Dividend Futures Open Interest Up 80% After Nvidia Raises Payout to $0.25
JPM•Nvidia’s dividend jump from $0.01 to $0.25 propelled it from the 180th to the second-largest S&P 500 dividend payer, triggering an 80% surge in Dividend Index futures open interest to 523,332 contracts. JPMorgan strategist Bram Kaplan said this shift delivered gains on call options and boosted demand for listed derivatives.
1. Nvidia Dividend Hike Impact
Nvidia’s surprise increase from $0.01 to $0.25 per share elevated it from the 180th to the second-largest dividend payer in the S&P 500, representing 8.5% of the index. The magnitude of this payout raise drove call option prices sharply higher, with some contracts jumping nearly 300%.
2. Record Growth in Dividend Derivatives
Total open interest in S&P 500 Dividend Index futures and options climbed 80% year-over-year to 523,332 contracts. JPMorgan’s head of Americas equity derivatives, Bram Kaplan, highlighted that investors are shifting from OTC swaps to listed products to manage dividend exposure more efficiently.
