Normal
dividends can be paid from retained earnings...maybe they had strong profits/earnings in previous years and had one bad year or some extraordinary items which pushed down earnings, so we get a high PE ratio. If the company sees this as a one off they may choose to continue paying high dividends from retained earnings with the expectation that earnings will return to "normal" levels next year.I don't know what company you are referring to but that is a scenario which may explain the discrepancy. Obviously maintaining high dividends when earnings are falling or using debt is unsustainable and irresponsible.
dividends can be paid from retained earnings...maybe they had strong profits/earnings in previous years and had one bad year or some extraordinary items which pushed down earnings, so we get a high PE ratio. If the company sees this as a one off they may choose to continue paying high dividends from retained earnings with the expectation that earnings will return to "normal" levels next year.
I don't know what company you are referring to but that is a scenario which may explain the discrepancy. Obviously maintaining high dividends when earnings are falling or using debt is unsustainable and irresponsible.
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