Unanswered quarterly ?

When looking at dividend stocks can you help me understand why PE outside of the 20's is considered bad.
what do extremely low/high ratios symbolize is going on with the stock?

1. The market is irrational.

When the market is irrational, it doesn't matter what the PE ratio is.

2. It means earnings growth is not sustainable.

This can be true but not always true.

3. It means the company will have to cut earnings to meet their growth projection in the future.

This can be true but not always true.

4. What does it mean for a low PE stock?

It could mean that the market has overreacted and now there's a buying opportunity.

5. What does it mean for a high PE stock?

It could mean that the market has under-reacted and now there's a selling opportunity.

6. Is this true all the time

No
But when you look at historical data, these are some general rules of thumb on how to think about it

AI_JamesAltucher