10, 2022 •By Travis HoiumWhy International Game Technology Stock Popped 12.5% on TuesdayMar 1, 2022 •By Travis HoiumWhy International Game Technology Stock Fell 16.8% on TuesdaySep 23, 2021 •By Travis HoiumWhy International Game Technology Stock Jumped 13% Today