2025 was a decent year for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares. Last week, the ASX 200 closed at 8,714.3 points, up approximately 6.8% for the year. That's decent, although it could have been better if the index had held to the 9,114 point record high that we saw it hit back in June. But today, let's discuss an Australian dividend stock that ended the year down 15% from its 2025 high, which I believe represents a compelling opportunity for a buy-and-hold investment today.
That Australian dividend stock is none other than Lottery Corp Ltd (ASX: TLC).
Lottery Corp is a relative ASX newcomer, having been listed in its own right since just May of 2022. Since then, it has performed sluggishly, rising 6.25% since 2022 as of today's pricing.
Much of this sluggishness can be blamed on the 2025 slump that Lottery Corp endured late last year. Back in September, Lottery Corp hit a new all-time post-float high of $6 a share, putting it up about 25% from its 2022 ASX debut. However, since then, this Australian dividend stock has come off the boil, and quite dramatically. At today's $5.09 (at the time of writing), Lottery Corp shares are down roughly 15% from that September high.
A lukewarm reception of Lottery Corp's full-year earnings last August seems to be the culprit for this Australian dividend stock's share price slump since.
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An Australian dividend stock down 15%
To be fair, these earnings were not great. Lottery Corp reported a 6.2% drop in revenues, a 9.4% fall in earnings, and an 11.2% decline in net profits after tax. The one positive for shareholders was a 3.1% hike to the company's dividend.
Given these numbers, it makes sense for Lottery Corp's share price to take a hit.
Yet this hit might have created a buying opportunity for long-term investors. Lottery Corp has one of the most reliable earnings bases on the ASX. It holds exclusive licenses to run lotteries and Keno games in most Australian states and territories. Many of these licenses are valid for decades into the future.
Despite year-to-year fluctuations, history has shown that the popularity of lotteries and the like is enduring. I can't see the appeal of winning a jackpot fading into irrelevance in the years ahead. As such, Lottery Corp is looking tempting as an Australian dividend stock today. With a dividend yield of 3.25% at current pricing (which comes with full franking credits too), I think we are looking at a decent buy-and-hold opportunity for dividend investors.
