Normal
Okay so the P/E is 200 when price is about $2Working backwards earnings is $2 / 200therefore earnings is 0.01 (1c) where the hell is the dividend coming from if they are only earning 1cLooks like the company is either paying dividends from retained earnings and if the business stays as is the likelyhood of the continuing these dividends seem unlikely long term.OrThe dividend is the result of sale of some parts of the business.If the company is a mining company it could be the mine is finished production and they are just paying out shareholders cash the company has until it has no cash backing.
Okay so the P/E is 200 when price is about $2
Working backwards earnings is $2 / 200
therefore earnings is 0.01 (1c) where the hell is the dividend coming from if they are only earning 1c
Looks like the company is either paying dividends from retained earnings and if the business stays as is the likelyhood of the continuing these dividends seem unlikely long term.
Or
The dividend is the result of sale of some parts of the business.
If the company is a mining company it could be the mine is finished production and they are just paying out shareholders cash the company has until it has no cash backing.
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