We present an overview of the scheduled dividend payments from large Danish corporates - an important seasonal factor for DKK in March and April.
The dividend effect and tighter DKK liquidity could extend recent choppy trading in EUR/DKK for a couple of months.
FX economics
Danish corporations pay the bulk of their dividends to shareholders in March and April every year. Investors abroad own more than 50% of Danish stocks. In contrast, Danish equity investors receive dividends on their holdings of foreign stocks over the course of the year. The mismatch creates a negative seasonal effect on DKK in March (see Chart 1). On previous occasions, e.g. in 2015, it led EUR/DKK to trade at an elevated level during this period. Hence, it is something we think bears watching in the short term. In Table 1 below, we present an overview of the scheduled dividend payments from the largest Danish corporations during March and April. We note that most of the payments are set to take place in the second half of March. In particular, around the 15, 16 and 23 March.
To read the entire report Please click on the pdf File Below: