CBOE is a high-quality dividend growth opportunity due to strong options trading growth and fair valuation.

So, what exactly is the reason for this? Well, you have to understand that Cboe is considered one of those capital-light, high-quality financial toll road businesses. Think about companies like Mastercard, Visa, S&P Global.

Obviously, those are different businesses, but they do share some characteristics.

In fact, you'll also notice when we look at Cboe's recent earnings report, they increased their 2026 organic total net revenue growth target to the mid to high teens from low double-digit to mid-teens.

So, not only are they growing and historically have grown at a healthy rate, they're increasing their guidance.

Now, why is that the case? Well, we still haven't got to the meat of their business model. A lot of the revenue they generate comes specifically from the growth that we're seeing in the options market.

Options trading, especially SPX and zero-days-to-expiration options, are driving a lot of growth for this stock.

In fact, zero-day options represented approximately 50% of Cboe's index options activity in Q1 of 2026. This is a trend that's only growing. So, naturally, when you look at earnings expectations for this stock, it's quite strong, particularly over the next couple of years.

Now, despite this growth, when we look at the valuation, you can still see they're essentially in line when looking at non-GAAP metrics with their historic valuation multiple. Trading at about a 20.82 non-GAAP forward PE multiple.

So, really, I would argue this is one of the higher quality dividend growth opportunities on the market right now. A low yield, but a nice runway for continued earnings and dividend growth.