According to one of the answers in the Schweser exam, an increase in the growth rate in dividends for stocks would increase the spot price of the equity inde and hence, the futures price as well. I thought that higher dividends lower prices of future contracts. Who can help? Reffering to Schweser CFAII, Volume 2, Exam 2, Question 114.
Here, since the dividend growth rate increases ALL future dividends are higher. This increases the PV of the cash flow from owning the stock, hence the price increases. While cash outflows during the period of the future (eg: 1 year) certainly reduces the value of the future for the long, the increase in growth here is most likely a long term, ongoing increase that extends well beyond the futures expiry