I have some MO and BTI shares, which pay super-high dividends. I also sell some ITM call leaps against them as hedge, but I am start to become skeptical now that inflation eats into earnings of tobacco companies.
People are spending more on gas, so they have to cut down on cigarettes. I am a non-smoker, so I think cutting down on cigarettes is the correct action. I only bought the shares for dividends and relatively low PE (inflation play), but not really agree with the mission of the tobacco companies.
Should I sell the shares? Is there any better alternative for dividend play?
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