She upped her current position of PM by 5% which is also what the stock is already down year to date.
It's still her 2nd largest position: #1- BRK 15%, #2- PM 14%, #3- LO 8%, #4-JPM 5.7% (*short 57.5 call options that are in the money), #5 and #6- IBM and WFC both 5%, #7 and #8- AIG and MSFT both are 4.4%, #9-USB-3.8% and #10-COP 3.5% and also #11-KO 3.1% which could take JPM's place in February.
Grandma likes her dividends because in her case they're federally tax free.
yeah the tax code is very friendly for the first two brackets. I think for married couples the 15% bracket goes up to about $73k of taxable income before dividends or long term cap gains would be taxable, pretty generous