"notes with dismay" is a grammatically correct phrase and can be used in written English.
It is typically used to describe someone's reaction to bad news or a disappointing situation. Example: The CEO of the company notes with dismay that profits have decreased by 20% in the first quarter of the year.
Patiently trying to pump some life into his friend, Carter notes with dismay the piles of stinking laundry.
At the Ghazi tent, an elderly chieftain notes with dismay: "The young people are so hasty nowadays.
"She exploded into our lives," Nadia, the younger sister, notes with dismay, "like a fluffy pink grenade".
Brooks notes with dismay the growing ranks of college students who happily affirm that, upon graduation, they will aim for financial success over other possible goals.
Save Our Schools notes, with dismay, that the Goldwater Institute has said it hopes to eliminate the 30,000 cap and greatly expand the ESA law.
The black feminist Bell Hooks notes with dismay that what many people took to be a "narrative of a crime of passion" had as its victim "a woman that many people, white and black, felt was like a whore.
Instead, we note with dismay that this very strong message is being lost on Turkey.
Rowse's authoritarian tone and his failure to credit the work of other Shakespearean scholars were also noted with dismay.
We've noted with dismay the absence of cogent positions on abortion and most matters of foreign policy.
I've talked to other parents who have also noted with dismay that their children, when young, refused to watch black-and-white shows.
The formalized paths had been marked with brightly colored plastic medallions nailed to nearby tree trunks, which, King noted with dismay, pedestrians like to pilfer as mementos.
