Big Tech Is Suddenly Impacting Niche Market for US Dividends

The dominance of a few technology giants in the benchmark S&P 500 Index is now carrying over into the niche market for dividend futures and options.

The biggest impact from Nvidia Corp.’s earnings earlier this month wasn’t in US stocks: It was in a small but rapidly growing market for wagers on overall dividend payouts across the S&P 500. While most traders focused on earnings per share and capital spending plans, institutional investors active in the dividend space keyed in on Nvidia’s surprise 25 cent-per-share dividend, up from just a penny.

“In one fell swoop, Nvidia moved from ...