My understanding of dividends is that the company pays each shareholder a fixed amount of money per share they own. I can see how this would work if the company is in profit, because the company can just say that they will use x % of its profits to cover the dividends.
However, what if the company is not in profit? Is it usual for the company to continue paying dividends even though this means they will be going even further into debt? Or do companies usually stop paying dividends at this point?