## How to Invest in AT&T Stock DRIPs
AT&T’s Dividend Reinvestment Plan (DRIP) allows shareholders to automatically reinvest their quarterly dividends in additional shares of AT&T common stock. This can be a convenient and cost-effective way to build your AT&T investment over time.
### Benefits of Investing in AT&T Stock DRIPs
There are several benefits to investing in AT&T stock DRIPs:
* **Convenience:** DRIPs allow you to automatically reinvest your dividends without having to take any action. This can save you time and hassle.
* **Cost-effective:** DRIPs can be a cost-effective way to invest in AT&T stock. There are no fees associated with enrolling in or participating in the DRIP.
* **Tax-advantaged:** Dividends reinvested through a DRIP are not subject to capital gains taxes until the shares are sold. This can save you money on taxes over time.
* **Long-term growth:** DRIPs can help you build your AT&T investment over time. By reinvesting your dividends, you can compound your returns and potentially increase your overall wealth.
### How to Enroll in AT&T’s DRIP
To enroll in AT&T’s DRIP, you must be a shareholder of record. You can enroll online, by mail, or by phone.
**Online enrollment:**
1. Go to the AT&T DRIP website.
2. Click on the “Enroll Now” button.
3. Follow the instructions on the screen.
**Mail enrollment:**
1. Download the AT&T DRIP enrollment form.
2. Fill out the form and mail it to the address provided.
**Phone enrollment:**
1. Call AT&T’s DRIP department at 1-800-685-6495.
2. Follow the instructions given by the customer service representative.
### How AT&T’s DRIP Works
Once you are enrolled in AT&T’s DRIP, your dividends will be automatically reinvested in additional shares of AT&T common stock. The shares will be purchased at the current market price on the dividend payment date.
You will receive a confirmation statement for each dividend reinvestment. The statement will show the number of shares purchased, the purchase price, and the total value of your investment.
### Fees Associated with AT&T’s DRIP
There are no fees associated with enrolling in or participating in AT&T’s DRIP. However, there may be fees associated with selling your shares.
### Tax Implications of AT&T’s DRIP
Dividends reinvested through a DRIP are not subject to capital gains taxes until the shares are sold. This can save you money on taxes over time.
However, you may be subject to income taxes on the dividends themselves. The amount of tax you owe will depend on your tax bracket.
### Risks of Investing in AT&T’s DRIP
As with any investment, there are risks associated with investing in AT&T’s DRIP. These risks include:
* **Market risk:** The value of AT&T’s stock can fluctuate with the market. This means that you could lose money on your investment if the stock price falls.
* **Dividend risk:** AT&T’s dividend is not guaranteed. The company could reduce or eliminate the dividend at any time.
* **DRIP fees:** There may be fees associated with selling your shares in the future.
### Conclusion
AT&T’s DRIP can be a convenient and cost-effective way to build your AT&T investment over time. However, it is important to understand the risks involved before investing.
If you are considering investing in AT&T’s DRIP, be sure to do your research and consult with a financial advisor.